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Open Access
Article
Publication date: 7 October 2021

Yong Wang, Tianze Tang, Weiyi Zhang, Zhen Sun and Qiaoqin Xiong

In this paper, the authors study the effect of consumers' fairness preferences on dynamic pricing strategies adopted by platforms in a non-cooperative game.

1604

Abstract

Purpose

In this paper, the authors study the effect of consumers' fairness preferences on dynamic pricing strategies adopted by platforms in a non-cooperative game.

Design/methodology/approach

This study applies fair game and repeated game theory.

Findings

This study reveals that, in a one-shot game, if consumers have fairness preferences, dynamic prices will slightly decline. In a repeated game, dynamic prices will be reduced even when consumers do not have fairness preferences. When fairness preferences and repeated game are considered simultaneously, dynamic prices are most likely to be set at fair prices. The authors also discuss the effect of platforms' discounting factors, the consumers' income and alternative choices of consumption on the dynamic prices.

Research limitations/implications

The study findings illustrate the importance of incorporating behavioral elements in understanding and designing the dynamic pricing strategies for platforms and the implications on social welfare in general.

Originality/value

The authors developed a theoretical model to incorporate consumers' fairness preference into the decision-making process of platforms when they design the dynamic pricing strategies.

Details

Journal of Internet and Digital Economics, vol. 1 no. 1
Type: Research Article
ISSN: 2752-6356

Keywords

Open Access
Article
Publication date: 16 October 2017

Rita Faullant, Johann Fueller and Katja Hutter

Companies are discovering the power of crowdsourcing as a source of new ideas for products and services. It is assumed that the personal engagement and the continuous involvement…

4808

Abstract

Purpose

Companies are discovering the power of crowdsourcing as a source of new ideas for products and services. It is assumed that the personal engagement and the continuous involvement with a company’s products or services over a period of several weeks positively affect participants’ loyalty intentions toward the host companies. The research leads the authors to challenge this assumption. In addition to mere participation in crowdsourcing initiatives, the authors argue that perceptions of fairness will explain changes in customer relationship-related consequences such as loyalty, perceived innovativeness and product interest. The paper aims to discuss these issues.

Design/methodology/approach

The authors analyzed a real-life crowdsourcing contest launched by a leading lighting manufacturer and investigated the impact of two fairness dimensions (distributive and procedural) on participants’ future behavioral and attitudinal intentions (n=121). The analysis was performed with SEM.

Findings

The results suggest that fairness perceptions are significantly related to evoked product interest, perceived innovativeness and loyalty intentions. The analysis reveals that the influence of the fairness dimensions is asymmetric: while distributive fairness can be considered as a basic factor that must be fulfilled in order to avoid negative behavioral consequences, procedural fairness instead is an excitement factor that causes truly positive behavioral consequences.

Research limitations/implications

The results are particularly relevant for companies launching a crowdsourcing competition under their own brand name, and for broadcasting platforms. For companies with no relations to end-users, these findings may not be as relevant.

Practical implications

Organizers of crowdsourcing contests should be aware that such initiatives can be a double-edged sword. Fair Play is a must to gain the positive effects from crowdsourcing initiatives for both new product development and the customer relationship. For companies lacking the capabilities to manage crowdsourcing initiatives professionally it is advisable to rely on intermediary broadcasting platforms.

Originality/value

The research is the first to investigate systematically the consequences of fairness perceptions in a real-life crowdsourcing idea contest. The authors demonstrate the asymmetric nature of fairness perceptions on three different outcome variables that are important for the customer relationship.

Details

Management Decision, vol. 55 no. 9
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 1 October 2019

Zhisong Chen and Huimin Wang

The purpose of this paper is to explore the impact of supply capacity constraint, water delivery loss and fairness concern on the operational decisions/efficiency of the IBWT…

1049

Abstract

Purpose

The purpose of this paper is to explore the impact of supply capacity constraint, water delivery loss and fairness concern on the operational decisions/efficiency of the IBWT supply chain under the random precipitation.

