Expanding to the internet: Pricing and communications strategies when firms compete on multiple channels

Florian Zettelmeyer*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

160 Scopus citations

Abstract

The author shows how firms' pricing and communications strategies may be affected by the size of the Internet: Firms have incentives to facilitate consumer search on the Internet, but only as long as the Internet's reach is limited. As the Internet is used by more consumers, firms' pricing and communications strategies on the Internet will mirror the strategies they pursue in a conventional channel. Firms can increase their market power by strategically using information on multiple channels to achieve finer consumer segmentation. The author suggests directions the Internet might take and derives managerial implications. The findings generalize to other channels that enable firms to segment consumers and inform them at low cost.

Original languageEnglish (US)
Pages (from-to)292-308
Number of pages17
JournalJournal of Marketing Research
Volume37
Issue number3
DOIs
StatePublished - Aug 2000

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics
  • Marketing

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