Discriminatory Pricing and Its Effect on Consumer 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, in discussion with others they discover that 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 but it is based on is an assumption of privacy of dialogue between buyer and seller. 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 interim results of an ongoing experimental longitudinal study of the effects of variable pricing on trust are reported.
Original languageEnglish
Title of host publicationProceedings of the Academy of Marketing Conference
Place of PublicationMiddlesex
PublisherMiddlesex University London
Pages321-333
ISBN (Print)ISBN 1 904750 49 4
Publication statusPublished - 2006

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    McMahon-Beattie, U., & Palmer, A. (2006). Discriminatory Pricing and Its Effect on Consumer trust. In Proceedings of the Academy of Marketing Conference (pp. 321-333). Middlesex University London.