Price fairness: Good and service differences and the role of vendor costs

Lisa E. Bolton, Joseph W. Alba

Research output: Contribution to journalArticlepeer-review

75 Scopus citations

Abstract

Prior research suggests that consumers are forgiving of a price increase that is commensurate with increased vendor costs. We argue that the perceived fairness of the price increase will also depend on the alignability of the cost and price increases, such that alignable increases will be perceived as more acceptable than nonalignable increases. Moreover, we predict that when a cost increase is non-alignable, consumers will be more receptive to a service price increase than a goods price increase. Evidence from a series of experiments supports both predictions.

Original languageEnglish (US)
Pages (from-to)258-265
Number of pages8
JournalJournal of Consumer Research
Volume33
Issue number2
DOIs
StatePublished - Sep 1 2006

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Anthropology
  • Arts and Humanities (miscellaneous)
  • Economics and Econometrics
  • Marketing

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