Explaining price dispersion in e-marketplace

Taedong Han, Jungwoo Lee

Research output: Chapter in Book/Report/Conference proceedingConference contribution

1 Citation (Scopus)

Abstract

It is predicted that the increased availability of information on ubiquitous Internet, search cost for information for product and service would be low enough to increase price competition, and reduce the price dispersion among products and services. However, recent studies are reporting conflicting results on this matter. Even the Internet has infiltrated our day to day commerce, it seems that price dispersion still exists even for popular commodities sold on Internet such as books. Through an experiment, this study explores (1) whether such a price dispersion exists, and (2) why this price dispersion still exists from the perspective of customer segmentation in relations to their search behavior. The results indicate that the scope and intensity of information search in on Internet is not as extensive as predicted. Despite the cost of search on Internet is much lower compared to physical visitation of shops, it may not be as low as we expected. Results also indicate that the traditional consumer segmentation may not be applicable to the consumers in e-marketplaces. Interestingly, brand loyalists have shown higher level of search activities than other groups.

Original languageEnglish
Title of host publication2007 International Conference on Convergence Information Technology, ICCIT 2007
Pages1257-1262
Number of pages6
DOIs
Publication statusPublished - 2007 Dec 1
Event2nd International Conference on Convergent Information Technology, ICCIT 07 - Gyongju, Korea, Republic of
Duration: 2007 Nov 212007 Nov 23

Publication series

Name2007 International Conference on Convergence Information Technology, ICCIT 2007

Other

Other2nd International Conference on Convergent Information Technology, ICCIT 07
CountryKorea, Republic of
CityGyongju
Period07/11/2107/11/23

Fingerprint

Internet
costs
commerce
commodity
Costs
customer
E-marketplace
World Wide Web
Price dispersion
Availability
experiment
Group
Experiments
segmentation

All Science Journal Classification (ASJC) codes

  • Computer Networks and Communications
  • Communication
  • Information Systems and Management

Cite this

Han, T., & Lee, J. (2007). Explaining price dispersion in e-marketplace. In 2007 International Conference on Convergence Information Technology, ICCIT 2007 (pp. 1257-1262). [4420429] (2007 International Conference on Convergence Information Technology, ICCIT 2007). https://doi.org/10.1109/ICCIT.2007.4420429
Han, Taedong ; Lee, Jungwoo. / Explaining price dispersion in e-marketplace. 2007 International Conference on Convergence Information Technology, ICCIT 2007. 2007. pp. 1257-1262 (2007 International Conference on Convergence Information Technology, ICCIT 2007).
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Han, T & Lee, J 2007, Explaining price dispersion in e-marketplace. in 2007 International Conference on Convergence Information Technology, ICCIT 2007., 4420429, 2007 International Conference on Convergence Information Technology, ICCIT 2007, pp. 1257-1262, 2nd International Conference on Convergent Information Technology, ICCIT 07, Gyongju, Korea, Republic of, 07/11/21. https://doi.org/10.1109/ICCIT.2007.4420429

Explaining price dispersion in e-marketplace. / Han, Taedong; Lee, Jungwoo.

2007 International Conference on Convergence Information Technology, ICCIT 2007. 2007. p. 1257-1262 4420429 (2007 International Conference on Convergence Information Technology, ICCIT 2007).

Research output: Chapter in Book/Report/Conference proceedingConference contribution

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Han T, Lee J. Explaining price dispersion in e-marketplace. In 2007 International Conference on Convergence Information Technology, ICCIT 2007. 2007. p. 1257-1262. 4420429. (2007 International Conference on Convergence Information Technology, ICCIT 2007). https://doi.org/10.1109/ICCIT.2007.4420429