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Article
Publication date: 11 October 2021

Faruk Anıl Konuk

This study aims to examine the moderating role of private label product type (organic vs non-organic) on the relationships between trust transfer, price fairness, perceived value…

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Abstract

Purpose

This study aims to examine the moderating role of private label product type (organic vs non-organic) on the relationships between trust transfer, price fairness, perceived value and brand loyalty.

Design/methodology/approach

The empirical data were gathered with the structured questionnaire from two groups of respondents who had previously purchased organic and conventional private label products. The direct, mediating and moderating effects were analysed with structural equation modelling.

Findings

The findings confirmed the trust transfer between the retail store and private label brand. The results revealed that both store trust and trust in private label brand positively influence price fairness and which, in turn, elicits higher perceived value. Perceived value was also found to influence private label brand loyalty. The multi-group analyses revealed that the magnitude of the trust transfer was accentuated by organic food private label. Furthermore, the relation between trust in private label brand, price fairness and perceived value was also greater in organic food private label.

Originality/value

This study utilized the trust transfer theory and equity theory as a theoretical foundation to provide novel insights into the moderating influence of private label product type on the relationships between the antecedents of private label brand loyalty. The results of the research can help retailers to develop successful private label brand marketing strategies.

Details

International Journal of Retail & Distribution Management, vol. 50 no. 5
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 24 January 2022

Lufi Yuwana Mursita and Ertambang Nahartyo

Based on the referent cognitions theory (RCT), individuals compare their outcomes to a given reference point. The purpose of this study is to investigate the effect of centrality…

Abstract

Purpose

Based on the referent cognitions theory (RCT), individuals compare their outcomes to a given reference point. The purpose of this study is to investigate the effect of centrality bias in subjective performance evaluation on two employees’ work behaviors; willingness to exert work effort and retaliation intention.

Methods

A 2  ×  2 × 2 between-subject real-effort task experiment was conducted on 162 Accounting and Management students. Centrality bias and level of task difficulty were each manipulated into two groups. Meanwhile, the level of performance was divided based on the average score of the real-effort task.

Findings

The experimental data were examined using MANOVA and PROCESS macro regression. It reveals that centrality bias negatively affects willingness to exert work effort through perceived procedural fairness and positively affects retaliation intention. These findings align with the RCT in explaining the perceived procedural fairness psychological mechanism and the work behavior resulting from an unfair evaluation procedure.

Originality/value

This study is the first of its kind to investigate the effect of centrality bias in subjective performance evaluation on positive and negative employee behaviors concurrently, which refers to the real-effort experimental task. The study demonstrates the significant impact of centrality bias on unwillingness to exert effort and adverse behavior.

Details

Journal of Accounting & Organizational Change, vol. 18 no. 5
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 6 July 2012

Houn‐Gee Chen, Julie Yu‐Chih Liu, Tsong Shin Sheu and Ming‐Hsien Yang

Customer satisfaction in the banking industry has long been measured as a function of service quality by using a variation of the SERVQUAL instrument. The purpose of this paper is…

6741

Abstract

Purpose

Customer satisfaction in the banking industry has long been measured as a function of service quality by using a variation of the SERVQUAL instrument. The purpose of this paper is to build a broader understanding of the determinants of customer satisfaction throughout the financial services industry by incorporating the perceptions of fairness in service delivery (FAIRSERV) and outlining why and how FAIRSERV is important to customer satisfaction.

Design/methodology/approach

The authors conduct a cross‐sectional questionnaire survey, including samples of 420 customers from the financial services industry in Taiwan. PLS‐Graph is used to evaluate the measures of reliability as well as validities, and to test the hypotheses.

Findings

The results show that fair service not only has a significant impact on customer satisfaction, but also plays a role equivalent to service quality in determining customers’ trust and perceived value, which in turn lead to customer satisfaction.

Research limitations/implications

The impact of FAIRSERV on customer satisfaction should be emphasized. Future studies examining the impact of service quality on customer satisfaction should incorporate the concept or instruments of fair service as a major contributor.

Practical implications

The results imply that financial institutions must carefully implement policies and practices to ensure that perceptions of fairness are propagated throughout the organization.

Originality/value

The paper proposes a complementary component to service quality in determining the perceived value and satisfaction. The paper emphasizes the significance of fairness on service, and provides additional insights into the impacts of FAIRSERV on customer satisfaction.

Details

Managing Service Quality: An International Journal, vol. 22 no. 4
Type: Research Article
ISSN: 0960-4529

Keywords

Article
Publication date: 21 November 2016

Adam Nguyen and Juan (Gloria) Meng

This research aims to examine how source of funds (paying with company’s funds versus personal funds) affects buyer’s judgments of price fairness and via these judgments, buyer’s…

Abstract

Purpose

This research aims to examine how source of funds (paying with company’s funds versus personal funds) affects buyer’s judgments of price fairness and via these judgments, buyer’s response to prices.

Design/methodology/approach

A scenario-based experiment is used (N = 200). To test the hypotheses, the authors run moderated mediation regression analyses with the help of the PROCESS macro.

