Empirical studies reveal a surprisingly wide variety of pricing strategies among retailers,even among internet sellers of undifferentiated homogeneous goods, such as books and music CD. several empirical findings remain puzzling;for example, with in the same market, some small retailers decide to discount deeply, whereas other forgo the price-sensitive switchers and price high. the author present theoretical and empirical analyses that address these varies pricing strategies. a model of three asymmetric firms show the under multiple switcher segments, in which different switchers compare prices at different retails,firm-specific loyalty is not sufficient to explain the driven by the ratio of the size of switcher segments for which the retailer competes to its loyal segment size.the relative switcher-to-loyal ratios among retailer explain situation in which a small retailer finds it optimal to price high, despite having few loyal, or the discount and go for the switchers.the result of two empirical studies confirm the model's predictions for varied pricing strategies in the context of internet booksellers. the analyses also present several implications. a small retailer can sometimes benefit from strategically limiting its access to switcher to soften price competition. a midsize retailer can benefit from targeting its switcher acquisition activities toward its larger rival, given the shallower discounts involved. when most switcher widely compare prices, a large retailer should offer few shallow discounts because other firms will more aggressively discount. the importance of switcher segmentation suggests that managers should carefully measure switching behavior in devising pricing strategies.