Enticing for Me But Unfair to Her: Can Targeted Pricing Evoke Socially Conscious Behavior?

Journal of Consumer Psychology, 2012

10 Pages Posted: 21 Jan 2015

See all articles by Yu Wang

Yu Wang

University of Texas at Dallas - Naveen Jindal School of Management

Aradhna Krishna

University of Michigan, Stephen M. Ross School of Business

Date Written: July 2, 2011

Abstract

Prior research shows that consumers stop purchasing from firms that treat them badly. In this research we show that consumers also resist firms that treat other consumers badly while favoring them. In three experiments, we demonstrate such social consciousness in the context of targeted pricing, where firms offer lower prices to new (versus old) customers. A significant proportion of consumers in our experiments give up money to resist the price-discriminating firm, especially when the discrimination is more salient or is not justified. Further, perceived unfairness mediates the relationship between the salience and justification of the pricing practice and consumer resistance.

Suggested Citation

Wang, Yu and Krishna, Aradhna, Enticing for Me But Unfair to Her: Can Targeted Pricing Evoke Socially Conscious Behavior? (July 2, 2011). Journal of Consumer Psychology, 2012, Available at SSRN: https://ssrn.com/abstract=2552063

Yu Wang (Contact Author)

University of Texas at Dallas - Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

Aradhna Krishna

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

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