Price Fairness Research Articles

The Effect of Perceived Risk, Brand Image and Perceived Price Fairness on Customer Satisfaction

This study aims to analyze the effect of perceived risk, brand image and perceived price fairness on customer satisfaction at Japanese restaurants in Jakarta, Indonesia. The target population of this research was all Japanese restaurant customers in Jakarta and its surroundings during the period of October 2021. There was a total of 208 respondents participated in this study. The sampling technique used was snowball sampling. The data was collected using a questionnaire distributed online through Google Form. The data was analyzed using partial least square-structural equation modeling (PLS-SEM) approach in WarpPls 7.0 program. The results show that the perceived risk has no negative effect on customer satisfaction. The brand image also has a positive effect on customer satisfaction.The perceived price fairness has a positive effect on customer satisfaction. The more affordable the price of Japanese restaurant food products, the higher the customer satisfaction.

Dual-process model for the influence of taxes and fees inclusion on price perceptions

PurposeThis research aims to study whether consumers differ in their attitudes toward equivalent prices that include vs exclude taxes and fees. In addition, this research will study whether computation ease-based processing fluency and perceived price fairness mediate this relationship in parallel, and whether need for cognition and political beliefs and affiliation moderate the effect.Design/methodology/approachTwo experiments were conducted in which participants evaluated two price formats and then responded to relevant measures.FindingsThis research shows that consumers perceive prices that include (vs exclude) taxes and fees to be easier to process, and a fairer price, and subsequently exhibit a higher willingness to buy. Additionally, this effect is moderated by need for cognition, and political beliefs and affiliation.Research limitations/implicationsFuture research could investigate potential additional situational moderators (such as price type – total vs unit, consumption category, relative sizes of base price vs taxes and fees) and dispositional moderators (such as price sensitivity and tightwadism/spendthriftism).Practical implicationsThis research provides insights to marketers regarding the downstream impact of pricing decisions – such as including vs excluding taxes and fees from total price. Further, depending on the product category and target customer characteristics (political affiliation), marketers can determine whether to include or exclude taxes and fees.Social implicationsThis research highlights the tendency of conservatives to avoid taxes and fees. As such, it adds to the understanding of conservative consumer groups.Originality/valueThis research contributes to existing research on price-framing research by finding an interesting effect related to multi-dimensional pricing and partitioned pricing. Additionally, this research contributes to existing research on computation ease-based processing fluency and price fairness perception. Finally, this contributes to an increasingly important body of research: the effect of political affiliation on consumption. This also provides clear guidance to marketers with regard to deciding service pricing.

Seeking the perfect price: Consumer responses to personalized price discrimination in e-commerce

This paper presents an empirical analysis of propositions concerning the consequences of price (un)fairness perceptions in personalized pricing based on individual consumer characteristics or customers’ previous purchase behavior. In three online experiments, we analyze consequences of personalized pricing for price-favored and price-disadvantaged customers in an e-commerce setting. Results reveal negative attitudinal and behavioral reactions to personalized pricing for both disadvantaged and even favored customers, mediated by price fairness perceptions. Respondents’ aversion to personalized pricing is confirmed by a second study applying a within-subject design. In addition, we evaluate consumers’ responses to various levels of information sensitivity in personalized pricing mechanisms and find that consumers generally refuse personalized pricing approaches regardless of the underlying personal data11We would like to thank the anonymous reviewers for their valuable input. The paper has benefitted from it a great deal..

Nature-based solutions, mental health, well-being, price fairness, attitude, loyalty, and evangelism for green brands in the hotel context

Given that the polluted environment affects human health, Nature-Based Solutions (NBS) is becoming an emerging issue in the hospitality and tourism industry. This research is designed in order to explore the influence of NBSs on Green Brand Evangelism (GBE) through mental health, emotional well-being, Green Brand (GB) attitude, and Green Brand Loyalty (GBL) in the hotel industry by considering the moderating effect of price fairness. Our theoretical model was built based on the Stimulus-Organism-Response (S-O-R) theory, which successfully embraces the NBS framework, GBL, and GBE. Our findings based on an online survey reveal that NBS as a second-order construct, which embraces the four first-order elements, significantly improves guests' perception of mental health and emotional well-being. The direct and indirect effects of mental health, emotional well-being, GB attitude, and GBL also uncovered and significantly impacted GBE. The hypotheses were generally supported. Furthermore, the moderating impact of price fairness was found.

