THE EFFECT OF DYNAMIC PRICING ON HOLIDAY PURCHASE INTENTIONS: MODERATED MEDIATION ROLE OF PERCEIVED RISK

Abstract

This study targets to measure the effect of dynamic pricing offerson the purchase intentions of consumers for a winter holiday bytaking into consideration a moderated mediator role of perceivedrisk on this effect. The study employs an experimental designwith discount level and timing of the offer (offer recency) as themanipulated conditions. The findings confirm that discountoffers have positive direct effect and perceived risk has anegative direct effect on purchase intentions. The levels ofdiscount 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 mediatedby the perceived risk level of consumers. Finally, the timing ofthe discount offers moderates the effect of perceived risk onpurchase intentions and eventually generates a moderatedmediation role for perceived risk on the influence of discountoffers on purchase intentions. Based on the findings of this study,some practical implications are provided.