The Impact of Perceived Price Fairness on Loyalty, Willingness to Pay, Complain and Revenge Intention of Customers (Case Study: Internet Services Industry)

Document Type : Research Paper

Authors

1 Associate Prof., Faculty of Management, University of Tehran, Tehran, Iran

2 MSc. Student in Business Management, Faculty of Management, University of Tehran, Iran

Abstract

Factors influencing price fairness and its impact on consumer behavior is one of the most important topics in pricing which can have significant impact on consumers in their attitude toward the organization. In this paper, the impact of price fairness on loyalty, willingness to pay and complain and revenge intention of customers in internet access services industry has been tested. The data have been analyzed using SPSS and Lisrel. The results show that if the customers find out that increasing the prices is out of the control of the organization, they accept it and will advertise it through word of mouth in social media and among friends. Furthermore, they will continue using the services despite slight increase in prices. However, if they consider the prices unfair, it will result in complain and revenge intention. This paper helps managers to make apt decisions in time of price change.

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References

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