Pricing research in hospitality and tourism and marketing literature: a systematic review and research agenda

PurposeThis study systematically reviewed pricing research published in leading marketing and hospitality and tourism (H&T) journals between 2010 and 2019. It attempts to concretize the understanding of the evolving patterns of pricing research in both fields and suggests an agenda for future research in H&T.Design/methodology/approachThis study performed keyword co-occurrence analyses and co-citation analyses on the bibliographic data of 575 articles from marketing and H&T journals. Content analysis was applied to investigate the emerged topics in H&T.FindingsThe marketing discipline showed a persistent focus on research themes including price promotion, reference price, price fairness and pricing strategy. The H&T domain experienced a significant content enrichment of preexistent research topics. H&T scholars showed a growing interest in studying pricing for sharing economy accommodations and the interplay between pricing and electronic word-of-mouth. While marketing research applied theories from multiple disciplines as the theoretical foundations, H&T studies adopted the hedonic pricing model as an overarching theory.Practical implicationsFuture pricing research in H&T may incorporate theories from other disciplines such as psychology, sociology and anthropology to broaden the scope of the study. Besides, innovative study designs and complex data analysis techniques should be encouraged. Topicwise, H&T scholars can dive deeper into price promotion and distribution channel price management.Originality/valueThis is the first study consolidating the pricing literature in H&T and marketing. It also suggests the potential research directions for researchers.

Context and the Perceived Fairness of Price Increases Coming out of COVID-19.

ObjectiveAs the U.S. economy responds to prolonged COVID‐19 disruptions, it is important to understand what factors affect the perceived fairness of pandemic‐driven price increases.MethodsParticipants read a vignette and rated how fair they found a pandemic‐driven price increase. Versions vary (1) the source (hardware‐store products or bus fare), (2) the magnitude of the price increase (6 percent or 18 percent), and (3) the tone of an initial description of COVID (positive or negative).ResultsThe price increase was perceived to be fairer when it involved the hardware store or when it was smaller. The relationship between fairness and magnitude was context‐specific, as fairness perceptions were insensitive to the magnitude of the price increase in the bus scenario or when the initial description of COVID had a positive tone.ConclusionRetailers and municipalities may face different fairness constraints as they consider pandemic‐driven price increases. The tone of COVID information may affect price fairness through its impact on sensitivity to magnitude.

Cheating behaviour among OPEC member-states and oil price fairness and stability: an empirical analysis

Cheating behaviour among OPEC member-states and oil price fairness and stability: an empirical analysis

Explicating the Impact of Customer Retention on Organizational Resilience: An Empirical Study of Selected Insurance Companies in Kenya

This study was designed to investigate the effect of customer retention strategies and organizational resilience among insurance companies in Kenya. More specifically, the study focused on service quality strategy, customer satisfaction strategy, product mix strategy and perceived price fairness strategy in relation to organizational resilience among insurance companies in Kenya. The study was anchored on the dynamic capability theory, equity theory and the market-based view theory. A descriptive survey and cross-sectional design was adopted for this study. The study targeted marketing managers, underwriters and claim managers and their equivalent at CIC Insurance Company within Nairobi City County, Kenya. Questionnaires were utilized in collecting the Primary data. Descriptive statistics was used in describing the sample data which was analyzed using the Statistical Package for Social Sciences (SPSS) and presented through percentages, means, standard deviations and frequencies. Inferential statistics covering regression analysis was performed to come up with relevant inferences. The study findings indicated that service quality strategy, customer satisfaction strategy, product mix strategy and perceived price fairness strategy affected organizational resilience to a great extent. Customer retention strategy was found to have a higher impact on organizational market share, growth and profitability. Similarly, customer retention strategies were found to enhance an organization’s market share whereby people generally feel as associates with the insurance companies, gain trust with the insurance company and definitely making them to continue seeking services with the organization. On the other hand, customer retention strategies of effectiveness in cost/pricing structure of brands in the organization were found to aid in attracting new customers who open various cost structured accounts designed by the organization. The study recommends that the insurance companies should provide quality services as it is the best way of retaining the existing customers in the firm and this in turn yields greater commitment and loyalty of the customers

Impact of Service Quality and Price Fairness on Consumer Loyalty: The Moderating Role of Information Literacy

