Shipping charges and shipping-charge skepticism: Implications for direct marketers’ pricing formats

2005 ◽  
Vol 19 (1) ◽  
pp. 41-53 ◽  
Author(s):  
Robert M. Schindler ◽  
Maureen Morrin ◽  
Nada Nasr Bechwati
Keyword(s):  
Author(s):  
Tanjim Hossain ◽  
John Morgan

Abstract Many firms divide the price a consumer pays for a good into two pieces---the price for the item itself and the price for shipping and handling. With fully rational customers, the exact division between the two prices is irrelevant---only the total price matters. We test this hypothesis by selling matched pairs of CDs and Xbox games in a series of field experiments on eBay. In theory, the ending auction price should vary inversely with the shipping charge to leave the total price paid constant. Contrary to the theory, we find that charging a high shipping cost and starting the auction at a low opening price leads to higher numbers of bidders and higher revenues when the shipping charge is not excessive. We show that these results can be accounted for by boundedly rational bidding behavior such as loss-aversion with separate mental accounts for different attributes of the price or disregard for shipping costs.


2021 ◽  
Vol 16 (1) ◽  
pp. 139-157
Author(s):  
József Kelemen

A tanulmány az ingyenes házhozszállítás és a szállítási díjjal való árazás stratégiáját vizsgálja. Egy termék vásárlásakor házhozszállítás esetén felmerül a kérdés, hogy a termék árában benne kell lennie a szállítási díjnak vagy a kettőt szét kell választani, és a termék ára mellett külön meg kell jelennie annak? A probléma elemzéséhez Kelemen [2017b] modelljét alkalmazzuk, amit kiegészítünk a szállítási díjat kifogásoló fogyasztókkal. Egy olyan modellbe helyezzük az elemzést, ami a térbeliséget mélyrehatóbban veszi figyelembe a piac méretén, a szállítási díjon és az utazási költségen keresztül. A szállítási díjjal való árazás magasabb profitot eredményez, azonban ehhez a piacot jól kell ismerni. This paper studies the free shipping and partitioned pricing strategy (product price with shipping fee). If a product is ordered for delivery, it is not straightforward that the price should consist of the shipping fee or the product price and shipping fee should be separated. We extend the model of Kelemen [2017b] with shipping charge skepticism. In this framework, we can investigate the spatial properties in more detail through the size of the market, the shipping fee and the transportation cost. As a result of that, the partitioned pricing ensures higher profit, but it requires the knowledge of key characteristics of the market.


2019 ◽  
Vol 7 (2) ◽  
pp. 171-184
Author(s):  
Dian Wahyudin

This study was conducted to determine about the debit notes is a taxable and tariffs 10% ( ten percent ) on export of taxable service   if it is reviewed by taxable supplies, and to determine the treatment of VAT on Debit Note reviewed by the concept of destination principle and to determine whether it is acceptable in tax regulation of Indonesia if It’s issued a Debit Note for collecting of company income and to estimate how much penalties arise. This study used qualitative methods with qualitative descriptive analysis. The object of research is based on data available at the company that is secondary data. Data collection techniques are Library research.The results of data processing that the Debit Note is an taxable of VAT. In terms of destination Principle Debit Note is taxable to VAT 0 % (Zero Percent) for the shipping charge, the Minimum Order Quantity (MOQ) charge and cancel orders charge / penalty fees. Debit Note Billing mechanism is allowed in tax regulation as long as there is a document whose position equivalent to tax invoice for canceled order charge/penalty fees, but charge for shipping and the Minimum Order Quantity (MOQ) charge don’t allow in the tax regulation because it is non-compliance of the material terms of the tax invoice. As a result of the Debit Note that issued raised the sanctions of Article 14 paragraph (2) of general provisions and taxation procedures for 2 % of the tax base.Based on the suggested better in making commercial document to charge must analyze aspects of taxation in order to prevent tax penalties in this case to issue Debit Note need to create a document that is equivalent to a Tax Invoice because mechanism of the Debit Note is taxable of VAT.


2019 ◽  
Vol 58 (2) ◽  
pp. 101
Author(s):  
Jones ◽  
Griffis ◽  
Schwieterman ◽  
Daugherty

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