Findings

Drawing on fairness heuristics theory, the authors hypothesize and find that relative to when paying with personal funds, when paying with company’s funds, the perceived price difference plays a less significant role, whereas the perceived social acceptability of the pricing practice underlying the price difference plays a more important role in shaping price fairness judgments and, via these judgments, buyer’s response to prices.

Practical implications

The findings generate advice for companies that serve both the business and personal segments (e.g. airlines and hotels). Buyers in the personal segment typically pay with their own money. To persuade these buyers that a price is fair, it is crucial to show that the price represents a good deal for them. Buyers in the business segment often pay with company’s fund. Companies have more flexibility in charging different prices, but they should make sure that the reasons for the price difference are socially acceptable.

Originality/value

This research shows how the relative role of price difference versus social acceptability in price fairness judgments varies as a function of source of funds and how an inconsistency between price difference and its economic impact affects price fairness judgments.

Details

Journal of Product & Brand Management, vol. 25 no. 7
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 3 July 2020

Ouidade Sabri, Amina Djedidi and Mouhoub Hani

This study aims to examine the critical role of types of coopetition (upstream/downstream), market structure (concentrated/competitive) and innovation (low vs high degree of…

Abstract

Purpose

This study aims to examine the critical role of types of coopetition (upstream/downstream), market structure (concentrated/competitive) and innovation (low vs high degree of innovation) that can affect the way consumers perceive the resulting price (un)fairness of new offerings.

Design/methodology/approach

Three between-subjects experiments involving different participant populations and product categories were conducted to test the research hypotheses.

Findings

The valence of the effect of types of coopetition (upstream/downstream) on price fairness is conditional on the market structure and the degree of innovation associated with the new product offering. Downstream (as opposed to upstream) coopetition is much more detrimental to perceptions of price fairness in a concentrated market than in a competitive and fragmented market. However, within a competitive market, downstream coopetition may lead to greater price fairness perception than upstream coopetition when the new product offering is highly innovative.

Research limitations/implications

The current study uses lab experiments with fictitious scenarios and focuses on two moderating variables: market structure and innovation perceptions. Future research may use field experiments and explore additional moderating variables that may annihilate the negative effect of downstream coopetition on price fairness perception, especially in a concentrated market.

Practical implications

In concentrated markets, firms should opt for upstream rather than downstream coopetition to limit the negative effect the announcement of coopetition has on price fairness evaluation. However, within a competitive market, when the new product offering resulting from coopetition is associated with a high perceived degree of innovation, firms should opt for downstream rather than upstream coopetition because of its positive impact on price fairness evaluation.

Originality/value

To the best of authors’ knowledge, this study is the first to demonstrate that new product development from coopetition has important implications for the perception of price fairness, leading to positive or negative effects depending on market structure and the degree of innovation of the new product offering. It then explores the conditions under which types of coopetition (upstream/downstream) might backfire.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 1 March 2021

David Gligor and Sıddık Bozkurt

This study aims to investigate the effect of perceived brand interactivity on customer purchases along with the mediating effect of perceived brand fairness. To increase the…

1857

Abstract

Purpose

This study aims to investigate the effect of perceived brand interactivity on customer purchases along with the mediating effect of perceived brand fairness. To increase the explanatory power of the model, this study also examines the moderating role of brand involvement.

Design/methodology/approach

An online survey was conducted to measure the constructs of interest. The direct, indirect (mediation) and conditional (moderation) effects were evaluated using linear regression, PROCESS Model 4 and PROCESS Model 59, respectively. Further, the Johnson Neyman (also called floodlight analysis) technique was used to probe the interaction terms.

Findings

The study results indicate that perceived brand interactivity directly and indirectly (via perceived brand fairness) impact customer purchases. The results also reveal that the positive impact of perceived brand interactivity on perceived brand fairness is greater when brand involvement is lower. In the same vein, the positive impact of perceived brand fairness on customer purchases is greater when brand involvement is lower. However, brand involvement does not moderate the impact of perceived brand involvement on customer purchases.

Originality/value

This study examines the effect of perceived brand interactivity on customer purchases (as a customer engagement behavior) while accounting for the mediating role of perceived brand fairness and the moderating role of brand involvement. The results provide noteworthy theoretical and managerial implications.

Details

Journal of Product & Brand Management, vol. 31 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 19 September 2018

Mariëtte Louise Zietsman, Pierre Mostert and Göran Svensson

The purpose of this paper is to test perceived price and service quality as mediators between price fairness and perceived value in service encounters between micro-enterprises…

2928

Abstract

Purpose

The purpose of this paper is to test perceived price and service quality as mediators between price fairness and perceived value in service encounters between micro-enterprises and their banks.

Design/methodology/approach

The study is based on a self-administered and internet-based questionnaire conducted in the banking industry. The sample consists of 381 micro-enterprises in South Africa that employ one or two staff members.

Findings

The findings of this paper provide evidence for both theory and practice that perceived price and service quality influence the relationship between business banking customers’ perception of price fairness and the value of the service offered.

