An Application of Equity Theory to Buyer-Seller Exchange Situations

Huppertz, John W.; Arenson, Sidney J.; Evans, Richard H.

doi:10.2307/3151255

Cited by 243 publications

(129 citation statements)

References 34 publications

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“…Huppertz, Arenson and Evans (1978) define fair prices as involving an "equitable distribution of the benefits" from the exchange between consumers and firms. This is similar in spirit to the preferences considered in Fehr and Schmidt (1999) and Bolton and Ockenfels (2000) where individuals have preferences for relatively equal outcomes.…”

mentioning

confidence: 99%

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Rotemberg¹

2004

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confidence: 99%

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Rotemberg¹

2004

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“…Equity theory suggests that individuals in exchange relationships compare the ratios of their inputs into the exchange to their outcomes from the exchange (Huppertz, Arenson and Evans, 1978). While the input describes the contribution individuals should make within the exchange to earn rewards, the outcome refers to expected positive and negative consequences of the exchange.…”

Section: Anm Model and Equity Theorymentioning

confidence: 99%

“…In an exchange relationship, distributive justice is achieved when the benefits of each partner are proportional to their investments (Fischer, Diamantopoulos and Oldenkotte, 2012). Inequity occurs when the inputs and/or outcomes in an exchange are perceived to be inconsistent with the inputs and/or outcomes of the referent (Huppertz et al, 1978).…”

Section: Anm Model and Equity Theorymentioning

confidence: 99%

Are Consumers Really Willing to Pay More for Favorable Brand Associations The Moderating Role of Product Value and Product Risk Level

Bayraktar¹

2015

eab

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Despite the prolific research on the effect of brand associations on consumer product evaluations, the price-related consequences remain neglected. This study seeks to explain the effect of brand associations on consumers' willingness to pay (WTP) a price premium. Moreover, it attempts to explain whether this effect is moderated by product value and product risk level. Utilizing data from both US and Turkey, this study shows that brand associations significantly and positively influence consumers' WTP. It suggests that favorable brand associations also have price-related consequences. Furthermore, the results suggest that consumers are willing to pay a price premium for favorable brands more for products that have high value and risk level.Keywords: Brand associations, willingness to pay, ANM model, equity theory, structural equation modeling ÖZETMarka çağrışımlarının tüketici ürün değerlendirmelerine etkisi üzerine çok sayıda çalışma olmasına rağmen, fiyatla ilişkili sonuçlar ihmal edilmiştir. Bu çalışma, marka çağrışımlarının tüketicilerin prim fiyatı ödemeye isteklilikleri üzerine etkisini açıklamayı amaçlamaktadır. İlaveten bu çalışma, ürün değeri ve ürün risk düzeyinin bu etki üzerinde düzenleyici rol oynayıp aynamadığını açıklamaya çalışmaktadır. Amerika ve Türkiye'den elde edilen verileri kullanan bu araştırma göstermiştir ki marka çağrışımları tüketicilerin ödeme isteğini anlamlı ve pozitif bir şekilde etkilemektedir. Ayrıca sonuçlar, ürün değeri ve risk düzeyi yüksek olduğunda tüketicilerin pozitif çağrışımlara sahip markalar için prim fiyatı ödemeye daha çok istekli olduğunu göstermiştir.

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“…They also assume the presence of relative justice in the exchange process (Huppertz, Arenson & Evans, 1978) such that the absence of relative justice in value distribution can produce negative sentiments and behavioural responses (eg., dissatisfaction and withdrawal of contributions towards value creation). However, relative justice in economic rewards to stakeholders is subjective and varies from one company to another hence, the need to examine whether corporate bodies, in modern times, control their behaviours and whether they are responding to employees' interests in an effective way.…”

Section: Literature Reviewmentioning

confidence: 99%

The Causality between Employees’ Economic Rewards and Sustainable Performance of Nigerian Quoted Manufacturing Firms

Atanda

Asaolu²,

Oyerinde³

et al. 2013

IJBM

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This study examines the causal relationship between employees' economic rewards and sustainable performance of the Nigerian quoted manufacturing firms. The study uses 400 firm-year data, involving 50 companies, purposively selected over the period [2006][2007][2008][2009]. The data were sourced from the annual audited reports and accounts of the companies, obtained from the Nigerian Stock Exchange. The study uses correlation and granger causality econometric techniques to analyze the data, after carrying out diagnostic tests such as unit roots and cointegration tests. The study found that relative economic value added (WETREL) was stationary (χ² = 176.425, p<0.01) at level and relative employees' economic rewards (SENREL) stationary (χ² = 317.882, p<0.01) at first difference, using the Philips-Perron Fisher asymptotic chi-square criterion while both WETREL was stationary (Z=-9.8012, p<0.01) and SENREL stationary (Z=-7.2612, p<0.01) at first difference, using Philips-Perron Choi Z-statistics criterion. Also, there was at least one cointegrating equation between SENREL and WETREL of the companies, indicating a long-run equilibrium relationship between the two variables. In addition, WETREL (χ²=7.623, p<0.01) significantly Granger causes SENREL and SENREL (χ²=3.744, p<0.05) also significantly Granger causes WETREL. Thus, a bi-directional causality existed between the variables, indicating that the direction of the causality runs two ways, from WETREL to SENREL, and vice versa. The study concluded that the two variables are good predictor of each other though employees' economic reward is a better predictor of sustainable performance of quoted manufacturing firms in Nigeria.

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An Application of Equity Theory to Buyer-Seller Exchange Situations

Cited by 243 publications

References 34 publications

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Are Consumers Really Willing to Pay More for Favorable Brand Associations The Moderating Role of Product Value and Product Risk Level

The Causality between Employees’ Economic Rewards and Sustainable Performance of Nigerian Quoted Manufacturing Firms

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