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EMAC 2024 Annual


When do consumers engage in self-matching versus competitive matching? An empirical analysis
(A2024-118658)

Published: May 28, 2024

AUTHORS

Helena Martin, Cooperative State University Mannheim; Arnd Vomberg, University of Mannheim; Emanuel Bayer, Cooperative State University Mannheim

ABSTRACT

This paper presents the first empirical study analyzing competitive matching versus self-matching in the context of price matching. Competitive matching describes customers requesting a lower price from a retailer based on a competitor's offering, whereas self-matching describes customers requesting a lower price based on the retailer’s own online or previous retail price. Our study is motivated by the fact that price matching has become a common practice among retailers, and understanding consumer behavior in this domain is critical for retailers to design effective pricing strategies. Using a proprietary dataset of 3,027,517 individual-level purchases spanning 18 months, we find that consumers engage less in self-matching when the price of the matched item is large but are more likely to engage in competitive matching. These findings have important implications for retailers in designing effective price-matching policies and promoting customer loyalty.