Author: Maxwell, Sarah

Source: Journal of Product and Brand Management, Volume 17, Number 7, 2008 , pp. 497-503(7)

Publisher: Emerald Group Publishing Limited

Abstract:

<B>Purpose</B> - The purpose of this paper is to summarize the current research in disciplines outside marketing that applies to price fairness: research by behavioral economists, primate behavior researchers and social neuroscientists. <B>Design/methodology/approach</B> - The approach is descriptive, summarizing the extensive research into fairness being done in disciplines other than marketing. <B>Findings</B> - Research outside marketing indicates that a fair price is a preference. It has social utility that is independent of the economic utility of a low price. Consumers can actually harm themselves to punish what they perceive to be an unfair price. Conversely, a fair price triggers the reward center of the mind, stimulating happiness. The research also indicates that the response to a fair or unfair price is emotional: fast and automatic. The strength of that emotional response to unfairness varies across people. However, despite the variation in reactions, to ignore the concern for fairness is to miss a major motivation in economic decision making. <B>Originality/value</B> - The fairness research in other disciplines both supports and informs the marketing research into what constitutes a fair price and how people respond to price (un)fairness.

Keywords: Behavioural economics; Prices; Research

Document Type: Research article

DOI: http://dx.doi.org/10.1108/10610420810916399

Publication date: 2008-10-31

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