Go Dutch on fairness: How consumers care about price fairness for the producer when assessing the fairness of price for themselves
(A2025-124169)

AUTHORS

Evanguelia Tsiapkolis, University Jean Moulin Lyon 3, iaelyon School of Management, UR Magellan; Sonia CAPELLI, University Lyon3, IAE lyon, Magellan, Lyon; William SABADIE, iaelyon School of Management; Lan Xia, Bentley University

ABSTRACT

While inflation has decreased sales of some socially responsible products such as organic ones, products that promote fair remuneration for producers are on the rise. In this research, based on price fairness literature and deontic justice theory, we propose that consumers are interested in these products because of a link between perceived price fairness for the producer (PPFP) and perceived price fairness for the consumer (PPFC): if the price they pay is (un)fair for the producer, then this enables them to assess whether the price is (un)fair for consumers. Through two studies (interviews and experiment), we show that when consumers have information about the producer's fair remuneration, they estimate that a greater share of the price they pay will go to the producer, which enhances PPFP, which in turn improves PPFC, and finally increases purchase likelihood. This research extends literature on price fairness and deontic justice, and develops advices for food brands and legislators.