Perceived Price Fairness Research Articles

Exploring the Psychological Mechanism of How the Multidimensional Service Quality of Fitness Centers Affects Consumer Satisfaction and Loyalty Depending on the Level of Exercise Involvement

This study aimed to examine the influence of core services and the physical servicescape and social servicescape on consumer satisfaction and loyalty via perceived price fairness, flow experience, and rapport in fitness centers. Additionally, the present study explored how exercise involvement moderates the relationship between perceived price fairness, flow experience, rapport, and consumer satisfaction. For these purposes, targeting adults using fitness centers in South Korea, a total of 763 participants were sampled based on a cross-sectional design and used for data analyses involving confirmatory factor analysis for measurement validation and latent moderated structural equation modeling for hypothesis testing. The results showed that the core services, physical servicescape, and social servicescape enhance perceived price fairness, flow experiences, and rapport between staff and consumers, respectively. The study findings also indicated that exercise involvement significantly moderates the effect of price fairness and flow experience on satisfaction but not rapport. These insights offer practical and theoretical implications for fitness center management, emphasizing the importance of tailored service strategies in retaining loyal customers.

Valuing the Creator: The Impact of Author Compensation Cues on Perceived Price Fairness and Purchase Intentions

This study examines consumer perceptions of revenue distribution among authors, publishers, and retailers for physical and digital book formats, along with perceived price fairness and purchase intentions. Study1 reveals that consumers attribute higher revenue to authors and less to publishers for digital books (compared to physical ones). Higher attribution is associated with perceived outcome price fairness for digital books. However, physical books still command a higher willingness to pay and willingness to buy. Study 2 demonstrates that explicit cues about high author compensation significantly increase purchase likelihood and WTP for digital books but do not significantly affect perceived price fairness. Consumers with higher authorial remuneration concerns and those who perceive higher value in digital books are more influenced by these cues. These findings suggest that transparent communication about author compensation could effectively enhance purchase intentions for digital books, especially among digital reading enthusiasts.

The “locus continuum” of price increase perception – Is communicating a good cause for price increases always beneficial?

Purpose Governmental regulations aiming to protect environmental goals often require firms to increase sales prices with negative consequences on price fairness perception. Companies might therefore either justify the price increase by highlighting the good cause (environmental framing) or they could blame the government for the regulation (governmental framing). Firms might also communicate their investments in the relationship to motivate customers to stay. This paper aims to examine the impact of such communication content on price increase fairness perception and switching intention in a contractual service setting. Design/methodology/approach This paper first examines the content of 119 price increase letters from electricity suppliers in a qualitative pilot study. The main study then tests our research framework with 552 respondents using a 2 x 2 x 2 between-subjects experimental scenario design (manipulating framing, effort and regret communication). Findings Customers perceive governmental framing as fairer than environmental framing. Effort and regret communication by firms weaken or reverse this effect. They reduce customers’ fairness perception for the governmental framing, while regret communication increases it for the environmental framing. However, regret communication also increases switching intention in both framings through a strong direct effect. Research limitations/implications Cost-induced price increases are perceived on a “locus continuum” on which reason-framing and relationship investments can shift the consumer perception. Future studies may apply our framework in different industries and contexts. Practical implications The results provide guidelines for communicating price increases. Firms should prefer a governmental framing and they should also hesitate to communicate relationship investments, which signal internal locus of the firm, such as effort or regret. Originality/value Our results question the naive assumption of general positive effects of environmental framings and relationship investments on customer responses. Based on a new view on attributions of cost-caused price increases, we suggest and find several counterintuitive results. We argue that the framing and relationship investments shift the cause perception of an external cost increase on the attributional locus continuum.

