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Fairness through Transparency: The Influence of Price Transparency on Consumer Perceptions of Price Fairness

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  • Sandra Rothenberger

Abstract

This study proposes that price transparency is a significant factor affecting customer judgments of the fairness of sellers’ prices. Cognitive judgments of fairness require a certain amount of information processing; therefore, the level of transparency and the amount of price information affect fairness judgments. The more clear information consumers possess concerning seller prices, the more positive the judgment will be. Customer price fairness judgment is an effective measurement for the evaluation of customer satisfaction that can increase the attitudinal loyalty of customers to the seller. The impact of price transparency on judgments of price fairness and the effects on satisfaction and loyalty are tested using a structural equation model and a sample of 1,459 passengers of a major European train company.

Suggested Citation

  • Sandra Rothenberger, 2015. "Fairness through Transparency: The Influence of Price Transparency on Consumer Perceptions of Price Fairness," Working Papers CEB 15-008, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:sol:wpaper:2013/200240
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    References listed on IDEAS

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    Cited by:

    1. Amir Hossein Sepehrian & Zahra Sadat Mirzazadeh & Malihe Sadat Aghaei Shahri, 2023. "Effect of price transparency on the perception of fair price and satisfaction with the purchase of sports products," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(5), pages 327-337, October.
    2. Sayanti SHAW, 2018. "Role Of Need For Closure On Perceived Price Fairness," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 12(1), pages 797-806, November.
    3. Jalal Hanaysha, 2016. "Testing the effects of food quality, price fairness, and physical environment on customer satisfaction in fast food restaurant industry," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 6(2), pages 31-40, February.
    4. Ammar Ahmed & Sanober Salman Shaikh & Rafat Naseer & Muhammad Asadullah, 2019. "Factors Affecting Customer Retention In The Restaurant Industry: Moderating Role Of Restaurant Location," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 15(2), pages 15-17.
    5. Claudia-Elena ?uclea & Diana Maria Vrânceanu & Carmen-Eugenia Nastase, 2018. "The Fairness of Pricing Tactics for Hotels: Perceptions of Romanian Customers," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 20(S12), pages 905-905, November.
    6. Ammar Ahmed & Sanober Salman Shaikh & Rafat Naseer & Muhammad Asadullah, 2019. "Factors Affecting Customer Retention In The Restaurant Industry: Moderating Role Of Restaurant Location," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 15(2), pages 95-108.
    7. Tantri Yanuar Rahmat Syah & Patrick Christian Alimwidodo & Lovinda Lianti & Holila Hatta, 2022. "Perceived Price as Antecedent of Satisfaction and Loyalty: Learn from Fast Food Multinational Restaurants in Indonesia," Central European Business Review, Prague University of Economics and Business, vol. 2022(4), pages 63-84.
    8. Nathan Chubaka Mushagalusa & Eddy Balemba Kanyurhi & Deogratias Bugandwa Mungu Akonkwa & Patrick Murhula Cubaka, 2022. "Measuring price fairness and its impact on consumers’ trust and switching intentions in microfinance institutions," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 27(2), pages 111-135, June.
    9. Rhea L. Adriatico & Allen Mark A. Razalan & Chrizel Mae V. Pagbilao & Bonimar T. Afalla & Leila M. Dela Cruz, 2022. "Service Quality and Customer Satisfaction in Dining Restaurants: Inputs for Tourism and Hospitality Curriculum Enhancement," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 11, May.
    10. Di Domenico, Giandomenico & Premazzi, Katia & Cugini, Antonella, 2022. "“I will pay you more, as long as you are transparent!”: An investigation of the pick-your-price participative pricing mechanism," Journal of Business Research, Elsevier, vol. 147(C), pages 403-419.

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    More about this item

    Keywords

    Price fairness; Price fairness; Satisfaction; Attitudinal loyalty; Price sensitivity;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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