Assessing Customers' Moral Disengagement from Reciprocity Concerns in Participative Pricing

Narwal, Preeti; Nayak, Jogendra Kumar; Rai, Shivam

doi:10.1007/s10551-021-04782-8

Cited by 9 publications

(7 citation statements)

References 62 publications

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“…Whether a consumer uses a participative pricing model can not only be influenced by emotions, but also by social influences [ 34 , 35 ], the individual personality of the person [ 36 , 37 ] or cognitive mechanisms [ 38 ]. Thus, personality-based characteristics might help explain why different individuals respond differently towards the same pricing model.…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

“…To the best of our knowledge, no research comparatively examines multiple participative and nonparticipate pricing models on emotions and addresses both positive and negative emotions acting simultaneously. Whether a consumer uses a participative pricing model can not only be influenced by emotions, but also by social influences [34,35], the individual personality of the person [36,37] or cognitive mechanisms [38]. Thus, personality-based characteristics might help explain why different individuals respond differently towards the same pricing model.…”

Section: Plos Onementioning

confidence: 99%

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I do not want to set my own price! Indirect effects of emotions and moderation effects of skepticism explain reduced use intentions towards participative pricing models

2023

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Participative pricing models (i.e., auction, reverse auction, pay-what-you-want) have grown in importance compared to classical, non-participative pricing models (i.e., fixed price, discount). This study examined (1) relative use intentions regarding different (non-) participative pricing models, (2) the emotional responses triggered by the pricing models and influencing consumers’ use intentions, and (3) the moderating role of individual skepticism in this context. A between-subjects experiment (N = 505) with five groups, manipulating participative (auction, reverse auction, and pay-what-you-want) and non-participative (fixed price and discount) pricing models, detected reduced use intentions towards participative compared to non-participative pricing models. Even though participative pricing models induced higher levels of positive as well as negative emotions, the effects via positive emotions (promoting use intentions) were weaker than the effects via negative emotions (mitigating use intentions). Skepticism towards participative pricing models enhanced negative emotions and decreased positive emotions. Practical applications should rely on enhancing positive emotions while simultaneously reducing negative emotions, as they exert independent effects. Skepticism of potential users should be mitigated in the early stages of the customer relationship, e.g., via trustworthiness triggers.

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Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

Section: Plos Onementioning

confidence: 99%

I do not want to set my own price! Indirect effects of emotions and moderation effects of skepticism explain reduced use intentions towards participative pricing models

2023

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“…Narwal and Nayak (2020) studied the benefits of PWYW as a novel strategy for price discrimination in multi-channel retailing environment. In sum, the literature shows that under PWYW, consumers are economically rational, care for their social image and are motivated by fairness and reciprocity concerns while paying for the product/service they received (Narwal et al. , 2021; Rai and Narwal, 2022).…”

Section: Literature Reviewmentioning

confidence: 99%

Fairness, profits and social welfare: the implications of pay-what-you-want in online food delivery

Shroff,

Shah,

Gajjar

2023

APJML

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PurposePay-what-you-want (PWYW) is a pricing strategy implemented in a variety of settings like supermarkets and museums, in which consumers determine the price they are willing to pay for a product or service based on their perceived utility. The authors propose an analytical model to investigate the impact of PWYW delivery pricing on the online food delivery (OFD) platforms.Design/methodology/approachUsing a game-theoretic model, the authors characterize the equilibrium as a function of the platform's average delivery cost and the consumer's social preferences parameters like fairness and reciprocity. The authors derive the parametric conditions under which PWYW generates higher profits for the platform compared to the traditional pay-as-asked delivery pricing.FindingsFor the PWYW strategy to be profitable, the average delivery cost to the platform should be low. Therefore, OFD platform managers should focus on reducing delivery costs. The authors also identify the feasible region in which the platform managers need to maintain the consumer's social preferences.Practical implicationsUnder PWYW, the authors recommend that the platform managers impose a minimum delivery fee which consumers can use as a benchmark to minimize zero delivery fee payments and consumers' free-riding tendencies simultaneously. This allows OFD platforms to extract online orders from highly price-conscious consumers.Originality/valueThis is one of the first studies to explore the innovative application of PWYW to a particular segment of delivery pricing in OFD platforms. The authors establish that the overall consumer surplus and social welfare are higher under the PWYW strategy, forming a solid ground for its implementation in OFD platforms.

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“…If this mechanism works well, then unethical behavior will be prevented because no individual wants to disobey their moral standards and thus feel guilty. Otherwise, moral constraints are weakened, resulting in unethical behavior (Narwal et al, 2021). Linguistic identification provides the premise on which to simulate moral disengagement.…”

Section: Moral Disengagement and Unethical Pro-organizational Behaviormentioning

confidence: 99%

How I Speak Defines What I Do: Effects of the Functional Language Proficiency of Host Country Employees on Their Unethical Pro-organizational Behavior

et al. 2022

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Functional language has been used in many multinational corporations (MNCs) as a way to overcome the problems caused by the coexistence of multiple languages in the workplace. The existing literature has explored the importance, adoption, and effectiveness of functional language. Yet, how functional language shapes host country employees’ moral cognition and behavior is insufficiently researched. Guided by the Social Identity Theory, this manuscript shows that host country employees’ functional language proficiency (i.e., English) enhances their unethical pro-organizational behavior through their linguistic group identification and moral disengagement. We tested our predictions using the data collected from 309 full-time host country employees through an online survey, and the results generally supported our hypotheses. The findings make contributions to both international management and language literature and organizational moral behavior literature.

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Assessing Customers' Moral Disengagement from Reciprocity Concerns in Participative Pricing

Cited by 9 publications

References 62 publications

I do not want to set my own price! Indirect effects of emotions and moderation effects of skepticism explain reduced use intentions towards participative pricing models

I do not want to set my own price! Indirect effects of emotions and moderation effects of skepticism explain reduced use intentions towards participative pricing models

Fairness, profits and social welfare: the implications of pay-what-you-want in online food delivery

How I Speak Defines What I Do: Effects of the Functional Language Proficiency of Host Country Employees on Their Unethical Pro-organizational Behavior

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