How does the consumer behavior vary in response to low prices of digital products across different industries?
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Consumer behavior in response to low prices of digital products varies across different industries. Studies show that low prices and national brand products induce higher positive emotions, leading to greater purchase intent . Consumers react differently to perceived unfair and fair prices, with stronger negative reactions to perceived unfair prices impacting purchase intent adversely . Additionally, customer reactions to variable pricing differ based on the magnitude of price difference, with asymmetrical responses observed, especially in intentions to switch stores and spread negative word-of-mouth . The limited information problem in decision-making also affects consumer behavior, as consumers use heuristics to mitigate risks and make satisfactory purchase decisions . These findings highlight the significance of emotional factors, fairness perception, and information limitations in shaping consumer responses to low prices in the digital product landscape.
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| Consumer behavior in response to low digital product prices varies across industries due to unique characteristics like low marginal costs and advertising revenue, impacting pricing strategies and demand curves. | |
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5 Citations | Consumers react more negatively to perceived unfair low prices in digital products, impacting choice, purchase probability, and attitude, with variations based on product category and estimation methods. |
57 Citations | Not addressed in the paper. |
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