Value-based pricing in digital platforms: A machine learning approach to signaling beyond core product attributes in cross-platform settings
Journal
Journal of Business Research
ISSN
0148-2963
Type
journal article
Date Issued
2022
Author(s)
Abstract (De)
Value-based pricing is known to be challenging, especially on online platforms, but is considered a superior pricing strategy. We investigate cross-platform pricing and other factors that influence perceived customer value in the context of the accommodation industry. This industry is characterized by powerful platforms (e.g., Booking.com) as well as small and medium-sized enterprises (SMEs) selling across platforms. We compare the importance of platform choice and seller history as underlying signals conveying value and thus defining pricing beyond core product attributes. Such actor-signaling-actions for value are neglected in previous research. We pay particular attention to how time-based price discrimination affects the importance of these non-core product signals. As cross-platform efforts increase the complexity of value-based pricing, we apply machine learning methods to model how SMEs can successfully predict pricing across platforms. We discuss our methodological and theoretical contributions to value-based pricing and signaling theory.
Language
English
Refereed
Yes
Publisher
Elsevier
Volume
152
Start page
82
End page
92
Subject(s)
Division(s)
Eprints ID
267686
File(s)![Thumbnail Image]()
Name
1-s2.0-S0148296322006531-main.pdf
Size
1023.76 KB
Format
Adobe PDF
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