“Gusto” or “Taste”? Anglicisms Change Perceived Product Risk and Product Appeal in Italian Print Advertising

Abstract This research investigates the influence of anglicisms on the Product Appeal in Italian print advertising. Despite the pervasive use of anglicisms in the Italian advertising industry, little is known about their impact on the precursors to Product Appeal. Two original studies were conducted involving potato chips (convenience product) and stereo speakers (shopping product). The results showed no effect of anglicisms on the relationships between Perceived Product Differentiation, Perceived Price Fairness, Perceived Product Globalness, or Perceived Product Modernity and Product Appeal. However, Anglicisms consistently altered the relationship between Perceived Product Risk and Product Appeal. Specifically, while anglicisms decreased Perceived Product Risk for potato chips, they increased Perceived Product Risk for stereo speakers, suggesting the impact of anglicisms on Perceived Product Risk can operate in an independent mechanism and be product-dependent. This research provides a novel insight on how anglicisms can affect consumer psychology and adds a more nuanced understanding to previous literature regarding language choice in advertising.

The influence of utilitarian and hedonic value on customer satisfaction and repurchase intention in e-commerce

This research aims to examine factors affecting consumers’ shopping value in the online environment, which, in turn, lead to customer satisfaction and repurchase intention based on an integrated model of the cognition-affect-behavior model and personal shopping value. An online questionnaire was administered to 202 consumers of e-commerce purchases in Vietnam. Partial least square structural equation modelling (PLS-SEM) was utilized for data analysis. Results show that system quality and perceived price fairness positively affect hedonic shopping value, while information quality and service quality positively affect utilitarian shopping value. These shopping values collectively nurture customer satisfaction, resulting in repurchase intention. This study contributes to the literature on online consumer behavior by examining both the antecedents and outcomes of consumer shopping values in e-commerce. The findings can help e-commerce enterprises optimize marketing strategies to improve consumer shopping experiences and repurchase intention.

Examining the enablers of street food attachment: an integrated attachment-SOR perspective

ABSTRACT COVID-19-induced lockdowns and movement restrictions led to individuals’ limited movement and recall of street food memories. Against this backdrop, the current study explores the enabler role of the perceived scare of COVID-19 on street food attachment and its contribution to recommending and revisiting intention. A prominent contribution of this study is the evaluation of the moderating role of perceived price fairness, food authenticity, vendor hygiene practices, and income. The proposed model is validated with perceptual responses gathered from two prominent destinations viz. India and the Middle East and analyzed with partial least squares. Results showed that the perceived scare of COVID-19 does significantly enhance one’s attachment associated with street food. Moreover, street food attachment does enhance an individual’s revisit and recommendation intention in the new normal. Furthermore, results showed that the contingent effects of food authenticity, perceived price fairness, vendor’s hygiene practice, and income have a positive moderation on the relationship between perceived scare of COVID-19 and street food attachment. The study is one of the few studies on street food attachment in the new normal for developing countries like India and the Middle East. The implications have relevance for street food businesses and small food business owners in Asian countries.

The Influence of Perceived Price Fairness, Product Quality and Service Quality on Customer Loyalty mediated by Customer Satisfaction at XYZ Furniture Manufacturer in Surabaya

The war between Ukraine and Russia caused disruption in the furniture export process. To overcome this problem, PT. BMN as a company operating in the furniture industry carries out a strategy to maintain the company's business processes by increasing customer loyalty. The goal is to analyze the impact of Perceived Price Fairness, Product Quality and Service Quality on Customer Satisfaction and Customer Loyalty. Quantitative causal type research by collecting data through questionnaires which was analyzed by SEM PLS. Population study is the key person in purchasing furniture. The sample was determined using purposive sampling so that the total sample was 41 respondents. The study prove that Perceived Price Fairness and Product Quality do not have a significant impact on Customer Satisfaction, while Service Quality has a significant impact. Perceived Price Fairness, Product Quality, Service Quality and Customer Satisfaction have a significant impact on Customer Loyalty.

