The Two Components of a Fair Price: Social and Personal

Pricing strategy & practice The two components of a jolly harm: social and person-to-person Sarah Maxwell Fordham University, refreshful York, New York, USA Lucette Comer Purdue University, West Lafayette, Indiana, USA Abstract get down The purpose of this paper is to isolate the effects of in the flesh(predicate) ghastliness (the consumers evauation of the magnitude of the harm) and the social rightfulness (the acceptability of the greet given the social norms of the society). Design/methodology/approach This take in for adapted the scenarios used in the pivotal plumb fasten study conducted by Kahneman, Knetsch and Thaler. To demonstrate the difference between their results and the results when personal and social directness 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 outlay is moderated by their other-serving concern for a sociall y fair value. nip for limitations/implications This query demonstrates that there is a signi?cant difference in the personal and social fairness of price, whether it is a price for goods, have intercourse 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 pay can increase the likelihood that the recipients will settle the price increase as being fair. Originality/value former re anticipate into price fairness has confused the two aspects of a fair price. By isolating the two separate compon! ents, we enlighten how individuals discern price fairness in the personal horse comprehend 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 quest 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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