ABSTRACT. Non-Perishable Experience Goods (NPEG) – items which are rare, durable and expensive, such as vintage cars, samurai swords – sales have been on a steep upward trajectory for the past few decades. Online sales have also witnessed a multifold increase in the past twenty years. Buyers are drawn to online transactions due to the ease and convenience of the process. However, the non-standard nature and the inherent information asymmetry in the purchase of NPEG online, presents challenges in valuing the goods. We examine how online buyers value NPEG in an online setting. Regression Analysis was used to analyze a dataset of classic car auctions on an online platform. The sales were from 2015 to 2023 and the dataset has 42,715 records. Results suggest that the quality of the NPEG is correlated with its valuation. Similarly, vintage and product characteristics which distinguish the NPEG were also found to be positively correlated with the value of the NPEG. Finally, the relationship between quality and valuation is positively moderated by vintage. This study investigated how buyers evaluate the value of an NPEG in an online setting. The findings will help online buyers make better valuations; hence they will be able to benefit from the conveniences of online purchases. The findings would also benefit sellers of NPEG since they will better understand what cues to present to buyers for enhanced valuations. Finally, the study should inform policy makers on how to craft rules and policies to protect the interests of stakeholders in the relatively new online NPEG sale setting.
JEL codes: D23; D44

Keywords: experience goods; online sales; auctions; auction platforms; online auction; digital sales

How to cite: Jaiswal, M. (2024). “Value Drivers of Non-Perishable Experience Goods,” Economics, Management, and Financial Markets 19(1): 67–86. doi: 10.22381/emfm19120244.

Received 1 June 2024 • Received in revised form 23 June 2024
Accepted 24 June 2024 • Available online 10 July 2024