Exploring price tolerance in online retail: A comparative analysis of price comparison website use and repeat purchases

The present empirical study is the first research to examine how the price tolerance of online buyers correlates with price comparison website (PCW) usage and customer relationship status (CRS). Longitudinal sales data of power tools and household appliances in 8,097 transactions from a German online shop and scraped PCW price data over a 6-months period in 2021 are used for the analysis. Consumer demand falls on average by around 80% per less favorable PCW rank. In addition, PCW (new) customers show significantly less price tolerance than organic (existing) customers. A small but significant interaction effect induces that the correlation of CRS and price tolerance is stronger for organic than for PCW customers.

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Year of publication:	2023
Authors:	Berends, Jan ; Gerpott, Torsten J.
Published in:	Electronic Commerce Research. - New York, NY : Springer US, ISSN 1572-9362. - 2023, p. 1-21
Publisher:	New York, NY : Springer US
Subject:	Customer relationship \| E-commerce \| Online retailing \| Price comparison websites \| Price tolerance \| Repeat purchase behavior

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Type of publication:	Article
Type of publication (narrower categories):	Article
Language:	English
Other identifiers:	10.1007/s10660-023-09791-5 [DOI]
Source:	EconStor

Persistent link: https://www.econbiz.de/10015110507