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The impact of price disclosure on dynamic shopping decisions

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Listed:
  • Dellaert, B.G.C.

    (Marketing & Supply Chain Management)

  • Golounov, V.Y.

    (Externe publicaties SBE)

  • Prabhu, J.

    (Externe publicaties SBE)

Abstract

A potentially powerful way to assist consumers in making dynamic shopping decisions is to disclose price information to them before they shop, for example by posting prices on the Internet. This paper addresses the differential impact of disclosing either only current, or both current and future prices, on consumer shopping decisions in multi-period tasks involving multiple product purchases. In the context of an Internet-based experiment, we find that consumer expenditure deviates more strongly from that of a normative model when both current and future prices are disclosed than if only current prices are disclosed. We investigate the behavioral effects underlying this finding by estimating a model that allows for variations in consumer discounting, strength of store price format preferences, as well as choice consistency between different price disclosure conditions. Copyright Springer Science + Business Media, Inc. 2005
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Dellaert, B.G.C. & Golounov, V.Y. & Prabhu, J., 2005. "The impact of price disclosure on dynamic shopping decisions," Research Memorandum 007, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    • Handle: RePEc:unm:umamet:2005007
    DOI: 10.26481/umamet.2005007
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