IDEAS home Printed from https://ideas.repec.org/a/gam/jscscx/v7y2018i9p153-d168455.html
   My bibliography  Save this article

Factors Influencing Consumer Behavior and Prospective Purchase Decisions in a Dynamic Pricing Environment—An Exploratory Factor Analysis Approach

Author

Listed:
  • Vijay Victor

    (Doctoral School of Management and Business Administration, Szent Istvan University, Godollo 2100, Hungary)

  • Jose Joy Thoppan

    (Saintgits Institute of Management, Kerala 686532, India)

  • Robert Jeyakumar Nathan

    (Faculty of Business, Multimedia University, Melaka 75450, Malaysia)

  • Fekete Farkas Maria

    (Faculty of Economics and Social Sciences, Szent Istvan University, Godollo 2100, Hungary)

Abstract

The rapid advancements in information and communication technology during the third industrial revolution of the late 20th century has marked the beginning of a new era in the retail sector with the introduction of E-commerce. The dawn of the new century witnessed industry 4.0, revolutionizing all areas of online business by bringing in novel opportunities and possibilities. Despite the progress in technology, the determination of correct pricing on online selling platforms still remains a very complex task. The adoption of big data technology has enabled online sellers to make real-time price changes of high magnitude and proximity. However, with increasing awareness among buyers regarding modern pricing strategies, it is necessary to examine probable changes in consumer behavior when exposed to dynamic pricing scenarios. This study investigates the factors that influence consumer behavior, and their prospective online purchase decisions in a dynamic pricing context, through an exploratory factor analysis approach. A primary research survey was conducted, and 178 samples were finalized for data analysis through a series of web surveys completed by respondents in India. This study identifies, measures and classifies 27 research items into variables, namely shopping experience, privacy concerns, awareness about dynamic pricing, buying strategy, fair price perceptions, reprisal intentions and intentions for self-protection. These seven factors could be used to explain consumer behavior in a dynamic pricing situation.

