PRICING STRATEGY & PRACTICE“Why did you do that?” The important role of inferred motive in perceptions of price fairness

1999 ◽  
Vol 8 (2) ◽  
pp. 145-153 ◽  
Author(s):  
Margaret C. Campbell
Keyword(s):  
Pricing Strategy ◽  
Price Fairness

How should physicians set prices for individual service and team-based service in the online environment? A view from the price difference (Preprint)

2021 ◽  
Author(s):  
Wei Lu ◽  
Wei Wei ◽  
Chao Li ◽  
Qing Luo ◽  
Lichun Fan
Keyword(s):  
Virtual Teams ◽  
Negative Influence ◽  
Pricing Strategy ◽  
Online Environment ◽  
Price Difference ◽  
Price Fairness ◽  
Team Size ◽  
Medical Market ◽  
Individual Service

BACKGROUND Price which has a significant effect on consumers’ exchanging value perception plays a decisive role in the product market. Different from the traditional medical market, the online medical market allows physicians considerable discretion in setting prices of their services, which begin to be paid close attention to. Physicians face a challenge with the introduction of various service styles. Some studies have begun to examine the role of price in the online medical service environment, however, limited studies have explored them in both individual and team-based contexts. OBJECTIVE Guided by transaction utility theory and price fairness, this study aims to investigate the influence of pricing strategy on service demands from the price difference perspective by focusing on two typical service models: individual service and team-based service. Moreover, team characteristics (response speed and team size) are also considered. METHODS The data collection was conducted in March 2018 and repeated in May 2018, and physicians who provide both individual service and team-based service are included in our study. Finally, a dataset consisting of 1,100 teams with 1,100 physician leaders from 14 departments such as obstetrics and gynaecology department were collected from an online medical platform in China were included. RESULTS Empirical results support most of our hypotheses. A negative influence of team-based price has been got (β = -0.282, p < 0.000). As a substitute service, higher individual service price will make patients turn to the team-based service (β = 0.164, p < 0.000). Moreover, individual service price negatively moderates the relationship between team-based service price and demands (β = -0.036, p < 0.05). By calculating the price difference between individual service price and team-based service price, we find a negative role of the price difference in affecting patient purchase decisions (β = -0.085, p < 0.05). Although we did not find a significant effect of team size, a quick response can attract more patients (β = 0.174, p = 0.05). CONCLUSIONS Price fairness provides a proper framework for understanding pricing strategy in individual and team-based service in an online environment. Understanding the effects of prices from a price difference perspective has both theoretical and practical contributions. Specifically, this study contributes to knowledge on price fairness, online medical platforms, and virtual teams, and provides management suggestions.

scholarly journals Market buoyancy, information transparency and pricing strategy in the Scottish housing market

Urban Studies ◽  
2021 ◽  
pp. 004209802199178
Author(s):  
Nan Liu
Keyword(s):  
Pricing Strategy ◽  
Selling Price ◽  
Trade Off ◽  
Information Transparency ◽  
North East ◽  
Sealed Bid ◽  
Strategy Changes ◽  
The Impact ◽  
Role Of Information

In housing markets there is a trade-off between selling time and selling price, with pricing strategy being the balancing act between the two. Motivated by the Home Report scheme in Scotland, this paper investigates the role of information symmetry played in such a trade-off. Empirically, this study tests if sellers’ pricing strategy changes when more information becomes available and whether this, in turn, affects the trade-off between the selling price and selling time. Using housing transaction data of North-East Scotland between 1998Q2 and 2018Q2, the findings show that asking price has converged to the predicted price of the property since the introduction of the Home Report. While information transparency reduces the effect of ‘overpricing’ on selling time, there is little evidence to show that it reduces the impact of pricing strategy on the final selling price in the sealed-bid context.

scholarly journals The Role of Customer Satisfaction in Increasing Customer Loyalty

2020 ◽  
Vol 9 (1) ◽  
pp. 17-25
Author(s):  
Ati Arifiah Siswi ◽  
Wahyono Wahyono
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Positive Emotion ◽  
Hypothesis Test ◽  
Brand Personality ◽  
Sampling Technique ◽  
Total Sample ◽  
Price Fairness ◽  
Brand Reputation

The purpose of this study is to determine the direct and indirect influence of brand personality, brand reputation and price fairness toward customer loyalty through customer satisfaction as an intervening variable. Customer satisfaction influence customers to make an loyal. The population in this research is customers Kukubima Energi. The total sample in this research is 115 respondents with purposive sampling technique through a likert scale. Methods of collecting data using questionnaires and documentation. Data analysis using classic assumption test and hypothesis test (t test and path analysis) with SPSS Statistics version 21 programs. Based on the hypothesis test, the results show that brand personality has a positive and significant effect on customer loyalty, price fairness has a positive and significant effect on customer loyalty, brand reputation does not has a positive and significant effect on customer loyalty, and customer satisfaction has a positive and significant effect customer satisfaction. Mediation test shows that positive emotion mediates the effect of brand personality, and price fairness on customer satisfaction.