Unraveling the Antecedents of Customer Loyalty in the Restaurant Industry: The Impact of Perceived Price Fairness, Product Quality, and Service Quality through the Lens of Customer Satisfaction

Unraveling the Antecedents of Customer Loyalty in the Restaurant Industry: The Impact of Perceived Price Fairness, Product Quality, and Service Quality through the Lens of Customer Satisfaction

The effect of social servicescape on price fairness and customer trust: a study in coffee shops

PurposeThe aim of this research is to determine the price fairness of the social servicescape and the effect of price fairness on customer trust. In this context, first of all, the effect of the social servicescape on price fairness and then the effect of price fairness on customer trust were tested.Design/methodology/approachThe universe of the research consists of people who visit Starbucks coffee stores. In the study, data were collected from 338 people who visited Starbucks coffee stores. The relationships between the variables were analyzed using the Structural Equation Modeling (SEM) Technique.FindingsAs a result of the research, it was concluded that employees, other customers and social crowds, which are from the dimensions of the social servicescape, do not have a significant effect on price fairness, the interaction between employee and customer, which is from the sub-dimensions of the social servicescape, has an effect on customers' perception of price fairness, and price fairness also has an effect on customer trust.Originality/valueThe important point in this research is to determine the effect of the social servicescape on price fairness, which has not been studied in the literature before. Although the effect of physical servicescape on price justice has been investigated, the effect of social servicescape on price justice has not been investigated. When evaluated from this point of view, it is thought that the research will have an important contribution to the literature.

Trust, Value, Price Fairness: Boosting Loyalty in Eco Hair Care

The purpose of this research is to determine the influence of trust, perceived value, perceived price fairness, and customer satisfaction on customer loyalty to environmentally friendly hair care products. The research method uses a quantitative research design by distributing questionnaires. A total of 254 respondents were sampled using purposive sampling technique. The research objects in this study were respondents aged 18-60 years in DKI Jakarta and had purchased environmentally friendly hair care products at least three times in the last year. This research uses SPSS version 26 software and SEM (Structural Equation Model) from AMOS software to analyze and process research data. The research results show that: first, trust, perceived value, and perceived price fairness have a positive and significant effect on customer satisfaction. Second, trust, perceived value, and customer satisfaction have a positive and significant effect on customer loyalty. Third, perceived price fairness has no influence on customer loyalty.

Memahami Faktor Pembentuk Niat Pembelian Online di Indonesia: Eksistensi Sosial dalam e-Commerce, Sinyal Afiliasi Politik, Persepsi Kewajaran Harga, dan Kepercayaan

In the context of Industry 4.0, widespread internet penetration has significantly changed social and political dynamics and consumption behavior. This study analyzes the influence of social presence in e-commerce, perceived price fairness, and consumer trust on online purchase intentions in Indonesia, including these variables' direct and indirect impacts. This study also explores the role of political affiliation in the context of online image management by public figures, which is relevant for business continuity in Indonesia. The study adopted a quantitative approach, surveying 153 respondents in Indonesia. Data was collected and analyzed using Descriptive Statistical Analysis and Structural Equation Modeling (SEM) to validate the proposed hypotheses. The findings show that social presence in e-commerce partially influences perceived price fairness and trust. Similarly, perceived price fairness and trust have a partially significant impact on purchase intentions in online marketplaces. However, political affiliation signals have no significant influence on online purchase intentions. This research provides new insights into the dynamics of online purchasing in Indonesia, particularly concerning social and political factors. The findings are essential for e-commerce businesses to develop more effective marketing strategies, considering social aspects and perceived price fairness. In addition, this study suggests the importance of separating political image from online business activities for public figures and politicians to avoid negative impacts on consumer perceptions. Academics and practitioners can use these findings as a basis for further research examining the impact of socio-political variables on online consumer behavior.

