The Effect of Retailer’s Price Image on Price Fairness, Consumer Satisfaction and Loyalty

Existing studies, which explain that price-related factors are one of several sub-dimensions of store image, are limited to describing how price image strategies of retailers have an impact on the consumer behavior. To describe that kind of impact, in this study, using the framework of pe rc ption emotion – behavior perspective based on expectancy value theory, we explain the effect of retailer’s price i mage on price fairness, consumer satisfaction and l oyalty, focusing on the relationship between the retailer's price image and price fairness consumer perceived. The results ide ntified that consumers perceive a retailer with low price image more fair than the other retailers, and indicated that the mo re fair consumers perceive, the more they are satisfied and the highe r the repurchase intention and word of mouth. Moreo ver, the result also showed that price image fit, consumer perception of between actual product list price and retailer’s p rice image, strongly moderate the relationship between the price image a nd the price fairness.