Joan Lindsey-Mullikin

Imperfect information: The persistence of price dispersion on the web

In this article, the authors empirically test the notion that as the mean price of durables increases, the degree of dispersion also increases. This effect holds even when they specifically consider variables such as the number of competitors and store quality. The authors suggest that an individual-level perceptual mechanism, the psychophysics of price, at the aggregate level helps explain continued price dispersion on the Web. These results are contrary to predictions from standard economic theory, which suggest that readily available price information will result in increased price competition and lower price dispersion. Two studies consistently demonstrate that as the mean price of an item increases, price dispersion also increases. These results provide evidence that, contrary to general economic expectations, the Internet has not commoditized products. Retailers and managers need to pay attention to Internet information but not be fearful of its impact on their pricing strategies.

Companion Shoppers and the Consumer Shopping Experience

Many of the social and recreational aspects of retailing have been studied; however, an understudied area of retailing related to this is the role played by shopping companions who accompany shoppers in the retail environment. This qualitative study investigates the roles assumed by companion shoppers. It was found that companion shoppers act on behalf of both retail customers and the retail firm. The companion performs many duties traditionally performed by the retail salesperson, thus enhancing the customers retail experience. It is recommended that retail managers incorporate strategies that build relationships with companion shoppers in order to positively affect customer satisfaction. These strategies should include companion promotional programs such as those that encourage customers to bring a friend to stimulate both powerful word-of-mouth endorsements for the retailer as well as expansion of the retailers customer base.

Building Store Loyalty Through Service Strategies

ABSTRACT Customer service represents a key element of retail strategy for maintaining a sustainable competitive advantage, even during difficult economic times. Customers are becoming more demanding about the services they expect from retailers both online and in person. In light of the importance of customer service, we propose a framework to refine insights into several retail strategy components—such as availability of service personnel, responsiveness to customers, personalization, proactiveness, and loyalty programs. These insights may be useful to both practitioners and academics alike. Retail strategies should generally accommodate the specific retail format being used (e.g., physical store, physical and online, or pure online). Research propositions are presented along with related implications for practitioners.

Beyond reference price: understanding consumers’ encounters with unexpected prices

The concept of reference price is a well‐established phenomenon in the marketing and consumer behavior literature. Given this, we investigate what happens when consumers, given a particular reference price, encounter unexpected prices. It is proposed that the theory of dissonance reduction provides a framework for studying situations in which consumers’ encountered prices are significantly different from their expectations. The three modes of dissonance reduction proposed: to change one’s attitude or cognition, to seek consonant information, and to trivialize some element of the dissonant relationship are demonstrated through theoretical interpretation and illustrated with in‐depth interviews.

The moderating role of the price frame on the effects of price range and the number of Competitors on consumers’ search intentions

The Internet and Internet shopping agents (ISAs) are likely to have a substantial impact on the way consumers shop and conduct price searches. This article examines how the price frame (the relative position of a retailer’s price presented by ISAs) moderates the effects of the price range and the number of competitors carrying a product on consumers’ search intentions. Building on prospect theory and range theory, the authors predicted that the effects of price range and the number of competitors on consumers’ search intentions would be more pronounced in a negative price frame than in a positive price frame. The results of two experiments provide support for these predictions.

Expected product price as a function of factors of price sensitivity

Purpose – This paper presents a model relating Nagle and Holdens factors of price sensitivity to expected price and willingness to pay. This work presents various perspectives on price elasticity/sensitivity, empirically tests aspects of the influence of perception of the offer (product/service) on expected price, and illustrates how the pricing methods developed within provide quantitative precision to the practice of price setting by capturing perceptions important to consumers.Design/methodology/approach – The authors used a within‐subjects design to study four brands in two product categories, automobiles and computers. Model evaluation employs ordinary least squares regression.Findings – Ten qualitative factors were studied. Overall, the results show four factors predict expected price for the target market, product and brand. The factors are perceived substitutes, quality, fairness, and unique value.Originality/value – This research makes the following contributions. First, the authors are able to ...