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Vivek Atmakuri
Pricing research has traditionally viewed consumer judgments of price fairness in terms of consumers’ relationships with the sellers. Conspicuously absent from the present formulation of perceived price fairness is the notion that lateral relationships between customers may be another source of such perceptions. However, it has been posited that price perception is essentially a comparative process. Since end consumers share product information, as understood through ‘word of mouth’ communications research, it is highly likely that product price and value will also be compared and discussed. Many firms in the current industry rely on the various forms of price promotions, such as invoice discounts, volume purchase incentives, rebates, coupons and discounts to particular members of an organization. Moreover, while some promotions may be available to all customers, others may be limited to consumers possessing particular characteristics. For instance, handicapped passengers may be allowed to purchase bus tokens at a special low price not available to other customers. As a consequence, many sales may result in different net prices being charged different customers. Such price differences may lead consumers to engage in inter-buyer price comparisons that generate perceptions of price fairness. The objective of this paper is to describe how this neglected aspect of the perceived price fairness construct may ultimately affect perceptions of monetary sacrifice and value, and therefore, willingness to buy.
Buying Behavior is the decision processes and acts of people involved in buying and using products. The need to understand this concept lies in the facts that, why consumers make the purchases that they make? What factors influence consumer purchases? ; The changing factors in our society. Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to analyze buying behavior for buyer’s reactions on a firm’s marketing strategy; the marketing mix model and marketer’s predictions on how consumers respond to changes in marketing strategies.
Drawing on previous research which proved the effect of price unfairness perceptions on customer dissatisfaction, it has been suggested that price fairness perceptions influence assessments of product value and customer satisfaction.
They classify the antecedents of price unfairness perception into four groups: the variables that specify the context of the comparative transactions, information that provides reasons why a certain price is set, information retrieved from previous transactions and general knowledge or beliefs about sellers’ practices. Price unfairness can have two types of emotional outcome: feelings of uneasiness or
