The mitigating role of nostalgia for consumer price unfairness perceptions in response to disadvantageous personalized pricing

Pade, Robin; Feurer, Sven (2022). The mitigating role of nostalgia for consumer price unfairness perceptions in response to disadvantageous personalized pricing Journal of Business Research, 145, pp. 277-287. Elsevier 10.1016/j.jbusres.2022.02.057

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In the wake of the ability to analyze big customer data, personalized pricing is an interesting way for firms to increase profits. However, consumers often perceive these pricing practices as unfair, especially upon learning that they have paid more than other consumers. Thus, managers can either avoid personalized pricing altogether or attempt to mitigate such consumer perceptions. The present research proposes and finds that consumer nostalgia plays a mitigating role that firms might utilize when engaging in personalized pricing. Two lab experiments and one online experiment examine situations in which consumers become aware of disadvantageous personalized pricing for themselves when compared to other lower paying customers. The results provide evidence that the negative effect of disadvantageous personalized pricing (vs. equal pricing) on price fairness perceptions is counteracted by high consumers’ nostalgia proneness via their perceptions of loneliness.

Item Type:	Journal Article (Original Article)
Division/Institute:	Business School > Institute for Marketing & Global Management > Marketing Business School
Name:	Pade, Robin and Feurer, Sven
Subjects:	H Social Sciences > H Social Sciences (General)
ISSN:	0148-2963
Publisher:	Elsevier
Language:	English
Submitter:	Sven Feurer
Date Deposited:	13 Jun 2022 10:30
Last Modified:	13 Jun 2022 10:30
Publisher DOI:	10.1016/j.jbusres.2022.02.057
Uncontrolled Keywords:	Personalized pricing, Price fairness, Consumer nostalgia, Loneliness
ARBOR DOI:	10.24451/arbor.16893
URI:	https://arbor.bfh.ch/id/eprint/16893