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Source effect of advertised reference price influences on transaction value in online shopping environments

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Abstract

Prior studies examine whether or not using advertised reference price (ARP) increases consumers’ perceived gain from the purchase decision. However, few studies address whether or not the ARP should involve an online or offline source. Present study thus investigates the influence of the APR source on consumer perceived value. Empirical results indicate that consumers would perceive higher transaction value when an online seller adopts another online retailer’s sale price as ARP than when the online seller uses an offline competitor’s sale price as the ARP.

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Acknowledgement

This study was financially supported by the Research Grant NSC 98-2410-H-034 -003 from Taiwan’s National Science Council.

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Authors and Affiliations

  1. Department of International Trade, Chinese Culture University, Taipei, Taiwan

    Shao-Kang Lo

  2. Department of Business Administration, Ming Chuan University, Taipei, Taiwan

    Yu-Jen Chou

  3. Graduate Institute of Business and Management, Chang Gung University, Taoyuan, Taiwan

    Ching-I Teng

Authors
  1. Shao-Kang Lo
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  2. Yu-Jen Chou
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  3. Ching-I Teng
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Correspondence to Ching-I Teng.

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Lo, SK., Chou, YJ. & Teng, CI. Source effect of advertised reference price influences on transaction value in online shopping environments. Electron Commer Res 13, 411–421 (2013). https://doi.org/10.1007/s10660-013-9129-9

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  • DOI: https://doi.org/10.1007/s10660-013-9129-9

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