scholarly journals You paid what!? Understanding price-related word-of-mouth and price perception among opinion leaders and innovators

2021 ◽  
Author(s):  
Sebastian Schneider ◽  
Frank Huber
Keyword(s):  
Word Of Mouth ◽  
Price Change ◽  
Related Word ◽  
Opinion Leaders ◽  
Price Fairness ◽  
Price Perception ◽  
Perceived Price ◽  
Research Gap ◽  
Perceived Price Fairness

AbstractAlthough prices are the most discussed topic in consumer conversations, research has mostly neglected the field of price-related word-of-mouth (WOM). The present study picks up this research gap by analyzing the effects of price-WOM valence and price change communicated by WOM on consumer price perception. While a WOM sender’s opinion is a stronger predictor of the recipient’s perceived price fairness, a price change communicated by WOM has a stronger effect on price expensiveness perceptions. Innovators are found to be more positive with their price fairness judgment compared to imitators, and opinion leaders are more prone to price-WOM than non-opinion leaders.

Psychological influences on customer willingness to pay and choice in automated retail settings

2014 ◽  
Vol 29 (3/4) ◽  
pp. 237-260 ◽  
Author(s):  
Ashutosh Dixit ◽  
Kenneth D. Hall ◽  
Sujay Dutta
Keyword(s):  
Willingness To Pay ◽  
Dynamic Pricing ◽  
Price Change ◽  
Price Fairness ◽  
Content Type ◽  
Theoretical Contribution ◽  
Perceived Price ◽  
Quasi Experimental ◽  
Small Increments ◽  
Perceived Price Fairness

Purpose – The purpose of this paper is to investigate the influence of price attribute framing and factors such as urgency and perceived price fairness on customer willingness to pay (WTP) in automated retail settings. Design/methodology/approach – The authors conducted two sets of quasi-experimental scenarios surrounding vending-machine purchase decisions. The first set was analyzed with MANOVA, the second set with choice-based conjoint (CBC) analysis. Findings – When prices are framed positively (as a discount), customer WTP is higher at high published price levels than it is for unframed or negatively framed prices. The effect on WTP holds whether the reference price range is broad (few large increments) or narrow (numerous small increments). In the CBC scenarios, immediate availability of the product was most influential on choice, followed by price and brand effects. These findings held under conditions invoking both urgency and price fairness. Providing an explanation for higher prices increases perceived price fairness. Research limitations/implications – Further study might assess the presence or absence of interaction effects in the conjoint scenarios. Practical implications – Managers should consider transparency in dynamic pricing, particularly when the price change is outside the control of the firm. The conjoint scenario results also offer evidence that dynamic pricing will not impact other marketing-mix decisions for fast-moving consumer goods (FMCG) dramatically (availability at point of purchase and presence in the consumer consideration set remain strong influences on choice). Social implications – Understanding these effects on WTP could help managers manage perceptions of unfairness and optimize WTP. Originality/value – A theoretical contribution from this study is that the immediate loss/gain consideration under theories of decision making under uncertainty outweigh considerations such as scarcity urgency or perceived unfairness. Use of conjoint analysis in WTP research, study of dynamic pricing in FMCG setting.

scholarly journals The Influence of Price Fairness to Customer Satisfaction

2016 ◽  
Vol 7 (1) ◽  
pp. 8
Author(s):  
Denny Yoristar
Keyword(s):  
Customer Satisfaction ◽  
Descriptive Analysis ◽  
Price Fairness ◽  
Price Perception ◽  
Perceived Vulnerability ◽  
Consumer Vulnerability ◽  
Perceived Price ◽  
Automobile Sales ◽  
Perceived Price Fairness ◽  
Price Offer

The objective of this research is to analyze the influence of price fairness, customer satisfaction, empirically demonstrate the influence of perceived price fairness that can be broken down into price perception, consumer vulnerability, price offer fairness and price procedure fairness. Methodology used in this research is descriptive analysis, which is to identify characteristics of variables under certain circumstances and to scribal down the response of automobile customers in Jakarta, Bekasi, Depok, and Tangerang. Variables measurement ranked from price perception, consumer vulnerability, price offer fairness, price procedure fairness, satisfied with dealer's service, satisfied with delivery car and satisfied with purchase that the result would be used as information to manage automobile sales. The collected data was analyzed using multiple regression analysis. This research concluded that variable of price perception and perceived vulnerability has a significant impact toward price offer fairness, variable of price offer fairness and price procedure fairness has no effect toward satisfied with purchase, and variable of satisfied with dealer's service and satisfied with delivery car significantly affect the satisfied with purchase variable.

