Effects of price framing on consumers’ perceptions of online dynamic pricing practices

Weisstein, Fei L.; Monroe, Kent B.; Kukar‐Kinney, Monika

doi:10.1007/s11747-013-0330-0

Cited by 115 publications

(104 citation statements)

References 36 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Research shows that when different conditions are offered to current and prospective customers, the former perceive higher unfairness and a sense of betrayal if they receive the less favourable treatment (Feinberg et al, 2002;Tsai and Lee, 2007). The negative reaction is mainly due to their attachment to the firms and their products (Weisstein et al, 2013) and higher expectations of the retailer (Grégoire and Fisher, 2008;Martin et al, 2009). In addition, fairness judgments tend to be biased by customers' self-interest (Nguyen and Simkin, 2013).…”

Section: Research Hypotheses and Methodologymentioning

confidence: 99%

“…To attract first-time shoppers, firms frequently promote rebates for new customers. This practice is based on loyal customers' assumed high switching costs, attachment to the firm and low price sensitivity and its aim is to capitalize on the individual price acceptance of customers (Haws and Bearden, 2006;Martin et al, 2009;Santos and Basso, 2012;Weisstein et al, 2013). Those with a lower price acceptance (e.g.…”

Section: Differential Pricing Strategies and Unfairness Perceptionmentioning

confidence: 99%

“…Thus, price inequity perceptions may lead to the dissolution of the customerfirm relationship (Sirdeshmukh et al, 2002). The potential financial benefits for firms on the one hand, but negative consumer reactions on the other, raise questions about the viability of differential pricing (Weisstein et al, 2013). When balancing customer acquisition and retention efforts, firms often ignore potential interaction effects between both customer management activities.…”

Section: Differential Pricing Strategies and Unfairness Perceptionmentioning

confidence: 99%

“…Trust is therefore vital in any long-term relationship (Garbarino and Johnson, 1999), and as suggested by Boulding et al (2005), the precursor to issues of consumer trust is fairness. Differential pricing may undermine trust in an organization where customers perceive that they have been treated less fairly in terms of price than other buyers (McMahon-Beattie et al, 2002;McMahonBeattie et al, 2004), generating a sense of betrayal (Weisstein et al, 2013). Moreover, a lack of price transparency creates conditions for mistrust.…”

Section: Outcomes Of Unfairness Perceptionmentioning

confidence: 99%

“…As posited, differential pricing may undermine trust in an organization, generating a sense of betrayal (Weisstein et al, 2013). According to the trust violation (Wang and Huff, 2007) and unethical marketing (Leonidou et al, 2013) literature, the depletion of trust leads individuals to action, which may include lower repurchase intentions (Sirdeshmukh et al, 2002;Martin et al, 2009).…”

Section: Research Findingsmentioning

confidence: 99%

See 4 more Smart Citations

Unfairness in consumer services: Outcomes of differential treatment of new and existing clients

Fernandes

Calamote

2016

Journal of Retailing and Consumer Services

View full text Add to dashboard Cite

a b s t r a c tIn a consumption context, there is a growing interest in understanding unfair behaviour of firms towards customers. Our research focuses on unfairness perceptions driven by differential treatment, particularly through price discrimination, i.e. the practice of charging differential prices to different customers. Our purpose is to investigate the consequences of these practices for unfairness perceptions, satisfaction, trust and patronage, showing a dual perspective: the perceptions of new vs existing clients when they face the advantaged or disadvantaged conditions. A survey-based experimental design approach was used. We conclude that unfairness perception is stronger for existing than for new clients, prompting negative attitudinal and behavioural consequences when the former are exposed to disadvantaged conditions in relation to the latter. Our study aims to provide marketers with a perspective on the pitfalls related to differential treatment between present and prospective clients, with implications in terms of design and implementation of customer management strategies.

show abstract

Section: Research Hypotheses and Methodologymentioning

confidence: 99%

Section: Differential Pricing Strategies and Unfairness Perceptionmentioning

confidence: 99%

Section: Differential Pricing Strategies and Unfairness Perceptionmentioning

confidence: 99%

Section: Outcomes Of Unfairness Perceptionmentioning

confidence: 99%

Section: Research Findingsmentioning

confidence: 99%

See 3 more Smart Citations

Unfairness in consumer services: Outcomes of differential treatment of new and existing clients

Fernandes

Calamote

2016

Journal of Retailing and Consumer Services

View full text Add to dashboard Cite

show abstract

Price fairness, satisfaction, and trust as antecedents of purchase intentions towards organic food

Konuk

2017

J of Consumer Behaviour

117

View full text Add to dashboard Cite

Health and environmental issues are increasingly important in consumers' decision‐making process. Accordingly, demand for organic food is rapidly growing. In this context, the objective of this study is to analyze the relationship between price fairness, satisfaction, trust, and purchase intentions towards organic food. With this aim, empirical data were collected with self‐administrated questionnaires from a convenience sample of consumers from Sakarya, Turkey. Proposed hypotheses were tested with structural equations modeling. The results indicated positive relationships between price fairness, satisfaction, trust, and purchase intentions. At the end of this study, theoretical contributions, managerial implications, limitations, and suggestions for future research are discussed.

show abstract

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

Rikala

2021

J of Consumer Behaviour

View full text Add to dashboard Cite

Cost‐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.

show abstract

Effects of price framing on consumers’ perceptions of online dynamic pricing practices

Cited by 115 publications

References 36 publications

Unfairness in consumer services: Outcomes of differential treatment of new and existing clients

Unfairness in consumer services: Outcomes of differential treatment of new and existing clients

Price fairness, satisfaction, and trust as antecedents of purchase intentions towards organic food

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

Contact Info

Product

Resources

About