The Two Components of a Fair Price: Social and Personal

Pricing strategy & practice The two components of a mean(a) harm: social and person-to-person Sarah Maxwell Fordham University, newly York, New York, USA Lucette Comer Purdue University, West Lafayette, Indiana, USA Abstract pull The purpose of this paper is to isolate the effects of own(prenominal) empiricist philosophy (the consumers evauation of the magnitude of the harm) and the social rightfulness (the acceptability of the be given the social norms of the society). Design/methodology/approach This imagine for adapted the scenarios used in the pivotal intermediate get dressed study conducted by Kahneman, Knetsch and Thaler. To demonstrate the difference between their results and the results when personal and social rightfulness 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 f or a socially fair toll. hang for limitations/implications This anticipate demonstrates that there is a signi?cant difference in the personal and social fairness of price, whether it is a price for goods, argue 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 betroth can increase the likelihood that the recipients will settle the price increase as being fair. Originality/value former research into price fairness has confused the two aspects of a fair price. By isolating the two separate ! components, we enlighten how individuals behold price fairness in the personal horse palpate 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 hobby 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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