Purpose: Using data from 200 hotel guests in Multan, Pakistan, this research aims to evaluate the influence of service quality and pricing fairness on consumer loyalty while moderating the role of information literacy.
 Design/Methodology/Approach/Findings: The findings are estimated using partial least square (PLS). The variables service quality, pricing justice, and information literacy are all positively and substantially connected to customer loyalty, according to PLS estimations. Because the link between service quality and customer loyalty is statistically significant, the results of the moderated regression demonstrate that information literacy positively moderates it. On the other hand, while the link between price fairness and customer loyalty is statistically significant, the variable information literacy acts as a negative moderator.
 Implications/Originality/Value: Hotel management are advised to invest in and increase the quality of service. Managers must maintain control of all activities related to the concept of quality from the bottom to the top of their business.

Pengaruh Gaya Hidup, Kepribadian dan Kewajaran Harga Terhadap Keputusan Pembelian pada Toko Hijab Ummi Collection

This study aims to examine and analyze the effect of lifestyle, personality, and price fairness on purchasing decisions. This research was conducted on consumers who are in the gombong area and who have made purchases at the Ummi Collection hijab store. Data collection was carried out through distributing questionnaires to 100 respondents who were in the gombong area and who had made purchases at the Ummi Collection hijab store. Data collection techniques by distributing questionnaires. The analysis used is validity test, reliability test, classical assumption test, multiple linear analysis test and coefficient of determination. The analysis technique used is the SPSS Analysis version 23 for Windows program. The results obtained in the study indicate that the variables of lifestyle, personality, and fairness of price have a significant effect on purchasing decisions. Lifestyle variables have a significant effect on purchasing decisions, personality variables have a significant effect on purchasing decisions, while the price fairness variable has no significant effect on purchasing decisions.

Customer fairness perceptions in augmented reality-based online services

PurposeAn increasing number of retailers is trying to stimulate customers by embedding augmented reality (AR) features such as video try-on into the online shopping experience. As such AR-based online services require customers to actively participate in the service provision, this paper aims at investigating fairness perceptions and customer responses associated with AR-enabled customer participation.Design/methodology/approachThe conceptual framework of this study is based on equity theory. To compare customer responses after an in-store service encounter as opposed to AR-enabled customer participation involving video try-on, this study contains a between-subject online experiment. The effective sample comprises N = 215 participants.FindingsThe data analysis demonstrates that AR-enabled customer participation leads to significantly lower levels of distributive, procedural and price fairness as well as lower engagement intentions than in-store service encounters. Simultaneously, participants in the video try-on scenario report higher negative word-of-mouth (WOM) intentions than in the in-store scenario.Research limitations/implicationsThe extra mile customers go when using AR-based online services is reflected in less favorable fairness evaluations.Practical implicationsService managers should design AR applications in a manner that requires minimum customer participation.Originality/valueThis study contributes to service research by linking AR-enabled customer participation to evaluations of distributive, procedural and price fairness and their outcomes. This is vital to fully exploit the potential of AR in services.

Impact of Consumer Behavior Pertaining to Personalization of Price in an E-Commerce Context

The study focuses on developing a conceptual model to explore the factors influencing consumers' judgments in the decision-making process with a prime focus on personalized dynamic pricing (PDP). The study explored the judgmental impact of PDP on customer willingness to pay and mediating role of stickiness to the online store on PDP fairness and customer willingness to pay. The data was collected using a structured questionnaire administered among 256 students at a large university in India. SEM using AMOS software was used to analyze data. Price perception, involvement, product knowledge, and recommendation system positively impact price fairness of PDP, directly and indirectly influencing customer willingness to pay. Results also showed that stickiness to online stores fully mediates the relationship between price fairness of PDP and customer willingness to pay. Theoretically, the study contributes to pricing and marketing literature by identifying the antecedents of price fairness of PDP. For practitioners, this study signifies the importance of a robust recommendation system to stand out from the competition and provide deals to satisfy consumers. Specifically, the results emphasize the need to focus on stickiness to an online store to track consumer characteristics and customer value

Linking perceived price fairness, customer satisfaction, trust, and loyalty: A structural equation modeling of Facebook‐based e‐commerce in Bangladesh

AbstractThe data from the current research forms part of a broader study that analyzes the association between perceived price fairness, customer satisfaction, trust, and loyalty among social‐commerce users. This study examines their relationship in the context of Facebook‐based e‐commerce in Bangladesh. Based on data obtained from 171 respondents to a self‐administered questionnaire, it uses structural equation modeling and AMOS 21 software to test a research model and seven hypotheses. The study also tests and validates a Western instrument in the Asian context. In line with previous work, it reveals that perceived price fairness is positively related to customer loyalty, customer satisfaction, and trust, and that customer loyalty is also positively related to customer satisfaction and trust. However, it shows that customer satisfaction and trust do not mediate the relationship between perceived price fairness and customer loyalty. It provides practitioners with an understanding of key constructs in various forms that are causing the variation in customer loyalty. The research also provides useful insights for managers who wish to increase customer loyalty and offers guidance to those that intend to attract customers toward shopping, particularly via Facebook.

