Dynamic Pricing Promotion Strategies on Consumer Repeat Purchase Behavior in the United States

Emily G. Thompson and David R. Wilson
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Emily G. Thompson: University of Nevada, Reno, US
David R. Wilson: University of Nevada, Reno, US

Frontiers in Management Science, 2024, vol. 3, issue 3, 19-30

Abstract: This study investigates the impact of dynamic pricing promotion strategies on consumer repeat purchase behavior in the United States. Employing a mixed-methods approach, we collected and analyzed quantitative survey data from 300 respondents, as well as qualitative insights from 15 in-depth interviews and two focus groups. Our findings indicate that personalized pricing is the most effective strategy, increasing repeat purchase likelihood by 25%, followed by demand-based pricing at 15%, and time-based pricing at 10%. The effectiveness of these strategies varies across different demographic segments, with personalized pricing being particularly effective among high-income and younger consumers. Additionally, consumer perceptions of fairness, transparency, and trust play a critical role in the acceptance and success of dynamic pricing strategies. The study highlights the need for businesses to prioritize these factors to build long-term customer loyalty and maximize profitability. Future research directions include longitudinal studies, experimental designs, and industry-specific analyses to further explore the dynamics of consumer behavior in response to dynamic pricing.

Keywords: dynamic pricing; repeat purchase behavior; consumer perceptions (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:bdz:frmans:v:3:y:2024:i:3:p:19-30

DOI: 10.56397/FMS.2024.06.03

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