Only Pricing Policy Matters

Davide Fatta () and Ivan Nania ()
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Davide Fatta: University of Palermo
Ivan Nania: University of Messina

Chapter Chapter 10 in Governing Business Systems, 2018, pp 167-176 from Springer

Abstract: Abstract This paper aims to determine which factors affect e-commerce conversion rate, which is the relationship between website visitors and purchasers. Focusing on apparel e-commerce websites, this paper uses a fixed effect estimator on a perfectly balanced panel, finding that pricing policy is the only relevant factor and, specifically, that discount has a positive effect on conversion rate. This finding contributes to advancing the theory of conversion rate management, shedding light on its determinants and providing a better understanding of online consumer behavior. This research is also extremely relevant for practitioners, providing managerial implications for retailers addressing their e-commerce strategy.

Keywords: E-commerce; Conversion rate; Pricing policy; Discounts; Fixed effect estimator (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-319-66036-3_10

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DOI: 10.1007/978-3-319-66036-3_10

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