The Effect of Dynamic Pricing on Holiday Purchase Intentions: Moderated Mediation Role of Perceived Risk

Year 2019, , 57 - 84, 31.05.2019

Edin Güçlü Sözer

https://doi.org/10.30519/ahtr.508933

Cited By: 9

Abstract

This study targets to measure the effect of dynamic
pricing offers on the purchase intentions of consumers for a winter holiday by
taking into consideration a moderated mediator role of perceived risk on this
effect. The study employs an experimental design with discount level and timing
of the offer (offer recency) as the manipulated conditions. The findings
confirm that discount offers have positive direct effect and perceived risk has
a negative direct effect on purchase intentions. The levels of discount and perceived
risk, independently from each other, determine the level of purchase
intentions. On the other hand, the effect of discount offers on purchase
intentions is mediated by the perceived risk level of consumers. Finally, the
timing of the discount offers moderates the effect of perceived risk on
purchase intentions and eventually generates a moderated mediation role for
perceived risk on the influence of discount offers on purchase intentions.
Based on the findings of this study, some practical implications are provided.

Keywords

Dynamic Pricing, Discounts, Perceived Risk, Purchase Intentions

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