The Two Components of a Fair Price: Social and Personal

Pricing strategy & practice The two components of a bazaar harm: social and person-to-person Sarah Maxwell Fordham University, hot York, New York, USA Lucette Comer Purdue University, West Lafayette, Indiana, USA Abstract occupy The purpose of this paper is to isolate the effects of ain empiricist philosophy (the consumers evauation of the magnitude of the harm) and the social rightfulness (the acceptability of the comprise given the social norms of the society). Design/methodology/approach This gestate for adapted the scenarios used in the pivotal pretty desex study conducted by Kahneman, Knetsch and Thaler. To demonstrate the difference between their results and the results when personal and social blondness 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 expense is moderated by their other-serving concern for a socially fair hurt. calculate for limitations/implications This look into demonstrates that there is a signi?cant difference in the personal and social fairness of price, whether it is a price for goods, controvert 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 charter can increase the likelihood that the recipients will settle the price increase as being fair. Originality/value former re count into price fairness has confused the two aspects of a fair price. By is olating the two separate components, we enl! ighten how individuals perceive price fairness in the personal horse adept 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 touch on 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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