Design/methodology/approach

Two game-theoretic decision models for the IBWT supply chain coordination considering water delivery loss without/with fairness concern under the supply capacity constraint and random precipitation are developed, analyzed and compared. On this basis, the corresponding numerical analyses are conducted and compared to derive the corresponding management insights and policy implications.

Findings

The research results indicate that the two-part tariff contract could effectively coordinate the IBWT supply chain and achieve operational performance improvement; the binding supply capacity constraint makes the water capacity to be allocated among IBWT distributors in accordance with fair shortage allocation rule and reduces the profit (or utility) of the IBWT supply chain and its members; the existence of fairness concern reduces the utility of the IBWT supply chain and its members; a lower precipitation utilization factor in the case with non-binding capacity constraint is beneficial for improving the profit/utility of the IBWT supply chain while a higher precipitation utilization factor in the case with binding capacity constraint is beneficial for improving the profit/utility of the IBWT supply chain; and reducing the water delivery loss rate, the mainline transfer cost, the branch-line transfer cost, the holding cost and the shortage cost and setting a higher retail price are beneficial for improving the profit/utility of the IBWT supply chain.

Originality/value

Two innovative coordination decision models under random precipitation are developed, analyzed and compared through game-theoretic approaches to investigate the impact of supply capacity constraint, water delivery loss and fairness concern on the operational decisions/efficiency of the IBWT supply chain, which have enhanced the optimization decision theory for the operations management of IBWT projects and provided a better decision support for the IBWT stakeholders to make better operations strategies.

Content available
Article
Publication date: 17 August 2021

James Harrington and John McCaskill

This study examines the relationship between goal properties, both at the employee and organizational-level, and the perceived fairness of the performance appraisal system by…

4128

Abstract

Purpose

This study examines the relationship between goal properties, both at the employee and organizational-level, and the perceived fairness of the performance appraisal system by federal employees.

Design/methodology/approach

We describe the theoretical framework regarding goals and employee perceptions of performance appraisal fairness. We then develop and test four hypotheses, exploring the relationships among variables using five years of the FEVS data. To strengthen the research design, we created an agency-level dataset, by calculating agency-level averages for all the covariates. Instead of examining 500,000 federal employees each year, we are examining 80 federal agencies. Creating a panel dataset at the agency level allows us to make stronger statements about causality than using cross-sectional data.

Findings

This study finds a significant positive relationship between goal setting factors and employees' perceived fairness of performance appraisals: perceived employee-level goal difficulty and perceived organizational-level goal specificity at the agency level. The study results show that certain control variables, such as intrinsic motivation, play important roles in predicting public employees' perceived fairness of performance appraisals. Federal employees who have a higher level of intrinsic motivation show a more positive perception toward performance appraisal fairness. The appropriate use of extrinsic rewards and intrinsic motivation, combined with effective goal setting strategies in public organizations, may enhance public employees' perceived fairness of performance appraisal systems.

Research limitations/implications

This study used the FEVS, necessitating the reduction of the sample size to agency level averages to create a panel dataset. Also, this study was limited to federal agencies in the United States, so research results may lack generalizability.

Originality/value

This paper fulfills an identified need to avoid cross-sectional research design and leverage longitudinal panel data.

Details

International Journal of Public Sector Management, vol. 35 no. 2
Type: Research Article
ISSN: 0951-3558

Keywords

Open Access
Article
Publication date: 28 July 2021

Fabio Cassia, Sven A. Haugland and Francesca Magno

While studies about business-to-business (B2B) relationships have mainly addressed buyer–supplier long-term exchanges, focusing on social outcomes such as trust, commitment and…

1852

Abstract

Purpose

While studies about business-to-business (B2B) relationships have mainly addressed buyer–supplier long-term exchanges, focusing on social outcomes such as trust, commitment and cooperation, there is little research that explores the social outcomes which stem from short-term B2B transactions. The purpose of this paper is to explain buyers’ intention to renew a contract after discrete and time-delimited transactions by suggesting a model that complements social exchange theory with theories of fairness. In detail, this study aims to determine how evaluations of economic and social outcomes are complemented by both procedural fairness and distributive fairness.

