An Analysis On Price Differences Between Traditional Channel And E-channel Based On Online Shopping Psychological Cost

E-commerce in China has come into a new era due to technology innovations,and we call it the Mobile Internet Era. In this era, new business models occur and thecharacteristics of shopping behaviors change. Facing such new circumstances,enterprises ought to and have to sense the changes and seize the opportunities theybring. We believe that enterprises should study the psychology of consumers andmake a reasonable price difference between the traditional channel and E-channel toachieve the synergistic effects. In this way, enterprises can be more competitive inbrand marketing.On one hand, we put forward the concept of Online Shopping PsychologicalCost of consumers, and develop a new Demand Model based on it. After that, weanalyze the change of net income before and after one enterprise enters thee-commerce market in three different scenarios of relationship between pricedifference and Online Shopping Psychological Cost. Then we theoretically find thereason why enterprises can not be benefited by E-channel, and also provide a optimalvalue and a reasonable interval of price difference by online shopping psychologicalcost, which is a core factor we believe for enterprises in e-commerce market.On the other hand, we explore some core factors of Online ShoppingPsychological Cost, and test them by empirical analysis measures. The test resultproves the influence of the factors on the price difference, reflects the objectivereality of Online Shopping Psychological Cost. So the viewpoints in the above partof this paper are strongly justified, and deeper analyses are carried out.Furthermore, given all the conclusion, we make some suggestions for theenterprises which are being in or going into the e-commerce market. Firstly,enterprises should make a prudential investigation before they start e-commercebusiness. Especially they must figure out how and how much the factors ascommodities and websites contribute to consumers’ Online Shopping PsychologicalCost, and should develop effective measures to lower the cost and increase thepossibility of success through the E-channel. Secondly, enterprises should make a suitable price difference based on the cost, should enhance the experiencing functionof traditional channel and exploit new functions the E-channel provides, so that theycan make the most out of the advantages from the two channels’ combination.Meanwhile, we also provide new explanations of Consumer Online ShoppingConduct and E-commerce Maturity, produce a new conception Commodity Attribute,which is based on Commodity Digital Attribute, and try new ways to evaluatepsychological factors in empirical test.