Research limitations/implications

The measurement and structural properties reported are satisfactory. This paper confirms the hypothesized relationships in the tested research model, and rejects a tested rival model. Limitations are reported, and suggestions for further research are provided.

Practical implications

This paper offers banking executives guidance in managing the pricing structure of their services, and highlights the value of offering greater transparency with regards to service charges and interest rates.

Originality/value

This paper contributes to insights into the mediating effects of perceived price and service quality between price fairness and perceived value in business relationships between micro-enterprises and their banks.

Details

International Journal of Bank Marketing, vol. 37 no. 1
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 22 March 2021

Zhongpeng Cao

From the perspective of customer segmentation, most scholars show more interest in the very important person (VIP) customer’s service experience and satisfaction; however, the way…

Abstract

Purpose

From the perspective of customer segmentation, most scholars show more interest in the very important person (VIP) customer’s service experience and satisfaction; however, the way in which ordinary customers view VIP services has received less attention. Based on fairness heuristic theory and social comparison theory, this study aims to examine the impact of the social visibility of VIP services on ordinary customers’ satisfaction and explored the underlying mechanisms and boundary conditions of this effect.

Design/methodology/approach

Two experiments were conducted, Study 1 verified the main effect and mediating effect, Study 2 tested the moderating effect.

Findings

The results show that the social visibility of VIP services decreases ordinary customers’ satisfaction and perceived fairness mediates this effect. The deservingness of VIP status moderates the connection between social visibility and perceived fairness.

Research limitations/implications

This research changes the objects of VIP services research and focuses on ordinary customers as its main group and expands the scope of social comparisons among customers.

Practical implications

The findings expand the scope and perspective of research on VIP services and provide guidance to service providers to reduce ordinary customers’ feelings of unfairness so as to improve customer satisfaction.

Originality/value

This study explores the effect of the social visibility of VIP services on ordinary customer satisfaction from the perspective of perceived fairness, as well as the underlying mechanism and boundary conditions of the effect.

Article
Publication date: 16 April 2019

Jason Tang, Toni Repetti and Carola Raab

Restaurants typically have small profit margins and with the pressure of increasing food and labor costs, management is looking to revenue as a way to maintain and drive profits…

1683

Abstract

Purpose

Restaurants typically have small profit margins and with the pressure of increasing food and labor costs, management is looking to revenue as a way to maintain and drive profits. One technique to increase revenue is through revenue management practices, but management needs to be aware of their customers’ reactions to these practices prior to implementation. The paper aims to discuss this issue.

Design/methodology/approach

This study utilizes linear regression to determine the impact of select restaurant revenue management practices, customers’ familiarity with revenue management in general and in restaurants specifically, and customers’ demographics on perceived fairness of revenue management practices in casual and fine-dining restaurants.

Findings

Results indicate that customers find certain restaurant revenue management practices, such as charging premium prices on certain days of the week, fair in both casual and fine-dining restaurants, while others are not in either. Non-refundable reservation fees were found to be fair for fine-dining establishments only. Increased familiarity with restaurant revenue management was associated with higher perceptions of fairness for both casual and fine dining. Age was the only demographic studied that affected perceived fairness.

Originality/value

This study is the only known study to simultaneously evaluate the impact of price and duration restaurant revenue management techniques in combination with customer demographics and revenue management familiarity on consumer perceptions of fairness.

Details

Journal of Hospitality and Tourism Insights, vol. 2 no. 1
Type: Research Article
ISSN: 2514-9792

Keywords

Article
Publication date: 14 March 2022

Selim Ahmed, Ahmed Al Asheq, Ezaz Ahmed, Ujjal Yaman Chowdhury, Tahir Sufi and Md. Golam Mostofa

The purpose of this study is to determine how consumers perceive restaurant service in Bangladesh. The goal of this study is to determine the impact of perceived service quality…

6076

Abstract

Purpose

The purpose of this study is to determine how consumers perceive restaurant service in Bangladesh. The goal of this study is to determine the impact of perceived service quality and price fairness on consumer satisfaction and loyalty toward restaurant services.

Design/methodology/approach

The data for this study were collected from 326 respondents who have used restaurant services in Bangladesh. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to evaluate the research data with SmartPLS 3.3.3.

Findings

The current study’s findings indicate that perceived service quality and price fairness both have a direct and significant effect on consumer satisfaction. Additionally, the research findings reveal a considerable association between perceived pricing fairness and consumer pleasure and consumer loyalty. Additionally, findings indicate that perceived service quality and price fairness both have a significant indirect effect on customer loyalty via the mediating effect of consumer satisfaction.

Practical implications

The current study demonstrates that perceived price fairness has a substantial effect on restaurant consumers’ satisfaction and loyalty; thus, this evidence can assist restaurant owners and managers in developing and implementing their pricing strategy to retain customers. Additionally, the findings have significant implications for restaurant operators, practitioners and policymakers.

Originality/value

Only a few research have been conducted to determine the effect of service quality and pricing fairness on consumer satisfaction and loyalty when it comes to restaurant services. This research conclusion provides guidance to service providers on how to increase customer satisfaction and loyalty through an emphasis on price fairness and service quality.

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