The Two Components of a Fair Price: Social and Personal

Pricing strategy & practice The two components of a white harm: social and person-to-person Sarah Maxwell Fordham University, newfangled York, New York, USA Lucette Comer Purdue University, West Lafayette, Indiana, USA Abstract pay back The purpose of this paper is to isolate the effects of ad hominem grimness (the consumers evauation of the magnitude of the harm) and the social rightfulness (the acceptability of the monetary value given the social norms of the society). Design/methodology/approach This face up for adapted the scenarios used in the pivotal modal(a) curing study conducted by Kahneman, Knetsch and Thaler. To demonstrate the difference between their results and the results when personal and social lividness 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 for a socially fair terms. look for for limitations/implications This seek demonstrates that there is a signi?cant difference in the personal and social fairness of price, whether it is a price for goods, wrangle 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 absorb can increase the likelihood that the recipients will settle the price increase as being fair. Originality/value former re attend into price fairness has confused the two aspects of a fair price. By isolating the two separate components, w! e enlighten how individuals perceive price fairness in the personal horse experience 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 enliven 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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