Does it matter who gets a better price? Antecedents and consequences of online price unfairness for advantaged and disadvantaged consumers

Abstract

This study examines the moderating role of price inequalities in the antecedents and consequences of perceived price unfairness. We test a moderated mediation model on a sample of 994 consumers exposed to a hotel booking scenario either with an advantaged price (n = 496) or a disadvantaged one (n = 498). Our results show that the mechanisms through which perceived price unfairness is formed and its influence on price satisfaction and WOM significantly differ based on price inequalities. Furthermore, these findings highlight the importance of managing the potential negative consequences of unfair pricing not only for disadvantaged consumers, but also for advantaged ones