Factors Influencing Consumer Behavior and Prospective Purchase Decisions in a Dynamic Pricing Environment—An Exploratory Factor Analysis Approach

Vijay Victor, Jose Joy Thoppan, Robert Jeyakumar Nathan and Fekete Farkas Maria
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Vijay Victor: Doctoral School of Management and Business Administration, Szent Istvan University, Godollo 2100, Hungary
Jose Joy Thoppan: Saintgits Institute of Management, Kerala 686532, India
Robert Jeyakumar Nathan: Faculty of Business, Multimedia University, Melaka 75450, Malaysia
Fekete Farkas Maria: Faculty of Economics and Social Sciences, Szent Istvan University, Godollo 2100, Hungary

Social Sciences, 2018, vol. 7, issue 9, 1-14

Abstract: The rapid advancements in information and communication technology during the third industrial revolution of the late 20th century has marked the beginning of a new era in the retail sector with the introduction of E-commerce. The dawn of the new century witnessed industry 4.0, revolutionizing all areas of online business by bringing in novel opportunities and possibilities. Despite the progress in technology, the determination of correct pricing on online selling platforms still remains a very complex task. The adoption of big data technology has enabled online sellers to make real-time price changes of high magnitude and proximity. However, with increasing awareness among buyers regarding modern pricing strategies, it is necessary to examine probable changes in consumer behavior when exposed to dynamic pricing scenarios. This study investigates the factors that influence consumer behavior, and their prospective online purchase decisions in a dynamic pricing context, through an exploratory factor analysis approach. A primary research survey was conducted, and 178 samples were finalized for data analysis through a series of web surveys completed by respondents in India. This study identifies, measures and classifies 27 research items into variables, namely shopping experience, privacy concerns, awareness about dynamic pricing, buying strategy, fair price perceptions, reprisal intentions and intentions for self-protection. These seven factors could be used to explain consumer behavior in a dynamic pricing situation.

Keywords: dynamic pricing; E-commerce; industry 4.0; big data; consumer behavior; India (search for similar items in EconPapers)
JEL-codes: A B N P Y80 Z00 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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