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Enhancing subscription-based ecommerce services through gambled price discounts

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  • Tan, Wee-Kheng
  • Chen, Bo-Hsiang

Abstract

This paper analyzes the under-researched yet rapidly growing subscription e-commerce services. Using surprise- and uncertainty-related theories, this exploratory study considers the effects of a gambled price discount (GPD), which is a price promotion that involves discount uncertainty, on consumers' perception of the replenishment and curation of a subscription package. Partial least squares (PLS) and PLS multi-group analyses reveal that the perceived attractiveness of GPD adds to the enjoyment of a subscription package. GPD's usefulness as a price promotion tactic is particularly evident when used under the replenishment mode. The positive aspect of the bivalent nature of surprise as an emotion is particularly evident for the replenishment subscription.

Suggested Citation

  • Tan, Wee-Kheng & Chen, Bo-Hsiang, 2021. "Enhancing subscription-based ecommerce services through gambled price discounts," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:joreco:v:61:y:2021:i:c:s0969698921000916
    DOI: 10.1016/j.jretconser.2021.102525
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    References listed on IDEAS

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