Abstract
Price discrimination is widely adopted by service sectors for the purpose of attracting market segments with different price sensitivity, yet underlying this price strategy is a caveat that customers' price fairness perception may decrease as a result. This study investigated the impact of service price discrimination methods and price differences on customers' perception of price fairness and their cognitive and behavioral consequences. The results show a strong evidence that price discrimination based on customer groups significantly lowers customers' perception of price fairness in comparison with price discrimination based on purchase time or purchase quantity. This study also found that the price difference range is also an important preceding variable of price fairness perception. Consumers' price fairness perception determines the level of cognitive and affective corporate trust, which in turn significantly influences consumers' repurchase intention.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
