Consumer Attitude and Reaction towards Personalised Pricing in the E-Commerce Sector

Abstract

Objective – This study examines consumer attitudes and reactions towards personalised pricing strategies in a negative and positive hypothetical purchase context. Methodology/Technique – The data was collected from 250 respondents from India through a set of two structured questionnaires, each one comprising either a positive or negative purchase scenario. Partial Least Square based Structural Equation Modelling (PLS SEM) was used to analyse the data. Findings – The results of the study imply that the consumers are concerned about the usage of their personal data for price customisation which reduces their repurchase intentions and increases the reprisal intention. The results also depict that a loyal customer base reacts positively to some extent to the personalised pricing strategy. Novelty –This study considers the impact of personalised pricing on the fair price perceptions, privacy concerns and customer loyalty in both positive and negative purchase contexts which is a novel in this research area. Type of Paper: Empirical. Keywords: Personalised Pricing; E-Commerce; Consumer Behaviour; Price Discrimination, PLS SEM. Reference to this paper should be made as follows: Victor, V.; Farkas, M. F.; Lakner, Z. 2019. Consumer Attitude and Reaction towards Personalised Pricing in the E-Commerce Sector, J. Mgt. Mkt. Review 4 (2): 140 – 148 https://doi.org/10.35609/jmmr.2019.4.2(6) JEL Classification: D82, D90, D11