Sequential Pricing of Multiple Products: Leveraging Revealed Preferences of Retail Customers Online and with Auto-ID Technologies

Published Online:https://doi.org/10.1287/isre.1120.0440

References

  • Acquisti A, Roussos G. Ubiquitous computing, customer tracking, and price discrimination. Ubiquitous and Pervasive Commerce: New Frontiers for Electronic Business (2006) (Springer-Verlag, London) 115–132CrossrefGoogle Scholar
  • Acquisti A, Varian HR. Conditioning price on purchase history. Marketing Sci. (2005) 24(3):367–381LinkGoogle Scholar
  • Adams WJ, Yellen J. Commodity bundling and the burden of monopoly. Quart. J. Econom. (1976) 40:475–498CrossrefGoogle Scholar
  • ADT Reference Library An independent report on RFID tracking. (2009) . Accessed October 29, http://www.adt.com/medium_large_bus./reference_library/?wgc=Item-Level_RFID_TrackingGoogle Scholar
  • Aloysius J, Deck C, Farmer A. A comparison of bundling and sequential pricing in competitive markets: Experiential evidence. Internat. J. Econom. Bus. (2012) 19(1):25–51CrossrefGoogle Scholar
  • Ansari A, Essegaier S, Kohli R. Internet recommendation systems. J. Marketing Res. (2000) 37(3):363–375CrossrefGoogle Scholar
  • Arora NX, Dreze A, Ghose JD, Hess R, Iyengar B, Jing B, Joshi Y, Kumar V, Lurie N, Neslin S, Sajeesh S, Su M, Syam N, Thomas J, Zhang ZJ. Putting one-to-one marketing to work: Personalization, customization and choice. Marketing Lett. (2008) 19(3–4):305–321CrossrefGoogle Scholar
  • Aviv Y, Pazgal A. Optimal pricing of seasonal products in the presence of forward-looking consumers. Manufacturing Service Oper. Management (2008) 10(3):339–359LinkGoogle Scholar
  • Ayres I. Super Crunchers: Why Thinking-by-Numbers is the New Way to Be Smart (2007) (Bantam Dell, New York) Google Scholar
  • Bandyopadhyay S, Barron JM, Chaturvadi AR. Competition among sellers in online exchanges. Inform. Systems Res. (2005) 16(1):47–60LinkGoogle Scholar
  • Bapna R, Goes P, Gupta A. Replicating online Yankee auctions to analyze auctioneers' and bidders' strategies. Inform. Systems Res. (2003a) 14(3):244–268LinkGoogle Scholar
  • Bapna R, Goes P, Gupta A. Analysis and design of business-to-consumer online auctions. Management Sci. (2003b) 49(1):85–101LinkGoogle Scholar
  • Bapna R, Chang S-J, Goes P, Gupta A. Overlapping online auctions: Empirical characterization of bidder strategies and auction prices. MIS Quart. (2009) 33(4):763–783CrossrefGoogle Scholar
  • Basenko D, Dube J-P, Gupta S. Competitive price discrimination strategies in a vertical channel using aggregate retail data. Management Sci. (2003) 49(9):1121–1138LinkGoogle Scholar
  • Berendt B, Günther O, Spiekermann S. Privacy in e-commerce: Stated preferences vs. actual behavior. Comm. ACM (2005) 48(4):101–106CrossrefGoogle Scholar
  • Bichler M, Shabalin P, Pikovsky A. A computational analysis of linear price iterative combinatorial auction formats. Inform. Systems Res. (2009) 20(1):33–59LinkGoogle Scholar
  • Chen Y. Equilibrium product bundling. J. Bus. (1997) 70(1):85–103CrossrefGoogle Scholar
  • Chen Y, Iyer G. Customer addressability and customized pricing. Marketing Sci. (2002) 21(2):197–208LinkGoogle Scholar
  • Chen Y, Narasimhan C, Zhang ZJ. Individual marketing with imperfect targetability. Marketing Sci. (2001) 20(1):23–41LinkGoogle Scholar
  • Choudhary V, Ghose A, Mukhopadhyay T, Rajan U. Personalized pricing and quality differentiation. Management Sci. (2005) 51:1121–1130LinkGoogle Scholar
  • Clifford S. Web coupons know lots about you, and they tell. New York Times (2010a) April 17Google Scholar
  • Clifford S. Aisle by aisle, an app that pushes bargains. New York Times (2010b) August 17Google Scholar
  • Cope E. Bayesian strategies for dynamic pricing in e-commerce. Naval Res. Logist. (2006) 54:265–281CrossrefGoogle Scholar
  • Cromhout D, Hardgrave BC, Armstrong DJ. RFID item-level tagging for apparel/footwear: A feasibility study. (2008) . Working paper, Information Technology Research Institute, Walton College of Business, University of Arkansas, Fayetteville, ARGoogle Scholar
