The Effect Of Price And Quality On Consumers' Perception Of Fairness

This paper studied the perception of price fairness as a result of the effect of the relationship of price and quality. We conducted three experiment to examine the fairness perception in different aspects. In study 1, we investigated the effect of the relationship of price and quality on the perception of price fairness. In study 2, we investigated the perception of price fairness for price increase and quality decrease, and the influence of different product categories on the perception of price fairness. In study 3, we further focused on the role promotion playing in the process during which consumers formed their fairness perception.Scenario-simulated method was applied in Study 1 and a factor between subjects design was adopted. The researcher collected 275 samples to examine the price fairness perception caused by the relationship composed of different price and different quality and to find the relationship between fairness perception, consumer satisfaction and purchase desire. We found empirical evidence to conclude that: consumers' price fairness perception was influenced by the relationship of price and quality; Fairness perception was high related with consumers' satisfaction and they both had great effect on consumers' product desire.Scenario-simulated method was applied in Study 2. The researcher collected 383 samples to examine the effect of price increase and quality decrease on perception of price fairness, as well as the influence of the product categories. We found empirical evidence to conclude that: Consumers reacted mildly to the price increase caused by a reasonable factor and they didn't show unfair emotion, neither did fair; When it came to quality, consumers tended to feel fair in the face of quality decrease caused by a reasonable factor; Product categories seemed not to affect the perception of fairness a lot.Scenario-simulated method was also applied in Study 3 and a 2><2 two factors between subjects design was adopted. The researcher collected 271 samples to examine the moderator effect of sales promotion between the relationship of price and quality and the perception of fairness. Promotion was separated into two levels. One was percent discount, and the other was coupon. They two were considered to have different effect on perception of fairness. We found empirical evidence to conclude that: Consumers' trust was a moderater which affected the perception of price fairness; Percent discount was obviously different from coupon as a way of sales promotion in the influence on consumers' price fairness perception.Finally, the paper systematically concluded the main findings and discussed the essential theory progress, application and future research directions.