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Pricing and the Internet:: Frictionless Commerce or Pricer's Paradise?

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  • Ancarani, Fabio

Abstract

Are firms competing in a new world of frictionless e-commerce or is the Internet a pricer's paradise? It is not safe, at the moment, to say that the Internet is lowering online prices, decreasing price dispersion and increasing online customer price sensitivity. The strategic issue for firms pricing on the Net is avoiding the 'commodity trap' and taking advantage of the 'other side' of information transparency. Firms should increasingly rely on finer segmentation of their customers and resort to dynamic and smart pricing, product and price versioning and bundling. Multichannel and customer lifetime value pricing will become strategic issues.

Suggested Citation

  • Ancarani, Fabio, 2002. "Pricing and the Internet:: Frictionless Commerce or Pricer's Paradise?," European Management Journal, Elsevier, vol. 20(6), pages 680-687, December.
    • Handle: RePEc:eee:eurman:v:20:y:2002:i:6:p:680-687
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    Citations

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    Cited by:

    1. Oliver Hinz & Jochen Eckert, 2010. "The Impact of Search and Recommendation Systems on Sales in Electronic Commerce," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 2(2), pages 67-77, April.
    2. Mahyar Sharif Vaghefi & Mahrad Sharif Vaghefi & Neshat Beheshti, 2014. "A pricing model for group-buying auction based on customers' waiting-time," Marketing Letters, Springer, vol. 25(4), pages 425-434, December.
    3. Leila Ebrahimi & Vahid Reza Mirabi & Mohammad Hossein Ranjbar & Esmaeil Hassan Pour, 2019. "A Customer Loyalty Model for E-Commerce Recommendation Systems," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 18(03), pages 1-33, September.
    4. Jiang, Yuanchun & Shang, Jennifer & Liu, Yezheng, 2013. "Optimizing shipping-fee schedules to maximize e-tailer profits," International Journal of Production Economics, Elsevier, vol. 146(2), pages 634-645.
    5. Grein, Theresa & Herrmann, Roland, 2016. "Price Setting in Online Grocery Markets: The Case of Chocolate," 2016 International European Forum (151st EAAE Seminar), February 15-19, 2016, Innsbruck-Igls, Austria 244457, International European Forum on System Dynamics and Innovation in Food Networks.
    6. Fedoseeva, Svetlana & Herrmann, Roland & Nickolaus, Katharina, 2017. "Was the economics of information approach wrong all the way? Evidence from German grocery r(E)tailing," Journal of Business Research, Elsevier, vol. 80(C), pages 63-72.
    7. Tomasz Galewski, 2015. "Book price dispersion in Polish online bookstores," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 36, pages 499-510.
    8. Rainer Alt, 2016. "Electronic Markets on customer-orientation," Electronic Markets, Springer;IIM University of St. Gallen, vol. 26(3), pages 195-198, August.
    9. Tomasz Galewski, 2017. "Price Dispersion of Books on the Polish Online Bookshop Market," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 44, pages 121-132.
    10. Hillen, Judith, 2018. "Web Scraping For Food Price Research," 58th Annual Conference, Kiel, Germany, September 12-14, 2018 275840, German Association of Agricultural Economists (GEWISOLA).
    11. Tomasz Galewski, 2015. "Problems in measuring price dispersion in e-commerce," Working Papers 50/2015, Institute of Economic Research, revised Apr 2015.
    12. Fedoseeva, Svetlana & Grein, Theresa & Herrmann, Roland, 2017. "How German Online Retailers Price Foods: An Empirical Analysis for Chocolate Products," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 8(1), pages 1-13, January.

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