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How the Offer of 'Free Shipping' Affects On-line Shopping
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******************************** How the Offer of 'Free Shipping' Affects On-line Shopping http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=1449 The phrase "free shipping" is like a siren song to many who shop on the Internet. For whatever reason, a free shipping offer that saves a customer $6.99 is more appealing to many than a discount that cuts the purchase price by $10, says Wharton marketing professor David Bell. Bell noticed this phenomenon a few years ago while doing research for an online grocery store, and the observation prompted him to look more closely at the ways Internet retailers use shipping charges -- or the lack thereof -- as a promotional tool. The result is a recent paper titled, "Free Shipping and Repeat Buying on the Internet: Theory and Evidence," by Bell and colleagues Skander Essegaier from Koc University and Yinghui Yang from the University of California at Davis.
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