The Economics of Secondhand Clothes in Elbids - An Online Market

Date

1-2024

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Ma. Nova R. Nguyen

Committee Member

Luisito Abueg, Gideon P. Carnaje, Ma. Angeles O. Catelo

Abstract

This study addresses the developments in secondhand clothing market within the Asian context, with specific focus on consumer behavior in the peer-to-peer e-commerce platform ELBids, Using Google Forms, the researcher collected 78 ELBids members’ responses for the investigation of market demand for secondhand clothes in ELBids, the factors affecting their purchase and non-purchase, and the demand elasticity of secondhand clothes in ELBids. The Negative Binomial Regression was used to estimate the demand curve, elasticity was estimated using the double-logarithmic model, and consumer surplus was computed using the summation formula from Abueg (2005).

Results show that majority of the patrons of secondhand clothes from ELBids are students aged 20 to 24 with motivation primarily rooted in environmental and economic considerations. Respondents expressed concerns about hygiene, information assymetry, size availability, and lack of return policy affecting their purchase decisions. The study also highlights the ease of transactions in ELBids as a key driver for purchase. Demand elasticity suggests that secondhand clothes on ELBids are normal, price-elastic goods, acting as substitutes for brand-new clothing. Consumer surplus analysis demonstrates that consumers benefit more economically by purchasing secondhand clothes from ELBids than brand-new alternatives from online shops.

Despite the study's contributions, limitations such as a small sample size, selection bias, and data constraints pose challenges to the significance of the regression results. Replicability is maintained through methodological consistency with Abueg (2005), but improvements, such as a larger sample size and refined questionnaire design, are recommended for future research.

Language

English

LC Subject

Secondhand Trade, Electronic Commerce

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 E2 M66

Notes

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Document Type

Thesis

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