Design/methodology/approach

The hypotheses are tested in the social couponing industry with a survey of a sample of 199 firms purchasing advertising services from daily deal websites. Data are analyzed using covariance-based structural equation modeling (CB-SEM).

Findings

The findings reveal direct effects of procedural fairness on social outcomes (satisfaction) and distributive fairness on the intention to renew a contract, negative moderating effect of procedural fairness on the relationship between economic outcomes (campaign effectiveness) and social outcomes (satisfaction).

Research limitations/implications

In discrete, time-delimited transactions, high levels of procedural fairness may partially compensate for low levels of economic outcomes and prevent a reduction in social outcomes. Hence, when economic outcomes are influenced largely by external, uncontrollable conditions, the buyer seems to appreciate the supplier’s efforts to behave fairly.

Practical implications

Social outcomes matter even in discrete transactions and considerations of fairness should be integrated in the management of discrete transactions. Sharing economic outcomes fairly is not sufficient to secure the buyer’s intention to renew the contract.

Originality/value

This study proposes and tests a model that complements social exchange theory with theories of fairness and explains contract renewal in discrete, time-delimited transactions, encompassing both economic outcomes and social outcomes.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 13
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 22 July 2022

Abdulla Al-Towfiq Hasan

This paper investigates the effect of perceived value (hedonic value, utilitarian value, and conditional value) on customers’ behavioral intentions toward dining at Chinese…

2582

Abstract

Purpose

This paper investigates the effect of perceived value (hedonic value, utilitarian value, and conditional value) on customers’ behavioral intentions toward dining at Chinese restaurants in Bangladesh.  Moreover, this study examines the mediating effect of self-direction value and the moderating effect of price fairness on the association between perceived value and behavioral intentions.

Design/methodology/approach

The proposed model was empirically tested by collecting 390 useable responses from full-table service restaurants in Bangladesh via personal interview. Data were analyzed by testing the measurement model, predictive relevance, effect size and structural model using SMART PLS 3.

Findings

The research findings suggest that hedonic, utilitarian and conditional values significantly influence customers’ behavioral intentions toward dining at Chinese restaurants. Moreover, self-direction value partially mediates, and price fairness strongly moderates the linkage between perceived value and behavioral intentions.

Practical implications

This sfloattudy offers useful insights for managers who want to know the factors influencing behavioral intentions toward dining at Chinese restaurants. The findings also assist restaurant practitioners in knowing that customers' perceived value via self-direction value (personal value) and price fairness strongly predict behavioral intentions.

Originality/value

To the best of the author’s knowledge, this research is the first attempt to delve into customers' behavioral intentions toward dining at Chinese restaurants with the proposed model.

Details

South Asian Journal of Marketing, vol. 3 no. 2
Type: Research Article
ISSN: 2719-2377

Keywords

Open Access
Article
Publication date: 3 April 2019

Nguyen Phong Nguyen, Felicitas Evangelista and Tai Anh Kieu

Drawing on equity theory, social exchange theory and goal setting theory, the purpose of this paper is to investigate the contingencies on the link between employees’ budgetary…

4695

Abstract

Purpose

Drawing on equity theory, social exchange theory and goal setting theory, the purpose of this paper is to investigate the contingencies on the link between employees’ budgetary participation and their work performance. Specifically, this study addresses the research questions: whether vertical information sharing and budget goal commitment mediate the relationship between employees’ budgetary participation and their work performance; and whether employees’ perceived budget fairness can strengthen the positive effects of budgetary participation on vertical information sharing and budget goal commitment.

