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Abstract

Dynamic pricing, facilitated by information technology in electronic markets, is a pricing strategy wherein product demand is continuously monitored in real time, and prices are set in response. Our study examines a luxury fashion brand that debuted a novel dynamic pricing policy on a new product line. This policy allowed the brand to gather data about demand for specific products, but also made this fully transparent to consumers. Luxury brand pricing is traditionally characterized by non-transparent valuation, and research examining dynamic pricing in this domain is still in its infancy. In this research, we will utilize both quantitative and qualitative methods to assess the change in the consumer perceived value of luxury fashion brands after the adoption of a dynamic pricing policy. Ultimately, we expect to contribute to the literature on market transparency, dynamic pricing, and e-commerce and provide meaningful implications for luxury brand pricing strategies.

Paper Number

tpp1256

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