Improving unfairness perceptions of prices
Authors: Jen-Bor Huang; Huey-Pyng Shyu; Ching-Te Chang
Journal: Chia Da Management Review. Dec. 2005, 25(2): 1-26.
Keywords: Bundling; Eexplanation; Fairness;price
Abstract:
Many studies have examined the perceived unfairness of price increases and its consequences, but few works have examined methods
of improving unfairness perceptions. This study examines two strategies managers can employ to improve perceived price
unfairness, namely giving explanations and using bundled offers. A total of 686 subjects participated in a study with a 2 x 4
between-subject design to test the effects of the two strategies. The results of the study show that giving explanations and
using bundled offers can mitigate unfairness perceptions derived from price hikes. Directions for future research also are
discussed.