A1 Refereed original research article in a scientific journal
Pricing strategy in multi-channel retailing and fairness perception: An examination of boundary conditions
Authors: Larissa Carine Braz Becker, Rafael Laitano Lionello, Mateus de Brito Nagel, Rodrigo Heldt, Matheus Santana Trombetta, Luiz Antonio Slongo
Publication year: 2016
Journal: Revista de Administração IMED
Journal acronym: RAIMED
Volume: 6
Issue: 2
First page : 162
Last page: 172
DOI: https://doi.org/10.18256/2237-7956/raimed.v6n2p162-172
Web address : https://seer.imed.edu.br/index.php/raimed/article/view/1257
This article aims to examine the boundary conditions that influence the relationship between pricing
strategy in multi-channel retailing and fairness perception, since past research has found controversial
results concerning this subject. In experiments 1 and 2, we show that differential pricing is perceived
as fairer for products in comparison to services. In experiment 3, we show that when the price difference
is justified by an explanation based on costs, it is perceived as fairer than an explanation based on
channel benefits. These studies help to elucidate the controversial relationship between price strategy
and perceived fairness, addressing boundary conditions that have not been tested before. We suggest
that product retailers should consider differential pricing strategy, since many benefits have been reported
in the literature, such as higher profitability. However, service managers should be careful
about using this strategy, because fairness perception influences returning intentions. Additionally,
whenever possible, the price difference should be justified by an explanation based on costs.
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