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Moderating effects in consumers' perceptions of price unfairness
Author(s) -
RondanCataluña Francisco Javier,
MartinRuiz David
Publication year - 2010
Publication title -
journal of consumer behaviour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.811
H-Index - 43
eISSN - 1479-1838
pISSN - 1472-0817
DOI - 10.1002/cb.339
Subject(s) - vendor , perception , distributive justice , context (archaeology) , profit (economics) , marketing , moderation , economics , value (mathematics) , business , microeconomics , economic justice , advertising , psychology , social psychology , computer science , paleontology , neuroscience , machine learning , biology
Abstract This study explores the moderating effects of various consumer features – such as price insensitivity and recency of last purchase – on the relationships among perceived value, inferred vendor profit, and perceived price fairness. A proposed model is developed and an empirical study is then conducted among consumers in four contexts: (i) two tangible goods; and (ii) two intangible services. The proposed model and hypotheses are tested using Partial Least Squares (PLS) software SmartPLS 2.0.M3, which provides a component‐based approach for estimation purposes. The influence of these moderating variables (price insensitivity and recency of the last purchase) depends on the context and the nature of the offering. This is a pioneering study of perceived price fairness in a framework of distributive justice utilizing a variety of contexts, products, and services. Copyright © 2010 John Wiley & Sons, Ltd.