Transformative value of the Internet of Things and pricing decisions
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
Original language | English |
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Article number | 100825 |
Journal / Publication | Electronic Commerce Research and Applications |
Volume | 34 |
Online published | 6 Jan 2019 |
Publication status | Published - Mar 2019 |
Link(s)
Abstract
Firms increasingly target consumers with personalized products via the Internet of Things (IoT). This study investigates a firm’s decisions on IoT capability with three types of pricing policies: low price, high price, and contingent pricing. Although, intuitively, IoT capability may substitute contingent pricing in reducing demand uncertainty, this research proposes that the firm may achieve optimal profit by using contingent pricing together with IoT. Interestingly, IoT-induced product-valuation improvement will indirectly diminish the value provided by contingent pricing. The results provide insights into how firms can strategize pricing decisions along with appropriate IoT capability.
Research Area(s)
- Internet of Things, Pricing under uncertainty, Contingent pricing, Consumer targeting
Citation Format(s)
Transformative value of the Internet of Things and pricing decisions. / Zhang, Xiong; Yue, Wei T.
In: Electronic Commerce Research and Applications, Vol. 34, 100825, 03.2019.
In: Electronic Commerce Research and Applications, Vol. 34, 100825, 03.2019.
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review