Assessing the Millennials’ Intention Toward Green Fast Food Retail: The Use of the Theory of Planned Behavior

The existence of this interest can indirectly affect the existence of fast-food retail because of negative consumer perceptions related to fast-food retail. Therefore, several fast-food retailers have offered eco-friendly products, in great demand by Millennials. However, it is still rare for fast-food retailers to launch new outlets with green themes due to the adverse insight of fast food itself. It is also caused by data deficiency on consumer behavior intention towards green fast-food retail, even though the existence of this restaurant itself continues to increase, especially in West Java. Therefore, this study aims to examine the intention of millennial consumers in West Java’s green fast-food retail by applying the Theory-of-Planned-Behavior approach with the role of green knowledge, perceived green practices, perceived physical servicescape, and perceived price fairness. 402 respondents were gathered in this study by implementing TPB theory as the variable under study, supported by Green Knowledge, Perceived Green Practices, Perceived Physical Servicescape, and Perceived Price Fairness. A quantitative approach is employed and processed using SPSS and Smart-PLS. Based on the results, the company's green practices, physical service scape, and price fairness affect consumer behavior control which leads to a positive influence on consumer behavior intention in green fast-food retail. Another result proved that green knowledge has a positive and significant impact on consumer attitude

The Influence of Service Innovation, Price, and Destination Image on Tourist Loyalty in Bukit Tinggi Indonesia Tourism

This study aims to examine the influence of service innovation, price fairness, and destination image on tourist loyalty in Bukit Tinggi, Padang. The study employed a quantitative method with an associative design and Structural Equation Modeling Partial Least Squares (SEM PLS) analysis. The sample consisted of 120 tourists visiting Bukit Tinggi. Results indicated that service innovation, price fairness perception, and destination image significantly and positively influence tourist loyalty. The practical implications underscore the need for destination managers to enhance service innovation, price transparency, and positive destination image to foster tourist loyalty. The study contributes theoretically by strengthening the understanding of factors influencing tourist behavior in tourist destinations, particularly in the context of Bukit Tinggi.

Determinants of trust and purchase intention in social commerce: Perceived price fairness and trust disposition as moderators

The study investigates the determinants of trust in sellers and products and purchase intention in the social commerce (s-commerce) context by considering the moderating effects of trust disposition and perceived price fairness. The data were collected from 416 individuals who have followed at least one seller on Instagram and analysed using the Partial Least Squares (PLS) approach. The findings revealed that review quantity, review quality, perceived symmetric product information, and responsiveness positively influence trust in seller. The direct influence of review quality on trust in products was confirmed. Trust disposition negatively moderates the impacts of review quality on trust in sellers and responsiveness on trust in products. Furthermore, perceived price fairness positively moderates the influence of trust in sellers and products on purchase intention. The findings extend the literature on s-commerce in several ways. The findings enable s-commerce sellers to formulate effective marketing strategies and boost purchase intention.

Factors Affecting Customer Loyalty: An Empirical Evidence from the Toll Road Industry in Indonesia

Toll road rest areas are one of the main pillars of the toll road industry, and higher interest in buying at toll road rest areas is one of the keys to their financial success. The research aimed to identify and analyze the relationship between revisit intention and customer loyalty, as well as perceived price fairness, perceived satisfaction, and service quality. These variables were believed to be the main drivers for toll road users to make purchases at toll road rest areas. A statistical analysis approach was used with the Partial Least Square-Structural Equation Modelling (PLS-SEM) method for 573 respondents. They were consumers of the Trans Java toll road rest area. The survey was conducted directly on customers of the Trans Java toll road rest area at 15 locations. The results show that perceived price justice and satisfaction positively and significantly impact revisit intention. Then, revisit intention has a positive and significant impact on customer loyalty. Service quality has a positive and significant impact on perceived satisfaction and customer loyalty. The findings show that service quality, which is most strongly influenced by assurance, responsiveness, and empathy, is the main factor influencing customer loyalty. Based on the research results, the practical application is how managers can improve service quality, perceived price justice, and perceived satisfaction for price-sensitive consumers, who also tend to be sensitive to the service quality they get.