Design/methodology/approach

Survey data were collected from a sample of 556 low to middle level managers of business organizations in Vietnam. The research model and its hypotheses were tested using PLS-SEM. The standardized root mean squared residual value of the composite model was employed to assess model fit. Common method bias was also checked using the marker-variable approach.

Findings

This study has two key findings: both vertical information sharing and budget goal commitment partially mediate the positive effects of budgetary participation on work performance; and both dimensions of perceived budget fairness (distributive and procedural) elevate the positive relationships of budgetary participation – vertical information sharing and budgetary participation – budget goal commitment.

Practical implications

The findings could benefit businesses in Vietnam and similar market contexts. Specifically, top management needs to select a proper level of budgetary participation that can facilitate information sharing vertically within the organization and motivate their employees to be more committed to achieve budget goals. Besides, the top management also needs to ensure that their employees perceive the fairness in the budgeting process.

Originality/value

The study contributes a greater understanding as regards the mediating roles of vertical information sharing and budget goal commitment as well as the moderating role of perceived budget fairness on the relationship between employees’ participation in the budgetary process and their work performance, especially in the context of an emerging market – Vietnam. Overall, this study contributes to the management and accounting literature with insights concerning a more complex process explaining employees’ work performance and triggered by their budgetary participation.

Details

Journal of Asian Business and Economic Studies, vol. 26 no. 1
Type: Research Article
ISSN: 2515-964X

Keywords

Open Access
Article
Publication date: 31 August 2022

Aruna Jha, Madhavi Kapoor, Khushi Kaul and Khushi Srivastava

Importance of corporate social responsibility (CSR) in marketing domain is increasing immensely. The effect of CSR perception on the purchase intention differs on the basis of…

5792

Abstract

Purpose

Importance of corporate social responsibility (CSR) in marketing domain is increasing immensely. The effect of CSR perception on the purchase intention differs on the basis of mediators and contexts. The objective of this study is to examine the consumer behaviour of young consumers. For this, impact of CSR perception on purchase intention, satisfaction and price fairness of Generation Z is studied.

Design/methodology/approach

Preliminary data analysis is run to check normality, skewness and common method bias. PLS-SEM is deployed to examine the relationships amongst the research variables. Sequential mediation through PLS bootstrapping helped in exploring new and exciting research results which are supported with literature.

Findings

The CSR perception of Generation Z does not have a direct effect on their purchase intention. Interestingly, satisfaction and price fairness fully mediate the relationship between CSR perception and purchase intentions separately, i.e. CSR perception of Generation Z influences purchase intention only through satisfaction and price fairness. Furthermore, satisfaction and price fairness are also found to sequentially mediate the relationship between CSR perception and purchase intentions.

Research limitations/implications

The research will aid not only the fast-food industry but the industries that are looking to focus on what Generation Z consumers expect in emerging markets including India. Understanding consumer expectations out of CSR initiatives will help them to incorporate social considerations into their marketing strategies and increase their profitability. Generation Z is regarded as the most challenging consumer demographic to market due to their proclivity for conducting extensive research and comparison shopping before making a purchase decision. As a result, the companies that want to use CSR as a strategy may find it advantageous to investigate how marketing of their CSR initiatives will lead to competitive edge and influence purchase decisions of this generational cohort.

Originality/value

This study adds to the academic literature by developing and evaluating a research model for consumer responses of a very important generation cohort to CSR in an emerging economy setting. CSR activities alone may not be enough to improve purchase intention of Generation Z adults. Sequential mediation for Generation Z adults' relationship between CSR and price fairness flows through satisfaction and finally to purchase intention is interesting because it clearly establishes a link amongst belief, attitude and actions of the target audience under study in a meaningful way within the framework given by cognitive consistency theory.

