The Effect of Cross-Channel Price Dis/parity on Ethicality Evaluations and Purchase Intent: The Moderating Role of Price Frame |
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Authors: | Sunmee Choi Anna S Mattila Heungsoo Park Seongho Kang |
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Institution: | 1. School of Business , Yonsei University , Seoul, South Korea sc128@yonsei.ac.kr;3. School of Hospitality Management , Pennsylvania State University, University Park , Pennsylvania, USA;4. School of Business , Yonsei University , Seoul, South Korea |
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Abstract: | Using a scenario-based survey with a factorial between-subject experimental design, this study examines the effect of price dis/parity across multiple channels of distribution on customers' ethicality evaluations and purchase intent, with the focus on the moderating role of price frame. Results show that when the varying prices of the disparity policy were all lower than or equal to the uniform price of the parity policy, consumers did not evaluate the disparity policy as significantly less ethical than the parity policy, and were more likely to purchase from the firm with the disparity policy. However, when at least one of the varying prices of the disparity policy was higher than the uniform price of the parity policy, they evaluated the disparity policy as less ethical, and, therefore, were more likely to purchase from the firm with the parity policy, despite price incentives offered by the disparity policy. This finding suggests that the success of a cross-channel price disparity policy depends on the price frame. |
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Keywords: | cross-channel pricing ethicality hotel industry price frame purchase intent |
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