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Pricing and the Internet : frictionless commerce or pricer's paradise

By: ANCARANI, Fabio.
Material type: materialTypeLabelArticlePublisher: dec.2002Subject(s): Comércio Eletrônico | Internet | Pricing Competitive StrategyEuropean Management Journal 20, 6, p. 680-687Abstract: Are firms competing in a new world of frictionless e-commerce or is the Internet a pricer's paradise? It is not safe, at the moment, to say that the Internet is lowering online prices, decreasing price dispersion and increasing online customer price sensitivity. The strategy issue for firms pricing onthe NEt is avoiding the `commodity trap' and taking advantage of the `other side' of information transparency. Firms should increasingly rely on finer segmentation of their customers and resort to dynamic and smart pricing, product and price versioning and bundling. Multichannel and customer lifetime value pricing will become strategic issues
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Periódico Biblioteca Graciliano Ramos
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Are firms competing in a new world of frictionless e-commerce or is the Internet a pricer's paradise? It is not safe, at the moment, to say that the Internet is lowering online prices, decreasing price dispersion and increasing online customer price sensitivity. The strategy issue for firms pricing onthe NEt is avoiding the `commodity trap' and taking advantage of the `other side' of information transparency. Firms should increasingly rely on finer segmentation of their customers and resort to dynamic and smart pricing, product and price versioning and bundling. Multichannel and customer lifetime value pricing will become strategic issues

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