Pricing for shipping services of online retailers: Analytical and empirical approaches

被引:50
作者
Yao, Yuliang [1 ]
Zhang, Jie [2 ]
机构
[1] Lehigh Univ, Coll Business & Econ, Bethlehem, PA 18015 USA
[2] Univ Texas Arlington, Coll Business Adm, Arlington, TX 76019 USA
关键词
Electronic commerce; Online retailing; Pricing; Shipping options; Shipping fees; INTERNET; DISPERSION; STRATEGIES;
D O I
10.1016/j.dss.2012.01.014
中图分类号
TP18 [人工智能理论];
学科分类号
081104 ; 0812 ; 0835 ; 1405 ;
摘要
We develop an analytical model and conduct subsequent empirical analyses using data collected from the online retailers of digital cameras and video games. We find that (1) Internet retailers' base prices are positively associated with on-time delivery probability but shipping charges are negatively associated with on-time delivery probability; (2) Internet retailers will increase base prices when they offer free shipping: and (3) Internet retailers' shipping price difference between the standard and expedited shipping modes increases with the shipping time of standard shipping, but decreases with the shipping time of expedited shipping and also the Internet retailer's on-time probability. Our findings suggest that Internet retailers, to maximize profits, can strategically determine base price and shipping prices, and they can also strategically pace menu pricing for different shipping options. (C) 2012 Elsevier B.V. All rights reserved.
引用
收藏
页码:368 / 380
页数:13
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