  • Dhebar A. Durable goods monopolists, rational consumers, and improving products. Marketing Sci. (1994) 13(1):100–120LinkGoogle Scholar
  • Dinev T, Hart P. An extended privacy calculus model for e-commerce transactions. Inform. Systems Res. (2006) 17(1):61–80LinkGoogle Scholar
  • Ellison G, Burnell R, Newey W, Persson T. Bounded rationality in industrial organization. Advances in Economics and Econometrics: Theory and Applications (2006) (Ninth World Congress, Cambridge University Press, New York) 142–174CrossrefGoogle Scholar
  • Epapercentral IBM and the future of e-paper in retail. (2009) . Retrieved February 5, 2010, http://www.epapercentral.com/ibm-and-the-future-of-epape-in-retail.htmGoogle Scholar
  • Fudenberg D, Tirole J. Customer poaching and brand switching. RAND J. Econom. (2000) 31:238–258CrossrefGoogle Scholar
  • Fudenberg D, Villas-Boas JM, Hendershott TJ. Behavior-based price discrimination and customer recognition. Handbook on Economics and Information Systems (2006) (Elsevier, Oxford) 377–436CrossrefGoogle Scholar
  • Gabaix X, Laibson D. Shrouded attributes, consumer myopia, and information suppression in competitive markets. Quart. J. Econom. (2006) 121(2):505–540CrossrefGoogle Scholar
  • Ghose A, Sundararajan A. Evaluating pricing strategy using e-commerce data: Evidence and estimation challenges. Statist. Sci. (2006) 21(2):131–142CrossrefGoogle Scholar
  • Hanson WA, Martin RK. Optimal bundle pricing. Management Sci. (1990) 36(2):155–174LinkGoogle Scholar
  • Happich J. Custom electronic paper display drivers target electronic shelf labels. (2010) . Retrieved February 5, 2010, http://www.electronics-eetimes.com/en/custom-electronic-paper-display-drivers-target-electronic-shelf-labels.html?cmp_id=7&news_id=222900962#Google Scholar
  • Häubl G, Murray KB. Double agents: Assessing the role of electronic product recommendation systems. MIT Sloan Management Rev. (2006) 47(3):8–12Google Scholar
  • Heyman J, Mellers BA, Haugtvedt C, Kardes F, Herr P. Perceptions of fair pricing. Handbook of Consumer Psychology (2008) (Psychology Press, New York) 683–698Google Scholar
  • Hinz O, Hann I-H, Spann M. Price discrimination in e-commerce? An examination of dynamic pricing in name-your-own price markets. MIS Quart. (2011) 35(1):81–98CrossrefGoogle Scholar
  • Jiang Y, Shang J, Kemerer CF, Liu Y. Optimizing e-tailer profits and customer savings: An online dynamic bundle pricing model. Marketing Sci. (2011) 30:737–751LinkGoogle Scholar
  • Kahneman D, Knetsch J, Thaler R. Fairness as a constraint on profit seeking: Entitlements in the market. Amer. Econom. Rev. (1986) 76(4):728–741Google Scholar
  • Kamakura WA, Kossar BS, Wedel M. Identifying innovators for the cross-selling of new products. Management Sci. (2004) 50(8):1120–1133LinkGoogle Scholar
  • Kannan PK, Kopalle PK. Dynamic pricing on the Internet: Importance and implications for consumer behavior. Internat. J. Electronic Commerce (2001) 5(Spring):63–84Google Scholar
  • Kettler PC. The pyramid distribution. (2005) . Preprint 39, Department of Mathematics, University of Oslo, Oslo, NorwayGoogle Scholar
  • Kimes SE, Wirtz J. J. Revenue and Pricing Management (2003) 1(4):332–344CrossrefGoogle Scholar
  • Leszczyc P, Haubl G. To bundle or not to bundle: Determinants of the profitability of multi-item auctions. J. Marketing (2010) 74(4):110–124CrossrefGoogle Scholar
  • March JG. A Primer on Decision Making (1994) (Free Press, New York) Google Scholar
  • Martin A. MasterCard set to open an online shopping mall. New York Times (2010) April 8Google Scholar
  • McAfee RP, Vincent D. Sequentially optimal auctions. Games Econom. Behav. (1995) 18:246–276CrossrefGoogle Scholar
  • McAfee RP, McMillan J, Whinston MD. Multiproduct monopoly, commodity bundling, and correlation of values. Quart. J. Econom. (1989) 103:371–383CrossrefGoogle Scholar
  • Montgomery AL, Li SB, Srinivasan K, Liechty JC. Modeling online browsing and path analysis using clickstream data. Marketing Sci. (2004) 23(4):579–595LinkGoogle Scholar
  • Moon S, Russell GJ. Predicting product purchase from inferred customer similarity: An autologistic model approach. Management Sci. (2008) 54(1):71–82LinkGoogle Scholar
