How do prices vary on comparison websites? influence of cashback and market structure on price dynamics
DOI:
https://doi.org/10.5585/remark.v23i2.25391Keywords:
Cashback; E-commerce; Price dispersion; Market structure; PricingAbstract
Purpose: This article analyzes how cashback offers and market structure influence levels of price dispersion on comparison websites in the Brazilian e-commerce.
Method: With a base of 210 observations extracted from Brazilian price comparison websites, we developed four Multiple Regression Analysis models with an interactive term to test the five hypotheses of the study.
Results: Five hypotheses that reveal how price dispersion is influenced by differentiated pricing strategies in e-commerce are supported. The main result is that the presence of a greater number of cashback offers in a price list is associated with higher levels of price dispersion on comparison websites. The introduction of new competitors exerts a reducing influence on price dispersion, due to the resulting greater transparency and competitiveness.
Theoretical contributions: This study contributes to the field of marketing studies focused on pricing strategies, with an emphasis on price dispersion related to the cashback strategy in the e-commerce environment.
Managerial implications: With the results of the research, price managers of comparison websites and stores will have more transparent information to manage the implementation of the cashback strategy.
Originality: Distinct from previous studies that approach price dynamics on websites, this study adds evidence of the influence of the cashback strategy on price comparison websites.
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