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Consumer response to online/offline price differentiation

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  • Fassnacht, Martin
  • Unterhuber, Sebastian

Abstract

This research explores the impact of channel-based price discrimination on key consumer reactions. Three experimental studies provide evidence that price differentiation with lower online prices is feasible. Results indicate the effects observed depend on the size of the price difference and differ between product categories. The studies provide evidence on the interplay of two central cognitive effects when facing channel-based price differences: (a) implicit assumptions on higher costs running a conventional store which may justify differing prices versus (b) a general negative attitude towards price discrimination. Moreover, we show actively communicating additional value provided offline fosters acceptance of price discrimination.

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  • Fassnacht, Martin & Unterhuber, Sebastian, 2016. "Consumer response to online/offline price differentiation," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 137-148.
    • Handle: RePEc:eee:joreco:v:28:y:2016:i:c:p:137-148
    DOI: 10.1016/j.jretconser.2015.09.005
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