When it’s too good to be true: Consumers’ reactions and firms’ responses to unintended price mistakes

Growing dynamic pricing and price automation trends increase the risk of price mistakes. In the case of low price mistakes, consumers might seek to take advantage of the error, and the company must decide whether to honor or deny the transactions. A set of studies reveal that consumers are more likely to take advantage of the price mistake when they feel powerful and when they perceive the company as powerful. Moreover, their perceptions of...