Consumer response to norm-breaking pricing events in e-commerce

Garbarino, Ellen; Maxwell, Sarah

doi:10.1016/j.jbusres.2008.12.010

Cited by 96 publications

(73 citation statements)

References 31 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Firms need to recognize concerns about different treatment and manage perceptions of fairness because these issues are connected to customers' trust and overall satisfaction with the relationship and hence repurchase intentions Haws and Bearden, 2006;Lo et al, 2007;Garbarino and Maxwell, 2010;Xia and Monroe, 2010).…”

Section: Outcomes Of Unfairness Perceptionmentioning

confidence: 99%

“…The literature suggests that price fairness and trust are closely related (Garbarino and Maxwell, 2010), with fairness considered as an antecedent of trust (Buttle and Burton, 2002;Nguyen and Klaus, 2013). Trust has been conceptualized as the confidence one party has in an exchange partner's reliability and integrity (Morgan and Hunt, 1994), corresponding to perceived credibility and benevolence.…”

Section: Outcomes Of Unfairness Perceptionmentioning

confidence: 99%

“…Homburg et al (2005) draw on economic theory to examine how satisfaction can moderate the link between price fairness and repurchase intention and conclude that satisfaction can play an important role in terms of how customers react to marketing activities. Thus, research suggests a relationship between perceived price fairness, trust, satisfaction and repatronage Garbarino and Maxwell, 2010;Xia and Monroe, 2010). Since research shows that present customers perceive greater unfairness if they receive a less favourable treatment than new customers (Feinberg et al, 2002;Tsai and Lee, 2007), the impact in terms of trust, satisfaction and repatronage may also be more damaging.…”

Section: Outcomes Of Unfairness Perceptionmentioning

confidence: 99%

“…Such other-focused outrage may be less intense than the ego-focused (such as that felt by existing customers facing the disadvantaged condition), but may also be salient (Gelbrich, 2011). Moreover, according to Garbarino and Maxwell (2010), trust is sensitive to normative effects. Social norms are tacitly understood rules of a society.…”

Section: Research Findingsmentioning

confidence: 99%

“…However, if in a society people feel that a pricing tactic is against the norm, they might react negatively regardless of whether they were offered the higher or the lower price (Garbarino and Lee, 2003). Grewal et al (2004) argue that pricing tactics contrary to the social norm, such as charging a regular customer more, engender less trust than pricing tactics consistent with norms, especially benevolence trust (Garbarino and Maxwell, 2010). Firms that fail to meet these social expectations are often accused of exploiting the consumer and are treated with suspicion (Maxwell et al, 2009).…”

Section: Research Findingsmentioning

confidence: 99%

See 4 more Smart Citations

Unfairness in consumer services: Outcomes of differential treatment of new and existing clients

Fernandes

Calamote

2016

Journal of Retailing and Consumer Services

View full text Add to dashboard Cite

a b s t r a c tIn a consumption context, there is a growing interest in understanding unfair behaviour of firms towards customers. Our research focuses on unfairness perceptions driven by differential treatment, particularly through price discrimination, i.e. the practice of charging differential prices to different customers. Our purpose is to investigate the consequences of these practices for unfairness perceptions, satisfaction, trust and patronage, showing a dual perspective: the perceptions of new vs existing clients when they face the advantaged or disadvantaged conditions. A survey-based experimental design approach was used. We conclude that unfairness perception is stronger for existing than for new clients, prompting negative attitudinal and behavioural consequences when the former are exposed to disadvantaged conditions in relation to the latter. Our study aims to provide marketers with a perspective on the pitfalls related to differential treatment between present and prospective clients, with implications in terms of design and implementation of customer management strategies.

show abstract

Section: Outcomes Of Unfairness Perceptionmentioning

confidence: 99%

Section: Outcomes Of Unfairness Perceptionmentioning

confidence: 99%

Section: Outcomes Of Unfairness Perceptionmentioning

confidence: 99%

Section: Research Findingsmentioning

confidence: 99%

Section: Research Findingsmentioning

confidence: 99%

See 3 more Smart Citations

Unfairness in consumer services: Outcomes of differential treatment of new and existing clients

Fernandes

Calamote

2016

Journal of Retailing and Consumer Services

View full text Add to dashboard Cite

show abstract

The effect of category‐specific temporal frame on temporal reframing of price

Chung,

Sheinin

2024

J of Consumer Behaviour

View full text Add to dashboard Cite

This study explores the effects of temporal reframing of price (TRP), a strategy presenting the total cost of a product or service in smaller, segmented amounts (e.g., $1 per day rather than $365 in total), and its potential to intensify consumers' feelings of being misled, thereby negatively impacting their attitudes toward the product. While previous research has underscored the benefits of TRP, such as lowering perceived costs and enhancing perceived benefits through heuristic information processing, the current study, informed by theories of heuristic versus systematic processing and attribution theory, investigates whether TRP leads to increased feelings of manipulation by deviating from conventional category‐specific temporal frames of pricing. Through two experiments, we find that such deviations may prompt consumers to view TRP as manipulative, subsequently heightening feelings of being misled, especially at higher price levels, whereas lower price levels could diminish the scrutiny applied to marketers' intentions. Additionally, this study demonstrates that feelings of being misled mediate the relationship between the presentation of price information and product attitude, highlighting the potential risks of employing TRP strategies. The paper discusses optimal situations for implementing TRP, aiming to navigate its strategic use effectively.

show abstract