Exploring the emotional side of price fairness perceptions and its consequences

Malc, Domen; Selinšek, Aleksandra; Dlačić, Jasmina; Milfelner, Borut

doi:10.1080/1331677x.2020.1860790

Cited by 7 publications

(10 citation statements)

References 49 publications

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“…This study considers the equity theory pertinent because the underlying focus of this research is PF. Also, several previous studies have employed the equity theory to investigate customer perceptions regarding price and PF (Malc et al, 2016(Malc et al, , 2020.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…Third, prior equity theory-based research of pricing fairness perceptions has typically focused on one of two streams: either the identification of factors that influence PF perceptions (Bolton et al, 2003(Bolton et al, , 2010 or the consequences of PF perceptions (Martins and Monroe, 1994;Xia et al, 2004). Also, theory-based research of pricing fairness perceptions has tended to be conceptual in nature, direct relationship-focused, lacked empirical evidence and remained understudied (Malc et al, 2016(Malc et al, , 2020Martins and Monroe, 1994;Xia et al, 2004). In addition, according to the equity theory, indirect relationships also exist as significant influences on customer price fairness perceptions, and those indirect relationships would also appear to be likely sources of significant PF information and warrant further investigation (Martins and Monroe, 1994).…”

Section: Price Fairness In Fast-food Restaurantsmentioning

confidence: 99%

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Antecedents and consequences of fast-food restaurant customers' perception of price fairness

Singh

Slack

Sharma

et al. 2021

BFJ

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PurposeThis study examines the influence of service quality dimensions (food quality, physical environment quality and employee service quality) and brand image of fast-food restaurants on price fairness and its consequence on customer retention.Design/methodology/approachThis survey collected 331 responses using the public intercept method. Data analysis involved performing confirmatory factor analysis (CFA) on the measurement model, followed by structural equation modeling. Moderation analysis was performed using SPSS (model1 in process macro), while mediation was performed using model 4 in process macro.FindingsEmpirical results of this study revealed the positive effect of restaurant service quality dimensions on price fairness and price fairness on customer retention. It also revealed that brand image strengthened the restaurant service-quality/price fairness interrelationship, and that customer satisfaction partially mediated the price fairness/customer retention interrelationship.Research limitations/implicationsFindings of this study are useful to marketers and fast-food restaurateurs in establishing the right combination of service quality dimensions and brand image that increase perceptions of price fairness and increase customer satisfaction and retention.Originality/valueThis study contributes to advancing the theoretical foundations of customers' perceived price fairness and retention research, specifically in the understudied fast-food sector of emerging economies. It extends the application of the equity theory to expose the direct and indirect influences on customer perceived price fairness and customer retention. The findings provide a better understanding of price fairness perceptions.

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Section: Theoretical Frameworkmentioning

confidence: 99%

Section: Price Fairness In Fast-food Restaurantsmentioning

confidence: 99%

Antecedents and consequences of fast-food restaurant customers' perception of price fairness

Singh

Slack

Sharma

et al. 2021

BFJ

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“…The evidence of this relationship has been indicated by Kalantaryan & Alessandrini (2020) when researching housing prices and the residential settlement of migrants in Italy. The cost of living in a destination country often appears as a factor of migration, especially for highly skilled individuals, as potential migrants may be unwilling to migrate to a host country with the high level of prices (European Commission, 2018a; Malc et al, 2021;Gavurova et al, 2020b). However, other research results have indicated that highly skilled migrants tend to locate closer to the city centre, demonstrating their adaptation to the increase in average housing prices as opposed to low-skilled migrants that tend to locate further away (Althobaiti et al, 2021).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Competitiveness of Germany and the Labour Market: A Migration Perspective

Přívara¹

2022

JOC

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The current paper contributes to the existing literature on migration by explaining the emigration pattern from Denmark, Finland and Sweden to Germany. We have tried to discover the reason why people migrate from high-income European Union (EU) member states to Germany, which for a long time has hosted the highest number of migrants when compared to other EU member states. We have employed gravity models using fixed effects and ordinary least squares estimation for 1998 – 2019. Our results have indicated that Germany, compared to other EU member states, is more competitive in terms of its labour market efficiency. Germany is an attractive destination for migrants from Denmark, Finland and Sweden in terms of its employment rate, wages and effective government support of its labour force programmes. The current research provides insights into enhancing German competitiveness in terms of labour market factors, which is important for both the migrant and native populations. The results show that if wisely managed, the labour market attracts the labour force, which can address critical social issues Europe is currently facing. In particular, competition issues for high-skilled workers, an aging population, and a low birth rate. The study indicates that the long-term attractiveness of Germany for migrants is based on the efficient participation of the government in labour management-related decisions.

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“…The context dependence of the perceived fairness of prices has been a widely studied topic. Although fairness preferences are analytically separate from willingness to purchase and actual purchasing behavior, studies have found that a price increase that is perceived to be unfair reduces consumers' satisfaction (Herrmann et al, 2007) and willingness to purchase (Campbell, 1999;Huppertz et al, 1978;Konuk, 2018;Malc et al, 2020;Maxwell, 2002;Xia et al, 2004;Yen, 2019), and unfair pricing has been found to decrease real, as opposed to hypothetical, demand (Anderson and Simester, 2008;Sonnabend, 2016). Seminal papers by Kahneman et al (1986aKahneman et al ( , 1986b found that price increases involving consumer goods, wages, and rents were more likely to be found fair when the higher price was necessary to preserve a reference profit (and less likely to be fair when it took advantage of increased demand).…”

Section: Price Fairness and Emotional Antecedentsmentioning

confidence: 99%

“…Expanding on this conceptual framework, Malc et al. ( 2020 ) found a strong relationship between negative emotions induced by a price change (irritation, anger, discontent, and sadness) and perceptions of price fairness. Campbell ( 2007 ), studying the differential effects of human and non‐human sources of price information, found that human‐generated price increases led to significantly higher levels of negative affect compared with non‐human‐generated price increases.…”

Section: Price Fairness and Emotional Antecedentsmentioning

confidence: 99%

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

Chavanne

Danz

Dribssa

et al. 2022

Social Science Quarterly

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As 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. Methods: Participants 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). Results: The 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. Conclusion: Retailers 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.As more components of economic life open up in the United States in the aftermath of widespread vaccination against COVID-19, pandemic-driven changes in economic conditions will inevitably affect price levels. As shown in the seminal work of Kahneman et al. (1986aKahneman et al. ( , 1986b and Bolton et al. (2003), contextdependent attitudes toward price increases can serve as a constraint that interferes with market-clearing price adjustments. Yet, while the perceived fairness of price increases has been widely studied, businesses and municipalities contemplating price increases have little empirical guidance to help them anticipate public sentiment toward higher prices coming out of a crisis as intense, impactful, and emotionally charged as the COVID-19 pandemic.The analysis presented here examines how the perceived fairness of COVID-19-driven price increases varies across different contexts. It uses different versions of a vignette that describes a price increase, which occurs as the economy opens up following the severe disruptions caused by the pandemic. To study context-dependence, three variables are systematically manipulated within the vignette while all other aspects remain equivalent. First, in light of the diverse types of economic domains that face potential price

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Exploring the emotional side of price fairness perceptions and its consequences

Cited by 7 publications

References 49 publications

Antecedents and consequences of fast-food restaurant customers' perception of price fairness

Antecedents and consequences of fast-food restaurant customers' perception of price fairness

Competitiveness of Germany and the Labour Market: A Migration Perspective

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

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