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Dynamic Pricing and Consumer Fairness Perceptions

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  • Kelly L. Haws
  • William O. Bearden
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    Abstract

    Dynamic pricing practices by sellers in response to segment and individual-level differences have been made more feasible as internet buyer behavior increases. While benefits from these pricing practices can accrue to sellers and buyers, the potential for (un)fairness perceptions to mitigate these advantages is important. In an effort to investigate these issues, this article reports the results of three studies that examine the effects of seller-, consumer-, time-, and auction-based price differences on perceived price fairness and purchase satisfaction. The findings underscore the potential negative effects associated with price differences from dynamic pricing practices. (c) 2006 by JOURNAL OF CONSUMER RESEARCH, Inc..

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    Bibliographic Info

    Article provided by University of Chicago Press in its journal Journal of Consumer Research.

    Volume (Year): 33 (2006)
    Issue (Month): 3 (October)
    Pages: 304-311

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    Handle: RePEc:ucp:jconrs:v:33:y:2006:i:3:p:304-311

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    Web page: http://www.journals.uchicago.edu/JCR/

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    Cited by:
    1. Garbarino, Ellen & Maxwell, Sarah, 2010. "Consumer response to norm-breaking pricing events in e-commerce," Journal of Business Research, Elsevier, vol. 63(9-10), pages 1066-1072, September.
    2. Kaltcheva, Velitchka D. & Winsor, Robert D. & Patino, Anthony & Shapiro, Stewart, 2013. "Impact of promotions on shopper price comparisons," Journal of Business Research, Elsevier, vol. 66(7), pages 809-815.
    3. Jodie Ferguson & Pam Ellen & William Bearden, 2014. "Procedural and Distributive Fairness: Determinants of Overall Price Fairness," Journal of Business Ethics, Springer, vol. 121(2), pages 217-231, May.
    4. Pascal Courty & Mario Pagliero, 2008. "Price Variation Antagonism and Firm Pricing Policies," Economics Working Papers ECO2008/02, European University Institute.
    5. Adam Nguyen & Juan Meng, 2013. "Whether and to What Extent Consumers Demand Fair Pricing Behavior for Its Own Sake," Journal of Business Ethics, Springer, vol. 114(3), pages 529-547, May.
    6. Neeraj Arora & Xavier Dreze & Anindya Ghose & James Hess & Raghuram Iyengar & Bing Jing & Yogesh Joshi & V. Kumar & Nicholas Lurie & Scott Neslin & S. Sajeesh & Meng Su & Niladri Syam & Jacquelyn Thom, 2008. "Putting one-to-one marketing to work: Personalization, customization, and choice," Marketing Letters, Springer, vol. 19(3), pages 305-321, December.
    7. Benning, Tim M. & Dellaert, Benedict G.C., 2013. "Paying more for faster care? Individuals' attitude toward price-based priority access in health care," Social Science & Medicine, Elsevier, vol. 84(C), pages 119-128.
    8. Jean Michel Chapuis, 2012. "Price Fairness versus Pricing Fairness," Post-Print hal-00694108, HAL.
    9. Iacob Cătoiu & Diana Maria Vrânceanu & Alina Filip, 2010. "Setting Fair Prices – Fundamental Principle Of Sustainable Marketing," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 12(27), pages 115-128, February.
    10. Xia, Lan & Monroe, Kent B., 2010. "Is a good deal always fair? Examining the concepts of transaction value and price fairness," Journal of Economic Psychology, Elsevier, vol. 31(6), pages 884-894, December.
    11. Catoiu, Iacob & Vranceanu, Diana Maria & Tatu, Cristian, 2010. "Framing Influence on Fairness Perceptions of Differential Prices," Journal for Economic Forecasting, Institute for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 158-172, September.
    12. Julio J. Rotemberg, 2008. "Behavioral Aspects of Price Setting, and Their Policy Implications," NBER Working Papers 13754, National Bureau of Economic Research, Inc.

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