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Consumer Attitude and Reaction towards Personalised Pricing in the E-Commerce Sector

Author

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  • Vijay Victor

    (Doctoral School of Management and Business Administration, Szent Istv�n University, Hungary Author-2-Name: Maria Fekete-Farkas Author-2-Workplace-Name: Faculty of Economics and Social Sciences, Szent Istvan University, Godollo 2100, Hungary Author-3-Name: Zoltan Lakner Author-3-Workplace-Name: Doctoral School of Management and Business Administration, Szent Istvan University, Godollo 2100, Hungary Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

Objective - This study examines consumer attitudes and reactions towards personalised pricing strategies in a negative and positive hypothetical purchase context. Methodology/Technique - The data was collected from 250 respondents from India through a set of two structured questionnaires, each one comprising either a positive or negative purchase scenario. Partial Least Square based Structural Equation Modelling (PLS SEM) was used to analyse the data. Findings - The results of the study imply that the consumers are concerned about the usage of their personal data for price customisation which reduces their repurchase intentions and increases the reprisal intention. The results also depict that a loyal customer base reacts positively to some extent to the personalised pricing strategy. Novelty - This study considers the impact of personalised pricing on the fair price perceptions, privacy concerns and customer loyalty in both positive and negative purchase contexts which is a novel in this research area.

Suggested Citation

  • Vijay Victor, 2019. "Consumer Attitude and Reaction towards Personalised Pricing in the E-Commerce Sector," GATR Journals jmmr220, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:jmmr220
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    References listed on IDEAS

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    1. Thomas Gehrig & Oz Shy & Rune Stenbacka, 2012. "A Welfare Evaluation of History-Based Price Discrimination," Journal of Industry, Competition and Trade, Springer, vol. 12(4), pages 373-393, December.
    2. Judit Oláh & Nicodemus Kitukutha & Hossam Haddad & Miklós Pakurár & Domicián Máté & József Popp, 2018. "Achieving Sustainable E-Commerce in Environmental, Social and Economic Dimensions by Taking Possible Trade-Offs," Sustainability, MDPI, vol. 11(1), pages 1-22, December.
    3. Lanlan Cao & Li Li, 2015. "The Impact of Cross-Channel Integration on Retailers’ Sales Growth," Post-Print hal-02009466, HAL.
    4. Nisar, Tahir M. & Prabhakar, Guru, 2017. "What factors determine e-satisfaction and consumer spending in e-commerce retailing?," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 135-144.
    5. Cao, Lanlan & Li, Li, 2015. "The Impact of Cross-Channel Integration on Retailers’ Sales Growth," Journal of Retailing, Elsevier, vol. 91(2), pages 198-216.
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    Cited by:

    1. Hufnagel, Gerrit & Schwaiger, Manfred & Weritz, Louisa, 2022. "Seeking the perfect price: Consumer responses to personalized price discrimination in e-commerce," Journal of Business Research, Elsevier, vol. 143(C), pages 346-365.

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    More about this item

    Keywords

    Personalised Pricing; E-Commerce; Consumer Behaviour; Price Discrimination; PLS SEM.;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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