The good bank: preference of banking institutions based on perceptions of corporate environmental and social causes

IntroductionThis study aims to contribute to understanding factors that explain consumers' preferences for banking institutions. We specifically explored the roles of Corporate Social Responsibility (CSR)—targeted primarily at Environmental causes and secondarily at Social causes—on corporate image (CI), consumer satisfaction (CS) and consumer loyalty (CL). We tested whether integrating a CSR description with an emphasis on environmental causes into the bank marketing strategy would positively affect CI, CS and CL. We also inspected the effect of online banking vs. direct human contact, and perception of price fairness, as well as that of the consumers' demographic variables.MethodsA survey was carried out online, with 322 international respondents recruited through social networks. Participants were randomly directed to one of eight different bank conditions, each combining descriptions where Environmental and social CSR, Price fairness, and direct human contact with the clients varied. After reading the bank description participants filled out a questionnaire that addressed their perception of the bank's CI and their projections of CS and CL.Results and discussionResults indicated that participants favored the banks that included CSR as part of their description, with the perception of price fairness being the second critical factor in the respondents' CI, CS, and CL. Direct human contact vs. remote banking did not play a role in the participant's ratings of the bank, which is in line with more current studies. We concluded that businesses in the banking sector enhance their global reputation when investing in environmental and social CSR.

Price fairness in the online food delivery industry: a structural equation model of consumer perceptions

ABSTRACT There exist concerns about the fairness of the revenue share model between food service establishments and delivery companies, which often charge a commission rate of 20–30%. As the third party in the multi-sided market, the perception of food consumers may have bearing on potential market and policy solutions. With 500 survey responses from English food consumers, we inform perceptions of interactional, procedural, distributional, and overall price fairness in the online food order and delivery industry. On average, there is a 5% difference in perceptions of the actual commission rate (20%) and a fair commission rate (15%). Per the results of a structural equation model, procedural fairness and distributional fairness respectively have negative and positive relationships to overall price fairness. Interactional fairness is not related significantly to overall price fairness.

Understanding the Influence of Price Increase Justifications and Price Increase Size on Perceived Price Fairness and Customers' Intentions: The Moderating Role of Expected Future Prices and Product Involvement

Understanding the Influence of Price Increase Justifications and Price Increase Size on Perceived Price Fairness and Customers' Intentions: The Moderating Role of Expected Future Prices and Product Involvement

The impact of consumer expectations and familiarity on deceptive pricing in advertising: a view from drip pricing practice

Drip pricing practice, which involves promoting a seemingly low initial price and then introducing add-on price components without upfront disclosures, is commonly seen as a deceptive advertising practice that can lead to negative associations. Here, we provide an alternative perspective by investigating that whether consumers form positive or negative opinions about drip pricing depends on their expectation of encountering it and their overall familiarity with this practice. That is, this research reveals that when consumers’ general familiarity with drip pricing is low, higher expectations of drip pricing create greater perceptions of price fairness and purchase intentions. Moreover, our findings indicate that higher consumer expectations of drip pricing lead to positive attributions and evaluations of the detailed pricing information, resulting in higher perceptions of price fairness, which, in turn, increases purchase intentions. Further, we show that when consumers have high expectations of encountering drip pricing, they evaluate ­pricing information more positively and deception less harshly, resulting in greater purchase intentions than when they do not expect it.

Discriminatory Pricing Strategy for Sustainable Tourism in Theme Parks considering Visitors’ Price Fairness and Service Value Perceptions

With the increase in carbon emissions in the tourism industry, more tourism enterprises need to make sustained investments in clean energy and green technologies. From the perspective of theme park revenue and operational management, such investments mainly come from admission fees and in-park consumption. The objective of this study is to discuss the role of discriminatory pricing strategies in supporting sustainable tourism in theme parks. Based on transaction utility theory and equity theory, visitors’ price fairness perception and service value perception are incorporated into the visitor utility function. On this basis, a goal-programming-based discriminatory pricing model with three goals is proposed: achieving the established revenue target, achieving distributed justice between visitors with unequal status (advantaged visitors and disadvantaged visitors), and achieving distributed justice between visitors and theme parks. The research results show that, for one thing, the proposed discriminatory pricing model can enable theme parks to secure sufficient funds to invest in low-carbon activities (Goal 1) while for another, visitors’ satisfaction, brand loyalty, and willingness to revisit and sustainably consume in theme parks are improved by the realization of distributed justice through the discriminatory pricing strategy (Goals 2 and 3).