This study examines how personalized pricing affects customers’ showrooming behavior in the duopoly competition with horizontal product differentiation between traditional and online retailers. For the available personalized pricing strategies, we obtained the optimal decisions for both retailers in the scenarios with and without showrooming. Our results indicate that adopting personalized pricing under particular conditions enables each retailer to be more profitable, even in the presence of showrooming purchases. This finding explains why an increasing number of online and offline retailers have implemented personalized pricing based on technical means and consumer purchase records. It is also demonstrated that personalized pricing can counter showrooming behavior of consumers amidst the competition between both retailers, which provides a novel theoretical basis for dealing with cross‐channel shopping in multichannel retail competition. We further clarify how retailers can avoid being trapped in a prisoner's dilemma when both sides have access to personalized pricing. Also, the adoption of personalized pricing can improve consumer surplus and social welfare.

中文翻译：

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个性化定价与陈列室：线上和线下零售商之间的竞争

本研究探讨了在传统零售商和在线零售商之间具有横向产品差异化的双寡头竞争中，个性化定价如何影响客户的陈列行为。对于可用的个性化定价策略，我们获得了两家零售商在有和没有陈列室的情况下的最佳决策。我们的结果表明，在特定条件下采用个性化定价可以使每个零售商获得更多利润，即使存在陈列室购买。这一发现解释了为什么越来越多的线上和线下零售商根据技术手段和消费者购买记录实施个性化定价。研究还表明，在零售商之间的竞争中，个性化定价可以对抗消费者的陈列室行为，这为处理多渠道零售竞争中的跨渠道购物提供了新的理论基础。我们进一步阐明，当双方都能获得个性化定价时，零售商如何避免陷入囚徒困境。此外，采用个性化定价可以提高消费者剩余和社会福利。