Pricing strategy: a case study of offline and online bookstores

University essay from Luleå tekniska universitet/Industriell ekonomi och samhällsvetenskap/Industrial marketing and e-commerce

Author: Wen Ma; Ning Chen; [2004]

Keywords: pricing strategy; E-commerce; bookstores;

Abstract: With the emergence and prosperity of E-commerce, internet pricing appears as both a change and a challenge to companies offline and online. Nevertheless, how to put the traditional pricing theory into practical use in this new E-commerce domain is lame. Correspondingly, we conduct a research, with the purpose to describe the pricing strategy among offline and online companies and the factors, to what extent influence the pricing strategy, which we think it is an interesting research topic and with the contribution to presented study. We chose Sweden Bookshop as our specified region and industry for study. Through the three qualitative case-analysis of Swedish bookshop, namely Bokis AB, AdLibris, and Akademibokhandeln, our findings show that in the price setting, the influence of components differ among the companies, however, some factors such as 'dollar' price, the nature of price, is most significant factor that influence the pricing strategy both online and offline company, more than other factors. We also found that although companies have different objectives, yet the result is that it demonstrates the similarity while they adopt the same methods as their pricing method.