Pricing strategy in online retailing marketplaces of homogeneous goods: Should high reputation seller charge more?

Yuewen Liu; Kwok Kee Wei; Huaping Chen

doi:10.1007/978-3-642-03132-8_13

Pricing strategy in online retailing marketplaces of homogeneous goods: Should high reputation seller charge more?

Yuewen Liu, Kwok Kee Wei, Huaping Chen

Department of Information Systems

Research output: Chapters, Conference Papers, Creative and Literary Works › RGC 32 - Refereed conference paper (with host publication) › peer-review

3 Citations (Scopus)

Abstract

There are two conflicting streams of research findings on pricing strategy: one is high reputation sellers should charge price premium, while the other is high reputation sellers should charge relatively low price. Motivated by this confliction, this study examines pricing strategy in online retailing marketplace of homogeneous goods. We conduct an empirical study using data collected from a dominant online retailing marketplace in China. Our research results indicate that, in online retailing marketplace of homogeneous goods, high reputation sellers should charge relatively low price, because the consumers of high reputation sellers are more price sensitive than the consumers of low reputation sellers.

Original language	English
Title of host publication	Value Creation in E-Business Management
Editors	Matthew L. Nelson, Michael J. Shaw, Troy J. Strader
Publisher	Springer Berlin Heidelberg
Pages	155-168
ISBN (Print)	9783642031311
DOIs	https://doi.org/10.1007/978-3-642-03132-8_13
Publication status	Published - Aug 2009
Event	15th Americas Conference on Information Systems 2009 (AMCIS 2009) - San Francisco, United States Duration: 6 Aug 2009 → 9 Aug 2009 http://aisel.aisnet.org/amcis2009/

Publication series

Name	Lecture Notes in Business Information Processing
Volume	36
ISSN (Print)	1865-1348

Conference

Conference	15th Americas Conference on Information Systems 2009 (AMCIS 2009)
Abbreviated title	AMCIS2009
Place	United States
City	San Francisco
Period	6/08/09 → 9/08/09
Internet address	http://aisel.aisnet.org/amcis2009/

Bibliographical note

Full text of this publication does not contain sufficient affiliation information. The Research Unit(s) information for this record is based on the corrigendum and the then academic department affiliation of the author(s).

Research Keywords

Homogeneous goods
Online retailing marketplace
Price sensitivity
Pricing strategy
Seller reputation

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10.1007/978-3-642-03132-8_13

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Liu, Y., Wei, K. K., & Chen, H. (2009). Pricing strategy in online retailing marketplaces of homogeneous goods: Should high reputation seller charge more? In M. L. Nelson, M. J. Shaw, & T. J. Strader (Eds.), Value Creation in E-Business Management (pp. 155-168). (Lecture Notes in Business Information Processing; Vol. 36). Springer Berlin Heidelberg. https://doi.org/10.1007/978-3-642-03132-8_13

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title = "Pricing strategy in online retailing marketplaces of homogeneous goods: Should high reputation seller charge more?",

abstract = "There are two conflicting streams of research findings on pricing strategy: one is high reputation sellers should charge price premium, while the other is high reputation sellers should charge relatively low price. Motivated by this confliction, this study examines pricing strategy in online retailing marketplace of homogeneous goods. We conduct an empirical study using data collected from a dominant online retailing marketplace in China. Our research results indicate that, in online retailing marketplace of homogeneous goods, high reputation sellers should charge relatively low price, because the consumers of high reputation sellers are more price sensitive than the consumers of low reputation sellers. ",

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Liu, Y, Wei, KK & Chen, H 2009, Pricing strategy in online retailing marketplaces of homogeneous goods: Should high reputation seller charge more? in ML Nelson, MJ Shaw & TJ Strader (eds), Value Creation in E-Business Management . Lecture Notes in Business Information Processing, vol. 36, Springer Berlin Heidelberg, pp. 155-168, 15th Americas Conference on Information Systems 2009 (AMCIS 2009), San Francisco, California, United States, 6/08/09. https://doi.org/10.1007/978-3-642-03132-8_13

Pricing strategy in online retailing marketplaces of homogeneous goods: Should high reputation seller charge more? / Liu, Yuewen; Wei, Kwok Kee; Chen, Huaping.
Value Creation in E-Business Management . ed. / Matthew L. Nelson; Michael J. Shaw; Troy J. Strader. Springer Berlin Heidelberg, 2009. p. 155-168 (Lecture Notes in Business Information Processing; Vol. 36).

Research output: Chapters, Conference Papers, Creative and Literary Works › RGC 32 - Refereed conference paper (with host publication) › peer-review

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N1 - Full text of this publication does not contain sufficient affiliation information. The Research Unit(s) information for this record is based on the corrigendum and the then academic department affiliation of the author(s).

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AB - There are two conflicting streams of research findings on pricing strategy: one is high reputation sellers should charge price premium, while the other is high reputation sellers should charge relatively low price. Motivated by this confliction, this study examines pricing strategy in online retailing marketplace of homogeneous goods. We conduct an empirical study using data collected from a dominant online retailing marketplace in China. Our research results indicate that, in online retailing marketplace of homogeneous goods, high reputation sellers should charge relatively low price, because the consumers of high reputation sellers are more price sensitive than the consumers of low reputation sellers.

KW - Homogeneous goods

KW - Online retailing marketplace

KW - Price sensitivity

KW - Pricing strategy

KW - Seller reputation

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Pricing strategy in online retailing marketplaces of homogeneous goods: Should high reputation seller charge more?

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