Pricing on the Internet

Mui Kung, Kent B. Monroe, Jennifer L. Cox

Research output: Contribution to journalReview articlepeer-review

Abstract

Conventional theories suggest that the Internet will drive down prices and lead to perfectly competitive prices. However, there is contradictory evidence indicating that online prices are not absolutely lower than offline stores. Regardless, the Internet gives rise to many opportunities for leveraging pricing strategies, in research and testing capabilities, customer segmentation, dynamic pricing, product differentiation, developing brand loyalty, including shipping and handling in the profitability analysis, offering multiple versions, and creating or participating in electronic marketplaces. The trading platform of eBay, Priceline's reverse auction, and price comparison Web sites are examples of novel Internet pricing models that are helping create a new pricing paradigm.

Original languageEnglish (US)
Pages (from-to)274-288
Number of pages15
JournalJournal of Product & Brand Management
Volume11
Issue number5
DOIs
StatePublished - Sep 1 2002

Keywords

  • Internet
  • Pricing

ASJC Scopus subject areas

  • Marketing
  • Management of Technology and Innovation

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