Price Fairness and Its Linear Dependence on Consumer Attitude: A Comparative Study in Metro and Non Metro City

Abstract

The purpose of this paper is to find out the factors affecting price fairness through review of literature and then develop a simple and precise model of price fairness. Further, this paper measures the impact of price fairness on consumer attitude and comparative study of understanding the same in metro and non metro customers. Since, Metro and non-metro customers are different in their consumer behaviour in many ways. Linear regression and z-test was used to measure the impact of these attributes on consumer attitude and difference in metro and non-metro customers respectively.

Paper identifies nine different antecedents of price fairness through extensive review of literature and then develops a simple model to understand price fairness easily. Furthermore, the degree of price fairness in formation of positive consumer attitude is high in non metro as compare to the metro city. Regression result between consumer attitude and price fairness clearly explain that the higher level of understanding towards price fairness provide higher level of positive consumer attitude among customers of both the metro and non-metro city. Since consumer behaviour and their purchase intentions are influenced by their subjective perception of price fairness, marketers need to understand what constitutes a fair price.

The paper proposes a conceptual framework of factors affecting price fairness.  Results, perception of price fairness is different in metro and non-metro consumers and it also affect the consumer attitude gives the unique understanding of price fairness in formation of marketing policies for these two different regions.

Keywords: Pricing, Consumer attitude, Fair dealing