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Factors Influencing Consumer Behavior and Prospective Purchase Decisions in a Dynamic Pricing Environment—An Exploratory Factor Analysis Approach

Author

Listed:
  • Vijay Victor

    (Doctoral School of Management and Business Administration, Szent Istvan University, Godollo 2100, Hungary)

  • Jose Joy Thoppan

    (Saintgits Institute of Management, Kerala 686532, India)

  • Robert Jeyakumar Nathan

    (Faculty of Business, Multimedia University, Melaka 75450, Malaysia)

  • Fekete Farkas Maria

    (Faculty of Economics and Social Sciences, Szent Istvan University, Godollo 2100, Hungary)

Abstract

The rapid advancements in information and communication technology during the third industrial revolution of the late 20th century has marked the beginning of a new era in the retail sector with the introduction of E-commerce. The dawn of the new century witnessed industry 4.0, revolutionizing all areas of online business by bringing in novel opportunities and possibilities. Despite the progress in technology, the determination of correct pricing on online selling platforms still remains a very complex task. The adoption of big data technology has enabled online sellers to make real-time price changes of high magnitude and proximity. However, with increasing awareness among buyers regarding modern pricing strategies, it is necessary to examine probable changes in consumer behavior when exposed to dynamic pricing scenarios. This study investigates the factors that influence consumer behavior, and their prospective online purchase decisions in a dynamic pricing context, through an exploratory factor analysis approach. A primary research survey was conducted, and 178 samples were finalized for data analysis through a series of web surveys completed by respondents in India. This study identifies, measures and classifies 27 research items into variables, namely shopping experience, privacy concerns, awareness about dynamic pricing, buying strategy, fair price perceptions, reprisal intentions and intentions for self-protection. These seven factors could be used to explain consumer behavior in a dynamic pricing situation.

Suggested Citation

  • Vijay Victor & Jose Joy Thoppan & Robert Jeyakumar Nathan & Fekete Farkas Maria, 2018. "Factors Influencing Consumer Behavior and Prospective Purchase Decisions in a Dynamic Pricing Environment—An Exploratory Factor Analysis Approach," Social Sciences, MDPI, vol. 7(9), pages 1-14, September.
    • Handle: RePEc:gam:jscscx:v:7:y:2018:i:9:p:153-:d:168455
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    References listed on IDEAS

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    Cited by:

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    2. Hae Choi, Jong & Park, Yonghwa, 2022. "Exploring economic feasibility for airport shuttle service of urban air mobility (UAM)," Transportation Research Part A: Policy and Practice, Elsevier, vol. 162(C), pages 267-281.
    3. Reetika Sehgal & Prateek Khanna & Mayank Malviya & Ashish Mohan Dubey, 2023. "Shopping Safety Practices Mutate Consumer Buying Behaviour during COVID-19 Pandemic," Vision, , vol. 27(5), pages 604-615, November.
    4. David Juárez-Varón & Victoria Tur-Viñes & Alejandro Rabasa-Dolado & Kristina Polotskaya, 2020. "An Adaptive Machine Learning Methodology Applied to Neuromarketing Analysis: Prediction of Consumer Behaviour Regarding the Key Elements of the Packaging Design of an Educational Toy," Social Sciences, MDPI, vol. 9(9), pages 1-23, September.
    5. G. Somasekhar & K. Srinivasa Krishna & Ashok Kumar Reddy & T. Kishore Kumar & G. Somasekhar, 2021. "Shopper Segmentation Using Multivariate Risk Analysis for Innovative Marketing Strategies," International Journal of Asian Business and Information Management (IJABIM), IGI Global, vol. 12(1), pages 60-74, January.
    6. Alexandra Fernandes & Luís U. Afonso, 2020. "Online Sales and Business Model Innovation in Art Markets: A Case Study," Social Sciences, MDPI, vol. 9(2), pages 1-15, January.
    7. Tomasz Zalega, 2024. "Buying Behaviour of Polish Urban Silver Singles: Choices of Market Products and Shopping Places," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1, pages 34-59.
    8. Robert Jeyakumar Nathan & Vijay Victor & Chin Lay Gan & Sebastian Kot, 2019. "Electronic commerce for home-based businesses in emerging and developed economy," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(4), pages 463-483, December.
    9. Mohammed Arshad Khan & Vivek & Syed Mohd Minhaj & Mohd Afzal Saifi & Shahid Alam & Asif Hasan, 2022. "Impact of Store Design and Atmosphere on Shoppers’ Purchase Decisions: An Empirical Study with Special Reference to Delhi-NCR," Sustainability, MDPI, vol. 15(1), pages 1-24, December.
    10. Sobhi Mejjouali & Lotfi Tadj, 2023. "Internet digital content pricing and subscribers control," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 33(3), pages 59-73.

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