Business Commons^™

A Hybrid Firm's Pricing Strategy In Electronic Commerce Under Channel Migration, Robert John Kauffman, Dongwon Lee, Jung Lee, Byungjoon Yoo

Research Collection School Of Computing and Information Systems

Achieving an effective business design across the Internet and the off-line channel is a critical concern for a hybrid firm's choice of pricing strategy. Two pricing models are proposed to examine how consumer channel migration (one-way channel interaction from the traditional sales channel to the Internet) affects pricing strategy. One model has no interaction between the Internet and off-line channels. The other includes the possibility of one-way migration to the Internet channel and incorporates consumers' channel-switching costs and loyalty to the firm. The two models offer interesting results for understanding traditional and Internet-based selling. A high level of channel migration …