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Internet Retailer: Winning the holiday price war


The holiday season is approaching fast and retailers will be competing aggressively to offer best deals to shoppers. Zach Blatt is investigating which retailers are most likely to offer best deals and what are the best strategies for smaller retailers in order to compete. Author refers to the research ‘Clicks, Discontinuities, and Firm Demand Online’ from economists Michael Baye from Indiana University, John Morgan from UC Berkeley, Rupert Gatti of the University of Cambridge and Paul Kattuman from Cambridge Judge Business School. The research concludes that for each improvement in rank on a comparison shopping site, a retailer is likely to see a 60% jump in referrals and ultimately sales through that channel.

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