Enhancing subscription-based ecommerce services through gambled price discounts

Wee-Kheng Tan and Bo-Hsiang Chen

Journal of Retailing and Consumer Services, 2021, vol. 61, issue C

Abstract: This paper analyzes the under-researched yet rapidly growing subscription e-commerce services. Using surprise- and uncertainty-related theories, this exploratory study considers the effects of a gambled price discount (GPD), which is a price promotion that involves discount uncertainty, on consumers' perception of the replenishment and curation of a subscription package. Partial least squares (PLS) and PLS multi-group analyses reveal that the perceived attractiveness of GPD adds to the enjoyment of a subscription package. GPD's usefulness as a price promotion tactic is particularly evident when used under the replenishment mode. The positive aspect of the bivalent nature of surprise as an emotion is particularly evident for the replenishment subscription.

Keywords: Subscription e-commerce service; Replenishment mode; Curation mode; Gambled price discount; Surprise; Enjoyment (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:61:y:2021:i:c:s0969698921000916

DOI: 10.1016/j.jretconser.2021.102525

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