A Longitudinal Study of the Effects of Variable Pricing on Relationship Trust

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

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.
LanguageEnglish
Title of host publicationproceedings of the 31 European Marketing Association Conference
Place of PublicationBraga, Portugal
Pages451-462
Publication statusPublished - May 2002

Fingerprint

Pricing
Longitudinal study
Consumer trust
Database management

Cite this

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). Braga, Portugal.
McMahon-Beattie, Una ; Palmer, A. / A Longitudinal Study of the Effects of Variable Pricing on Relationship Trust. proceedings of the 31 European Marketing Association Conference. Braga, Portugal, 2002. pp. 451-462
@inbook{1b78ef0d079c40aeb411ecb585b06f6a,
title = "A Longitudinal Study of the Effects of Variable Pricing on Relationship Trust",
abstract = "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.",
author = "Una McMahon-Beattie and A Palmer",
note = "Reference text: Butler, J.K. (1991), “Toward Understanding and Measuring Conditions of Trust: Evolution of a Conditions of Trust Inventory”, Journal of Management, 17 (3), 643-663 Chow, S. and Holden, R. (1997) “Toward and Understanding of Loyalty: The Moderating Role of Trust”, Journal of Managerial Studies, 9 (3), 275-298 Dwyer, F. Robert, Paul H. Schurr, and Sejo Oh (1987), {"}Developing Buyer-Seller Relationships,{"} Journal of Marketing, 51 (April), 11-27. Fisk R.P., S.W. Brown and M.J. Bitner 1993. {"}Tracking the Evolution of the Services Marketing Literature{"}, Journal of Retailing, 69 (1), 61-103 Ganesan, Shankar (1994), {"}Determinants of Long-Term Orientation in Buyer-Seller Relationships,{"} Journal of Marketing, 58 (April), 1-19. Granovetter, M. (1985), “Economic Action and Social Structure: The Problem of Emdeddedness”, American Journal of Sociology, 91, 481-510 Grayson, Kent and Tim Ambler (1999) “The dark side of long-term relationships in marketing services”, Journal of Marketing Research, 36 (1) ,132 Hunt, Shelby, D. and Robert M., Morgan (1997) “Resource-advantaged theory: a snake swallowing tail or a general theory of competition”, Journal of Marketing, 61 (4), 74-82 Kahneman, Daniel, Jack Knetsch and Richard Thaler. (1986). {"}Fairness as a Constraint on Profit Seeking: Entitlements in the Market,{"} The American Economic Review, 76(September): 728-741. Kalapurakal, Rosemary, Peter Dickson and Joel Urbany. (1991). {"}Perceived Price Fairness and Dual Entitlement.{"} Pp. 788-793 in Rebecca Holman and Michael Solomon (eds.), Advances in Consumer Research, Vol. 18. Provo, UT: Association for Consumer Research Lichtenstein, Donald, Scot Burton and Bradley S. O'Hara. (1989). {"}Marketplace Attributions and Consumer Evaluations of Discount Claims,{"} Psychology and Marketing, 6(Fall): 163-180. Lipsey, R.G. (1996), Microeconomics , Addison Wesley Longman McCole, P (2001) Dimensionalising Trust in Internet Environments, Unpublished PhD thesis, University of Ulster. McMahon-Beattie, U and Palmer, A (2000) “One for All or All for One: A Comparison of Everyday Low Pricing and Yield Management Strategies in the Hotel Industry, Journal of Targeting, Measurement and Analysis for Marketing, 8 (3), 249-258 Morgan, Robert M. and Shelby D. Hunt (1994), {"}The Commitment-Trust Theory of Relationship Marketing,{"} Journal of Marketing, 58 (July), 20-38. Peppers, D. and Rodgers, M. (1995), “A New Marketing Paradigm: Share of Customer Not Market Share”, Planning Review, 23 (2),14 Pfeffer, J. and G.R. Salanick (1978), The External Control of Organisations: A Resource Dependence Perspective, New York, Harper Row Saren, M.J. and Tzokas, N. (1998), “Some dangerous axioms of relationship marketing”, Journal of Strategic Marketing; 6 (3) Williamson, O.E. (1993), “Calculativeness, Trust, and Economic Organisation”, Journal of Law and Economics, 36, 453-486 Zeithaml, V.A., A.Parasuraman and L.L. Berry (1985), “Problems and Strategies in Services Marketing”, Journal of Marketing, 49 (Spring),33-46",
year = "2002",
month = "5",
language = "English",
isbn = "972 8755 00 7",
pages = "451--462",
booktitle = "proceedings of the 31 European Marketing Association Conference",

}

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. Braga, Portugal, pp. 451-462.

