Business, Management and Accounting
3 years ago

Online sellers deceive consumers with fake discounts, boosting profits unfairly.

1 view
Online Sellers Frame a Premium Price as a Discount: Synchronizing Price Increase and List-Price Introduction
Sungsik Park, Man Xie, Jinhong Xie

Paper Summary

Online sellers sometimes increase prices and introduce list prices to make it seem like a discount, a tactic called Premium and List Price Synchronization (PLPS). This strategy boosts sales and attracts buyers to products with many reviews. PLPS helps sellers make more money and sell more products, but it can mislead shoppers and take advantage of their trust in online reviews.

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