Who Cares More? Consumers' Perceived Unfairness of Targeted Promotions

Firms propose targeted promotions to offer different prices to present and prospective customers. When facing such program, who (present or prospective customers) will perceive more unfairness regarding targeted promotions? How do consumers react to their perceived unfairness? To address these questions, this research proposes a framework to examine the antecedents and the consequences of the perceived unfairness of target promotions. Through a lab experiment, this research finds that present customers’ perceived unfairness is higher than prospective customers’ when facing disadvantaged conditions. However, present customers’ and prospective customers’ perceived unfairness is no difference when facing advantaged condition. We further show that the perceived unfairness cognitively and affectively influences purchase intentions through the perceived value and negative emotions. Firms might benefit from this research by having better control of consumers’ perceived value and emotional reactions induced by perceived unfairness, and therefore attenuating the negative consequence in implementing targeted promotions.



Citation:

Dungchun Tsai and Hsiao-Ching Lee (2007) ,"Who Cares More? Consumers' Perceived Unfairness of Targeted Promotions", in E - European Advances in Consumer Research Volume 8, eds. Stefania Borghini, Mary Ann McGrath, and Cele Otnes, Duluth, MN : Association for Consumer Research, Pages: 253-254.

Authors

Dungchun Tsai, Department of Transportation and Communication Management, National Cheng Kung University, Tainan, 701, Taiwan
Hsiao-Ching Lee, Institute of International Business, National Cheng Kung University, Tainan, 701, Taiwan



Volume

E - European Advances in Consumer Research Volume 8 | 2007



Share Proceeding

Featured papers

See More

Featured

A Simple Step to Go Beyond Present: How Visual Entropy Cues Influence Temporal Focus and Consumer Behavior

Gunes Biliciler-Unal, University of Texas at Austin, USA
Raj Raghunathan, University of Texas at Austin, USA
Adrian Ward, University of Texas at Austin, USA

Read More

Featured

R12. Brand Primes Can Satiate (Important) Consumer Goals

Darlene Walsh, Concordia University, Canada
Chunxiang Huang, Concordia University, Canada

Read More

Featured

Machine Talk: How Conversational Chatbots Promote Brand Intimacy and Influence Consumer Choice

Thomas Hilden, University of Geneva, Switzerland
Christian Hildebrand, University of Geneva, Switzerland
Gerald Häubl, University of Alberta, Canada

Read More

Engage with Us

Becoming an Association for Consumer Research member is simple. Membership in ACR is relatively inexpensive, but brings significant benefits to its members.