The Price Is Unfair! a Conceptual Framework of Price Fairness Perceptions

References: Adams, J.S. (1965), “Inequity in Social Exchange,” in Advances in Experimental Social Psychology, Vol. 2, L. Berkowitz, ed. New York: Academic Press, 267–99. Adamy, Janet (2000), “E-Tailer Price Tailoring May Be Wave of Future,” Chicago Tribune, (September 25), 4. Austin, W., N. McGinn, and C. Susmilch (1980), “Internal Standards Revisited: Effects of Social Comparisons and Expectancies on Judgments of Fairness and Satisfaction,” Journal of Experimental Social Psychology, 16 (5), 426–41. Bagozzi, Richard P., Mahesh Gopinath, and Prashanth U. Nyer (1999), “The Role of Emotions in Marketing,” Journal of the Academy of Marketing Science, 27 (2), 184–206. Bechwati, Nada Nasr and Maureen Morrin (2003), “Outraged Consumers: Getting Even at the Expense of Getting a Good Deal,” Journal of Consumer Psychology, 13 (4), 440–53. Bolton, Lisa E., Luk Warlop, and Joseph W. Alba (2003), “Consumer Perceptions of Price (Un)Fairness,” Journal of Consumer Research, 29 (March), 474–91. Bougie, Roger, Rik Pieters, and Marcel Zeelenberg (2003), “Angry Customers Don’t Come Back, They Get Back: The Experience and Implications of Anger and Dissatisfaction in Services,” Journal of the Academy of Marketing Science, 31 (Fall), 377–93. Bowman, Douglas and Das Narayandas (2001), “Managing Customer-Initiated Contacts with Manufacturers: The Impact on Share of Category Requirements and Word-of-Mouth Behavior,” Journal of Marketing Research, 38 (August), 281–97. Campbell, Margaret C. (1999), “Perceptions of Price Unfairness: Antecedents and Consequences,” Journal of Marketing Research, 36 (May), 187–99. ——— (2004), “Who Says? How the Source of Price Information and the Direction of Price Change Influence Perceptions of Price Fairness,” working paper, Department of Marketing, University of Colorado, Boulder. Collie, Thérèse (Tess), Graham Bradley, and Beverley A. Sparks (2002), “Fair Process Revisited: Differential Effects of Interactional and Procedural Justice in the Presence of Social Comparison Information,” Journal of Experimental Social Psychology, 38 (November), 545–55. Darke, Peter R. and Darren W. Dahl (2003), “Fairness and Discounts: The Subjective Value of a Bargain,” Journal of Consumer Psychology, 13 (3), 328–38. Dickson, Peter R. and Rosemary Kalapurakal (1994), “The Use and Perceived Fairness of Price-Setting Rules in the Bulk Electricity Market,” Journal of Economic Psychology, 15 (3), 427–48. Finkel, Norman J. (2001), Not Fair! The Typology of Commonsense Unfairness. Washington, DC: American Psychological Association. Folkes, Valerie S. (1990), “Conflict in the Marketplace: Explaining Why Products Fail,” in Attribution Theory: Applications to Achievement, Mental Health, and Interpersonal Conflict, Sandra Graham, ed. Hillsdale, NJ: Lawrence Erlbaum Associates, 143–60. ———, Susan Koletsky, and John L. Graham (1987), “A Field Study of Causal Inferences and Consumer Reaction: The View from the Airport,” Journal of Consumer Research, 13 (March), 534–39. Frey, Bruno S. and Werner W. Pommerehne (1993), “On the Fairness of Pricing—An Empirical Survey Among the General Population,” Journal of Economic Behavior and Organization, 20 (3), 295–307. Garbarino, Ellen and Olivia F. Lee (2003), “Dynamic Pricing in Internet Retail: Effects on Consumer Trust,” Psychology & Marketing, 20 (6), 495–513. Haddock, David D. and Fred S. McChesney (1994), “Why Do Firms Contrive Shortages? The Economics of Intentional Mispricing,” Economic Inquiry, 32 (October), 562–81. Homans, G.C. (1961), Social Behavior: Its Elementary Forms. New York: Harcourt, Brace & World. Huppertz, John W., Sidney J. Arenson, and Richard H. Evans (1978), “An Application of Equity Theory to Buyer–Seller Exchange Situations,” Journal of Marketing Research, 15 (May), 250–60. 14 / Journal of Marketing, October 2004 Jacoby, Jacob (1976), “Consumer and Industrial Psychology: Prospects for Theory Corroboration and Mutual Contribution,” in Handbook of Industrial and Organizational Psychology, Marvin D. Dunnette, ed. Chicago: Rand-McNally, 1031–61. Kachelmeier, Steven, Stephen Limberg, and Michael Schadewald (1991), “Fairness in Markets: A Laboratory Investigation,” Journal of Economic Psychology, 12 (September), 447–64. Kahneman, Daniel, Jack L. Knetsch, and Richard Thaler (1986a), “Fairness and the Assumptions of Economics,” Journal of Business, 59 (4), s285–s300. ———, ———, and ——— (1986b), “Fairness as a Constraint on Profit Seeking Entitlements in the Market,” The American Economic Review, 76 (September), 728–41. Kalapurakal, Rosemary, Peter R. Dickson, and Joel Urbany (1991), “Perceived Price Fairness and Dual Entitlement,” in Advances in Consumer Research, Vol. 18, Rebecca Holman and Michael Solomon, eds. Provo, UT: Association for Consumer Research, 788–93. Kimes, Sheryl E. (1994), “Perceived Fairness of Yield Management,” The Cornell H.R.A. Quarterly, 35 (February), 22–29. Kirmani, Amna and Akshay R. Rao (2000), “No Pain, No Gain: A Critical Review of the Literature on Signaling Unobservable Product Quality,” Journal of Marketing, 64 (April), 66–79. Lewicki, Roy J. and Barbara Benedict Bunker (1995), “Trust in Relationships: A Model of Development and Decline,” in Conflict, Cooperation, and Justice: Essays Inspired by the Work of Morton Deutsch, The Jossey-Bass Management Series and The Jossey-Bass Conflict Series, Vol. 33, Barbara Benedict Bunker and Jeffrey Z. Rubin, eds. San Francisco: Jossey-Bass, 133–73. Major, Brenda (1994), “From Social Inequality to Personal Entitlement: The Role of Social Comparisons, Legitimacy Appraisals, and Group Membership,” in Advances in Experimental Social Psychology, Vol. 26, Mark P. Zanna, ed. New York: Academic Press, 293–355. ——— and Maria Testa (1989), “Social Comparison Processes and Judgments of Entitlement and Satisfaction,” Journal of Experimental Social Psychology, 25 (2), 101–120. Martins, Marielza (1995), “An Experimental Investigation of the Effects of Perceived Price Fairness on Perceptions of Sacrifice and Value,” doctoral dissertation, Department of Business Administration, University of Illinois. ——— and Kent B. Monroe (1994), “Perceived Price Fairness: A New Look at an Old Construct,” in Advances in Consumer Research, Vol. 21, Chris Allen and Deborah Roedder John, eds. Provo, UT: Association for Consumer Research, 75–78. Maxwell, Sarah (1995), “What Makes a Price Increase Seem ‘Fair’?” Pricing Strategy & Practice, 3 (4), 21–27. ——— (1999), “The Social Norms of Discrete Consumer Exchange: Classification and Quantification,” American Journal of Economics and Sociology, 58 (4), 999–1018. ——— (2002), “Rule-Based Price Fairness and Its Effect on Willingness to Purchase,” Journal of Economic Psychology, 23 (2), 191–212. ———, Pete Nye, and Nicholas Maxwell (1999), “Less Pain, Some Gain: The Effects of Priming Fairness in Price Negotiations,” Psychology & Marketing, 16 (7), 545–62. Mayer, Roger C., James H. Davis, and F. David Schoorman (1995), “An Integrative Model of Organizational Trust,” Academy of Management Review, 20 (3), 709–734. McKnight, D. Harrison, Larry L. Cummings, and Norman L. Chervany (1998), “Initial Trust Formation in New Organizational Relationships,” Academy of Management Review, 23 (3), 473–90. Monroe, Kent B. (2003), Pricing: