A special price just for you: effects of personalized dynamic pricing on consumer fairness perceptions
- Personalized dynamic pricing (PDP) involves dynamically setting individual-consumer prices for the same product or service according to consumer-identifying information. Despite its profitability, this pricing provokes strong negative fairness perceptions, explaining why managers are reluctant to implement it. This research provides important insights into the effect of two PDP dimensions (price individualization level and segmentation base) on fairness perceptions and the moderating role of privacy concerns. The results of two experimental studies indicate that consumers perceive individual prices as less fair than segment prices. They also evaluate location-based pricing as less fair than purchase history-based pricing. Consumer privacy concerns moderate these effects.
Author: | Anna Priester, Thomas Robbert, Stefan Roth |
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URN: | urn:nbn:de:hbz:386-kluedo-77426 |
DOI: | https://doi.org/10.1057/s41272-019-00224-3 |
ISSN: | 1477-657X |
Parent Title (English): | Journal of Revenue and Pricing Management |
Publisher: | Springer Nature - Springer |
Document Type: | Article |
Language of publication: | English |
Date of Publication (online): | 2024/03/01 |
Year of first Publication: | 2020 |
Publishing Institution: | Rheinland-Pfälzische Technische Universität Kaiserslautern-Landau |
Date of the Publication (Server): | 2024/03/01 |
Issue: | 19 |
Page Number: | 14 |
First Page: | 99 |
Last Page: | 112 |
Source: | https://link.springer.com/article/10.1057/s41272-019-00224-3 |
Faculties / Organisational entities: | Kaiserslautern - Fachbereich Wirtschaftswissenschaften |
DDC-Cassification: | 3 Sozialwissenschaften / 330 Wirtschaft |
Collections: | Open-Access-Publikationsfonds |
Licence (German): | Zweitveröffentlichung |