Antecedents and consequences of price unfairness

Abstract

Price is a central element of the marketing mix, since it is the only element of the mix that is converted into revenue for the company, it is the value quantification of an exchange. It's important for companies to understand how the customer evaluates and perceives the price, as well as, the consequences of a monetary cost change for the client of an offer. It is recognized that the price perception, although apparently rational and quantitative, carries a strong affective psychological role, by the reason that changes in the price can cause different perceptions of unfairness and that the cognitive evaluation leads to the expression of emotion as a result of the appreciation. Through an experimental study, some influences on the consumer perception of price unfairness were evaluated, as well as, the consequences of practices perceived as unfair. In general, the unfairness perception is influenced strongly by the frequency of purchase, relationship level between customer and the company and perception of price based on the past or on competitors. Regarding the consequences of price unfairness perception, the anger and the rage are the strongest emotions felt and the ones which exert the highest impact on the reactions of price unfairness perception. Moreover, anxiety and repugnance exert negative effect on complaint intention, diminishing it. Finally, the academic and managerial implications are focused, as well as, the limitations of the present research.