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Pricing dynamics in the online consumer electronics market

Xiaolin Xing (Department of Economics, National University of Singapore, Singapore)
Fang‐Fang Tang (Department of Marketing, Chinese University of Hong Kong, People's Republic of China)
Zhenlin Yang (School of Economics and Social Sciences, Singapore Management University, Singapore)

Journal of Product & Brand Management

ISSN: 1061-0421

Article publication date: 1 October 2004

Abstract

This paper investigates prices of consumer electronics sold on the Web by both online‐only retailers (Dotcoms) and the online branches of multi‐channel retailers (MCRs). Surprisingly, it finds that Dotcoms charge higher price than MCRs, a conclusion contradictory to the results of most of empirical studies. Also finds that the electronics prices decreased over the period of study in general, dropping about 0.6 percent per week, and the prices of MCRs and Dotcoms went down with time at a similar speed. Further, the prices across MCRs are 35.3 percent more dispersed than the prices across the Dotcoms based on full prices, and 33.1 percent more dispersed based on percentage prices. However, results show that price dispersion moved up with time in general, with no significant difference in the speeds between MCRs and Dotcoms.

Keywords

Citation

Xing, X., Tang, F. and Yang, Z. (2004), "Pricing dynamics in the online consumer electronics market", Journal of Product & Brand Management, Vol. 13 No. 6, pp. 429-441. https://doi.org/10.1108/10610420410560316

Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited