Recent developments in database management have allowed organisations to finely tune their price/product offer to individual customers. However, this may lead to the perception by customers of unfavourable treatment where the price that they have paid is perceived as less favourable than the best price being offered by the company. Trust is at the heart of most theories of relationship marketing. The effect of variable pricing on the level of consumer trust remains under-researched and is the subject of this paper. Theoretical reasons underlying the apparent conflict between variable pricing and relationship trust are discussed. The preliminary results of an experimental longitudinal study of the effects of variable pricing on trust are reported.
|Title of host publication||proceedings of the 31 European Marketing Association Conference|
|Place of Publication||Braga, Portugal|
|Publisher||University of Minho|
|ISBN (Print)||972 8755 00 7|
|Publication status||Published - May 2002|
McMahon-Beattie, U., & Palmer, A. (2002). A Longitudinal Study of the Effects of Variable Pricing on Relationship Trust. In proceedings of the 31 European Marketing Association Conference (pp. 451-462). University of Minho.