Effect of Personalized Price on Decision Making Process on Internet

Aysegul Sagkaya Gungor, İsmail Kaya
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The article addresses the personalized price offer, a variable that may have a significant influence on decision making, within the scope of consideration set theory. Specifically, it aims to investigate the cause and effect relationship between presence of personalized price offer and decision making process on the Internet. A field experiment is conducted on retailing Web site of a leading mobile phone distributor in Turkey. Data is analyzed with Pearson chi-square and logistic regression analysis. It was found that, whereas the presence of personalized price offer increases the chance for a product to be included in consideration set and selected as final choice, no significant relationship is found between the presence of a personalized price offer and the inclusion of the product in customer’s choice set. Findings were similar for the consumers who are on different stages of decision making.

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