There are two conflicting streams of research findings on pricing strategy: one is high reputation sellers should charge price premium, while the other is high reputation sellers should charge relatively low price. Motivated by this confliction, this study examines pricing strategy in online retailing marketplace of homogeneous goods. We conduct an empirical study using data collected from a dominant online retailing marketplace in China. Our research results indicate that, in online retailing marketplace of homogeneous goods, high reputation sellers should charge relatively low price, because the consumers of high reputation sellers are more price sensitive than the consumers of low reputation sellers.
Liu, Yuewen; Wei, Kwok Kee; and CHEN, Huaping, "Pricing Strategy in Online Retailing Marketplaves of Homogeneous Goods: Should High Reputation Seller Charge More?" (2009). AMCIS 2009 Proceedings. 404.