Shipping Surcharges and LSQ: Pricing the Last Mile

Keywords

logistics service quality, online retailing, price partitioning, shipping surcharges

Abstract

Pricing the shipping surcharge is a major strategic decision for online retailers, and free shipping promotions are becoming more common among online retailers. The purpose of this research is to examine the effect of last mile pricing strategies on customer attraction and retention in the hypercompetitive online retailing industry. Specifically, this paper investigates the effect of partitioning the shipping surcharge on consumer logistics service quality (LSQ) perceptions and, in turn, purchase behavior.

Original Publication Citation

Barker, J. & Brau, R.I. (2020) Shipping Surcharges and LSQ: Pricing the Last Mile, International Journal of Physical Distribution and Logistics Management, 50(6), 667- 691. https://doi.org/10.1108/IJPDLM-09-2019-0292

Document Type

Peer-Reviewed Article

Publication Date

2020

Publisher

International Journal of Physical Distribution and Logistics Management

Language

English

College

Marriott School of Business

Department

Marketing

University Standing at Time of Publication

Assistant Professor

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