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Procedural and Distributive Fairness: Determinants of Overall Price Fairness

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  • Jodie Ferguson
  • Pam Ellen
  • William Bearden

Abstract

The present research isolates the fairness assessment of the process used by the retailer to set a price, as well as the distributive fairness of the price compared to the price that others are offered, and examines the combined effect of procedural fairness and distributive fairness on overall price fairness. Two experimental studies examine procedural and distributive fairness effects on overall price fairness. In study 1, procedural fairness and distributive fairness are manipulated and found to interact to bring about overall price fairness. In study 2, suspicion toward the seller is found to mediate the relationship between procedural fairness and overall price fairness when the price is disadvantageous. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • Jodie Ferguson & Pam Ellen & William Bearden, 2014. "Procedural and Distributive Fairness: Determinants of Overall Price Fairness," Journal of Business Ethics, Springer, vol. 121(2), pages 217-231, May.
    • Handle: RePEc:kap:jbuset:v:121:y:2014:i:2:p:217-231
    DOI: 10.1007/s10551-013-1694-2
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    20. Jocelyn D. Evans & Elise Perrault & Timothy A. Jones, 2017. "Managers’ Moral Obligation of Fairness to (All) Shareholders: Does Information Asymmetry Benefit Privileged Investors at Other Shareholders’ Expense?," Journal of Business Ethics, Springer, vol. 140(1), pages 81-96, January.
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