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Pricing Strategy in Online Retailing Marketplaces of Homogeneous Goods: Should High Reputation Seller Charge More?

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Value Creation in E-Business Management (AMCIS 2009)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 36))

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Abstract

There are two conflicting streams of research findings on pricing strategy: one is high reputation sellers should charge price premium, while the other is high reputation sellers should charge relatively low price. Motivated by this confliction, this study examines pricing strategy in online retailing marketplace of homogeneous goods. We conduct an empirical study using data collected from a dominant online retailing marketplace in China. Our research results indicate that, in online retailing marketplace of homogeneous goods, high reputation sellers should charge relatively low price, because the consumers of high reputation sellers are more price sensitive than the consumers of low reputation sellers.

This research is supported by RGC General Research Fund No. 9041194 (formerly known as Competitive Earmarked Research Grant) from the Hong Kong Government and CityU Strategic Research Grant No. 7001895.

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Author information

Authors and Affiliations

  1. University of Science and Technology of China, City University of Hong Kong, Hong Kong

    Yuewen Liu

  2. City University of Hong Kong, Hong Kong

    Kwok Kee Wei

  3. University of Science and Technology of China, China

    Huaping Chen

Authors
  1. Yuewen Liu
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  2. Kwok Kee Wei
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  3. Huaping Chen
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Editor information

Editors and Affiliations

  1. College of Business, Illinois State University, IL 61790, Normal, USA

    Matthew L. Nelson

  2. College of Business, University of Illinois, IL, 61820, Champaign, USA

    Michael J. Shaw

  3. College of Business and Public Administration, Drake University, IA 50311, Des Moines, USA

    Troy J. Strader

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© 2009 Springer-Verlag Berlin Heidelberg

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Liu, Y., Wei, K.K., Chen, H. (2009). Pricing Strategy in Online Retailing Marketplaces of Homogeneous Goods: Should High Reputation Seller Charge More?. In: Nelson, M.L., Shaw, M.J., Strader, T.J. (eds) Value Creation in E-Business Management. AMCIS 2009. Lecture Notes in Business Information Processing, vol 36. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-03132-8_13

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  • DOI: https://doi.org/10.1007/978-3-642-03132-8_13

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-03131-1

  • Online ISBN: 978-3-642-03132-8

  • eBook Packages: Computer ScienceComputer Science (R0)

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