Are You Leaving Money on the Table?

Abstract

When the price is right, profits follow.

The effects of buyer identification and purchase timing on consumers’ perceptions of trust, price fairness, and repurchase intentions

“…The use of dynamic pricing in auctions and in B2B e-commerce has found wider acceptability than the use of such price segmentation and differentiation among other e-commerce consumer markets. Dynamic pricing has been noted to be especially useful for price optimization, transaction efficiency, and revenue management (Friesen, 2003;Heun, 2001;Kambil, Wilson, & Agarwal, 2002). This pricing tactic can be especially useful for optimal price determination, as in auctions, or for products with more commodity-like and/or standardized features.…”

Dynamic targeted pricing with strategic consumers

“…This is because "some consumers get savvy and change their buying behavior to accommodate the new realities of dynamic pricing," or to "outsmart" targeted pricing mechanisms, all through forgoing or delaying current consumption in a bid for a lower price (Kambil et al, 2002;Maw, 2002). In the case of telephone service, for instance, a consumer who prefers AT&T can still get its discount meant for attracting new customers if she simply terminates (or even threatens to terminate) AT&T service temporarily.…”

Pricing strategies in the era of digitalisation and the perceived shift in consumer behaviour of youth in Poland

“…Time based pricing is very prevalent across industries. According to Kambil, Wilson and Agrawal (2002), in fashion and electronics the customer is willing to pay a premium for being the first to acquire a product whereas in travel and leisure the customer is willing to pay a premium to keep his options open till the last minute. This has led to the development of two common pricing strategy, namely, peak load pricing and clearance pricing.…”