Abstract
The research investigates how different pricing methods and consumer actions in digital marketplaces are connected. According to the Elaboration Likelihood Model (ELM), this study focuses on how people make decisions about online pricing based on reasoning (central route) or feelings (peripheral route). The study gathers data through the five major e-commerce systems employing the in-house developed system, Pricing Blocker, which tracks prices with consumer engagement rates every six months. The 10,000 participants (N) were split into three experimental groups to test the effect of static pricing, dynamic pricing and the combination of dynamic pricing and a set of behavioural nudges. Willingness to pay (WTP) and purchase intention were evaluated using surveys and behavioural tracking. The researchers used an experimental setup, choosing three groups to study, while testing price variations and behaviour cues. By using regression analysis and ANOVA, we determined if device type, location and behavioural nudges affected how willing people were to pay and how likely they were to buy the products. Results indicate that participants open to dynamic pricing were ready to pay more, or $58.84 on average. Higher conversion rates (32%) were seen among those who received nudges, proving that those emotional strategies work well. However, almost half of users (44%) worry about there being some manipulation of prices within crypto currencies. Further, it elaborates on policy implications, referring to the regulation of digital markets and ethical design. This study encourages policy formulators and digital marketers to further create a balance of commercial innovation with fairness in online transactions.
Keywords: Consumer Psychology, Decision-making Pathways, Elaboration Likelihood Model, Marketing Strategies, Price Perception, Willingness to Pay.