Price Differentiation across Multiple Channels : An Investigation of Customers' Acceptance of Channel Price Premiums

An important aspect of channel configuration is price-setting within multichannel portfolios. To date, neither practice nor academia has found sufficient answers on the feasibility and manageability of this aspect of multichannel management. The current study develops and estimates a model for understanding possible causes of inter-channel price differentiation. We focus on the customer perspective within multiple channels to determine the reasons for channel choice and the willingness to pay for the same products across different channels.