On-Line Pricing: Concept, Methods And Current Practices | D. P. S. Verma & Gaytri Varma

In the present era of the Internet and the World Wide Web, price, one of the flexible but sensitive elements of the marketing-mix, is posing a major challenge to marketers. The Internet, which is seen by experts as the least expensive and the most costeffective marketing tool, is affecting the price-sensitivity of customers in many ways. In order to take right on-line pricing decisions, marketers need to understand this phenomenon. Because of the savings in different types of costs by using the Internet and the fierce competition faced by marketers on the Internet, on-line prices tend to be lower than the prices offered through the traditional channels. However, it will be wrong to conclude that the Internet is leading to commoditisation of all the goods.