The effects of reference prices on bidding behavior in interactive pricing mechanisms

Agnieszka Wolk and Martin Spann

Journal of Interactive Marketing, 2008, vol. 22, issue 4, 2-18

Abstract: We examine the effect of reference prices on consumer bidding behavior in interactive pricing mechanisms used in online retailing, e.g., auctions and name-your-own-price. We find significant influences of different reference price concepts on bid values. However, after controlling for internal and external reference prices, sellers only have a moderate ability to affect bid values via the provision of an advertised reference price. An exaggerated advertised reference price increases the bid value among consumers who consider it to be believable. However, its effect is reversed in the presence of an external reference price if consumers consider it unbelievable, decreasing bid values.

Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S109499680870015X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:joinma:v:22:y:2008:i:4:p:2-18

DOI: 10.1002/dir.20118

Access Statistics for this article

Journal of Interactive Marketing is currently edited by B. T. Ratchford

More articles in Journal of Interactive Marketing from Elsevier
Bibliographic data for series maintained by Catherine Liu ().