<abstract xmlns="http://www.w3.org/1999/xhtml">

<p> Price differentiation has long been recognized as a strategy that companies can use to increase profits when consumers’ tastes and valuations of a good price vary. Companies engaging in price differentiation have the opportunity to increase profits considerably compared to those which use a uniform pricing strategy. Accordingly, it should be beneficial for companies to exploit the possibility of charging different prices in online and offline channels as they offer different shopping benefits and are differently valued by consumers. nevertheless, it can be observed that some multi-channel retailers prefer to charge uniform prices in online and offline channels. They argue for consistent prices across distribution channels to maintain a strong brand - and because varying prices may lead to customers’ confusion, anger, irritation and perceptions of price unfairness.</p>
</abstract>

Price differentiation has long been recognized as a strategy that companies can use to increase profits when consumers’ tastes and valuations of a good price vary. Companies engaging in price differentiation have the opportunity to increase profits considerably compared to those which use a uniform pricing strategy. Accordingly, it should be beneficial for companies to exploit the possibility of charging different prices in online and offline channels as they offer different shopping benefits and are differently valued by consumers. nevertheless, it can be observed that some multi-channel retailers prefer to charge uniform prices in online and offline channels. They argue for consistent prices across distribution channels to maintain a strong brand - and because varying prices may lead to customers’ confusion, anger, irritation and perceptions of price unfairness.

Different Channel – Different Price? INVESTIGATING THE PRACTICE OF MULTI-CHANNEL PRICE DIFFERENTIATION

UTS Business School University of Technology, Sydney

NIM Marketing Intelligence Review

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Price differentiation has long been recognized as a strategy that companies can use to increase profits when consumers’ tastes and valuations of a good price...

Different Channel – Different Price? INVESTIGATING THE PRACTICE OF MULTI-CHANNEL PRICE DIFFERENTIATION

Published Online: Jul 19, 2014

Page range: 50 - 53

DOI: https://doi.org/10.2478/gfkmir-2014-0048

Keywords
Price Differentiation, Multi-Channel Pricing

© 2014

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Different Channel – Different Price? INVESTIGATING THE PRACTICE OF MULTI-CHANNEL PRICE DIFFERENTIATION

Published Online: Jul 19, 2014

Page range: 50 - 53

DOI: https://doi.org/10.2478/gfkmir-2014-0048

KeywordsPrice Differentiation, Multi-Channel Pricing

© 2014

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Price Differentiation, Multi-Channel Pricing