Abstract

Retailers recently adopted dynamic currency conversion (DCC) techniques in which they offer their international clients the possibility to pay in their local currency. As retailers generally share in conversion revenues, it is relevant to gain insights in customers’ attitudes towards different forms of presenting the conversion option. It is found that the likelihood of using DCC decreases with conversion margins, but increases once DCC is presented as a default option. The findings provide guidance to retailers when to deploy DCC efficiently.

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