Improving Customer Reactions to Brokered Ultimatums: An Application of Justice Theory

26 Pages Posted: 19 May 2003

See all articles by Aleksander Ellis

Aleksander Ellis

Michigan State University - Department of Psychology

Stephen E. Humphrey

Pennsylvania State University - Department of Management & Organization

Donald E. Conlon

Michigan State University - Department of Management

Catherine H. Tinsley

Georgetown University - Department of Management

Abstract

Due to the growth of discount travel intermediaries such as Priceline, researchers have become interested in customer reactions to brokered ultimatum bargaining contexts. In this study, utilizing justice theory, we examine how procedural variations in a brokered ultimatum game (BUG) affect customer perceptions of informational and distributive justice. We also examine the degree to which justice perceptions affect customer behavior (repatronage) and attitudes (willingness to recommend the service to others). We find that offer acceptance/rejection and an enriched/non-enriched explanation exhibit direct effects on informational and distributive justice perceptions. We also find an interactive effect, such that, when an offer is rejected, justice perceptions can be improved through the use of an enriched explanation. Finally, we find that informational and distributive justice perceptions exhibit unique effects on repatronage behavior and the willingness to recommend the service to others.

Keywords: Justice, ultimatums, negotiation

Suggested Citation

Ellis, Aleksander and Humphrey, Stephen E. and Conlon, Donald Edward and Tinsley, Catherine H., Improving Customer Reactions to Brokered Ultimatums: An Application of Justice Theory. Available at SSRN: https://ssrn.com/abstract=399562 or http://dx.doi.org/10.2139/ssrn.399562

Aleksander Ellis (Contact Author)

Michigan State University - Department of Psychology ( email )

Agriculture Hall
East Lansing, MI 48824-1122
United States

Stephen E. Humphrey

Pennsylvania State University - Department of Management & Organization ( email )

University Park, PA 16802-3306
United States

Donald Edward Conlon

Michigan State University - Department of Management ( email )

North Business Complex
East Lansing, MI 48824-1122
United States
517-432-3519 (Phone)

Catherine H. Tinsley

Georgetown University - Department of Management ( email )

Rafik B Hariri Building
McDonough School of Business
Washington, DC 20057
United States
202-687-2524 (Phone)

HOME PAGE: http://explore.georgetown.edu/people/tinsleyc/

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
77
Abstract Views
1,943
rank
361,721
PlumX Metrics