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EMAC 2024 Annual


Additional Price Metrics in Retail: Their Impact on Calculation Accuracy, Fairness Perceptions, and Word-of-Mouth Intentions
(A2024-119717)

Published: May 28, 2024

AUTHORS

Marcel Mallach, University of Kaiserslautern-Landau; Stefan Roth, Technische Universität Kaiserslautern

ABSTRACT

This study examines the influence of additional price metrics on consumer behavior, with a focus on cost estimation accuracy, perceptions of pricing fairness, and word-of-mouth communication. Price metrics, such as unit pricing, play a crucial role in how consumers assess costs and make purchasing decisions. Using a 2x2 between-subjects design, this research explores the effects of these metrics and the difficulty of cost calculations on consumer behavior. Contrary to expectations, our findings reveal that while additional price metrics do not directly enhance cost estimation accuracy, they significantly impact word-of-mouth communication through the mediating role of procedural fairness. This highlights the importance of transparent pricing practices and the need for consumer education on effectively interpreting price information. The study contributes to the understanding of price framing in retail settings.