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Q: Price Guarantees to improve sales ( No Answer,   0 Comments )
Question  
Subject: Price Guarantees to improve sales
Category: Business and Money > eCommerce
Asked by: ljb-ga
List Price: $20.00
Posted: 13 Aug 2002 12:22 PDT
Expires: 12 Sep 2002 12:22 PDT
Question ID: 54176
Can you suggest a list of papers or studies (preferably free ones)
that would support the idea that a Price Gurantee improve
sales/conversion rates?  It would be nice if the source specifically
applied price guarantees to e-commerce sales.

Request for Question Clarification by digsalot-ga on 14 Aug 2002 18:13 PDT
Could you explain how such price guarantee would be used?  Would it be
used as incentive to buy 'now' as in if you buy X 'now' we will hold
the price on Y for 90 days?  Would it be used as a price guarantee
giving the same price for a future re-order?  Or would it be a broad
based claim such as "our prices never change" or any one of a hundred
other ways to use 'price guarantee' in sales.

Each one of these uses has its own literature and figures.  I need you
to narrow it down a bit.

Clarification of Question by ljb-ga on 15 Aug 2002 04:37 PDT
It would be used, as you first describe, to be an incentive to buy
now.  Consider an example of 10 booksellers all offering the same book
at approximately the same price -- but one of the booksellers offers a
30 day price guarantee.  Would the offer be enough to shift market
share to that bookseller?  If so, how much?

The standard "conversion" rate for web shoppers is estimated to be
something on the order of 2.5-3%.  That is, out of every 100 visitors
to a web page (shoppers) just 2.5-3 of them will actually buy what
they are looking for on that site.  Would a price guarantee be enough
to improve the conversion rate from 2.5-3% to a higher level and if so
how much higher?

I don't expect that particular answer or study to show up, but
anything on price guarantees improving look to buy (conversion) ratios
would be helpful.  I have found one study which said that in the
brick-and-mortar retail  tire market a researcher noted HIGHER overall
prices for tires where multiple vendors offered price guarantees. 
I've also seen a study about service guarantees and how they impact
prices (usually higher).  Those were nice to read, but were to far
afield for my question.

Thanks.
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