  • Moorthy KS. Market segmentation, self selection, and product line design. Marketing Sci. (1984) 3(4):288–307LinkGoogle Scholar
  • Moorthy KS, Png I. Market segmentation, cannibalization and the timing of product introductions. Management Sci. (1992) 38(3):345–359LinkGoogle Scholar
  • Mulhern FJ, Leone RP. Implicit price bundling of retail products: A multiproduct approach to maximizing store profitability. J. Marketing (1991) 55(4):63–76CrossrefGoogle Scholar
  • Nettesine S, Savin S, Xiao W. Revenue management through dynamic cross-selling in e-commerce retailing. Oper. Res. (2006) 54(5):893–913LinkGoogle Scholar
  • Payne JW, Bettman JR, Gigerenzer G, Selten R. Preferential choice and adaptive strategy use. Bounded Rationality: The Adaptive Toolbox (2001) (MIT Press, Cambridge, MA) 123–145Google Scholar
  • Pigou AC. The Economics of Welfare (2006) 1(Cosimo, New York) Google Scholar
  • Pramatari K, Theotokis A. Consumer acceptance of RFID-enabled services: A model of multiple attitudes, perceived system characteristics and individual traits. Eur. J. Inform. Systems (2009) 18:541–552CrossrefGoogle Scholar
  • PressReleasePoint (2010) . Retrieved September 17, 2012, http://www.pressreleasepoint.com/world-epaper-display-market-technologies-applications-trends-amp-forecast-2010-2015-now-available-reGoogle Scholar
  • Rossi PE, McCulloch RE, Allenby GM. The value of purchase history data in target marketing. Marketing Sci. (1996) 15(4):321–340LinkGoogle Scholar
  • Roussos G, Roussos G. Ubiquitous computing for electronic business. Ubiquitous and Pervasive Commerce: New Frontiers for Electronic Business (2006) (Springer, London) 1–12CrossrefGoogle Scholar
  • Schmalensee R. Pricing of product bundles. J. Bus. (1984) 57(1):211–230CrossrefGoogle Scholar
  • Shaffer G, Zhang ZJ. Competitive coupon targeting. Marketing Sci. (1995) 14(4):395–416LinkGoogle Scholar
  • Shaffer G, Zhang ZJ. Pay to switch or pay to stay: Preference-based price discrimination in markets with switching costs. J. Econom. Management Strategy (2000) 9(3):397–424CrossrefGoogle Scholar
  • Shaffer G, Zhang ZJ. Competitive one-to-one promotions. Management Sci. (2002) 48(9):1143–1160LinkGoogle Scholar
  • Shell ER. Cheap: The High Cost of Discount Prices (2009) (Penguin, New York) Google Scholar
  • Subramaniam R, Venkatesh R. Optimal bundling strategies in multiobject auctions of complements or substitutes. Marketing Sci. (2009) 28(2):264–273LinkGoogle Scholar
  • Ulph D, Vulkan N. Electronic commerce and competitive first-degree price discriminators. (2000) . Working paper, ESCR Centre for Economic Learning and Social Evolution, University College LondonGoogle Scholar
  • Venkatesh R, Kamakura W. Optimal bundling and pricing under a monopoly: Contrasting complements and substitutes from independently valued products. J. Bus. (2003) 76(2):211–231CrossrefGoogle Scholar
  • Viswanathan V, Morris MG, Davis GB, Davis FD. User acceptance of information technology: Toward a unified view. MIS Quart. (2003) 27(3):425–478CrossrefGoogle Scholar
  • Vulkan N. The Economics of e-Commerce: A Strategic Guide to Understanding and Designing the Online Marketplace (2003) (Princeton University Press, Princeton, NJ) Google Scholar
  • Weier MH. Walmart gets tough on RFID with Sam's Club suppliers. Inform. Week (2008) 1169(January 19):26Google Scholar
  • Weiss RM, Mehrotra AK. Online dynamic pricing: Efficiency, equity and the future of e-commerce. Virginia J. Law Tech. (2001) 6(2):28Retrieved from http://www.vjolt.net/vol6/issue2/v6i2-a11-Weiss.htmlGoogle Scholar
  • Zhang J, Rao VE. Competitive targeted pricing: Perspectives from theoretical research. Handbook of Pricing Research in Marketing (2009) (Edward Elgar Publishing, Northampton, MA) 302–318CrossrefGoogle Scholar
  • Zhang J, Krishnamurthi L. Customizing promotions in online stores. Marketing Sci. (2004) 23(4):561–578LinkGoogle Scholar
  • Zhang J, Wedel M. The effectiveness of customized promotions in online and offline stores. J. Marketing Res. (2009) 46(April):190–206CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.