While fixed price offers are quite common in the marketplace, there is limited empirical evidence that documents the effectiveness of these offers in comparison to price discounting tactics. Drawing on information processing theory we provide a conceptual framework that explains the differential...

Price is an important variable because it has a direct impact on a company’s profitability. However, there is limited evidence to support the effectiveness of competing strategies of fixed pricing and discounted pricing. As a result, both strategies are practised extensively in the industry....