Image Effects and Rational Inattention in Internet-Based Selling.
The frequency of occurrence of certain price points in Internet-based selling is investigated in order to determine what drives the observed regularities and variations. Theories based on consumer perceptions of price and quality images, and on rational inattention to price-endings are explored by s...
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sg-smu-ink.sis_research-37522015-11-12T06:48:07Z Image Effects and Rational Inattention in Internet-Based Selling. Lee, D. W. KAUFFMAN, Robert John Bergen, M. The frequency of occurrence of certain price points in Internet-based selling is investigated in order to determine what drives the observed regularities and variations. Theories based on consumer perceptions of price and quality images, and on rational inattention to price-endings are explored by specifying and testing empirical models for price-endings using more than 1.5 million daily observations on multiple product categories sold by 90 Internet-based retailers collected over a two-year period. The results show that a firm's on-line reputation and relative price levels affect the price-endings chosen in different product categories, and that 9-ending prices increase consumer purchases. These findings support an image theory of store quality and price. The use of 9-ending prices varies across Internet selling formats in a way consistent with differences in the rational attentiveness these channels engender in consumers. This research on the role of information technology in price-setting provides insights for marketers who wish to optimize price-setting decisions in the competitive environment of Internet retailing. 2009-01-01T08:00:00Z text https://ink.library.smu.edu.sg/sis_research/2752 info:doi/10.2753/JEC1086-4415130406 Research Collection School Of Computing and Information Systems eng Institutional Knowledge at Singapore Management University Image effects Internet-based selling 9-ending prices price points rational inattention strategic pricing technology impact Computer Sciences |
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Image effects Internet-based selling 9-ending prices price points rational inattention strategic pricing technology impact Computer Sciences Lee, D. W. KAUFFMAN, Robert John Bergen, M. Image Effects and Rational Inattention in Internet-Based Selling. |
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The frequency of occurrence of certain price points in Internet-based selling is investigated in order to determine what drives the observed regularities and variations. Theories based on consumer perceptions of price and quality images, and on rational inattention to price-endings are explored by specifying and testing empirical models for price-endings using more than 1.5 million daily observations on multiple product categories sold by 90 Internet-based retailers collected over a two-year period. The results show that a firm's on-line reputation and relative price levels affect the price-endings chosen in different product categories, and that 9-ending prices increase consumer purchases. These findings support an image theory of store quality and price. The use of 9-ending prices varies across Internet selling formats in a way consistent with differences in the rational attentiveness these channels engender in consumers. This research on the role of information technology in price-setting provides insights for marketers who wish to optimize price-setting decisions in the competitive environment of Internet retailing. |
format |
text |
author |
Lee, D. W. KAUFFMAN, Robert John Bergen, M. |
author_facet |
Lee, D. W. KAUFFMAN, Robert John Bergen, M. |
author_sort |
Lee, D. W. |
title |
Image Effects and Rational Inattention in Internet-Based Selling. |
title_short |
Image Effects and Rational Inattention in Internet-Based Selling. |
title_full |
Image Effects and Rational Inattention in Internet-Based Selling. |
title_fullStr |
Image Effects and Rational Inattention in Internet-Based Selling. |
title_full_unstemmed |
Image Effects and Rational Inattention in Internet-Based Selling. |
title_sort |
image effects and rational inattention in internet-based selling. |
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Institutional Knowledge at Singapore Management University |
publishDate |
2009 |
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https://ink.library.smu.edu.sg/sis_research/2752 |
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