Are airline passengers ready for personalized dynamic pricing? A study of German consumers

Krämer, Andreas; Friesen, Mark; Shelton, Tom

doi:10.1057/s41272-017-0122-0

Cited by 28 publications

(26 citation statements)

References 12 publications

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“…Second, it gives a structured overview on the current state of the art of literature on interpersonal price discrimination and PDP and uncovers research gaps that have not yet been subject to investigation. Third, it extends previous research on consumer perceptions of interpersonal price discrimination (Wu et al 2012) and PDP (Krämer et al 2018) with two empirical studies. In addition, this article is the first to analyze consumer privacy concerns in the context of PDP.…”

Section: Introductionsupporting

confidence: 67%

“…More recent research has particularly focused on dynamic pricing. In its traditional sense, this form of intertemporal price discrimination entails price changes over time due to fluctuations in supply, demand, competition, or other factors (Krämer et al 2018). Prices thus vary depending on the time of purchase but are the same across consumers at a given time (Abrate et al 2019).…”

Section: Introductionmentioning

confidence: 99%

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A special price just for you: effects of personalized dynamic pricing on consumer fairness perceptions

Priester

Robbert

Roth

2020

J Revenue Pricing Manag

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Personalized dynamic pricing (PDP) involves dynamically setting individual-consumer prices for the same product or service according to consumer-identifying information. Despite its profitability, this pricing provokes strong negative fairness perceptions, explaining why managers are reluctant to implement it. This research provides important insights into the effect of two PDP dimensions (price individualization level and segmentation base) on fairness perceptions and the moderating role of privacy concerns. The results of two experimental studies indicate that consumers perceive individual prices as less fair than segment prices. They also evaluate location-based pricing as less fair than purchase history-based pricing. Consumer privacy concerns moderate these effects.

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Section: Introductionsupporting

confidence: 67%

Section: Introductionmentioning

confidence: 99%

A special price just for you: effects of personalized dynamic pricing on consumer fairness perceptions

Priester

Robbert

Roth

2020

J Revenue Pricing Manag

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“…Supported by digitalization, DP found its way from the travel and transport industry into several other sectors such as retail, advertising, or electricity. Based on specific market conditions or customer characteristics, companies set flexible prices for products or services in order to account for fluctuations in demand [2].…”

Section: From Rm To Dpmentioning

confidence: 99%

“…Thus, a better capacity utilization and a higher exploitation of WTP is aimed for. However, DP as it is currently applied does not account for what each individual consumer is willing-to-pay, i.e., personalized DP [2].…”

Section: From Rm To Dpmentioning

confidence: 99%

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Is Parking in Europe Ready for Dynamic Pricing? A Reality Check for the Private Sector

Friesen¹,

Mingardo

2020

Sustainability

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Both Revenue Management (RM) and Dynamic Pricing (DP) are common practices in many industries—e.g., airlines and hotels—but they are still relatively unknown in the parking sector. In Europe, with the exception of for airport parking and in some pilot tests, DP is rarely used by private parking operators or local authorities. The main objective of this conceptual paper is to set an agenda for introducing DP in the private parking sector at a larger scale. After a short review of the existing academic and gray literature, we describe the requirements and instruments that parking companies need to make use of RM. Next, we shortly report on the major existing and/or planned DP parking schemes in Europe. We continue by providing a comprehensive reality check discussing the major challenges the sector faces to apply DP. We conclude by suggesting a road map for private parking operators to successfully implement RM and DP. Finally, we give some indications for future research.

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The effect of privacy choice in cookie notices on consumers' perceived fairness of frequent price changes

Schmidt

Bornschein

Maier

2020

Psychology and Marketing

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Recent regulatory changes (i.e., General Data Protection Regulation of the European Union) enforce that seller (e.g., retail and service) and all other websites disclose through cookie notices which data they collect and store. At the same time, websites must allow consumers to disagree to the tracking of their browsing behavior. Despite sellers' concern about the loss of consumer insights-as consumers might disagree to the collection of their browsing data-cookie notices might also have a surprising sideeffect: Consumers might accept frequent price changes (from personalized or dynamic pricing) more readily, if they agree through a cookie notice that their behavior can be tracked. Specifically, two experimental studies show that consent to the tracking of browsing behavior increases consumers internal attribution of a price change, as consumers attribute the cause of the change (here: giving up data) to themselves. This increases price fairness perceptions and, in turn, purchase intent. As a result, for online sellers of goods or services the implementation of cookie notice should no longer be thought as a matter to be avoided, but rather a trade-off decision: Loss of a part of consumer insights versus higher acceptance of data-driven marketing mix decisions, such as frequent price changes.

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Are airline passengers ready for personalized dynamic pricing? A study of German consumers

Cited by 28 publications

References 12 publications

A special price just for you: effects of personalized dynamic pricing on consumer fairness perceptions

A special price just for you: effects of personalized dynamic pricing on consumer fairness perceptions

Is Parking in Europe Ready for Dynamic Pricing? A Reality Check for the Private Sector

The effect of privacy choice in cookie notices on consumers' perceived fairness of frequent price changes

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