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Online Pricing: Review and Directions for Research

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  • Ratchford, Brian T.

Abstract

The Internet influences prices in two ways: it is a channel for obtaining information, and it is a vehicle for transactions. This paper reviews the literature on the impact of online information on prices, and also reviews the literature on how the features of online markets influence online pricing. The major influences on online pricing that are reviewed are costly and limited search, switching costs, reputation, heterogeneity in search costs, heterogeneity in demand for services, and online–offline competition. Based on this review, suggestions for further research are outlined.

Suggested Citation

  • Ratchford, Brian T., 2009. "Online Pricing: Review and Directions for Research," Journal of Interactive Marketing, Elsevier, vol. 23(1), pages 82-90.
    • Handle: RePEc:eee:joinma:v:23:y:2009:i:1:p:82-90
    DOI: 10.1016/j.intmar.2008.11.001
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    Cited by:

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    2. Longxiu Tian & Fred M. Feinberg, 2020. "Optimizing Price Menus for Duration Discounts: A Subscription Selectivity Field Experiment," Marketing Science, INFORMS, vol. 39(6), pages 1181-1198, November.
    3. JoAnne Labrecque & Maurice Doyon & Raymond Dupuis & Genevieve Dufour, 2019. "Compétitivité du secteur agroalimentaire à l’heure du commerce électronique," CIRANO Project Reports 2019rp-16, CIRANO.
    4. Kumar, V., 2010. "A Customer Lifetime Value-Based Approach to Marketing in the Multichannel, Multimedia Retailing Environment," Journal of Interactive Marketing, Elsevier, vol. 24(2), pages 71-85.
    5. Kumar, V. & Pozza, Ilaria Dalla & Petersen, J. Andrew & Shah, Denish, 2009. "Reversing the Logic: The Path to Profitability through Relationship Marketing," Journal of Interactive Marketing, Elsevier, vol. 23(2), pages 147-156.
    6. Herhausen, Dennis & Binder, Jochen & Schoegel, Marcus & Herrmann, Andreas, 2015. "Integrating Bricks with Clicks: Retailer-Level and Channel-Level Outcomes of Online–Offline Channel Integration," Journal of Retailing, Elsevier, vol. 91(2), pages 309-325.
    7. Grewal, Dhruv & Janakiraman, Ramkumar & Kalyanam, Kirthi & Kannan, P.K. & Ratchford, Brian & Song, Reo & Tolerico, Stephen, 2010. "Strategic Online and Offline Retail Pricing: A Review and Research Agenda," Journal of Interactive Marketing, Elsevier, vol. 24(2), pages 138-154.
    8. Choi, Tsan-Ming & Chow, Pui-Sze & Xiao, Tiaojun, 2012. "Electronic price-testing scheme for fashion retailing with information updating," International Journal of Production Economics, Elsevier, vol. 140(1), pages 396-406.
    9. Zhang, Jie & Farris, Paul W. & Irvin, John W. & Kushwaha, Tarun & Steenburgh, Thomas J. & Weitz, Barton A., 2010. "Crafting Integrated Multichannel Retailing Strategies," Journal of Interactive Marketing, Elsevier, vol. 24(2), pages 168-180.
    10. Vogel, Julia & Paul, Michael, 2015. "One firm, one product, two prices: Channel-based price differentiation and customer retention," Journal of Retailing and Consumer Services, Elsevier, vol. 27(C), pages 126-139.
    11. Bernhardt, Martin & Spann, Martin, 2010. "An Empirical Analysis of Bidding Fees in Name-your-own-price Auctions," Journal of Interactive Marketing, Elsevier, vol. 24(4), pages 283-296.
    12. Fassnacht, Martin & Unterhuber, Sebastian, 2016. "Consumer response to online/offline price differentiation," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 137-148.
    13. Homburg, Christian & Lauer, Karin & Vomberg, Arnd, 2019. "The multichannel pricing dilemma: Do consumers accept higher offline than online prices?," International Journal of Research in Marketing, Elsevier, vol. 36(4), pages 597-612.
    14. Kocas, Cenk & Pauwels, Koen & Bohlmann, Jonathan D., 2018. "Pricing Best Sellers and Traffic Generators: The Role of Asymmetric Cross-selling," Journal of Interactive Marketing, Elsevier, vol. 41(C), pages 28-43.
    15. Bernardo Bertoldi & Chiara Giachino & Alberto Pastore, 2016. "Strategic pricing management in the omnichannel era," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2016(4), pages 131-152.
    16. Zhang, Xubing & Jiang, Bo, 2014. "Increasing Price Transparency: Implications of Consumer Price Posting for Consumers' Haggling Behavior and a Seller's Pricing Strategies," Journal of Interactive Marketing, Elsevier, vol. 28(1), pages 68-85.
    17. Hollebeek, Linda D. & Macky, Keith, 2019. "Digital Content Marketing's Role in Fostering Consumer Engagement, Trust, and Value: Framework, Fundamental Propositions, and Implications," Journal of Interactive Marketing, Elsevier, vol. 45(C), pages 27-41.
    18. Le, Huong Van & Suh, Min-ho, 2019. "Changing trends in internet startup value propositions, from the perspective of the customer," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 853-864.

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    Keywords

    Internet; Pricing; Retailing; Search;
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