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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…

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.

Details

Journal of Services Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0887-6045

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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…

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. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1061-0421

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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…

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

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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…

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

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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…

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

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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…

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

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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…

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

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Article
Publication date: 28 October 2014

Ali Asadi, Javad Khazaei Pool and Mohammad Reza Jalilvand

The purpose of this paper is to investigate the effect of perceived price fairness through satisfaction and loyalty on price acceptance. The antecedents of price fairness

Abstract

Purpose

The purpose of this paper is to investigate the effect of perceived price fairness through satisfaction and loyalty on price acceptance. The antecedents of price fairness, including price perception and tourist vulnerability, will also be examined.

Design/methodology/approach

The authors collected 674 questionnaires from international tourists who purchased Islamic-Iranian art products and analyzed simultaneous relations with a structural equation modeling.

Findings

The results indicate that perceived price awareness and perceived vulnerability positively and significantly affect perceived price fairness. Additionally, perceived price fairness has a significant influence on customer satisfaction and loyalty. Moreover, customer satisfaction and loyalty were found to have a positive impact on price acceptance.

Practical implications

Based on the findings, the results are expected to create a useful perspective for the researchers so they can present a broader model in future studies. The results of this research can help managers develop better pricing strategies and effective pricing mechanism design and, through recognition of factors influencing customer perception of the price, instigate better pricing.

Originality/value

Although prior research focused on the relationships among the variables of perception of price, perceived vulnerability, perceived price fairness, satisfaction and loyalty and price acceptance, the current study considers the effect of these variables as a general compound model and in the context of Islamic-Iranian art tourism products.

Details

Education, Business and Society: Contemporary Middle Eastern Issues, vol. 7 no. 4
Type: Research Article
ISSN: 1753-7983

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Article
Publication date: 8 August 2018

Min-Seong Kim, Dong-Jin Shin and Dong-Woo Koo

Service fairness has been conceptualized as a major part of the foodservice industry due to the intangibility of foodservice, which is difficult to be evaluated by…

Abstract

Purpose

Service fairness has been conceptualized as a major part of the foodservice industry due to the intangibility of foodservice, which is difficult to be evaluated by customers. Considering this challenge, this study investigates the impacts of perceived service fairness dimensions in encouraging brand citizenship behaviors (i.e. brand enthusiasm and brand endorsement) along with the mediating roles of brand trust and brand experience in the foodservice industry.

Design/methodology/approach

Based on an established framework of perceived service fairness, brand trust, brand experience and brand citizenship behavior, an exploratory conceptual model was formulated and empirically assessed. Survey data were collected from customers of casual dining franchise restaurants in Korea. Data analysis consisted of frequency analysis, reliability analysis, confirmatory factor analysis, correlation analysis and structural equation modeling.

Findings

The empirical results indicated that brand trust was significantly influenced by price, procedural, outcome and interactional fairness, while brand experience was significantly affected by price, outcome and interactional fairness. Additionally, brand trust and brand experience had positive influences on brand enthusiasm and brand endorsement, respectively.

Practical implications

A foodservice enterprise’s violation of customers’ fundamental need for fairness leads to negative outcomes, such as customers voicing the undesirable situation and/or leaving the restaurant. Thus, this study provides a strategy for maintaining service fairness to better develop brand relationships with customers in the restaurant industry.

Originality/value

There is a paucity of research on the effect of perceived service fairness on brand development in the restaurant industry. The findings provide greater insights into the impacts of perceived service fairness, brand trust and brand experience on customers’ brand citizenship behaviors.

Details

International Journal of Contemporary Hospitality Management, vol. 30 no. 7
Type: Research Article
ISSN: 0959-6119

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Book part
Publication date: 30 September 2019

Christie L. Comunale, Charles A. Barragato and Denise Buhrau

In this study, we examine the role of temporal framing in the context of tax audit risk. Using construal-level theory, we propose that compared with an every-year frame…

Abstract

In this study, we examine the role of temporal framing in the context of tax audit risk. Using construal-level theory, we propose that compared with an every-year frame (e.g., 1.5 million returns are audited every year), framing audit risk in an everyday frame (e.g., 4,000 returns are audited every day) will make audit risk seem more likely and thus increase taxpayer compliance. We test whether perceived fairness of the tax system, an individual difference variable related to tax compliance, moderates the effect of temporal framing on behavioral intentions. The results show that communicating risk in a day frame rather than a year frame increases compliance for taxpayers who perceive the tax system as unfair but not for taxpayers who perceive the tax system as fair. Increasing compliance among taxpayers who perceive the tax system as unfair is crucial, as they are less likely to be compliant. Thus, framing audit risk can assist in increasing taxpayer compliance.

Details

Advances in Accounting Behavioral Research
Type: Book
ISBN: 978-1-83867-346-8

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