Dynamic Pricing and Consumer Fairness Perceptions

9 Pages Posted: 10 Jul 2010

See all articles by Kelly Haws

Kelly Haws

Vanderbilt University - Marketing

William O. Bearden

affiliation not provided to SSRN

Date Written: December 9, 2006

Abstract

Dynamic pricing practices by sellers in response to segment and individual-level differences have been made more feasible as internet buyer behavior increases. While benefits from these pricing practices can accrue to sellers and buyers, the potential for (un)fairness perceptions to mitigate these advantages is important. In an effort to investigate these issues, this article reports the results of three studies that examine the effects of seller-, consumer-, time-, and auction-based price differences on perceived price fairness and purchase satisfaction. The findings underscore the potential negative effects associated with price differences from dynamic pricing practices.

Keywords: dynamic pricing, pricing fairness, auctions, price discrimination, equity theory

Suggested Citation

Haws, Kelly and Bearden, William O., Dynamic Pricing and Consumer Fairness Perceptions (December 9, 2006). Journal of Consumer Research, Vol. 33, p. 304, December 2006. Available at SSRN: https://ssrn.com/abstract=1638134

Kelly Haws (Contact Author)

Vanderbilt University - Marketing ( email )

Nashville, TN 37203
United States

William O. Bearden

affiliation not provided to SSRN ( email )

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