Rule-based price fairness and its effect on willingness to purchase

Maxwell, Sarah

doi:10.1016/s0167-4870(02)00063-6

Cited by 206 publications

(165 citation statements)

References 21 publications

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“…Suter and Hardesty (2005) pointed out that consumers' perceived price has significant influence on their purchase intention. When the price of a product is obviously high, consumers think they are treated unfairly, and the purchase intention decreases (Maxwell, 2001;Babin, Hardesty & Suter, 2003). Therefore, this study proposes the following hypothesis:…”

Section: Perceived Price and Purchase Intentionmentioning

confidence: 95%

The Impact of Green Marketing and Perceived Innovation on Purchase Intention for Green Products

Wu¹,

Chen²

2014

IJMS

135

108

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With the rise of eco-awareness and innovation in recent years, companies have constantly sought to be the first to introduce new green-concept products to the market to gain a larger market share. However, it is unclear whether consumer awareness of green marketing and innovation will increase purchase intention. This issue requires an in-depth discussion. This study uses energy-saving lamps and environmental cleanser as examples, using a literature review and empirical research to explore the correlations between consumer awareness of green marketing, perceived innovation, perceived quality, perceived price, perceived risk, perceived value, and purchase intention. Further, an overall relationship model is established.An analysis of 320 effective questionnaires about energy-saving lamp and 310 effective questionnaires about an environmental cleanser resulted in three main findings: (1) Consumers' green marketing awareness of both energy-saving lamp and an environmental cleanser mainly influences their perceived quality and perceived value, which in turn influence purchase intention. (2) Consumers' perceived innovation of energy-saving lamp mainly influences their perceived quality, perceived price, and perceived value, while consumers' perceived innovation of an environmental cleanser mainly influences their perceived quality and perceived value, all of which in turn influence purchase intention. (3) The results for the two products indicate that the impact of consumers' green marketing awareness on purchase intention is greater than the impact of perceived innovation. Through SEM analysis, this study establishes a valid relationship model for green products and identifies the main influence paths. In addition, measurement variables and a scale were established, which provide academics and industry with critical research tools and concepts that should be of academic and practical value.

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Section: Perceived Price and Purchase Intentionmentioning

confidence: 95%

The Impact of Green Marketing and Perceived Innovation on Purchase Intention for Green Products

Wu¹,

Chen²

2014

IJMS

135

108

View full text Add to dashboard Cite

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“…Price fairness is a judgment of whether a price is reasonable, just, and acceptable (Bolton, Warlop, & Alba, 2003;Lichtenstein, Bloch, & Black, 1988;Maxwell, 2002;Xia, Monroe, & Cox, 2004). Prior research provides evidence that perceptions of price fairness will, in turn, influence consumers' purchase intentions (Campbell, 1999;Kahneman, Knetsch, & Thaler, 1986;Maxwell, 2002). In a partitioned pricing context, consumers may develop a fairness judgment about the surcharge by comparing it with some referent points-past prices, competitor prices, and costs (Bolton, Warlop, & Alba, 2003).…”

Section: Surcharge Level and Mediating Role Of Fairnessmentioning

confidence: 99%

Partitioning or bundling? Perceived fairness of the surcharge makes a difference

Sheng

Bao

Pan

2007

Psychology and Marketing

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Partitioned pricing charges a base price and a surcharge instead of an equivalent all-inclusive price. In contrast, a bundling strategy offers a bundled price instead of separate prices for products in one package. Which pricing practice is more profitable? Previous research has shown conflicting results. This research identifies the boundary conditions which circumscribe the profitability of partitioned and bundled pricing. Results of three experiments indicate that the relative significance of the surcharge to the base price influences consumers' perception of the fairness of the surcharge, which in turn influences consumer purchase intentions. Furthermore, given the same level of surcharge, consumers' perceptions of the fairness of the surcharge moderates the effect of the pricing strategies. Thus, perceived fairness of the surcharge appears to be the key in determining whether or not the partitioning strategy is more profitable than the bundling strategy.

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“…It is unsure, if the benefits of PPF, including a positive influence on the customer's intent to purchase [7] [8], a positive influence on customer satisfaction [9] [10], a positive influence on customer loyalty [11], a positive influence on the buyer's attitude towards the seller [12], and perceived quality [13], are still valid within PWYW conditions. Previous research showed that PPF is important for sellers because of such positive effects, whereas perceived price unfairness leads to massive negative consequences.…”

Section: Limitations and Outlook For Further Researchmentioning

confidence: 99%

“…As the example of Amazon shows, the construct of perceived price fairness (hereinafter referred to as "PPF") is a central aspect of the buyer's response to prices. PPF has a positive influence on the customer's intent to purchase [7] [8], a positive influence on customer satisfaction [9] [10], a positive influence on customer loyalty [11], and a positive influence on the buyer's attitude towards the seller [12]. Additionally, Oh [13] showed a positive correlation between PPF and perceived quality.…”

Section: Introductionmentioning

confidence: 99%

Perceived Price Fairness in Pay-What-You-Want: A Multi-Country Study

Bettray¹,

Suessmair²,

Dorn³

2017

AJIBM

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The present study investigated perceived price fairness (PPF) and aimed to reveal determinants of PPF within the participative pricing mechanism paywhat-you-want (PWYW). Results support the hypothesis that PPF in PWYW conditions is higher than PPF in ordinary price setting (OPS) conditions. Determinants of PPF in PWYW conditions were identified to include both the price level and the degree of social interaction. Whereas the results conform to previous research that PPF correlates negatively with the price level in OPS conditions, this study reveals a positive correlation between the price level and PPF in PWYW conditions, which suggests that the buyer's mental model of PPF varies with the process of price determination. Therefore, future research should re-examine consequences of PPF in PWYW conditions. Additionally, results show cross-country differences of PPF and the influence of the price level on PPF.

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Rule-based price fairness and its effect on willingness to purchase

Cited by 206 publications

References 21 publications

The Impact of Green Marketing and Perceived Innovation on Purchase Intention for Green Products

The Impact of Green Marketing and Perceived Innovation on Purchase Intention for Green Products

Partitioning or bundling? Perceived fairness of the surcharge makes a difference

Perceived Price Fairness in Pay-What-You-Want: A Multi-Country Study

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