• Journal of Distribution Science
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• v.20 no.1
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• pp.87-98
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• 2022

Purpose: This research investigates whether the existence of preannouncing price discount before purchase has an effect on after regret about purchasing and price fairness perception. Moreover, this paper examines whether the preannouncing effects on regret (or price fairness perception) are moderated by motive inference type (or brand trust). Research design, data and methodology: This experimental design consisted of total 8 between-subjects full factorial, which is completed by 2 (preannouncing price discount before purchase) × 2 (motive inference type) × 2 (consumer's brand trust level). Results: First, regret (or price fairness) differs depending on the presence/absence of preannouncing price discount before purchase and price discount motive inference type. Second, interaction effect of preannouncing price discount presence/absence before purchase and price discount motive inference type on regret (or price fairness) after purchase differs depending on motive inference type (or brand trust). Conclusions: Preannouncing external cue could decrease the possibility of consumers to regret and prevent consumers perceiving price change as unfair. Thus, corporations should sufficiently explain to consumers about preannouncing and specific reason of price fall in order to decrease regret caused by price fall and to increase price fairness perception from preannouncing effect.

• Journal of Information Technology Services
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• v.6 no.2
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• pp.19-33
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• 2007

The current advance of IT and the e-commerce triggers the wide practice of dynamic pricing in all industries although the price discrimination has been very cautiously applied in the limited areas in the past. The price discrimination which offers different prices for each customer depending on their preference and buying behaviors has recently gained attention as it could provide superior benefits to sellers. The wide adoption of price discrimination, on the other hand, is reported to face buyer resistances and complaints. Our limited understanding on the perception of price fairness, which we think is key concept in the price discrimination on the Internet-enabled transactions, motives us to investigate factors that affect the perception of price fairness. This study focuses on illusion of control and lateral customer relationship to investigate their effects on price fairness in online auction and group purchase context. By conducting laboratory experiments, our study demonstrates that customers' perception on illusion of control in price determination and advantageous lateral customer relationship significantly affect price fairness perception in both online auction and group purchase environment. The findings are expected to provide researchers and managers with useful insights to develop better pricing strategies and design effective dynamic pricing mechanisms.

• Journal of the Korean Society of Clothing and Textiles
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• v.45 no.5
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• pp.892-906
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• 2021

This study explores the effects of providing information on the price fairness perception and intention of continuous use in an online fashion platform, given a price difference due to AI algorithm pricing. We investigated the moderating roles of price inequality (loss vs. gain) and technology insecurity. The experiments used four stimuli based on price inequality (loss vs. gain) and information provision (provided or not) on price inequality. We developed a mock website and offered a scenario on the product presentation based on an AI algorithm pricing. Participants in their 20s and 30s were randomly allocated to one of the stimuli. To test the hypotheses, a total of 257 responses were analyzed using Process Macro 3.4. According to the results, price fairness perception mediated between information provision and continuous use intention when consumers saw the price inequality as a gain. When the consumers perceived high technology insecurity, information provision affected the intention of continuous use mediated by price fairness perception.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.19 no.3
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• pp.83-95
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• 2011

This research is the ever first trial to demonstrate how consumer perceives price fairness of airfare. That, I did research on airline's flexible price changes and its effects on consumer's perceiving price fairness, proved the causality between before and after of airline service experience and examined the interest in moderating role of airline service. In addition to this, you also can see a markdown can have effects on consumer's perceiving price fairness. The main results are: Perceived price fairness before experience airline service had positive effects on perceiving price as fair. Since the direction of perceived price fairness coincides with in the context of the consumer's experience, so the preliminarily evaluated fairness had positive effects on the post fairness acceptance. With the second result, when you see consumer's perceived price fairness beforehand service experience has effects on post service experience in perceiving price fairness, you see the activation of a markdown, in-flight service, after-flight service as moderating roles as they strengthen the tie between the two perception modes and exhibited interaction with the price fairness beforehand service experience the independent variable. As the last one, a markdown of airfare had positive influence on consumer in perceiving price fairness. So, even if he/she becomes aware of overcharging, he/she will not pursue price being unfair. With these results, you can tell a markdown of airline service could have positive influence on both new and established consumers in the aspect of perceiving price fairness.

• Journal of the Korean Home Economics Association
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• v.43 no.1 s.203
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• pp.115-128
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• 2005

The purpose of this study was to examine the association between consumer's price perception and the price information searching behavior. For this, hypotheses were suggested and tested with a sample of 383 consumers. The results were as follows: the hypotheses were supported in part. The perception of the existence of a standard price, the existence of price differentiation, the degree of price differentiation, and the price appropriateness were all associated with the price information searching behavior. The perception of the existence of price differentiation, and the degree of price differentiation were associated with the transference behavior after price checking, and the perception of the existence of price differentiation, the degree of price differentiation, and the price fairness were associated with the place selection behavior.

• Culinary science and hospitality research
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• v.22 no.1
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• pp.87-95
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• 2016

The purpose of current study is to develop and estimate a proposed model that explains the potential relationships among food quality, experiential value, price fairness, image, satisfaction, and behavioral intention in context of water park. In addition, the study will verify how these factors link to each other. Results show that food quality is a significant antecedent of experience value, price fairness, water park image. Also, the experiential value and water park image influence on visitors' satisfaction. Last, the satisfaction is critical predictor of behavioral intention. These findings will contribute to understand the consumers' perception about water park, and how derives the customer satisfaction and behavioral intention. In sum, present study will serve insights for industry marketers and managers in water park segment.

