One firm, one product, two prices: Channel-based price differentiation and customer retention

Vogel, Julia K.; Paul, Michael

doi:10.1016/j.jretconser.2015.07.007

Cited by 41 publications

(22 citation statements)

References 118 publications

(183 reference statements)

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“…Then, in 1932 Pigou [7] categorized it into three types according to the degree of discrimination. Price discrimination, which has been extensively studied in various fields such as airlines [8,9], retail [10] and so on, is shown to have a positive effect on earnings to increase profitability [11]. Both theoretical and empirical studies show that the premise of price discrimination is to have a flexible market that can be segmented.…”

Section: Development and Application Of Price Discriminationmentioning

confidence: 99%

Differential Pricing Strategies of High Speed Railway Based on Prospect Theory: An Empirical Study from China

Qin

et al. 2019

Sustainability

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Based on the single pricing method of the high-speed railway (HSR) in China, a pricing strategy without flexibility leads to the problem of extreme fluctuations in passenger flow and difficulty in increasing revenue. In order to achieve sustainable development of the HSR from the perspective of pricing, in this study, we divided the passenger market according to the different factors affecting passengers' choice behavior, maximized ticket sales revenue with expected travel cost as the reference point, and used prospect theory to construct a differentiated pricing model under elastic demand. A simulated annealing algorithm was used to solve this model under two passenger flow intensities. Taking the Beijing-Shanghai corridor as an example for analysis, the results show that differential pricing can be implemented on the basis of passenger decision-making, and price reductions at off-peak periods will attract passenger flow which will increase ticket sales revenue by 10.41%. During the peak period, prices can be increased to maintain passenger flow, and ticket sales revenue will increase by 7.98%. We also found that increasing passenger expectations have a greater impact on ticket sales. This study provides theoretical and methodological support for the sustainable development of the HSR.

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Section: Development and Application Of Price Discriminationmentioning

confidence: 99%

Differential Pricing Strategies of High Speed Railway Based on Prospect Theory: An Empirical Study from China

Qin

et al. 2019

Sustainability

View full text Add to dashboard Cite

show abstract

“…This may be due to both inherent channel attributes and the willingness to pay of particular buyer [20]. As is stated in [21], channel-based price differentiation is perceived in an ambivalent manner; interchannel price differences have positive impact on buyers perceptions of value, increase relationship quality and enhances repurchase intentions, but it also leads to perceptions of price unfairness and limits customer self-determination, which negatively affect retention outcomes.…”

Section: Customer Journey In Buying Processmentioning

confidence: 99%

Switching Marketing Channel in the Purchase Process – What Pushes Consumers to Change Behavior

Lipowski¹

2018

Integrated Politics of Research and Innovations

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This paper investigates the factors affecting intention to switch the distribution channel during purchase process. The change in the sales channel has been defined as a change in the original plans for the place of purchase of the product under the influence of external factors. Author tests different factors that influence customer behavior: marketing activities of companies, different product price, positive WOM, personal factors-e.g. time pressure, company error-e.g. system failure. The conclusions from the quantitative research allow author to indicate some practical tips for companies that redirect consumers to remote purchase channels. In the article data from the questionnaire survey have been used (research sample 1103).

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“…Choi and Mattila (2009) demonstrated that multichannel pricing strategy (uniform vs differential pricing) influences consumer fairness perception, and further, that these influences are moderated by both price frame and norm perception. Using a laboratory experiment, Vogel and Paul (2015) showed that channel-based price differentiation positively affects customers through perceived value but harms retention through price unfairness and limited self-determination. Emrich et al (2015) investigated retailers’ multichannel product assortment integration and found that full integration (i.e.…”

Section: Literature Reviewmentioning

confidence: 99%

Online product category and pricing strategies of land-based retailers

Chang

Yan

et al. 2019

INTR

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Purpose The purpose of this paper is to understand how two online marketing orientations of land-based retailers in product category and price could change retail brand attitude when retail brand familiarities differ. Design/methodology/approach This paper proposes a research model with two orientations in product category and price as antecedents of retail brand attitude change and retail brand familiarity as a moderator. Empirical data were collected from 684 shoppers across three land-based retailers to test the research hypotheses. Findings Both orientations in product category and price can improve customers’ retail brand attitudes. Retail brand familiarity plays a significant moderator in some of the situations. Online-offline product category congruence and online-prototypical price congruence have significantly positive effects on retail brand attitude change whether retail brand familiarity is high or low. The effect of online-offline price congruence is significant only among high-familiarity customers, while the effect of online-prototypical product category congruence is found to be significant only among low-familiarity customers. Research limitations/implications The study identifies the moderating effects of retail brand familiarity on the relationships between two online marketing orientations in product category and price and retail brand attitude change. Based on the moderating effects, this study will help researchers to better understand the effectiveness of two online marketing orientations subject to varying degrees of retail brand familiarity in a multichannel retailing context. Practical implications The findings of this study can guide land-based retailers to focus on the right orientations in product category and price to improve customers’ attitudes toward the retail brand when existing or new customers are targeted. Originality/value This study provides a first study to empirically assess the change in retail brand attitude prompted by homogenous and prototypical orientations in product category and price and subject to varying degrees of retail brand familiarity. Overall, the results offer insights of how land-based retailers could manage their overall performance by designing more effective online product category and pricing strategies for existing or new customers.

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One firm, one product, two prices: Channel-based price differentiation and customer retention

Cited by 41 publications

References 118 publications

Differential Pricing Strategies of High Speed Railway Based on Prospect Theory: An Empirical Study from China

Differential Pricing Strategies of High Speed Railway Based on Prospect Theory: An Empirical Study from China

Switching Marketing Channel in the Purchase Process – What Pushes Consumers to Change Behavior

Online product category and pricing strategies of land-based retailers

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