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Title: The Right Pricing Strategy for Offline Retailers when Expanding into the Online Sales Channel
Authors: Marko Kimpel; Colette Friedrich
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Keywords: Pricing Strategies; Online Retailing; Multi-Channel Retailing; Media Markt
Abstract:The primary aim of this paper is to develop a conceptual framework for the right pricing strategies for offline retailers when expanding in the online sales channel. Despite lots of research of price levels and price dispersion in the online channel, the fact that offline retailers do pursue a specific pricing strategy when they make the decision to expand in the online sales channel is widely neglected. This paper closes this research gap and provides recommendations that are dependent on the retailer´s current pricing strategy. Germany´s largest consumer electronics retailer Media Markt serves as an illustrative example in this realm.