A strategic analysis of electronic marketplaces
MIS Quarterly - Special issue on the strategic use of information systems
Reducing buyer search costs: implications for electronic marketplaces
Management Science - Special issue: Frontier research on information systems and economics
When and How is the Internet Likely to Decrease Price Competition?
Marketing Science
Intermediation and electronic markets: aggregation and pricing in internet commerce
Intermediation and electronic markets: aggregation and pricing in internet commerce
Frictionless Commerce? A Comparison of Internet and Conventional Retailers
Management Science
Internet Shopping Agents: Virtual Co-Location and Competition
Marketing Science
Journal of Management Information Systems
Evolution of Prices in Electronic Markets Under Diffusion of Price-Comparison Shopping
Journal of Management Information Systems
Trust and TAM in online shopping: an integrated model
MIS Quarterly
Optimal pricing model for electronic products
Computers and Industrial Engineering
Platform-based information goods: The economics of exclusivity
Decision Support Systems
Cue consistency and page value perception: Implications for web-based catalog design
Information and Management
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Theories from Information Systems, Marketing and Economics suggest that product, retailer, and market characteristics jointly serve as determinants of online retailers' ability to price differentiate. Until now, the empirical research has focused on examining the impact of these determinants in isolation. In this paper, we extend the prior online price dispersion literature by examining the interactions among product, retailer and market characteristics. We construct a multi-level hierarchical linear model to empirically test whether market level characteristics moderate retailer characteristics in explaining price dispersion. Our analysis is based on a dataset of 13,393 price quotes for 1880 best selling products across eight product categories from 194 online retailers. The analysis indicates that service quality has a positive effect on retailer price levels. We observe that the relationship between competitive intensity in a market and retailer price levels is inverted "U" shaped. In contrast, the influence of the interaction between a retailer's service quality and market level variables on retailer price levels is "U" shaped. These findings together provide the first known empirical evidence for the existence of mixed pricing strategies among online retailers. Contrary to conventional wisdom, we find that retailers providing quality service are able to charge higher prices as the competition increases.