Pricing on the Internet
Abstract
Conventional theories suggest that the Internet will drive down prices and lead to perfectly competitive prices. However, there is contradictory evidence indicating that online prices are not absolutely lower than offline stores. Regardless, the Internet gives rise to many opportunities for leveraging pricing strategies, in research and testing capabilities, customer segmentation, dynamic pricing, product differentiation, developing brand loyalty, including shipping and handling in the profitability analysis, offering multiple versions, and creating or participating in electronic marketplaces. The trading platform of eBay, Priceline’s reverse auction, and price comparison Web sites are examples of novel Internet pricing models that are helping create a new pricing paradigm.
Keywords
Citation
Kung, M., Monroe, K.B. and Cox, J.L. (2002), "Pricing on the Internet", Journal of Product & Brand Management, Vol. 11 No. 5, pp. 274-288. https://doi.org/10.1108/10610420210442201
Publisher
:MCB UP Ltd
Copyright © 2002, MCB UP Limited