Making Profitable Decisions, 3d ed. Burr Ridge, IL: McGraw-Hill/Irwin. Morgan, Robert M. and Shelby D. Hunt (1994), “The Commitment–Trust Theory of Relationship Marketing,” Journal of Marketing, 58 (July), 20–38. Mussweiler, Thomas (2003), “‘Everything is Relative’: Comparison Processes in Social Judgment,” European Journal of Social Psychology, 33 (6), 719–33. Oliver, Richard L. (1997), Satisfaction: A Behavioral Perspective on the Consumer. Burr Ridge, IL: McGraw-Hill/Irwin. ——— and John E. Swan (1989a), “Consumer Perceptions of Interpersonal Equity and Satisfaction in Transactions: A Field Survey Approach,” Journal of Marketing, 53 (April), 21–35. ——— and ——— (1989b), “Equity and Disconfirmation Perceptions as Influences on Merchant and Product Satisfaction,” Journal of Consumer Research, 16 (December), 372–83. Opp, Karl-Dieter (1982), “The Evolutionary Emergence of Norms,” British Journal of Social Psychology, 21 (2), 139–49. Ordóñez, Lisa D., Terry Connolly, and Richard Coughlan (2000), “Multiple Reference Points in Satisfaction and Fairness Assessment,” Journal of Behavioral Decision Making, 13 (3), 329–44. Raghunathan Rajagopal and Michel Tuan Pham (1999), “All Negative Moods Are Not Equal: Motivational Influences of Anxiety and Sadness on Decision Making,” Organizational Behavior and Human Decision Process, 79 (1), 56–77. Rempel, John K., John G. Holmes, and Mark P. Zanna (1985), “Trust in Close Relationships,” Journal of Personality and Social Psychology, 49 (1), 95–112. Sinha, Indrajit and Rajeev Batra (1999), “The Effect of Consumer Price Consciousness on Private Label Purchase,” International Journal of Research in Marketing, 16 (3), 237–51. Sirdeshmukh, Deepak, Jagdip Singh, and Barry Sabol (2002), “Consumer Trust, Value, and Loyalty in Relational Exchanges,” Journal of Marketing, 66 (January), 15–37. Smith, Amy K., Ruth N. Bolton, and Janet Wagner (1999), “A Model of Customer Satisfaction with Service Encounters Involving Service Failure,” Journal of Marketing Research, 36 (August), 356–72. Storm, Christine and Tom Storm (1987), “A Taxonomic Study of the Vocabulary of Emotions,” Journal of Personality and Social Psychology, 53 (October), 805–816. Thibaut, J.W. and L. Walker (1975), Procedural Justice: A Psychological Analysis. Hillsdale, NJ: Lawrence Erlbaum Associates. Urbany, Joel E., Thomas J. Madden, and Peter R. Dickson (1989), “All’s Not Fair in Pricing: An Initial Look at the Dual Entitlement Principle,” Marketing Letters, 1 (1), 17–25. Vaidyanathan, Rajiv and Praveen Aggarwal (2003), “Who Is the Fairest of Them All? An Attributional Approach to Price Fairness Perceptions,” Journal of Business Research, 56 (6), 453–63. Walster, Elaine H., G. William Walster, and Ellen Berscheid (1978), Equity: Theory and Research. Boston: Allyn & Bacon. Weiner, Bernard (1985), “An Attributional Theory of Achievement Motivation and Emotion,” Psychological Review, 92 (4), 548–73. Wood, Joanne V. (1989), “Theory and Research Concerning Social Comparisons of Personal Attributes,” Psychological Bulletin, 106 (2), 231–48. Wright, Peter (2002), “Marketplace Metacognition and Social Intelligence,” Journal of Consumer Research, 28 (March), 677–82. Xia, Lan and Kent B. Monroe (2004), “Comparative Others, Trust, and Perceived Price Fairness,” paper presented at the Annual Conference of Society of Consumer Psychology, San Francisco (February 20). Zeelenberg, Marcel and Rik Pieters (2004), “Beyond Valence in Customer Dissatisfaction: A Review and New Findings on Behavioral Responses to Regret and Disappointment in Failed Services,” Journal of Business Research, 57 (4), 445–55. Price Fairness Perceptions / 15