A Longitudinal Study of the Effects of Variable Pricing on Relationship Trust. / McMahon-Beattie, Una; Palmer, A.

proceedings of the 31 European Marketing Association Conference. Braga, Portugal, 2002. p. 451-462.

Research output: Chapter in Book/Report/Conference proceedingChapter

TY - CHAP

T1 - A Longitudinal Study of the Effects of Variable Pricing on Relationship Trust

AU - McMahon-Beattie, Una

AU - Palmer, A

N1 - Reference text: Butler, J.K. (1991), “Toward Understanding and Measuring Conditions of Trust: Evolution of a Conditions of Trust Inventory”, Journal of Management, 17 (3), 643-663 Chow, S. and Holden, R. (1997) “Toward and Understanding of Loyalty: The Moderating Role of Trust”, Journal of Managerial Studies, 9 (3), 275-298 Dwyer, F. Robert, Paul H. Schurr, and Sejo Oh (1987), "Developing Buyer-Seller Relationships," Journal of Marketing, 51 (April), 11-27. Fisk R.P., S.W. Brown and M.J. Bitner 1993. "Tracking the Evolution of the Services Marketing Literature", Journal of Retailing, 69 (1), 61-103 Ganesan, Shankar (1994), "Determinants of Long-Term Orientation in Buyer-Seller Relationships," Journal of Marketing, 58 (April), 1-19. Granovetter, M. (1985), “Economic Action and Social Structure: The Problem of Emdeddedness”, American Journal of Sociology, 91, 481-510 Grayson, Kent and Tim Ambler (1999) “The dark side of long-term relationships in marketing services”, Journal of Marketing Research, 36 (1) ,132 Hunt, Shelby, D. and Robert M., Morgan (1997) “Resource-advantaged theory: a snake swallowing tail or a general theory of competition”, Journal of Marketing, 61 (4), 74-82 Kahneman, Daniel, Jack Knetsch and Richard Thaler. (1986). "Fairness as a Constraint on Profit Seeking: Entitlements in the Market," The American Economic Review, 76(September): 728-741. Kalapurakal, Rosemary, Peter Dickson and Joel Urbany. (1991). "Perceived Price Fairness and Dual Entitlement." Pp. 788-793 in Rebecca Holman and Michael Solomon (eds.), Advances in Consumer Research, Vol. 18. Provo, UT: Association for Consumer Research Lichtenstein, Donald, Scot Burton and Bradley S. O'Hara. (1989). "Marketplace Attributions and Consumer Evaluations of Discount Claims," Psychology and Marketing, 6(Fall): 163-180. Lipsey, R.G. (1996), Microeconomics , Addison Wesley Longman McCole, P (2001) Dimensionalising Trust in Internet Environments, Unpublished PhD thesis, University of Ulster. McMahon-Beattie, U and Palmer, A (2000) “One for All or All for One: A Comparison of Everyday Low Pricing and Yield Management Strategies in the Hotel Industry, Journal of Targeting, Measurement and Analysis for Marketing, 8 (3), 249-258 Morgan, Robert M. and Shelby D. Hunt (1994), "The Commitment-Trust Theory of Relationship Marketing," Journal of Marketing, 58 (July), 20-38. Peppers, D. and Rodgers, M. (1995), “A New Marketing Paradigm: Share of Customer Not Market Share”, Planning Review, 23 (2),14 Pfeffer, J. and G.R. Salanick (1978), The External Control of Organisations: A Resource Dependence Perspective, New York, Harper Row Saren, M.J. and Tzokas, N. (1998), “Some dangerous axioms of relationship marketing”, Journal of Strategic Marketing; 6 (3) Williamson, O.E. (1993), “Calculativeness, Trust, and Economic Organisation”, Journal of Law and Economics, 36, 453-486 Zeithaml, V.A., A.Parasuraman and L.L. Berry (1985), “Problems and Strategies in Services Marketing”, Journal of Marketing, 49 (Spring),33-46

PY - 2002/5

Y1 - 2002/5

N2 - 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.

AB - 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.

M3 - Chapter

SN - 972 8755 00 7

SP - 451

EP - 462

BT - proceedings of the 31 European Marketing Association Conference

CY - Braga, Portugal

ER -

McMahon-Beattie U, Palmer A. A Longitudinal Study of the Effects of Variable Pricing on Relationship Trust. In proceedings of the 31 European Marketing Association Conference. Braga, Portugal. 2002. p. 451-462