How Transparent Communication of Dynamic Pricing in Stationary Retail Shapes Consumer Fairness Perceptions and Purchase Intentions
(A2026-133781)

AUTHORS

Tabea Stilgenbauer, RPTU Kaiserslautern-Landau; STEFAN ROTH, RPTU KAISERSLAUTERN-LANDAU

ABSTRACT

Dynamic pricing is a well-researched strategy often associated with negative consumer perceptions, especially concerning perceived fairness and purchase intentions. Prior research indicates that transparent communication can help reduce these effects. Most studies have focused primarily on online settings, whereas this study explores how consumers respond to additional contextual information in offline retail, specifically regarding the timing of a price reduction and the retailer's inferred motive for using dynamic pricing, communicated via electronic shelf labels. The results demonstrate that consumers are highly responsive to the timing of price changes and that perceptions of distributive fairness significantly influence their purchase intentions. A profit-driven motive further intensifies negative reactions. This study advances theoretical understanding of dynamic pricing and provides practical advice for retailers applying such strategies.