Understanding Fairness Perceptions For Price Decreases

The price fairness literature has focused largely on price increases. However, many firms (e.g., Walmart) have recently been criticized for practices implemented to help reduce costs (e.g., reduced benefits to employees). We examine factors affecting price fairness perceptions for price decreases. In doing so, we broaden the traditional focus in price fairness research (based on dual-entitlement) from the firm-consumer dyad to a triad which includes the employee. Our findings highlight a new factor – harm to others – which impacts fairness perceptions and illustrate the usefulness of cognitive moral development for understanding individual differences in sensitivity to price fairness issues.


Sajeev Varki, Elizabeth G. Miller, and Syagnik Banerjee (2008) ,"Understanding Fairness Perceptions For Price Decreases", in NA - Advances in Consumer Research Volume 35, eds. Angela Y. Lee and Dilip Soman, Duluth, MN : Association for Consumer Research, Pages: 253-256.


Sajeev Varki, University of Rhode Island
Elizabeth G. Miller, Boston College
Syagnik Banerjee, University of Rhode Island


NA - Advances in Consumer Research Volume 35 | 2008

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