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Why do consumers think it is fair to pay more when buying from producers versus retailers?

Author

Listed:
  • Gabriel E. Gonzales

    (State University of New York at New Paltz)

  • Lisa E. Bolton

    (The Pennsylvania State University)

  • Margaret G. Meloy

    (The Pennsylvania State University)

Abstract

Consumers in today’s multi-channel marketplace have an abundance of choice, in terms of both the number of products available to buy and the number of channels from which to make purchases. However, minimal research to date explores consumers’ cross-channel price perceptions. Two studies (each from the consumer’s perspective) compare fair prices across channels, providing initial evidence that producers (i.e., brands’ direct channels) can charge a higher price than retailers (e.g., department stores) for the exact same product. The authors build on this intriguing finding by discussing directions for future research on consumer price perceptions in the multi-channel marketplace.

Suggested Citation

  • Gabriel E. Gonzales & Lisa E. Bolton & Margaret G. Meloy, 2020. "Why do consumers think it is fair to pay more when buying from producers versus retailers?," Marketing Letters, Springer, vol. 31(1), pages 31-35, March.
    • Handle: RePEc:kap:mktlet:v:31:y:2020:i:1:d:10.1007_s11002-019-09507-6
    DOI: 10.1007/s11002-019-09507-6
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    References listed on IDEAS

    as
    1. Bolton, Lisa E & Warlop, Luk & Alba, Joseph W, 2003. "Consumer Perceptions of Price (Un)Fairness," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 29(4), pages 474-491, March.
    2. James D. Abbey & Margaret G. Meloy & V. Daniel R. Guide Jr. & Selin Atalay, 2015. "Remanufactured Products in Closed-Loop Supply Chains for Consumer Goods," Production and Operations Management, Production and Operations Management Society, vol. 24(3), pages 488-503, March.
    3. Mark Ratchford, 2014. "Perceptions of price (un)fairness in a channel context," Marketing Letters, Springer, vol. 25(4), pages 343-353, December.
    4. Kelly L. Haws & William O. Bearden, 2006. "Dynamic Pricing and Consumer Fairness Perceptions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 33(3), pages 304-311, October.
    5. Saerom Lee & Lisa E Bolton & Karen Page Winterich & Vicki MorwitzEditor & Lauren BlockAssociate Editor, 2017. "To Profit or Not to Profit? The Role of Greed Perceptions in Consumer Support for Social Ventures," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 44(4), pages 853-876.
    6. Ailawadi, Kusum L. & Farris, Paul W., 2017. "Managing Multi- and Omni-Channel Distribution: Metrics and Research Directions," Journal of Retailing, Elsevier, vol. 93(1), pages 120-135.
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