Consumer Reponses to Price Discrimination: An Experimental Study
Pricing has always been an important component of marketing. Price discrimination is one of the attractive pricing strategies to get the most out of the consumers. But these policies can have a direct impact on consumer behavior and trigger different reactions. In this study, the role of price discrimination, inequality status and reference price in consumer behavior is discussed. By conducting two experimental studies, 540 management students have engaged and collaborated projects, the impact of these variables on perceived unfairness, negative emotions, repurchase intention, positive word-of-mouth and perceived value in the shopping malls industry was studied. The results showed that different levels of price discrimination produced different responses from consumers. However, indirect price discrimination (using membership fees) is the best option for enforcing this policy. Internal reference prices can also moderate consumer reactions. The results of this study can be used as a practical model for shopping malls (especially for use in customer clubs).
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