Pricing for online sellers with different payment schemes
Electronic Commerce Research - Trang 1-23 - 2023
Tóm tắt
Two types of payment schemes are available for consumers to shopping online. One is pay-to-order, the other is pay-on-delivery. The differences in payment time leading to different trust and convenience experience for consumers, as well as consumer behavior and online seller’s performance. Consumers are divided into two kinds, trust-preferred and convenience-preferred. Consumer’s behaviors are described and firm’s decisions are characterized with game equilibrium model. We show that pay-on-delivery is a better choice for online seller if the service cost or return handing cost is certain small. With trust-preferred consumers, the market demand competition first become fierce and then weaken along with the consumer perceived trust difference, and keep 2:1 ratio finally. With convenience-preferred consumers, the market demand competition intensifies with increasing inconvenience cost. The results are very helpful for decision makers who consider introducing pay-on-delivery in practice.
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