PENGARUH PERCEIVED VALUE, CORPORATE IMAGE, PRICE FAIRNESS, SALESPEOPLE TERHADAP INTENTION TO BUY PREMI ASURANSI BUMIPUTRA (Dengan Attitude Sebagai Variabel Mediasi, Informasi Sebagai Variabel Moderasi)

In this study the decision to buy a life insurance policy AJB Bumiputera 1912. This is due to the company's inability to add new customers. So it is important to research what a person is buying an insurance for. It is also important in this study to provide input to AJB Bumiputera 1912 in an effort to determine an effective strategy related to determining the decision variables are considered by AJB Bumiputera 1912 life insurance customers to purchase a life insurance policy. The scope of this research is the intention of the solo community in buying AJB Bumiputera 1912 life insurance products. This research takes place in city of Surakarta. This research is an explanatory type, namely a causal relationship with four independent variables, namely perceived value, fairness of price, company image, and sales force with purchasing decisions as the dependent variable. Attitude towards insurance is the mediating variable and information is the moderating variable in this study. This research is a cross sectional study which relies on data that occurs at one point. So that the constructed model is not designed to capture changes that occur over several points in time. For this reason, in order for this research to be generalized, it is necessary to examine the changing external factors that can affect the construction of the model.

The effect of base value neglect on consumer evaluations of cost‐justified price increases

AbstractCost‐justified price increases are an important method for raising prices. However, little attention has been paid to how numeric framing affects their perceived fairness and thus purchase intentions. Building on research on price fairness and percentage processing, this article proposes that (i) a dual‐percentage frame, where both the price increase and the cost increase are presented as percentages, typically generates higher perceived fairness than alternative numeric frames as long as the percentage of the price increase does not exceed the percentage of the cost increase; and that (ii) this fairness advantage arises because a large proportion of consumers neglect the base values associated with the two percentages of a dual‐percentage frame when evaluating whether the price increase improves the firm's absolute profit. Evidence from a series of experiments supports both propositions. The article concludes with a discussion of the theoretical and managerial implications of the findings.

Sales promotion: the role of equity sensitivity

PurposeThis paper explores how consumer psychographics impact responses to sales promotions (SPs), and specifically whether equity sensitivity (ES) moderates attitudes towards sales promotion in the retail purchase experience (PE).Design/methodology/approachThe study examines data from a survey of 284 Hong Kong consumers, using a shopping mall-intercept method. Every third person walking past the researchers was asked to participate in the survey. After obtaining their permission, those agreeing to take part in the study were surveyed either inside or outside of the shopping complex. The face-to-face intercept surveying method also increases confidence in sample and response reliability.FindingsThe study finds that ES has a significant positive relationship with evaluations of the retail PE. Consumers identified as “Benevolents” were significantly more positive towards SPs and reported significantly higher satisfaction with the PE. In contrast, consumers identified as “Entitled” were less positive towards SP and less satisfied with the PE. In addition, noncash SPs significantly positively influenced Benevolents' PE.Research limitations/implicationsThe current study extends and expands equity theory and ES research by applying these concepts to consumer SPs. The study is limited to an examination of common consumer purchases, across different product categories and SP types. While this allows us to examine the relationship between SP attitudes, ES and purchase satisfaction, future comparisons between individual sales promotion techniques (SPTs) and specific consumer profiles are recommended.Practical implicationsFrom a retail perspective, it is important to understand individual differences and what influences and motivates the consumers' retail PE. Retail managers are advised to track customer purchases and satisfaction levels linked to SPs as this would allow for the identification of which customers are more likely to fit the Entitled or Benevolent psychological profiles and predict their likely responses to SP offers.Originality/valueTo date, there has been little research on individual psychological differences between consumers when offered SPs at retail stores. The current study contributes to the marketing literature by extending the price fairness equity model to the retail PE, thereby addressing a prominent gap in the literature.

