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Price differentiation in online and offline retail: an empirical study of current practices

100%
Kiczmachowska E. E., de Pourbaix P., Jamielniak D.
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2023
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vol. 48
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issue 2
1-16
EN
The purpose of this article is to present the practice of price differentiation in multichannel sales conditions. The study reviews the literature on channel pricing policy. The authors set a goal to study the practices of retailers operating in online and offline channels in Poland in terms of price differentiation between channels. Using the example of the EMPIK and SMYK chains, price differences between online and offline channels were analysed for several 100 products in key categories for these retailers. The prices were obtained by scraping the data from the websites of both retailers in November 2022. Statistical analysis was designed to examine differences in pricing by product category, position on the "most frequently purchased" list and price range. This research confirmed previous results that online vs. offline price differentiation was not widely used by leading multichannel retailers in the most popular categories bought online: only two out of 12 retailers elicited for the study were found to perform it. It also confirmed previous findings that if price differentiation was applied, the items were cheaper online more often. However, the average depth of discount was considerably higher. Apart from these general findings, our research delivered detailed insights at the category level as the depth of discount and the share of products sold at a discount online considerably differed between categories with comparable and non-comparable offers. Additionally, this study provided a unique analysis of the multichannel price differentiation strategy in relation to popularity or the absolute price of the product. While in the case of the popularity of the product, the offer uniqueness seemed to play a role, the relation to the absolute price of the product showed a mixed picture and would need further investigation.
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Live Stream e-Commerce: Factors that Motivate the Evolving Consumer Patterns

63%
Ray P., Zou L.
African Journal of Economics, Politics and Social Studies
|
2022
|
issue 1
155-170
EN
Live streaming e-commerce (LSE), as a product of the digital era, is a form of e-commerce that uses live streaming as a channel to achieve marketing purposes. Since the launch of the live shopping function on e-commerce platforms in 2016, live e-commerce has grown rapidly. In spite of the pandemic we find ourselves in, the live e-commerce market size has maintained an average annual growth rate of over 200% in the past two years. LSE has not only driven the consumer industry, but has also impacted consumers’ consumption habits in very many ways. It is not surprising that the highest impact of the LSE-driven market has been evidenced in China, which is considered the largest growing economy in the world with a PPP only second to the US. This paper aims to investigate LSE as an upcoming business model, leading to evolving consumer patterns, as well as exploring the motivators of such consumption. The objective of this research is to provide SMEs with recommendations on the developing markets and inputs on how to maximise sales in a pandemic-affected world. In depth interviews were conducted with LSE consumers based in China, to understand their shopping experiences, explore their psyche and motivations behind such consumption. As a result of a qualitative research approach, it was found that the use of streaming anchors act as an external stimuli in LSE which affects consumers’ perceived value. This, in turn, affects consumers’ trust and purchase intentions. The use of utilitarian and hedonic shopping motivations affect consumers’ willingness to engage in an actual purchase and consequent shopping pleasure.
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