Threshold free shipping policies for internet shoppers
2015
This study examines how consumers evaluate and respond to two economically equivalent but different forms of threshold free shipping (TFS) policy: piece-based or dollar-based (e.g., Regular: $25; free shipping on orders of “4 items” as opposed to “$100”) offered by an online store. We first demonstrate that a piece-based TFS will result in a higher intention to shop than a dollar-based TFS. However, this effect is attenuated when information about the shipping charge is present (e.g., “$4.99 flat rate shipping. Free shipping on orders of ___”) or when the time restriction for the TFS policy is short (e.g., “today only”). Finally, the effect of the TFS policy on intention to shop is shown to be mediated by the consumer’s evaluation of the offer. The observations have important implications for internet retailers.
Keywords:
- Correction
- Source
- Cite
- Save
- Machine Reading By IdeaReader
44
References
18
Citations
NaN
KQI