Doctoral Student

Pavel Kireyev

Pavel is a doctoral student in quantitative marketing. He holds an MA in statistics from Yale and a BSc in business mathematics from the LSE. 

Working Papers

  1. Match Your Own Price? Self-Matching as a Retailer's Multichannel Pricing Strategy

    Pavel Kireyev, Vineet Kumar and Elie Ofek

    Multichannel retailing has created several new strategic choices for firms. With respect to pricing, an important decision is whether to offer a "self-matching policy." Self-matching allows a multichannel retailer to offer the lowest of its online and in-store prices to consumers. In practice, we observe considerable heterogeneity in self-matching policies: there are firms that offer to self-match and firms that explicitly state they will not match prices across channels. Using a game-theoretic model, we investigate the strategic forces behind the adoption (or non-adoption) of self-matching across a range of competitive scenarios, including a monopolist, a mixed duopoly comprised of a multichannel retailer competing with a pure e-tailer, as well as two competing multichannel retailers. Even though self price matching is likely to reduce a retailer's profits, with some consumers paying the lower price, we uncover two novel mechanisms that can make self-matching profitable in a duopoly setting. Specifically, self-matching can dampen competition, both online and in-store, and its effectiveness in this respect depends on the decision-making stage of various consumers and the heterogeneity of their preference for the online vs. store channels. Surprisingly, self-matching strategies can also be profitable when stores face consumers using smartphones to discover online prices. Our findings provide insights for managers on how and when self-matching can be an effective pricing strategy to embrace.

    Keywords: Price Self-matching; multichannel retailing; Pricing strategy; Marketing Strategy; Price; Distribution Channels; Supply and Industry; Retail Industry;

    Citation:

    Kireyev, Pavel, Vineet Kumar, and Elie Ofek. "Match Your Own Price? Self-Matching as a Retailer's Multichannel Pricing Strategy." Harvard Business School Working Paper, No. 15-058, January 2015. View Details