Pricing behavior in the online DVD market [An article from: Journal of Retailing and Consumer Services]

This digital document is a journal article from Journal of Retailing and Consumer Services, published by Elsevier in 2004. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

Description:
Using a data set with of 5508 observations collected in the online DVD market, we compare the pricing behavior between online branches of multi-channel retailers (MCRs) and online-only retailers. We find that (1) prices by online-only retailers are lower than prices by online MCRs by an average of $1.51 or 6.8 percent; (2) the price dispersion for the popular titles is sharply lower among online-only retailers than that among MCRs online; and (3) online-only retailers change prices more often than online MCRs although price changes by both types are few. The evidence suggests that the pricing efficiency diminishes as the multi-channel retailing format dominates the online retailing market.