Online retailers' price structure decisions in competitive markets: A structure–conduct–performance framework

Abstract

It is theoretical and managerial significant to explore the determinants of retailers' decisions between a combined price structure and a partitioned price structure and the effect of their decisions on a manufacturer's product sales in competitive markets. Based on the structure–conduct–performance framework, we reveal that market structure‐related characteristics, such as the number of retailers, the degree of retailer differentiation, whether a dominant retailer in the market, and the number of product substitutes, significantly affect retailers' price structure decisions. Furthermore, more retailers adopting a combined price structure decrease the product sales, although the size of retailers mitigates this effect.

How green advertising and power structures affect competition between green and non‐green manufacturers?

“…Our research is also closely related to the examination of power structure and its impact on corporate decision-making and performance (Chai et al, 2021;Luo et al, 2017;Wang et al, 2023). Numerous studies focus on the game between supply chain members under various supply chain power structures (Lu & Menezes, 2024;Zhang et al, 2022).…”

“…In the competitive landscape, market leaders typically possess greater financial resources and market influence, enabling them to exploit these assets to access abundant information and acquire a privileged decision-making position (Luo et al, 2017;Wang et al, 2023).…”

“…In the competitive landscape, market leaders typically possess greater financial resources and market influence, enabling them to exploit these assets to access abundant information and acquire a privileged decision‐making position (Luo et al, 2017; Wang et al, 2023). Conversely, market followers adopt a relatively passive approach in decision‐making and actions, awaiting the market leader's initiatives and adapting their strategies accordingly (Chai et al, 2021; Chen et al, 2017).…”

The effect of partitioned framing vs. all-inclusive framing of donation amount on prosocial behavior: focus on the moderation effect of psychological characteristics

“…These findings suggest that merely changing the format or frame of the prosocial campaign information can alter people's thoughts, attitudes, and eventually behavior. For instance, previous studies have shown that message appeals presented in positive and negative frames (e.g., Grewal et al, 1994;Kim and Song, 2023), framing of attribute information of a product (e.g., 75% lean vs. 25% fat) (e.g., Levin and Gaeth, 1988), framing of gain and loss (e.g., Nabi et al, 2020;Gantiva et al, 2021;Gursoy et al, 2022;Kim, 2022;Peng et al, 2022;Stadlthanner et al, 2022;Ort et al, 2023), and presentation of prices (e.g., partitioned price vs. all-inclusive) (e.g., Morwitz et al, 1998;Hamilton and Srivastava, 2008;Völckner et al, 2012;Choi et al, 2020;Marquez et al, 2022;Wang et al, 2023) can yield different results depending on the way the information is presented.…”