Procedural and Distributive Fairness: Determinants of Overall Price Fairness |
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Authors: | Jodie L Ferguson Pam Scholder Ellen William O Bearden |
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Institution: | 1. School of Business, Virginia Commonwealth University, P.O. Box 844000, Richmond, VA, 23284-4000, USA 2. J. Mack Robinson College of Business, Georgia State University, P.O. Box 3991, Atlanta, GA, 30302-3991, USA 3. Moore School of Business, University of South Carolina, Columbia, SC, 29208, USA
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Abstract: | The present research isolates the fairness assessment of the process used by the retailer to set a price, as well as the distributive fairness of the price compared to the price that others are offered, and examines the combined effect of procedural fairness and distributive fairness on overall price fairness. Two experimental studies examine procedural and distributive fairness effects on overall price fairness. In study 1, procedural fairness and distributive fairness are manipulated and found to interact to bring about overall price fairness. In study 2, suspicion toward the seller is found to mediate the relationship between procedural fairness and overall price fairness when the price is disadvantageous. |
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