Journal article
The influence of pre- and post-purchase service on prices in the online book market
Journal of interactive marketing, Vol.18(4), pp.51-62
2004
DOI: 10.1002/dir.20018
Abstract
We examine the ability of customer ratings of pre-purchase and post-purchase service to explain price variations in the online book market. In addition, we test whether market leaders leverage their branding advantage by charging higher prices. E-tailer prices were modeled using a market basket of identical books whose posted prices were sampled repeatedly over a 4-month period. Contrary to expectations, posted prices were relatively constant across the time period that included a highly competitive 2000 holiday selling season. E-tailers whose customers were more satisfied with the level of post-purchase service charged significantly higher prices. Differences in satisfaction with pre-purchase service did not explain price differences across all e-tailers. The higher prices of the three market leaders were most likely due to higher satisfaction ratings for both pre- and post-purchase satisfaction. We discuss the implications of these results for managers and academics.
Details
- Title: Subtitle
- The influence of pre- and post-purchase service on prices in the online book market
- Creators
- Yong Cao - University of Alaska AnchorageThomas S. Gruca - University of Iowa
- Resource Type
- Journal article
- Publication Details
- Journal of interactive marketing, Vol.18(4), pp.51-62
- Publisher
- Elsevier Inc
- DOI
- 10.1002/dir.20018
- ISSN
- 1094-9968
- eISSN
- 1520-6653
- Language
- English
- Date published
- 2004
- Academic Unit
- Marketing
- Record Identifier
- 9984380499002771
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