Service Quality Dimensions (SERVQUAL) and Customer Satisfaction towards Motor Ride-Sharing Services: Evidence from Bangladesh

Abstract: Purpose: This study aimed to examine and evaluate the factors affecting Bangladeshi ride-sharing consumers' satisfaction levels. Research methodology: The samples comprised 386 users of this application in Dhaka city selected using a convenience random sampling technique. The data obtained using a survey questionnaire were evaluated using Smart PLS 3.0. Furthermore, six hypotheses were developed to realize the objectives. This study used a positivist research methodology. Results: The results showed a positive and significant relationship between tangibility, responsiveness, empathy, price fairness, and customer satisfaction. There is no conventional relationship between reliability and assurance of customer satisfaction. Limitations: Customer satisfaction is vast, and this study only examined ride-sharing services in Dhaka city using SERVQUAL dimensions, which restricts the generalizability of the results. Contribution: The findings would help the service providers participating in this operation better understand the appropriate actions to improve their commuter services. Keywords: 1. SERVQUAL 2. Ride-Hailing 3. Bangladesh 4. customer satisfaction 5. tangibility 6. responsiveness

China's Regulatory Framework for Dynamic and Personalized Pricing in the Digital Economy

Under the Chinese legal system, in principle, there is no objection to dynamic and personalized pricing of enterprises. Dynamic pricing does not involve the processing of personal information, and consumers have a higher perception of price fairness, it is seldom concerned by laws and policies. Personalized pricing involves the processing of personal information, and consumers generally feel that the price is unfair and difficult to accept, so it is the focus of legal regulation. Enterprises face three obstacles in implementing personalized pricing. First, in terms of personal information protection, enterprises should abide by the provisions on personal consent and automatic decision-making in the Personal Information Protection Law. Second, in the aspect of anti-monopoly, enterprises should abide by the provisions of the Anti-Monopoly Law, and cannot achieve collusion through algorithms and abuse market dominance to implement differential treatment for trading counterparts. Third, in the protection of consumers' rights and interests, enterprises should respect the Price Law and other laws, and cannot commit price fraud and price discrimination. The current law on dynamic and personalized pricing is not perfect. In the future, we can protect consumers' rights and interests mainly by strengthening enterprises' obligation of providing information.

Examining the impact of external reference prices on seller price image dimensions and purchase intentions in pay what you want (PWYW)

PurposePay what you want (PWYW) is a participative pricing mechanism that permits customers complete freedom to choose prices. PWYW literature reports the influence of external reference price (ERP) on customers' price decisions and payments. The current research examines the influence of ERP presence, salience and understanding at the seller level by analysing customers' perceptions of seller price image dimensions and purchase intentions.Design/methodology/approachStudy 1 tests the impact of ERP presence and salience in controlled lab settings while Study 2 takes this investigation further by including the moderating effect of ERP understanding on seller price image dimensions and purchase intentions in online settings.FindingsResults illustrate the positive impact of ERP presence on all seller price image dimensions excluding the perceived price level. Perceived price fairness mediates the impact of ERP presence on perceived value. ERP salience positively impacts price processability. ERP presence and salience attached to it positively impact customers' purchase intentions through seller price image dimensions.Originality/valueThis is possibly the first paper to investigate the ERP effect on seller price image dimensions in a PWYW context that lacks fixed posted prices.

Hopes and reality: consumers\u2019 purchase intention towards whitening cream

In contemporary Bangladeshi society, popularity, marriage, and status are weighed on a scale where the vital criterion is a fair complexion. Women are encouraged to use whitening cream in its colour-conscious culture. The present study identifies the factors that influence consumers’ purchase intention towards whitening cream. A structured questionnaire was used to elicit feedback from 275 female respondents using the convenience sampling method. Structural equation modelling and hypotheses tests were conducted to validate the model after verifying the scale items’ reliability and validity. The findings revealed that attitude, involvement, and descriptive norms were significant factors, and injunctive norms, perceived quality, and price fairness were inessential factors in explaining Bangladeshi female consumers’ purchase intention. The framework used in the study can assist in product design. The study makes an important contribution to the literature by explaining why female consumers equate whiteness with beauty. Marketers should not use deceptive advertisements to influence them falsely; they should fulfil their expectations without causing harm or inciting racism.