Understanding Perceived Price Fairness in Online Shopping

Price fairness is an important factor that influences online shopper dropout rate in online shopping. This research attempts at understanding the factors that influence perceived price fairness. Based on the equity theory, we argue that perceived promotion fairness plays an important role in influencing perceived price fairness. We further argue that perceived promotion fairness is in turn significantly influenced by the shopper’s search efforts, contingent upon whether or not the promoted price is realized. A research model was developed that incorporates the equity theory, the motivation literature, and website design features. We developed a plan to conduct experiments to test the hypotheses

Behavioral Aspects of Pricing

Buyers sometimes exhibit seemingly “irrational” behavior with respect to prices and use socially embedded heuristics to simplify their purchase decisions. In some cases small changes in prices can lead to much larger than anticipated changes in sales and profitability. Sellers need to understand the heuristics consumers use, the situations in which they emerge, and recognize how they can respond in markets where information and knowledge of product attributes and competitive prices is increasingly available via the Internet. This chapter explores consumers’ behavioral reactions to price through a review of contemporary literature in the field of pricing. The chapter delineates the nature and scope of these effects based upon a critical review of the most up-to-date empirical research in the field, and concludes by providing implications for innovation in pricing, and guidance for managers to reduce the disconnect between themselves and consumers

Critical review of the e-loyalty literature: a purchase-centred framework

Over the last few years, the concept of online loyalty has been examined extensively in the literature, and it remains a topic of constant inquiry for both academics and marketing managers. The tremendous development of the Internet for both marketing and e-commerce settings, in conjunction with the growing desire of consumers to purchase online, has promoted two main outcomes: (a) increasing numbers of Business-to-Customer companies running businesses online and (b) the development of a variety of different e-loyalty research models. However, current research lacks a systematic review of the literature that provides a general conceptual framework on e-loyalty, which would help managers to understand their customers better, to take advantage of industry-related factors, and to improve their service quality. The present study is an attempt to critically synthesize results from multiple empirical studies on e-loyalty. Our findings illustrate that 62 instruments for measuring e-loyalty are currently in use, influenced predominantly by Zeithaml et al. (J Marketing. 1996;60(2):31-46) and Oliver (1997; Satisfaction: a behavioral perspective on the consumer. New York: McGraw Hill). Additionally, we propose a new general conceptual framework, which leads to antecedents dividing e-loyalty on the basis of the action of purchase into pre-purchase, during-purchase and after-purchase factors. To conclude, a number of managerial implementations are suggested in order to help marketing managers increase their customers’ e-loyalty by making crucial changes in each purchase stage

FACTORS INFLUENCING CONSUMERS PURCHASE INTENTION THROUGHT TIKTOK OF CHANGSHA, CHINA RESIDENTS

The purpose of this study was to identify the factors influencing Changsha residents' purchase intention through TikTok short video platform. The variables used in this research framework including trust, perceived media richness, perceived price fairness, perceived convenience, and perceived host interaction. Purposive sampling technique was employed to recruit 200 respondents in Changsha City to participate in the study. The Multiple Linear Regression analysis was implemented as the statistical analysis. The results revealed that Perceived Media Richness was the most influent factor affecting consumers' shopping through TikTok short video platform for consumers in Changsha District. As a result, it was evident that the online store owners whose marketing their products via TikTok short video platform should emphasis on perceived media richness factor to enhancing consumers’ purchase intention

An Empirical Investigation of the Existence and Causes of Noticeable Price Difference in Multi-Channel Retailers

Pricing strategy is one of the greatest difficulties facing multi-channel retailers (Gupta, Ting & Tiwari, 2019) as many retailers have switched to a multiple channel system (Ailawadi & Farris, 2017). Retailers are using their price strategies to encourage consumers to use either online or offline channels. Therefore, in many cases retailers want consumers to notice the price difference between channels. However, in some circumstances, retailers do not want consumers to notice the differentiation. Therefore, this thesis will answer two main research questions: How should optimal pricing be set for multiple channels that will make consumers more/less likely to notice price differentiation? What types of price presentation format are more/less likely to make consumers notice price differentiation? Prior investigations have studied noticeable price differences by using differential price thresholds in a single channel (e.g., Cheng & Monroe, 2013a; Sirvanci, 1993) rather than studying differential price thresholds for a single product when there is one retailer and two channels. Multi-channel retailers use different monetary and non-monetary promotions as price presentation formats. Previous researchers have studied the roles of monetary and non-monetary promotions in the price-framing effect. However, so far no study has investigated the price effect of different promotion presentation formats on noticing differentiation. This thesis integrates just noticeable difference theory and prospect theory to investigate consumers’ ability to notice price differentiation in different price presentation formats. It does so by conducting two experimental studies, each with 720 participants. It investigates the antecedent factors that influence the noticing of price differentiation in multiple channels. The results of the thesis have important implications for the multi-channel literature and for managerial practice. They show that consumers are more likely to notice price differentiation when the difference between the (online and offline) regular prices is 20%. The results also suggest that there is a difference in noticing price differentiation in different monetary promotional formats. The thesis can guide marketing managers to set optimal prices for single products when there is one retailer and two channels. They can decide whether to use the same price in both channels or different prices in the different channels depending on whether their strategy is to attract consumers and increase purchase intentions by making the price difference noticeable or not

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

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

The Impact of Customer Satisfaction on Customer Loyalty in Chinese E-Commerce Platforms in China

This research aims to investigate the substantial influence of price fairness, logistics services, and performance in handling product returns, e-service quality, and customer satisfaction on customer loyalty within the context of Chinese e-commerce platforms. Employing both primary and secondary data collection methods, the study analyzes the factors shaping customer loyalty among 390 respondents who made purchases on Chinese e-commerce platforms. Drawing upon insights from four established theoretical frameworks in previous studies, a new conceptual framework is devised for this research. The findings indicate that logistics services play a crucial role in enhancing customer satisfaction, underscoring their significant impact. Moreover, price fairness and effectiveness in handling product returns are identified as contributors to positive customer satisfaction. Importantly, customer satisfaction emerges as a pivotal factor influencing customer loyalty. However, it is essential to acknowledge the study's limitations, as it exclusively targets Chinese domestic online consumers. Consequently, the generalizability of the findings may be constrained when applied to diverse cultural backgrounds or international consumers. This research contributes to the field by spotlighting the key factors that shape customer loyalty within the unique landscape of Chinese domestic e-commerce platforms. By examining these factors, the study provides valuable insights for businesses seeking to enhance customer loyalty in the dynamic and competitive Chinese e-commerce market