The Two Components of a Fair Price: Social and Personal

Pricing strategy & practice

The two components of a fair harm: social and person-to-person
Sarah Maxwell
Fordham University, New York, New York, USA

Lucette Comer
Purdue University, West Lafayette, Indiana, USA
Abstract drive The purpose of this paper is to isolate the effects of personal luridness (the consumers evauation of the magnitude of the harm) and the social rightfulness (the acceptability of the cost given the social norms of the society). Design/methodology/approach This look for adapted the scenarios used in the pivotal fair set study conducted by Kahneman, Knetsch and Thaler. To demonstrate the difference between their results and the results when personal and social fairness 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 price is moderated by their other-serving concern for a socially fair price. look for limitations/implications This research demonstrates that there is a signi?cant difference in the personal and social fairness of price, whether it is a price for goods, contend 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 wage can increase the likelihood that the recipients will settle the price increase as being fair. Originality/value former research into price fairness has confused the two aspects of a fair price. By isolating the two separate components, we enlighten how individuals perceive price fairness in the personal horse sense 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 interest 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: Orderessay



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