Price as a variable in online consumer trade-offs Ted Karlesson and Christer Kuttainen, Leyland Pitt, Stavroula Sp...
CitationKarlsson, T., Kuttainen, C., Pitt, L., &Spyropoulou, S. (2005). Price as avariable in online consumer trade-offs.M...
ContentIntroductionLiterature ReviewMethodologyResult & ConclusionReflection 3
Introduction Motivation Purpose of the Study 4
IntroductionLocal Store: Online Vendor: Immediate Delivery timeavailability Guarantee...
IntroductioCost Time n Dista ! nce ! ...
Motivation ServiceAvailability Assortment Price Delivery costs ...
Purpose of the study - To identify the extent to which lower prices can motivate online purchasing, and the effect ...
9
Literature ReviewVery little isknown aboutthe trade-offsconsumers arewilling to makewhen making (Odekerk...
Literature ReviewWheel of When a new form ofRetailing theory retailing, enters the market, i...
Literature ReviewThe effect of communications technology onmarkets is to make them more efficient. So ifthe Internet as a ...
Literature ReviewWhile the dollar price reflects the directmonetary outlay by the buyer, the extendedprice refers to the t...
How important a motivator is price inonline purchasing environments tocustomers where other factors are alsoconsidered in ...
MethodologyParticipant . ProceduresData Analysis 15
Participant Respondents consisted of undergraduate business andengineering students at a large Swedish university.
Likert Scale Totally Undeci Totally Question agree ...
Price BuybackAccessibility Conjoint policy Analys...
Attribute levels - Attribute levels - Attributes Online ...
Data analysis SPSS Discrete regression model Pearson’s R Kend...
Result &Conclusion
Mean importance Part-worth Attribute Level ...
35% 27% 19% 9% 8%
Mean importance Part-worth Attribute Level ...
27% 25%22% 19% 7%
Online shoppers are “bargain-seekers”.Respondents are willing to make aneffort to purchase online in order toobtain price ...
To assume that online stores wouldalways be “in-stock”, this is clearly notthe case in reality.The customers’ satisfaction...
Thank you for your listening! 30
Price as a variable in online consumer trade offs-v4
Price as a variable in online consumer trade offs-v4
Price as a variable in online consumer trade offs-v4
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Price as a variable in online consumer trade offs-v4

Published on: Mar 4, 2016
Source: www.slideshare.net


Transcripts - Price as a variable in online consumer trade offs-v4

  • 1. Price as a variable in online consumer trade-offs Ted Karlesson and Christer Kuttainen, Leyland Pitt, Stavroula Spyropoulou Presenter: Jessie Liu Instructor: Dr. Pi-Ying Hsu Date: October 8, 2012
  • 2. CitationKarlsson, T., Kuttainen, C., Pitt, L., &Spyropoulou, S. (2005). Price as avariable in online consumer trade-offs.Marketing Intelligence & Planning, 23(4),350-358. 2
  • 3. ContentIntroductionLiterature ReviewMethodologyResult & ConclusionReflection 3
  • 4. Introduction Motivation Purpose of the Study 4
  • 5. IntroductionLocal Store: Online Vendor: Immediate Delivery timeavailability Guarantee Local demand availability wer Price Lo 5
  • 6. IntroductioCost Time n Dista ! nce ! ! 6
  • 7. Motivation ServiceAvailability Assortment Price Delivery costs 7
  • 8. Purpose of the study - To identify the extent to which lower prices can motivate online purchasing, and the effect of other offering attributes on the trade-offs that customers make 8
  • 9. 9
  • 10. Literature ReviewVery little isknown aboutthe trade-offsconsumers arewilling to makewhen making (Odekerken-Schroderonline purchase. & Wetzels ,2003) 10
  • 11. Literature ReviewWheel of When a new form ofRetailing theory retailing, enters the market, it begins by offering lower prices and accepting lower margins by offering fewer services. (McNair, 1958) 11
  • 12. Literature ReviewThe effect of communications technology onmarkets is to make them more efficient. So ifthe Internet as a communication technologymakes markets more efficient, the one mightexpect prices to arise where customerstranslation cost are lowered. (Downes & Mui,1998) 12
  • 13. Literature ReviewWhile the dollar price reflects the directmonetary outlay by the buyer, the extendedprice refers to the time cost of the consumerincurred by searching and waiting, as well asrisk associated with the purchase. (Talaga & Tucci, 2001) 13
  • 14. How important a motivator is price inonline purchasing environments tocustomers where other factors are alsoconsidered in the decision making?Does the relative importance of pricediffer between online and physicalchannels for a particular product bundle? 14
  • 15. MethodologyParticipant . ProceduresData Analysis 15
  • 16. Participant Respondents consisted of undergraduate business andengineering students at a large Swedish university.
  • 17. Likert Scale Totally Undeci Totally Question agree Agree ded Disagree disagree1. My mom will be a good rapper.
  • 18. Price BuybackAccessibility Conjoint policy Analysis In-stock Ease of status returns 19
  • 19. Attribute levels - Attribute levels - Attributes Online OfflinePrice 500 SEK 500 SEK 550 SEK 550 SEK 600 SEK 600 SEKBuyback policy Will not buy back Will not buy back Will buy back, but no price Will buy back, but no price guarantee guarantee Guaranteed 250 SEK Guaranteed 250 SEKReturns policy Cash refund Cash refund Store / Site credit Store / Site creditDelivery time Cash refund Cash refund Store / Site credit Store / Site creditPlace for delivery Home(online only)Distance to bookstore 500 m(offline only) 10 km
  • 20. Data analysis SPSS Discrete regression model Pearson’s R Kendall’s T
  • 21. Result &Conclusion
  • 22. Mean importance Part-worth Attribute Level per cent utilityPrice (SEK) 35.47 500 1.3662 550 0.0101 600 -1.3763Returns policy 9.36 Money back for unused book -0.3617 Unused book can be exchanged -0.3617 for another bookDelivery time 29.59 Two days 1.0833 Six days 0.1212 Ten days -1.2045Place for delivery 8.28 Home 0.3201 Postal office -0.3201Buyback policy 17.30 Will not buy back -0.6793 Will buy back, but no price 0.0215 guarantee Guaranteed 250 SEK buy back 0.6578 price5.5177 Constant
  • 23. 35% 27% 19% 9% 8%
  • 24. Mean importance Part-worth Attribute Level per cent utilityPrice (SEK) 22.25 500 0.6738 550 0.2845 600 -0.9583Returns policy 6.77 Money back for unused book 0.2482 Unused book can be exchanged -0.2482 for another bookDelivery time 25.37 In stock 1.0071 In stock in six days -0.1536 In stock in ten days -0.8536Distance to 26.73 500 m 0.9804bookstore 10 km -0.9804Buyback policy 18.89 Will not buy back -0.6262 Will buy back, but no price -0.1333 guarantee Guaranteed 250 SEK buy back 0.7595 price4.8702 Constant
  • 25. 27% 25%22% 19% 7%
  • 26. Online shoppers are “bargain-seekers”.Respondents are willing to make aneffort to purchase online in order toobtain price savings.Customers expect prices to be lower inan online environment that in atraditional sales channel. Conclusion
  • 27. To assume that online stores wouldalways be “in-stock”, this is clearly notthe case in reality.The customers’ satisfaction has a directand positive effect on customerintention to return. Originality- it is also an important factor to effect on trade-offs that customers make.
  • 28. Thank you for your listening! 30

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