Coordinating Channels Under Price and Nonprice Competition
Marketing Science
When and How is the Internet Likely to Decrease Price Competition?
Marketing Science
Marketing Science
Marketing Science
Internet Shopping Agents: Virtual Co-Location and Competition
Marketing Science
On the Depth and Dynamics of Online Search Behavior
Management Science
Channel Coordination in the Presence of a Dominant Retailer
Marketing Science
Modeling Online Browsing and Path Analysis Using Clickstream Data
Marketing Science
Marketing Science
Marketing Science
An analysis of the importance of the long tail in search engine marketing
Electronic Commerce Research and Applications
Marketing Science
Advertising and Consumers' Communications
Marketing Science
Marketing Science
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The e-marketplace has emerged as an important electronic shopping environment that, according to a recent Forrester Research report, may evolve into a dominant force in Internet marketing. We investigate an e-marketplace with online stores offering competing products. We find that featuring is associated with a price premium and serves as a mechanism to mitigate competition among online stores. In essence, featuring facilitates a convenience-price trade-off. Those consumers who find that the cost of searching outweighs the benefit of a lower expected price shop at the featured store where the price is higher on average. We endogenize consumers decisions on shopping at the featured store or use the search engine to shop at the low-price store and examine the robustness of our results in an n-store setting.