Retailers' use of shipping cost strategies: free shipping or partitioned prices? Frischmann, Tanja, Hinz, Oliver and Skiera, Bernd 2012, Retailers' use of shipping cost strategies: free shipping or partitioned prices?, International Journal of Electronic Commerce, vol. 16, no. 3, pp. 65-88, doi: 10.2753/JEC1086-4415160303. Attached Files Name Description MIMEType Size Downloads Title Retailers' use of shipping cost strategies: free shipping or partitioned prices? Author(s) Frischmann, Tanja Hinz, Oliver Skiera, Bernd orcid.org/0000-0001-9285-2013 Journal name International Journal of Electronic Commerce Volume number 16 Issue number 3 Start page 65 End page 88 Total pages 23 Publisher Routledge Place of publication Abingdon, Eng Publication date 2012 ISSN 1086-4415 1557-9301 Keyword(s) electronic commerce e-tail price comparison pricing shipping costs Summary The Internet has radically reduced the cost of collecting and distributinginformation. Consequently, researchers initially predicted that the resulting price transparency would drive prices toward a single market price. However, this has largely not happened, partly because retailers use shipping costs to make prices less comparable. Using data on 517,048 offers of 895 retailers from a leading European price comparison site, we show that retailers pursue two different shipping cost strategies. Both strategies lead to higher gross product prices, which are the sum of net product price and shipping costs and thus try to capture consumer surplus. These strategies are conflicting, however, and target different consumer segments: Some retailers charge high shipping costs and thereby try to exploit consumers’ biased perceptions of partitioned prices, while other retailers offer “free shipping” to attract consumers and exploit their so-called zero-risk bias. Consumers realize the lowest gross product prices by ordering at retailers that charge moderate shipping costs. Language eng DOI 10.2753/JEC1086-4415160303 Indigenous content off Field of Research 150599 Marketing not elsewhere classified 0806 Information Systems 1503 Business And Management 1505 Marketing Socio Economic Objective 970108 Expanding Knowledge in the Information and Computing Sciences HERDC Research category C1.1 Refereed article in a scholarly journal ERA Research output type C Journal article Copyright notice ©2012, M.E. Sharpe Persistent URL http://hdl.handle.net/10536/DRO/DU:30091182 Document type: Journal Article Collections: Faculty of Business and Law Department of Marketing 2018 ERA Submission Related Links Link Description Connect to Elements publication management system Go to link with your DU access privileges   Connect to published version Go to link with your DU access privileges     Unless expressly stated otherwise, the copyright for items in DRO is owned by the author, with all rights reserved. Versions Version Filter Type Fri, 10 Feb 2017, 10:28:45 EST Sat, 11 Feb 2017, 04:00:24 EST Mon, 13 Feb 2017, 07:15:31 EST Sat, 25 Feb 2017, 05:06:28 EST Wed, 08 Mar 2017, 12:43:43 EST Wed, 08 Mar 2017, 12:45:53 EST Wed, 08 Mar 2017, 12:46:34 EST Sat, 17 Jun 2017, 02:53:00 EST Wed, 21 Jun 2017, 10:40:50 EST Thu, 03 Mar 2022, 11:47:42 EST Mon, 07 Mar 2022, 13:43:10 EST Filtered Full Citation counts:   Cited 19 times in TR Web of Science Cited 26 times in Scopus Search Google Scholar Access Statistics: 434 Abstract Views, 5 File Downloads  -  Detailed Statistics Created: Fri, 10 Feb 2017, 10:28:45 EST