Online Retail Prices Impact Buyer Perceptions and Attractiveness
Online retailers offer different products at different prices, creating price variations known as price dispersion and distribution. This study explores how these variations affect how customers perceive the attractiveness of prices. By looking at the statistical mean of price distribution, researchers found that it can give a better understanding of reference prices compared to simple averages and ranges. This is especially important in online retail where customers have easy access to a lot of price information in one place.