Details

LBS Journal of Management & Research, vol. 20 no. 1/2
Type: Research Article
ISSN: 0972-8031

Keywords

Open Access
Article
Publication date: 16 August 2021

Suzan Abd El Moneim El Balshy and Mamdouh Ismael

This paper aims to present a theoretical framework which reveals the relationship between job evaluation (JE) and the development of fair wage structure from the organizational…

5775

Abstract

Purpose

This paper aims to present a theoretical framework which reveals the relationship between job evaluation (JE) and the development of fair wage structure from the organizational justice (OJ) perspective. It focuses on analyzing the dimensions of job-based pay structure and the use of multifaceted construct of OJ (procedures, distribution and interaction) to determine how the perceived justice of JE's multi-levels construct contributes to achieve the fairness of wage structure.

Design/methodology/approach

This paper adopts an analytical descriptive approach in terms of explaining the perspectives and viewpoints related to the analysis. This paper is based on examining a theoretical framework provided by the authors based on a theoretical review of literature and a set of empirical evidences.

Findings

The design of a hierarchical wage structure counts on the multidimensional approach of JE which consists of three dimensions (processes, outcomes and social system). In addition, the determination of wage structure fairness is dependent on the assessment of the perceived justice of: JE's procedures, wages distribution and management's treatment with its employees.

Originality/value

This study provides a new theoretical contribution in studying the relationship between JE and the design of fair wage structure. This contribution can be regarded as a theoretical foundation for conducting some empirical and comparative studies in the future. The study affords directive mechanisms to policymakers in order to enhance the fairness of the wage structure across the state.

Details

Journal of Humanities and Applied Social Sciences, vol. 5 no. 1
Type: Research Article
ISSN: 2632-279X

Keywords

Open Access
Article
Publication date: 1 August 2016

Wenqi Jiang

Different from manufacturing resources allocation problems, the prices and amounts of limited public service resources could not be changed with the consumers’ requirements and…

1601

Abstract

Purpose

Different from manufacturing resources allocation problems, the prices and amounts of limited public service resources could not be changed with the consumers’ requirements and social fairness is the most important objective for improving allocation efficiency. To measure social fairness reasonably, the purpose of this paper is fourfold: first, divide social fairness into longitudinal comparative fairness and crosswise comparative fairness, therefore providing their calculation formula and describing the comprehensive fair degree by using the interval numbers. Second, the comparison regulations of interval numbers are given and the corresponding features are also described. Third, an extension of VIKOR method is put forward for evaluating social fairness of different allocation alternatives with interval numbers. Finally, a numerical example illustrates the proposed method and clarifies the main results developed in the paper.

Design/methodology/approach

In this paper, the author depicts the social fair degree as an interval number, and thus proposes the comparison method between any two interval numbers. Based on the basis procedure of the VIKOR method, the paper proposes an extension of the fuzzy VIKOR method with the interval numbers to rank and select the compromise allocation alternatives. Finally, a numerical example illustrates the practicability of the proposed method.

Findings

The comparison of interval numbers is very important when the author evaluates the decision alternatives. Through analyzing the present comparison methods, the paper proposes the simple method of comparing the interval numbers, which can obtain the same results with the above two methods. The fuzzy VIKOR method, a popular multi-criteria decision-making method, focusses on ranking and selecting from a set of alternatives in a fuzzy environment. For the fuzzy value, the paper also proposes the extension of the VIKOR method to perform an evaluation and get the compromise alternatives.

Originality/value

According to the huge customers’ requirement, how to improve their social fair degree has become the focus in public service resources allocation, where the social fair degree may be a comprehensive concept which includes the fair degree compared with all the other allocation alternatives and the fair degree compared with the other small group under the same allocation alternative. In the paper, the author defines the above two types of fair degree and then depicts the comprehensive fair degree as their integration, which will be interval numbers.

Details

Kybernetes, vol. 45 no. 7
Type: Research Article
ISSN: 0368-492X

Keywords

1 – 10 of over 1000