Analyzing the Dimensions of Price Fairness: A Consumer Behavior Perspective
In both service fairness and organizational fairness, there exist four dimensions of price fairness: distributive, procedural, and interactional (informational and interpersonal). Distributive fairness is the fairness of an outcome according to the provided input as compared to a reference other. Procedural fairness is the fairness of the development of the mentioned procedure. The research looks at how distributive fairness, procedural fairness and their interaction lead to repurchase intentions/negative word of mouth intentions (NWOM). The research also looks at how the aforementioned relationship is mediated by overall price fairness. The study found that both distributive fairness and procedural fairness have a direct impact on repurchase intentions. Moreover, distributive fairness has a direct impact on NWOM; however, procedural fairness only has a marginal impact on negative word of mouth intentions. Furthermore, overall price fairness completely mediates the relationship between distributive fairness and repurchase intentions/NWOM.