– This paper aims to examine the effects of providing more information (e.g. product and price) and enhancing the interactivity of a website on consumers' willingness to pay price premiums.
– An experiment tests the proposed framework and corresponding hypotheses. The test features eight versions of an experimental website, with varying combinations of online information (e.g. price information, product information, and interactivity).
– Providing more information, whether about the product or price, leads to increased trust among consumers, which has the capacity to reduce consumer price consciousness and thereby enhance price premiums. E-tailers can earn price premiums by enhancing the interactivity on their websites.
– Previous studies are ambivalent about the impacts of providing information online. This study examines two paths by which information provision influences price premiums: trusting beliefs and price consciousness. The results demonstrate that providing rich information, together with enhanced interactivity, increases the perceived trustworthiness of the e-tailer, which reduces consumers' price consciousness and increases the price premiums.