Suggested Citation

  • Vijay Victor & Jose Joy Thoppan & Robert Jeyakumar Nathan & Fekete Farkas Maria, 2018. "Factors Influencing Consumer Behavior and Prospective Purchase Decisions in a Dynamic Pricing Environment—An Exploratory Factor Analysis Approach," Social Sciences, MDPI, vol. 7(9), pages 1-14, September.
    • Handle: RePEc:gam:jscscx:v:7:y:2018:i:9:p:153-:d:168455
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-0760/7/9/153/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2076-0760/7/9/153/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    2. Vincent Mak & Amnon Rapoport & Eyran J. Gisches, 2018. "Dynamic Pricing Decisions and Seller-Buyer Interactions under Capacity Constraints," Games, MDPI, vol. 9(1), pages 1-23, February.
    3. Daniel Kahneman & Richard H. Thaler, 2006. "Anomalies: Utility Maximization and Experienced Utility," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 221-234, Winter.
    4. Mircea Răducu TRIFU & Mihaela Laura IVAN, 2014. "Big Data: present and future," Database Systems Journal, Academy of Economic Studies - Bucharest, Romania, vol. 5(1), pages 32-41, May.
    5. Wedad Elmaghraby & P{i}nar Keskinocak, 2003. "Dynamic Pricing in the Presence of Inventory Considerations: Research Overview, Current Practices, and Future Directions," Management Science, INFORMS, vol. 49(10), pages 1287-1309, October.
    6. Kelly L. Haws & William O. Bearden, 2006. "Dynamic Pricing and Consumer Fairness Perceptions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 33(3), pages 304-311, October.
    7. Celina M. Olszak & Joseph Zurada, 2015. "Information Technology Tools For Business Intelligence Development In Organizations," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 12(1), pages 132-142, DEcember.
    8. Gyorgy Kovacs & Sebastian Kot, 2016. "New Logistics And Production Trends As The Effect Of Global Economy Changes," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 14(2), pages 115-126, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ruxandra Lazea & Anca Nichita, 2022. "Latest Advances And Changes In Purchasing Behavior Under The Impact Of The Covid-19 Pandemic," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 211-215, August.
    2. Hae Choi, Jong & Park, Yonghwa, 2022. "Exploring economic feasibility for airport shuttle service of urban air mobility (UAM)," Transportation Research Part A: Policy and Practice, Elsevier, vol. 162(C), pages 267-281.
    3. Reetika Sehgal & Prateek Khanna & Mayank Malviya & Ashish Mohan Dubey, 2023. "Shopping Safety Practices Mutate Consumer Buying Behaviour during COVID-19 Pandemic," Vision, , vol. 27(5), pages 604-615, November.
    4. David Juárez-Varón & Victoria Tur-Viñes & Alejandro Rabasa-Dolado & Kristina Polotskaya, 2020. "An Adaptive Machine Learning Methodology Applied to Neuromarketing Analysis: Prediction of Consumer Behaviour Regarding the Key Elements of the Packaging Design of an Educational Toy," Social Sciences, MDPI, vol. 9(9), pages 1-23, September.
    5. G. Somasekhar & K. Srinivasa Krishna & Ashok Kumar Reddy & T. Kishore Kumar & G. Somasekhar, 2021. "Shopper Segmentation Using Multivariate Risk Analysis for Innovative Marketing Strategies," International Journal of Asian Business and Information Management (IJABIM), IGI Global, vol. 12(1), pages 60-74, January.
    6. Tomasz Zalega, 2024. "Buying Behaviour of Polish Urban Silver Singles: Choices of Market Products and Shopping Places," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1, pages 34-59.
    7. Mohammed Arshad Khan & Vivek & Syed Mohd Minhaj & Mohd Afzal Saifi & Shahid Alam & Asif Hasan, 2022. "Impact of Store Design and Atmosphere on Shoppers’ Purchase Decisions: An Empirical Study with Special Reference to Delhi-NCR," Sustainability, MDPI, vol. 15(1), pages 1-24, December.
    8. Alexandra Fernandes & Luís U. Afonso, 2020. "Online Sales and Business Model Innovation in Art Markets: A Case Study," Social Sciences, MDPI, vol. 9(2), pages 1-15, January.
    9. Robert Jeyakumar Nathan & Vijay Victor & Chin Lay Gan & Sebastian Kot, 2019. "Electronic commerce for home-based businesses in emerging and developed economy," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(4), pages 463-483, December.
    10. Sobhi Mejjouali & Lotfi Tadj, 2023. "Internet digital content pricing and subscribers control," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 33(3), pages 59-73.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thi Mai Le & Shu-Yi Liaw, 2017. "Effects of Pros and Cons of Applying Big Data Analytics to Consumers’ Responses in an E-Commerce Context," Sustainability, MDPI, vol. 9(5), pages 1-19, May.
    2. Qi (George) Chen & Stefanus Jasin & Izak Duenyas, 2016. "Real-Time Dynamic Pricing with Minimal and Flexible Price Adjustment," Management Science, INFORMS, vol. 62(8), pages 2437-2455, August.
    3. Bernardo Bertoldi & Chiara Giachino & Alberto Pastore, 2016. "Strategic pricing management in the omnichannel era," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2016(4), pages 131-152.
    4. Cristina STOICESCU, 2016. "Big Data, the perfect instrument to study today's consumer behavior," Database Systems Journal, Academy of Economic Studies - Bucharest, Romania, vol. 6(3), pages 28-42, January.
    5. Peter Seele & Claus Dierksmeier & Reto Hofstetter & Mario D. Schultz, 2021. "Mapping the Ethicality of Algorithmic Pricing: A Review of Dynamic and Personalized Pricing," Journal of Business Ethics, Springer, vol. 170(4), pages 697-719, May.
    6. Richards, Timothy J. & Liaukonyte, Jura & Streletskaya, Nadia A., 2016. "Personalized pricing and price fairness," International Journal of Industrial Organization, Elsevier, vol. 44(C), pages 138-153.
    7. Bechwati, Nada Nasr & Sisodia, Rajendra S. & Sheth, Jagdish N., 2009. "Developing a model of antecedents to consumers' perceptions and evaluations of price unfairness," Journal of Business Research, Elsevier, vol. 62(8), pages 761-767, August.
    8. Vasiliki Kostami, 2020. "Price and Lead time Disclosure Strategies in Inventory Systems," Production and Operations Management, Production and Operations Management Society, vol. 29(12), pages 2760-2788, December.
    9. Hufnagel, Gerrit & Schwaiger, Manfred & Weritz, Louisa, 2022. "Seeking the perfect price: Consumer responses to personalized price discrimination in e-commerce," Journal of Business Research, Elsevier, vol. 143(C), pages 346-365.
    10. Theotokis, Aristeidis & Pramatari, Katerina & Tsiros, Michael, 2012. "Effects of Expiration Date-Based Pricing on Brand Image Perceptions," Journal of Retailing, Elsevier, vol. 88(1), pages 72-87.
    11. Nunan, Daniel & Di Domenico, MariaLaura, 2022. "Value creation in an algorithmic world: Towards an ethics of dynamic pricing," Journal of Business Research, Elsevier, vol. 150(C), pages 451-460.
    12. Keller, Alisa & Vogelsang, Mila & Totzek, Dirk, 2022. "How displaying price discounts can mitigate negative customer reactions to dynamic pricing," Journal of Business Research, Elsevier, vol. 148(C), pages 277-291.
    13. Prakash, David & Spann, Martin, 2022. "Dynamic pricing and reference price effects," Journal of Business Research, Elsevier, vol. 152(C), pages 300-314.
    14. Richards, Timothy & Liaukonyte, Jura & Nadia, Streletskya, 2016. "Personalized Pricing and Price Fairness," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235809, Agricultural and Applied Economics Association.
    15. Wamsler, Julia & Natter, Martin & Algesheimer, René, 2022. "Transitioning to dynamic prices: Should pricing authority remain with the company or be delegated to the service employees instead?," Journal of Business Research, Elsevier, vol. 139(C), pages 1476-1488.
    16. Han, Shaojie & Su, Jingqin & Lyu, Yibo & Liu, Qing, 2022. "How do business incubators govern incubation relationships with different new ventures?," Technovation, Elsevier, vol. 116(C).
    17. Mariani, Marcello M. & Fosso Wamba, Samuel, 2020. "Exploring how consumer goods companies innovate in the digital age: The role of big data analytics companies," Journal of Business Research, Elsevier, vol. 121(C), pages 338-352.
    18. De Munck, Thomas & Chevalier, Philippe & Tancrez, Jean-Sébastien, 2023. "Managing priorities on on-demand service platforms with waiting time differentiation," International Journal of Production Economics, Elsevier, vol. 266(C).
    19. Pietro Cunha Dolci & Antonio Carlos Gastaud Maçada, 2014. "Information technology investments and supply chain governance," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 18(2), pages 217-235.
    20. Junyon Im & Sunny Sun, 2015. "Profits and outreach to the poor: The institutional logics of microfinance institutions," Asia Pacific Journal of Management, Springer, vol. 32(1), pages 95-117, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jscscx:v:7:y:2018:i:9:p:153-:d:168455. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.