Washington, Sep 11: Consumers compare prices on the basis of how powerful they feel, according a new study.
Authors Liyin Jin, Yanqun He (both Fudan University), and Ying Zhang (University of Texas, Austin) said that the degree to which one feels powerful influences which type of price comparison threatens their sense of self-importance and, in turn, affects the perception of price unfairness.
Variations in price are common in today's market, the authors explain, but companies risk consumers' wrath when those customers perceive unfairness.
According to the authors, consumers have two main ways of evaluating the fairness of a price: they compare with what they've paid for the same item in the past (self-comparison).
Authors Liyin Jin, Yanqun He (both Fudan University), and Ying Zhang (University of Texas, Austin) said that the degree to which one feels powerful influences which type of price comparison threatens their sense of self-importance and, in turn, affects the perception of price unfairness.
Variations in price are common in today's market, the authors explain, but companies risk consumers' wrath when those customers perceive unfairness.
According to the authors, consumers have two main ways of evaluating the fairness of a price: they compare with what they've paid for the same item in the past (self-comparison).
- 9/11/2013
- by Lohit Reddy
- RealBollywood.com
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