Pricing Strategy in Multi-Channel Retailing and Fairness Perception: an Examination of Boundary Conditions

Becker, Larissa; Lionello, Rafael Laitano; Nagel, Mateus de Brito; Heldt, Rodrigo; Trombetta, Matheus Santana; Slongo, Luiz Antônio

doi:10.18256/2237-7956/raimed.v6n2p162-172

Cited by 3 publications

(5 citation statements)

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“…One of the directions of reducing negative consequences is an attempt to provide an explanation for the observed differences in prices. Becker et al (2016) suggest that, if only possible, an explanation for different prices based on channels costs should be provided. Cost-based communications as well as value-based communications are recommended by Fassnacht and Unterhuber (2016).…”

Section: Discussionmentioning

confidence: 99%

The Intention to Cart Abandonment in the Context of Multi-Channel Pricing

Bondos

2023

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Theoretical background: Shopping cart abandonment is defined as a situation when the customer chooses products but does not complete the financial transaction. The vast majority of research articles on purchase abandonment concerns the online or mobile environment. The presented research model refers to the customer intention to resign from purchasing both in physical store and via mobile app caused by a multi-channel pricing strategy. By analogy to many definitions of online cart abandonment, the author defines cart abandonment in a multichannel environment as a decision about postponing purchase at all, both in a physical store and in a purchase mobile app. One of the possibilities of consumer behaviour as a reaction to the multi-channel pricing may be purchase abandonment. The impact of price differentiation across channels on purchase abandonment still deserves research attention due to the lack of the unequivocal confirmation. Purpose of the article: Setting prices in a multichannel environment creates a vital challenge for multichannel retailers. This article attempts to explain one of the undesirable consequences of the channel based price differentiation, which is the purchase abandonment. The purpose of this paper is to identify factors influencing the customer intention to abandon the purchase under channel-based price differentiation conditions (physical store and mobile purchase app). Research methods: This study is a quantitative one employing a scenario-based approach to obtain responses from 500 participants. This research used the structural equation modelling to test its hypotheses. Main findings: Findings reveal positive impact of perceived limited self-determination and perceived price unfairness on intention to cart abandonment, whereas consumer trust in a mobile app can reduce the intention to resign from purchase. Furthermore, the author finds the indirect impact of the mobile app familiarity as well as the retailer brand awareness. Research results can help managers to reduce the likelihood of losing customers in the multi-channel pricing environment.

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Section: Discussionmentioning

confidence: 99%

The Intention to Cart Abandonment in the Context of Multi-Channel Pricing

Bondos

2023

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“…Martín-Ruiz and Rondán-Cataluña (2008) found that, while perceptions of price fairness and unfairness across goods and services share similar antecedents, consumers of services react more strongly than consumers of goods to perceptions of unfair prices. Becker et al (2017) showed that differential pricing for identical goods/services across different channels (e.g., online or offline) is perceived to be fairer for goods as compared to services. Both Martín-Ruiz and Rondán-Cataluña ( 2008) and Becker et al (2017) attribute their findings to the intangibility of services, which increases consumers' perceived vulnerability to unfair prices (Martín-Ruiz and Rondán-Cataluña, 2008) and makes price differences across channels harder to justify (Becker et al, 2017).…”

Section: Price Fairness and Emotional Antecedentsmentioning

confidence: 99%

“…Becker et al (2017) showed that differential pricing for identical goods/services across different channels (e.g., online or offline) is perceived to be fairer for goods as compared to services. Both Martín-Ruiz and Rondán-Cataluña ( 2008) and Becker et al (2017) attribute their findings to the intangibility of services, which increases consumers' perceived vulnerability to unfair prices (Martín-Ruiz and Rondán-Cataluña, 2008) and makes price differences across channels harder to justify (Becker et al, 2017).…”

Section: Price Fairness and Emotional Antecedentsmentioning

confidence: 99%

“…Becker et al. ( 2017 ) showed that differential pricing for identical goods/services across different channels (e.g., online or offline) is perceived to be fairer for goods as compared to services. Both Martín‐Ruiz and Rondán‐Cataluña ( 2008 ) and Becker et al.…”

Section: Price Fairness and Emotional Antecedentsmentioning

confidence: 99%

“…Both Martín‐Ruiz and Rondán‐Cataluña ( 2008 ) and Becker et al. ( 2017 ) attribute their findings to the intangibility of services, which increases consumers’ perceived vulnerability to unfair prices (Martín‐Ruiz and Rondán‐Cataluña, 2008 ) and makes price differences across channels harder to justify (Becker et al., 2017 ).…”

Section: Price Fairness and Emotional Antecedentsmentioning

confidence: 99%

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Context and the Perceived Fairness of Price Increases Coming out of COVID‐19

Chavanne

Danz

Dribssa

et al. 2022

Social Science Quarterly

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As the U.S. economy responds to prolonged COVID-19 disruptions, it is important to understand what factors affect the perceived fairness of pandemic-driven price increases. Methods: Participants read a vignette and rated how fair they found a pandemic-driven price increase. Versions vary (1) the source (hardware-store products or bus fare), (2) the magnitude of the price increase (6 percent or 18 percent), and (3) the tone of an initial description of COVID (positive or negative). Results: The price increase was perceived to be fairer when it involved the hardware store or when it was smaller. The relationship between fairness and magnitude was context-specific, as fairness perceptions were insensitive to the magnitude of the price increase in the bus scenario or when the initial description of COVID had a positive tone. Conclusion: Retailers and municipalities may face different fairness constraints as they consider pandemic-driven price increases. The tone of COVID information may affect price fairness through its impact on sensitivity to magnitude.As more components of economic life open up in the United States in the aftermath of widespread vaccination against COVID-19, pandemic-driven changes in economic conditions will inevitably affect price levels. As shown in the seminal work of Kahneman et al. (1986aKahneman et al. ( , 1986b and Bolton et al. (2003), contextdependent attitudes toward price increases can serve as a constraint that interferes with market-clearing price adjustments. Yet, while the perceived fairness of price increases has been widely studied, businesses and municipalities contemplating price increases have little empirical guidance to help them anticipate public sentiment toward higher prices coming out of a crisis as intense, impactful, and emotionally charged as the COVID-19 pandemic.The analysis presented here examines how the perceived fairness of COVID-19-driven price increases varies across different contexts. It uses different versions of a vignette that describes a price increase, which occurs as the economy opens up following the severe disruptions caused by the pandemic. To study context-dependence, three variables are systematically manipulated within the vignette while all other aspects remain equivalent. First, in light of the diverse types of economic domains that face potential price

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Preiskommunikation und Preisfairness im Multi-Channel-Handel

Ziehe

Schüren-Hinkelmann

2020

Preiskommunikation

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Pricing Strategy in Multi-Channel Retailing and Fairness Perception: an Examination of Boundary Conditions

Cited by 3 publications

References 31 publications

The Intention to Cart Abandonment in the Context of Multi-Channel Pricing

The Intention to Cart Abandonment in the Context of Multi-Channel Pricing

Context and the Perceived Fairness of Price Increases Coming out of COVID‐19

Preiskommunikation und Preisfairness im Multi-Channel-Handel

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