Consumer Price Search Behaviors in Online Shopping

Abstract

Aims: Simultaneously, the decelerating economy in the real world due to the covid-19 has intensified the competition in the virtual world, forcing online retailers to consider how to steering effective price promotion strategies to attract customers and to increase their purchase intentions. Online retailers are either struggling to find ways to formulate their online price promotion strategies or simply adopt the offline price promotion strategies. However, the Internet provides online shoppers with the benefit of searching and evaluate price information efficiently and effectively, greatly reduces consumers’ information search costs. Under this circumstance, the effect of offline price promotion strategies on consumers’ price perceptions and purchase decision may become a hinderance instead of an assistance. Overall, the price information provided by the Internet influences consumer perceptions and reactions to online shopping. The purpose of this research is to provide insight into consumers’ online price search behavior and consumers’ reactions to online price promotion. Methodology: An in-depth discussion of the literature review on online consumer price search behavior was applied. Specifically, the literature review covers the issues of price comparison search engine, price comparison refund policy, price promotion, and semantic cues related to consumer price perception and purchase intention. Conclusion: These research propositions can help online retailers to gain a deeper understanding of consumer price search behavior, response to price information, and promotions. Consequently, online retailers are able to better formulate price communication strategies effectively. This price scheme can influence consumer price search behavior and then purchase intention.