Customers anywhere in the world attach premium value to convenience and pricing. The best combination is irresistible for them, and thus the lure of digital shopping. A lot of the most successful brands have realized the importance of differential pricing across platforms. Those who cracked the art of differential pricing, have seen up to five percent rise in their bottom lines. While many price goods on e-commerce platforms at lower rates, Wal-Mart has done just the opposite, in order to attract greater traffic at its stores. As per marketing research performed by McKinsey and published on MIT Sloan’s newsletter, about three-fifths of respondents are comfortable with the diversity in pricing across cheaper goods. For items, already priced higher online, people were ready to go the extra mile, but for those cheap online, they resented the higher prices at physical outlets. Younger people and women were generally more liberal towards the price differential than were men aged above thirty-one. Interestingly, those using Amazon Prime were also more tolerant of these price changes across formats.

Source:https://sloanreview.mit.edu/article/master-the-challenges-of-multichannel-pricing/

Uploaded Date:15 June 2018