Influence of price metrics on consumers’ fairness perception in retailing
(A2023-114381)

AUTHORS

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

ABSTRACT

Modern consumers switch between channels seamlessly and they expect information to be consistent. Yet, recent studies show that they encounter discrepant price information. This might influence consumers’ fairness perception. Lower fairness perceptions impact consumers’ purchase intention negatively. Retailers might provide additional price metrics to foster price comparison. We conducted two experiments and find the following: First, inconsistent price metrics reduce consumers’ purchase intention. Second, consumers’ procedural fairness perception mediates this effect. Third, a transparency signal that additional price metrics are displayed, increases the price perceptibility and processibility, and thus repurchase intention. Fourth, this effect is mediated by the procedural fairness perception as well. To avoid negative reactions, streamlining price information is highly recommended. The display of additional price metrics might further increase consumers repurchase intention.