Record Details

WHY EXPECT LOWER PRICES ONLINE? EMPIRICAL EXAMINATION IN ONLINE AND STORE-BASED RETAILERS

International Journal of Electronic Commerce Studies

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Title WHY EXPECT LOWER PRICES ONLINE? EMPIRICAL EXAMINATION IN ONLINE AND STORE-BASED RETAILERS
 
Creator Lo, Shao-Kang; Chinese Culture University
Hsieh, Ai-Yun; National Taiwan University of Science and Technology
Chiu, Yu-Ping; National Taiwan University of Science and Technology
 
Subject Overhead Cost; Price Perception; Internal Reference Price; Online Retailers; Store-Based Retailers
 
Description This study extends prior research by examining consumer expectations regarding the lower price of products found in online shopping stores and considers the role of overhead cost in consumer decision-making. By using a laboratory experiment method, we verified the difference in the perceived overhead cost between the two types of retailers and the relationship between perceived overhead cost and internal reference pricing. This study involved 123 subjects. The findings show that consumers perceive online retailers’ overhead costs as lower than store-based retailers’ overhead costs and that lower perceived overhead prices cause consumers to have lower internal reference prices. This study supplements e-commerce research, can assist retailers in understanding consumers’ perceptions of overhead cost and product prices, and serves as a reference for online retailers attempting to create pricing strategies.To cite this document: Shao-Kang Lo, Ai-Yun Hsieh, and Yu-Ping Chiu, "Why expect lower prices online? Empirical examination in online and store-based retailers", International Journal of Electronic Commerce Studies, Vol.5, No.1, pp. 27-38, 2014.Permanent link to this document:http://dx.doi.org/10.7903/ijecs.1191
 
Publisher Academy of Taiwan Information Systems Research
 
Contributor —
 
Date 2014-07-25
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
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Format application/pdf
 
Identifier http://academic-pub.org/ojs/index.php/ijecs/article/view/1191
 
Source International Journal of Electronic Commerce Studies; Vol 5, No 1 (2014); 27-38
2073-9729
 
Language eng
 
Relation http://academic-pub.org/ojs/index.php/ijecs/article/view/1191/164
 
Rights Copyright (c) 2014 International Journal of Electronic Commerce Studies