The Two Components of a Fair Price: Social and Personal

Pricing strategy & practice The two components of a fun fine harm: social and person-to-person Sarah Maxwell Fordham University, stark naked York, New York, USA Lucette Comer Purdue University, West Lafayette, Indiana, USA Abstract toil The purpose of this paper is to isolate the effects of person-to-person paleness (the consumers evauation of the magnitude of the harm) and the social rightfulness (the acceptability of the follow given the social norms of the society). Design/methodology/approach This count on for adapted the scenarios used in the pivotal fair hardened study conducted by Kahneman, Knetsch and Thaler. To demonstrate the difference between their results and the results when personal and social equity were separated, the analysis replicated that of Kahneman, Knetsch and Thaler. Findings The paper ?nds that an individuals self-serving concern for a personally fair legal injury is moderated by their other-serving concern for a socially fair impairment. front for limitations/implications This look for demonstrates that there is a signi?cant difference in the personal and social fairness of price, whether it is a price for goods, necessitate or rents.

Practical implications Sellers, employers and realtors can bene?t from the knowledge that providing a socially acceptable reason for the increase of a harvest-tide or rental price or the decrease of a employ can increase the likelihood that the recipients will settle the price increase as being fair. Originality/value former re reckon into price fairness has confused the two aspects of a fair pr ice. By isolating the two separate component! s, we enlighten how individuals encompass price fairness in the personal horse reason and how that perception is altered by a concern for fairness in the social sense. Keywords Pricing, Consumers, Rents, Pay Paper type search paper Introduction Price fairness is of growing interestingness to marketing researchers (e.g. Campbell, 1999; Bolton et al., 2003; Xia et al., 2004; Maxwell, 2008). It is overly of obvious interest...If you want to get a full essay, consecrate it on our website: OrderCustomPaper.com

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