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Consumer response to online/offline price differentiation |
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| Institution: | 1. The Business School, University of Gloucestershire, Park Campus, The Park, Cheltenham GL50 2RH, United Kingdom;2. School of Materials, The University of Manchester, PO Box 88, Manchester M60 1QD, United Kingdom;1. Audencia Nantes School of Management, Research Center in Marketing & Distribution In Situ, 8 Route de la Jonelière, BP 31222, 44312 Nantes Cedex 3, France;2. IUT de Saint-Nazaire, LEMNA, 58 Rue Michel-Ange, BP 420, 44600 Saint Nazaire, France;1. Peoples Institute of Management & Research, Peoples University, Bhopal, MP, India;2. Maulana Azad National Institute of Technology (MANIT), Bhopal, MP, India;1. Kedge Business School, 680 cours de la libération, 33405 Talence, France;2. Holder of the Business in a Connected World Chair Kedge Business School, 680 cours de la libération, 33405 Talence, France |
| 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. |
| Keywords: | Multi-channel retailing Price differentiation Price discrimination Retail pricing Channel pricing |
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