Abstract
Retailers are increasingly using dynamic pricing - charging different consumers different prices for the same product, in an attempt to maximize profits. However, such strategies may tarnish a retailer’s reputation for fairness when customers learn of the discriminatory pricing. Beliefs regarding whether the price is fair hold great impact on subsequent consumer behaviors, including re-patronizing or engaging in negative behaviors. If consumers perceive a price discrepancy to be unfair, the retailer is likely to suffer from negative consequences (Xia, Monroe, & Cox, 2004). In this conceptual paper, a framework is proposed to explore the formation of price fairness perceptions and how those perceptions impact behavioral outcomes building on equity theory, distributive and procedural justice, and elaboration likelihood.
| Original language | American English |
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| State | Published - Apr 2010 |
| Event | Six-State Graduate Student Consortium, College of Family and Consumer Sciences, University of Georgia - Duration: Apr 1 2010 → … |
Conference
| Conference | Six-State Graduate Student Consortium, College of Family and Consumer Sciences, University of Georgia |
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| Period | 04/1/10 → … |
Disciplines
- Business
Keywords
- Perceived price fairness
- Dynamic pricing
- Consumer behavior
- Price fairness
- Behavioral outcomes
