MKT421 DeVry University New Pricing Model for Online Stores Presentation 1. Introduction2. Literature Review: review 4 academic article could be improved t

MKT421 DeVry University New Pricing Model for Online Stores Presentation 1. Introduction2. Literature Review: review 4 academic article could be improved the proposal of literature which will be attached below (the pricing model for online store)3. Conclusion: Identify any research gap and future research need based on the literature review. Note: you could use all the previeus work Running Head: PRICING MODEL FOR ONLINE STORES
New Pricing Model for Online Stores
Abdullah Alshawi
Alliant International University
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PRICING MODEL FOR ONLINE STORES
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New Pricing Model for Online Stores
A focus on the different pricing strategies in various online stores points to the possibility
of better resource allocation for the development of proper pricing techniques. This is in a bid to
improve customer interaction and the sales made on the platform. The confidant pricing strategy
model will effectively leverage the different parameters in consumer interaction and
consequently lead to a better understanding of the issue.
Reason for the Topic
Different factors affect the online selling of goods. These factors point to an improved
understanding between the various parties and how they want to interact with each other.
Understanding consumer dynamics is essential in making sales, and as such, should be present in
the pricing strategy chosen. The confidant pricing strategy model solely focuses on the customer,
and through this allows for profit-making through increased sales.
Literature Review
Customer value is an essential factor for consideration in online shopping. When online
shopping, the customer considers the quality of the website that they are making purchases on
(Dhaigude & Tapar, 2015). A low-quality website represents an increased probability for lowquality goods under sale. As such, the development of the website should be of high quality, to
ensure that customers are assured of quality products. The value placed on the customer by the
online store will be replicated by a difference in customer interaction (Katawetawaraks & Wang,
2011). In return, this will affect pricing since the goods will be priced according to the customer
perception of the website.
Online stores have increased competition since customers can easily compare different
prices on various sites at a go. This proposition demands that the pricing of an online store
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should focus on the rates that the competitors have placed, and through this promote
understanding on the interactions that different parties will have with each other (Shanthi &
Kannaiah, 2015). The prices of other competitors will determine the price that the consumers are
willing to forego for the products.
Identifying the target customers and effectively pricing the products will improve sales
and allow for a distinction with the competitors. Market segmentation allows for specific
targeting and positioning (Camilleri, 2017). The income level of target consumers will allow for
dynamic pricing that will cater to all economic levels. The efficient market segmenting will lead
to targeting and consequently positioning, which will lead to improved sales.
Online stores have allocations for quick review on the products sold. The different review
dimensions include avenues for product quality and the pricing model used (De Maeyer, 2012).
Pricing should focus on these elements, and ensure that there is an understanding of what needs
to be done for adequate agreement between the different parties.
Research Progress
This specific pricing model is unique, and as such, there has been little research on it.
However, in its different components, different research resources effectively point out the
interaction between these elements and allow for a discovery of this model. This pricing model is
useful and thriving in the digital era since it focuses on establishing customer power and how
online stores can harness it for increased sales.
Research Plan for Final Paper
The research plan put in place is improved identification of resources that delve into this
issue, and through this, identify the specific elements of this pricing model. By placing a focus
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on confidant pricing strategy, there will be a better success in the handling of issues and the
interaction between different parties.
Conclusion
Even though there has been little research on the confidant pricing strategy for use on
online stores, this model represents promising results on the handling of different elements of the
consumer, and how they will lead their lives. Increased research in this area will improve the
understanding and allow for its rolling out in different online stores.
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References
Camilleri, M. (2017). Market Segmentation, Targeting and Positioning. doi:10.1007/978-3-31949849-2_4
De Maeyer, P. (2012). Impact of online consumer reviews on sales and price strategies: a review
and directions for future research. Journal of Product & Brand Management, 21(2), 132139. doi:10.1108/10610421211215599
Dhaigude, A., & Tapar, A. V. (2015). Examining Role of Perceived Customer Value in Online
Shopping. Online Information Review, 14(2), 235-244. Retrieved from
https://www.researchgate.net/publication/317593627_Examining_Role_of_Perceived_C
ustomer_Value_in_Online_Shopping
Katawetawaraks, C., & Wang, C. L. (2011). Online Shopper Behavior: Influences of Online
Shopping Decision. Asian Journal of Business Research, 1(2). doi:10.14707/ajbr.110012
Shanthi, R., & Kannaiah, D. (2015). Consumers’ Perception on Online Shopping. Journal of
Marketing and Consumer Research, 13. Retrieved from
https://researchonline.jcu.edu.au/39753/1/Dr.%20Desti%20Consumers%20perception%
20on%20Online%20Shopping.pdf

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