Ramaprasad Unni, D L.P. and Deepa Pillai
The purpose of this research is to examine whether there are differences in use of price sources in online and offline shopping contexts, and the effect of time spent online on…
Abstract
Purpose
The purpose of this research is to examine whether there are differences in use of price sources in online and offline shopping contexts, and the effect of time spent online on these potential differences.
Design/methodology/approach
A quasi‐field experimental design with shopping channel and online usage as factors is used. MANOVA was used to analyze the data collected from 180 subjects (54 percent female; mean age of sample=27 years).
Findings
The findings revealed context specificity in the use of price sources. Prices previously seen in traditional media are more likely to be used while shopping offline, while prices previously seen on the internet are more likely to be used while shopping online. The extent of time spent online would also lead to more use of prices previously seen on the internet.
Research limitations/implications
The research examined consumer intentions of using price sources within the accessibility‐diagnosticity framework. Future research should measure accessibility and diagnosticity of specific price sources in different shopping contexts.
Practical implications
Retailers should base their pricing on channel characteristics. They should exploit the capabilities of the online channel to be more competitive. Pricing communication strategies should also take into account extent of time spent online.
Originality/value
The research suggests that price parity between online and offline channels may not be critical for multichannel marketers. Online and offline channels are different shopping contexts and as such offer unique opportunities to attract consumers. Pricing strategies should take into account these differences.