1. By: Ted Karlsson and Christer Kuttainen Leyland Pitt Stavroula Spyropoulou Presentation by: Deni Riyandi (29009016) & Erdi Novanto (29009017)

2. Consumer : Decision OFFLINEONLINE

3. The internet and pricing strategy:  When a new form of retailing, in this case is internet, enters the market, it begins by offering lower prices and accepting lower margins by offering fewer services (McNair, 1958)  The effect of communications technology on markets is to make them more efficient (Coase (1937), Downes and Mui (1998))  Elimination of intermediaries means that they do not raise the price of the products without adding value (Verma and Varma, 2003)

4.  Prices of books and CDs on the internet were 9-16 per cent lower than in conventional stores (Smith and Brynjolfsson, 2001)  Dell Computer ( Magretta, 1998), first-mover advantage  Amazon.com (September 2002), sold DVD at different prices to different customer and refunded those customer

5.  how important a motivator is price in online purchasing environments to customers where other factors are also considered in the decision making?  does the relative importance of price differ between online and physical channels for a particular product bundle?

6.  Using experimental rather than sample survey  Using Conjoint Analysis methods  Designed to focus on 5 attributes: ◦ Price of textbook ◦ Buyback policy ◦ Ease of returns ◦ In-stocks status ◦ accessibility

8. Use online and offline questionnaires Sample: undergraduate business and engineering students at a large Swedish University Consist of 16 profiles Using ten-point Likert scale 1 = Definitely not buy 10 = Definitely would buy

9.  Data analyzed by the SPSS Conjoint module

14. Online PurchasingOffline Purchasing

15.  Price is the most importance attribute (35%)  Followed by delivery time (27%)  Buyback policy (19%)  Returns (9%)  Place of delivery (8%)  Respondents insensitive to a price increase between 500 SEK and 550 SEK

16.  Distance to the store was the most important attribute (27%)  Followed by delivery time (25%)  Price (22%)  Buyback (19%)  Returns (7%)

17.  Price matters to consumers in online environment  There is a difference in the trade-offs that consumers make when shopping online and when in conventional stores

18.  The study may not generalisable to shopping situations in other parts of the world  The study only considered the purchasing of textbooks  Can not sure is there still any important purchase variables  The research more of an experimental than a survey

19.  It could be easily replicated in other students-as-consumer environments in other countries  The attribute of brand is entirely absent from this study

20. THANK YOU