Margaret C. Campbell
Executive Summary
This research explores the important domain of consumers' perceptions of and reactions to prices. In particular, the author proposes and examines two previously unexplored factors that can influence perceptions of a price as fair or unfair. The article conceptually develops and provides empirical support for important influences of (1) the source of price information and (2) affective (emotional) reactions to a price on perceptions of (un)fairness.
Although most firms appear to assume that sources of price information are equivalent, this article proposes that the source of price change information can influence perceptions of price (un)fairness. The article develops the idea that consumers' perceptions of price (un)fairness can be influenced by whether the source of price information is human, such as a salesperson or a customer representative, or nonhuman, such as a price tag or a computer. The author proposes that consumers are more likely to think more deeply about the reasons for a price when presented by a human source. She also proposes that consumers are more likely to have stronger affective/emotional reactions to prices presented by other people than by inanimate sources. In turn, these cognitive and affective reactions can influence the overall perception of price (un)fairness.
Examination of responses to prices and perceptions of price (un)fairness has tended to be cognitively based; that is, prior research has examined the cognitions that consumers have about prices, showing that thoughts about a firm's relative profits, a firm's motives, prior prices, competitor prices, and a firm's costs influence perceptions of price (un)fairness. The current research significantly contributes to understanding price (un)fairness perceptions by showing the important role of affective reactions in (un)fairness perceptions. This article presents theoretical rationale and empirical support for the influence of affect on perceived price (un)fairness.
Three studies provide empirical evidence for the influence of the source of price information on perceptions of price (un)fairness. In addition, the studies provide support for the proposed model that both cognitions (i.e., inferred motive) and affect influence perceived (un)fairness. Likewise, the data provide evidence that inferred motive and affective reactions are mechanisms by which source influences perceptions of price (un)fairness. The author studies two different product categories, both of which show effects of source and affect. This research also hypothesizes and shows effects on (un)fairness perceptions for both price decreases and price increases. Overall, the article adds to both theoretical and practical understanding of how and when consumers may perceive a price as unfair or fair.
Biography
Margaret C. Campbell is Associate Professor of Marketing in the Leeds School of Business at the University of Colorado at Boulder. Professor Campbell received ABs in Psychology and Economics from Stanford University and her doctoral degree in Marketing from the Stanford Graduate School of Business. Professor Campbell's expertise is in consumer psychology. Her current research interests include consumers' perceptions, including price fairness perceptions, consumers' knowledge about and reaction to marketers' persuasion efforts, brand knowledge and equity, and perceptions of materialism. She examines questions within domains such as pricing, advertising, product placement, and design. Her work has appeared in journals such as Journal of Marketing Research, Journal of Consumer Research, and Journal of Consumer Psychology. She has served on the editorial board of several journals, including Journal of Consumer Research and Journal of Marketing. She has been invited to present her work to many audiences, including to the Young Presidents' Organization.
Journal of Marketing Research, Vol. XLIV, No. 2, May 2007
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