Business, Management and Accounting
8 years ago

Internet retailers offer 16% lower prices than conventional stores, changing shopping habits.

1 view
Management Science
Frictionless Commerce? A Comparison of Internet and Conventional Retailers
Erik Brynjolfsson, Michael D. Smith

Paper Summary

The Internet offers lower prices for books and CDs compared to traditional stores, with savings of 9-16%. Internet retailers make smaller price changes over time, likely due to lower costs. Prices can vary widely between different online stores, but big brands tend to have more consistent pricing. Despite the ease of online shopping, brand recognition and trust still play a big role in where people choose to buy.

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