• Journal of Distribution Science
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• v.12 no.10
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• pp.123-128
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• 2014

Purpose - The purpose of the study is to reexamine the price fairness as practiced by low cost airlines, as a consumer has to experience such inconveniences as inferior airport transportation, extra fees on in-flight meals, and non-negotiable seats, and consumers evaluate such experiences keeping in mind their total costs. This evaluation includes price fairness and allows a reasonable and overall consideration of factors of low cost airlines. It tries to set up a measurement of the indicators consumers' perceptions of price fairness academically as it adapts price fairness to airline services which are renowned for price volatility. Research design, data, and methodology - The research proposes an alternative pricing strategy for the long term profit of low cost airlines after going over conflicts between the traditional theory of consumers' price perception mechanism and flexible fair policy of low cost airlines. It was meaningful when it relates to the early stage of the business, while it enhances the risks relating to the long term survival of low cost airlines. In addition, it is significant as it highlights the negative influences on consumers' perceptions of price fairness, as low cost airlines run on extremely low cost perspectives. Results - The results of the research provide insight into four perspectives, as consumers' perceptions of price fairness are influenced by the frequency and range of price changes and services. The first perspective is that it would lead to positive price evaluation when a low cost airline cuts prices frequently with little changes than one big change. It also would lead to the same result when it comes to necessary services. The second perspective is that one big increase of price would rather undermine the negative aspects of price changes than those of several smaller ones. The third perspective is that additional services would be good to consumers' perceptions of price fairness as compared to discount benefits with respect to the cost. Finally, a low cost airline should consider that consumers will change airlines or defer their flight schedule if the flight fares increase beyond their limits. Conclusions - Low cost airlines should reconsider their pricing policies for services that were provided free earlier. A consumer would not like discount benefits when made to pay for services that were, for long, free of charge. If a low cost airline can provide services with no charge, it should improve volumes if the costs are standardized and, moreover, should consider the charging fees. Alternatively, a consumer can choose between services and fair discount. Low cost airlines are implementing sales promotion strategies, as the competition is more intense than it used to be. In these days, they should regard services over sales promotion, as consumers may prefer to spend money on good premium services. Some differentiation in services could create a good market position for the airlines and, hence, good financial performance.

• Journal of Digital Convergence
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• v.18 no.6
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• pp.197-208
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• 2020

Social enterprises are entities to pursue solving societal problems with maintaining commercial viability. In order for a social enterprise to achieve commercial viability, it must be able to provide products that consumers can satisfy, to make social enterprise trustable, and to establish a lasting relationship with customers. This study suggests that perception of value congruence, price fairness and service quality will affect customer performance such as trust, satisfaction and customer loyalty. And this structural relationship was confirmed through structural equation modelling. The empirical results show that customer trust and satisfaction can be improved when the value congruence is high and service quality is high. Meanwhile, the perception of price fairness has a negative effect on customer trust. However, considering the influence of price fairness on customer satisfaction, the total effect of price fairness on trust is not significant. This result implies that customers are less sensitive to social enterprise product prices than general companies. And customer satisfaction for the social enterprise is positively affecting trust and loyalty, and customer trust is also positively affecting customer loyalty. After the empirical analysis, this study suggests implications for social enterprises to improve customer performance and secure commercial viability.

• The Journal of Information Systems
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• v.22 no.4
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• pp.85-115
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• 2013

Digital knowledge and information goods as experience goods have some unique characteristics such as close to zero reproduction and distribution cost, high price volatility, and low price acceptability. For the reasons, the pricing policies of digital knowledge goods are very difficult and complicate. Also, most consumers of digital goods have experienced cognitive dissonance after buying decision. The purpose of this paper is to investigate what factors affect the price acceptability level and cognitive dissonance of digital knowledge goods buyers. This paper suggest a structural model that was established by the cognitive dissonance theory and S-O-R(Stimulus-Organization-Response) model. The model is consisted of four exogenous variables and three endogenous variables. The empirical test and statistical analysis suggest following results and practical implications. The variables such as product involvement and perception of price fairness that have positive roles to price acceptability have strong influence on the all the three endogenous variables. But the variables such as sale proneness and price mavenism that have negative roles to price acceptability have little influence on the all the three endogenous variables. In the model, the payment intention was very important mediating variable between exogenous variables and two dependent variables, ie. price acceptability and cognitive dissonance. These results imply that the digital knowledge portals must have some differentiated pricing policies to the customers who have price consciousness and price mavenism. Also, they need some special promotions to whom have positive attitude to the value of digital goods.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.22 no.2
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• pp.362-367
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• 2021

This study investigated the effects of brand awareness and perceived price fairness on the purchase intention of masstige brands and the moderating effect of country of advertising (Korea or China) for the Chinese tourists visiting Korea. Along with the luxury image and the reasonable price range of masstige brands, the effect of Korean models matching with the country of masstige brand and Chinese models for Chinese visitors was examined based on the construal level theory. To test the hypotheses, a 2 (brand awareness H/L)×2 (perceived price fairness)×2 (country of model) factorial design was employed. As a result, brand awareness and price fairness perception were found to have positive effects on the purchase intention of masstige brands, and the moderating effect of the country of advertising models was also significant. With Korean models, the effects of brand awareness and price fairness perception on the purchase intention of masstige brands were higher than with Chinese models. This study sheds light on the fact that for Chinese tourists, Korean advertising models are more effective even with the specific signal like price when they perceive psychological distance.