Competitor Orientation, Pricing Strategy, and Business Performance

2020 ◽  
pp. 115-128
Author(s):  
Carlos A. F. Sampaio ◽  
Ricardo G. Rodrigues ◽  
José M. Hernández-Mogollón
Keyword(s):  
Structural Equation ◽  
Business Performance ◽  
Hotel Industry ◽  
Pricing Strategy ◽  
Equation Modeling ◽  
Price Strategy ◽  
Mediating Role ◽  
Competitor Orientation ◽  
The Relationship

This study proposes to study the nature of the relationship between competitor orientation, a strategy based on low prices and hotel business performance, and to test if a low-price strategy plays a mediating role in the relationship between competitor orientation and business performance. A structural equation modeling approach is used, and a sample from the Italian hotel industry is used to evaluate the proposed hypotheses. Results show that competitor orientation is positively related to business performance and to a strategy based on low prices. Furthermore, it is found that a low-price strategy has adverse effects on business performance. Additionally, the mediating role of the low-price strategy is not confirmed.

Role of Market Turbulence in Shaping Pricing Strategy

1999 ◽  
Vol 28 (6) ◽  
pp. 637-649 ◽  
Author(s):  
Michael F Smith ◽  
Indrajit Sinha ◽  
Richard Lancioni ◽  
Howard Forman
Keyword(s):  
Pricing Strategy ◽  
Market Turbulence

scholarly journals THE EFFECT OF E-SERVICE QUALITY AND PERCEIVED PRICE FAIRNESS ON CUSTOMER LOYALTY WHICH CUSTOMER SATISFACTION AS INTERVENING STUDY ON ONLINE SHOPPING SITE IN INDONESIA

2021 ◽  
Vol 4 (1) ◽  
pp. 143-171
Author(s):  
Olivia Citra Octaviani ◽  
Mohamad Rizan ◽  
Agung Kresnamurti Rivai P
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Online Shopping ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Price Fairness ◽  
Perceived Price ◽  
Perceived Price Fairness

This study examines the effect of e-service quality and perceived price fairness on customer loyalty with the intervening role of customers’ satisfaction in the online shopping site in Indonesia. The research method uses a quantitative research design with a survey model. The sample used in this study is Lazada consumers which consists of five large cities in Indonesia (Jakarta, Bogor, Depok, Tanggerang, and Bekasi City) and have done online shopping site at Lazada at least once in the last six months. The object of this research were the 200 customer respondents who had made purchases on the largest online shopping site platform of Indonesia, Lazada. Data analysis was done by using SPSS and Structural Equation Modeling (SEM). The results show that: first, the e-service quality and perceived price fairness affect customer satisfaction positively. Second, there is a mediating effect of customer satisfaction on the relationship between e-service quality and perceived price fairness on customer loyalty. Third, e-service quality and perceived price fairness directly affect customer loyalty positively but insignificantly. The result implies that the role of customer satisfaction is significant in creating loyalty. In the online shopping site a  good quality and perception about price could positively influence customers but not necessarily form loyalty.

How consumers respond to social norms: an evidence from pay-what-you-want (PWYW) pricing

2019 ◽  
Vol 36 (4) ◽  
pp. 494-505 ◽  
Author(s):  
Preeti Narwal ◽  
Jogendra Kumar Nayak
Keyword(s):  
Social Norms ◽  
Consumer Behaviour ◽  
Critical Role ◽  
Price Fairness ◽  
Content Type ◽  
Consumer Responses ◽  
Norm Compliance ◽  
Perceived Price ◽  
Pay What You Want

PurposeThis paper aims to investigate consumer behaviour in response to social norms under pay-what-you-want (PWYW) pricing. Specifically, it explores the critical role of social norms such as norm priming and consumer prior trust in the retailer on consumers’ perceived price fairness, trust, willingness to pay, purchase intentions and intentions to spread negative word of mouth about the retailer.Design/methodology/approachData on dependent measures were collected through the scenario-based online experimental approach and assessed using MANOVA analysis.FindingsResults confirm the significance of norms by indicating the critical role of norm belief on consumer responses. Also, increasing the salience of norms by priming them usually intensifies negative behaviour, and pre-existing trust in the retailer serves as an imperfect cushion against consumer negative reactions to norm violation, but this effect is observed to be decreasing with increase in prior trust.Research limitations/implicationsFurther research should consider the contextual (time, place, media) influences and assumptions to increase the generalizability of the findings.Originality/valueTo the best of the authors’ knowledge, this is the first paper to explicitly examine the effects of social-norm compliance by sellers on consumer behaviour in the context of PWYW pricing.

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