HOW DO PRICES VARY ON COMPARISON WEBSITES? INFLUENCE OF CASHBACK AND MARKET STRUCTURE ON PRICE DYNAMICS

Purpose: This article analyzes how cashback offers and market structure influence levels of price dispersion on comparison websites in the Brazilian e-commerce. Method: With a base of 210 observations extracted from Brazilian price comparison websites, we developed four Multiple Regression Analysis models with an interactive term to test the five hypotheses of the study. Results: Five hypotheses that reveal how price dispersion is influenced by differentiated pricing strategies in ecommerce are supported. The main result is that the presence of a greater number of cashback offers in a price list is associated with higher levels of price dispersion on comparison websites. The introduction of new competitors exerts a reducing influence on price dispersion, due to the resulting greater transparency and competitiveness. Theoretical contributions: This study contributes to the field of marketing studies focused on pricing strategies, with an emphasis on price dispersion related to the cashback strategy in the e-commerce environment. Managerial implications: With the results of the research, price managers of comparison websites and stores will have more transparent information to manage the implementation of the cashback strategy. Originality: Distinct from previous studies that approach price dynamics on websites, this study adds evidence of the influence of the cashback strategy on price comparison websites.