An Empirical Study on the Integrated Framework of e-CRM in Online Shopping

2010 ◽  
pp. 136-150
Author(s):  
Changsu Kim ◽  
Weihong Zhao ◽  
Kyung Hoon Yang
Keyword(s):  
Conceptual Framework ◽  
Online Shopping ◽  
Price Fairness ◽  
Online Retailer ◽  
Exchange Relationship ◽  
Perceived Service Quality ◽  
Customer Commitment ◽  
Perceived Price ◽  
Managerial Implications ◽  
Perceived Price Fairness

Based on customer cognitive, affective and conative experiences in Internet online shopping, this study, from customers’ perspectives, develops a conceptual framework for e-CRM to explain the psychological process that customers maintain a long-term exchange relationship with specific online retailer. The conceptual framework proposes a series of causal linkages among the key variables affecting customer commitment to specific online retailer, such as perceived value (as cognitive belief), satisfaction (as affective experience) and trust (as conative relationship intention). Three key exogenous variables affecting Internet online shopping experiences, such as perceived service quality, perceived product quality, and perceived price fairness, are integrated into the framework. This study empirically tested and supported a large part of the proposed framework and the causal linkages within it. The empirical results highlight some managerial implications for successfully developing and implementing a strategy for e-CRM.

Exploring the synergy effect of trust with other beliefs in television shopping

2019 ◽  
Vol 58 (3) ◽  
pp. 428-447
Author(s):  
Yung-Shen Yen
Keyword(s):  
Purchase Intention ◽  
Service Providers ◽  
Purchase Behavior ◽  
Media Richness ◽  
Synergy Effect ◽  
Price Fairness ◽  
Content Type ◽  
Host Interaction ◽  
Perceived Price ◽  
Perceived Price Fairness

Purpose Television (TV) shopping has notably changed human shopping behaviors. However, despite its significant advantages, TV shopping still faces many challenges in promoting customer purchase behavior. The purpose of this paper is to explore the synergy effect of trust with other beliefs on purchase intention in TV shopping. Other beliefs, including perceived media richness, perceived price fairness, perceived convenience and perceived host interaction, were tested as the synergy factors in the proposed model. Design/methodology/approach A hierarchical moderator regression analysis was conducted, and data on the TV shopping habits of 428 customers in Taiwan were examined. Findings The findings of the study revealed that trust synergizes perceived price fairness and perceived host interaction rather than perceived media richness and perceived convenience to enhance purchase intention in TV shopping. Research limitations/implications This study confirmed the assumption that trust synergizes the beliefs (i.e. perceived price fairness and perceived host interaction) to enlarge purchase intention in TV shopping. Practical implications This study suggests that service providers need to prioritize concerns to build trust with customers to encourage purchases during TV shopping. They should also actively promote fair prices and invite famous people to serve as hosts to motivate purchases in TV shopping. Originality/value This study advances the knowledge of the trust theory and the synergy model by examining the synergy effect of trust with other beliefs in TV shopping.

scholarly journals A Conceptual Framework of Antecedents of Service Loyalty in Health Care: Patients’ Perspective

2019 ◽  
Vol 8 (1) ◽  
pp. 50-59
Author(s):  
Ajimon George ◽  
Jobin Sahadevan
Keyword(s):  
Health Care ◽  
Service Quality ◽  
Perceived Value ◽  
Hospital Management ◽  
Corporate Image ◽  
Health Care Market ◽  
Price Fairness ◽  
Patient Loyalty ◽  
Perceived Price ◽  
Perceived Price Fairness

As the health care sector in India is becoming more and more competitive, researchers and practitioners are getting increasingly interested in exploring how post-purchase behaviour of patients can be managed and high level of patient loyalty can be ensured. Patient loyalty has gained immense importance in health care service sector in India because of the drastic changes that have taken place in health care market in the last two decades. Today, the health care market is characterized by intense competition and specialization. Hospital management is increasingly recognizing the need to focus on patient loyalty as a means to achieve profitability and also to improve their competitive position. In this article, we theoretically explore the relationship of the antecedents of patient loyalty (service quality, perceived value, corporate image and perceived price fairness) and its outcomes (patients’ satisfaction and patient loyalty). The outcome of this research is a conceptualization of antecedents of patients’ loyalty in the context of health care supported by research propositions based on the existing literature. The article contributes to the existing literature a hypothesized model that permits the examination of consumer behavioural procedures with regard to service quality, perceived value, perceived price fairness, corporate image, patient satisfaction and patient loyalty. Exploring these processes through empirical studies in future will provide new insights, which will help hospital management retain existing customers and attract new customers.

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