• Management Science and Financial Engineering
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• v.11 no.3
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• pp.95-107
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• 2005

As online shopping malls have emerged as a substantial shopping channel, they have used various sales promotion strategies to acquire new customers. Most of these strategies have been applied by offline malls for years. One, loss-leader pricing, is a type of promotional pricing in which stores sell well known products below their marginal cost, in order to attract customers and induce them to purchase more goods through impulse buying. This strategy is based on the expectation that customers will factor transaction costs into their purchasing decisions. However, its application to online malls fails to recognize that transaction costs are lower online, and that customers will behave differently as a result. Our study predicts that loss-leader pricing will not work online because online malls entail lower searching and moving costs than offline malls The study examines the effectiveness of loss-leader pricing with empirical data from a survey as well as log data from a Korean online shopping mall. The results show that while loss-leader pricing does attract customers to online shopping malls, it encourages cherry-picking rather than impulse purchases of regular-price goods.

• 한국경영정보학회:학술대회논문집
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• 2007.06a
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• pp.168-173
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• 2007

인터넷 쇼핑몰들은 저조한 수익성에도 불구하고 소비자를 끌어들여 매출을 증대시키기 위해 다양한 유인가격전략을 사용하고 있으나 이러한 유인전략이 과연 효용성이 있는가 하는 문제를 주제로 6 개 인터넷 쇼핑몰의 실제 web logdata 를 활용하여 소비자의 실제 쇼핑행동을 파악하여 유인가격전략의 효용성을 실증적으로 측정하였다. 방대한 클릭데이터를 효과적으로 정리하는 방법을 제시했고 인터넷 쇼핑몰 업체의 유인가격전략 수립에 대한 가이드를 제시하였다.

• International Journal of Contents
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• v.17 no.2
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• pp.1-8
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• 2021

Online streaming wars are intensifying. Netflix is known as the market leader in the streaming business. However, since 2019, Netflix has been losing subscribers in the United States and is at a turning point where it needs to reassess its current position in the market. While Netflix is losing dominance, rivals Amazon Prime and Hulu continue to gain market shares. Studies from Deloitte and PricewaterhouseCoopers indicated a new shift in the streaming landscape caused by the abundance of streaming options and rising subscription costs. Recent surveys showed that consumers are excited about new streaming services, such as Disney +. Nearly two-thirds of consumers intend to terminate or downgrade one or more of their current subscriptions to make room for a new service. Moreover, it seems that consumers want ad-supported options. In Deloitte's latest Digital Media Trends survey, 65% responded that they would watch ads to eliminate or reduce subscription costs. Seventy percent of Hulu's subscribers choose its lower-priced ad-supported plan. NBC recently launched its own streaming service, Peacock, with a free ad-supported option. This opposes Netflix's brand identity of "no ads" and premium differentiation. With increasing pressure from competition and the growing risk of subscriber loss, Netflix needs to diversify its price plans. The company could try implementing the lower-priced mobile-only plan they are currently testing or plan to test in other regions. Netflix should also consider features or benefits for loyal subscribers to maintain a stronger consumer base.