Pricing Dynamics in the Online Consumer Electronics Market

Publication Type

Journal Article

Publication Date

2004

Abstract

This paper investigates prices of consumer electronics sold on the Web by both online-only retailers (Dotcoms) and the online branches of multi-channel retailers (MCRs). Surprisingly, it finds that Dotcoms charge higher price than MCRs, a conclusion contradictory to the results of most of empirical studies. Also finds that the electronics prices decreased over the period of study in general, dropping about 0.6 percent per week, and the prices of MCRs and Dotcoms went down with time at a similar speed. Further, the prices across MCRs are 35.3 percent more dispersed than the prices across the Dotcoms based on full prices, and 33.1 percent more dispersed based on percentage prices. However, results show that price dispersion moved up with time in general, with no significant difference in the speeds between MCRs and Dotcoms.

Discipline

Economics

Publication

Journal of Product and Brand Management

Volume

13

Issue

6

First Page

429

Last Page

441

ISSN

1061-0421

Identifier

10.1108/10610420410560316

Additional URL

https://doi.org/10.1108/10610420410560316

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