The Influence of Price Difference and Equity Sensitivity on Customer Satisfaction in a Dynamic Pricing Environment

Susan K. Harmon, Middle Tennessee State University
David A. Foote, Middle Tennessee State University
ABSTRACT - This study investigates consumer reactions to a dynamic pricing situation. The results show that satisfaction with a transaction is impacted by knowledge of the price others paid for the same product. Participants who got a better deal than a comparative other rated their satisfaction higher than those who got a worse deal. The magnitude of the price difference mattered only when the deal was worse, resulting in satisfaction for the higher priced item being lower than for the lower priced item. Counter to our expectations, the Equity Sensitivity Index did not provide any significant explanation of price satisfaction.
[ to cite ]:
Susan K. Harmon and David A. Foote (2004) ,"The Influence of Price Difference and Equity Sensitivity on Customer Satisfaction in a Dynamic Pricing Environment", in NA - Advances in Consumer Research Volume 31, eds. Barbara E. Kahn and Mary Frances Luce, Valdosta, GA : Association for Consumer Research, Pages: 593-598.