Abstract

Various factors such as disclosure of the item prices on company websites influence consumer responses and activity. This study is a detailed descriptive investigation of the effect that a selected pricing model has on the consumers as they search online for items to purchase. The study is limited to Saudi online shoppers. The research employs a case study approach, where the pricing models of firms such as Uber and Airbnb among others are evaluated. In every particular case study, the maximum price on the prices that appeal to the Saudi community online shoppers was determined. A survey study was executed to collect quantitative and qualitative information from 57 randomly selected Saudi online shoppers using questionnaires. In this case, the independent factor was listed price, whose proxies included the commitment and the non-commitment of the seller and search costs. The dependent elements included consumer online search, optimal pricing, profits, and volume of trade, as influenced by the consumers' chance of visiting. The results of the study indicate that there is a significant positive effect of the listed price on consumer’s online search among online shoppers in the Saudi community. The findings also proved that the there is a positive effect of the listed price on optimal price among online shoppers in the Saudi community.

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