How web contents influence price sensitivity of online consumers for different tangible products?

Product price on the internet market has long been characterized by low price and price dispersion. The basic premise of this conclusion is relative lower search cost of online consumers, which is believed to increase consumers' price sensitivity. However, recent empirical research demonstrates that this would not be the case in the real consumer decision-making process. Although differences exist in price sensitivity between online markets and traditional markets, the former one may not be indeed higher than the latter. This research is based on the literature review of pricing strategy and theory online; an empirical method is used to analyze the factors influencing consumer's price sensitivity. We have probed to know how web contents influence the consumer's price sensitivity in online supermarkets among three product categories when compared and analyzed the influence factors of three different kinds of products. The result of study illustrated that the factor influencing price sensitivity has nothing in common with each other for the different kinds of products. Managers can reduce consumer's price sensitivity by offering different web contents and interactivity.