Purpose This paper aims to examine how customer heterogeneity influences absolute price thresholds in a service industry. Design/methodology/approach Customer purchase behavior is studied in the context of a firm’s and competitor’s price changes. Customer purchase behavior is further examined in the context of specific customer attributes such as loyalty, motivation, online purchase channel, gender and frequency of purchase. The study uses a longitudinal data set spanning over 44 months and tracks over 13,000 of a firm’s customers, totaling over 200,000 transactions from a parking services provider. Findings Results show that absolute price thresholds affect purchasing decisions. Customers are willing to pay a range of prices for a considered purchase, and when a price is within customers’ acceptable price range, it does not induce a change in their purchase behavior. However, specific identifiable customer attributes influence the propensity to continue buying and influence the acceptable price range. Practical implications Knowledge from this study can be applied to developing a deeper understanding of customers and their price thresholds to improve customer retention and firm performance after a price change. Originality/value For a better understanding of the consumer choice process, it is essential to understand what factors affect price thresholds. Additionally, very few studies are using transaction-level data to empirically validate concepts from behavioral price research in the service industry, and none that do it at an individual customer level over three years.

Building a foundation of marketing theory requires developing effective ways to aggregate research results. Meta-analyses that accumulate knowledge within a research domain is an important means for summarizing research findings and increasingly is being conducted in various substantive marketing domains. Moderator analysis and structural models using meta-analytic inputs have emerged as a powerful means to advance current knowledge in a research domain, and, importantly, identify fruitful areas for future inquiry. This article reviews the growth of meta-analysis in marketing and identifies several important issues researchers must consider when conducting and reporting a meta-analysis.

In consumer research on brand extension evaluations, it has been established that parent brand attitudes could be transferred to extensions as long as the perceived fit is high between the parent brand and the extension product. Adding to this finding, we examined how parent brand attitudes and incoming attribute information of the extension product affect extension evaluations. Here, we present the long abstract version of our work.

Marketers frequently use promotions to enhance sales and increase consumers’ perceptions of value. However, most promotions usually come with restrictions, such as time expiration, quantity or product model restriction, etc. In the present research, the effect of the stage in the purchase process when the consumer finds out about the restriction is investigated. The findings indicate that the later in the purchase process the consumer discovers the restriction, the greater is the perception that the effort invested into the purchase is wasted, consequently resulting in lower promotion and price fairness. This effect is mediated through the feeling of entitlement to the promotional price and the inferred negative retailer’s motive for the promotion. Theoretical and managerial implications are also discussed.

OBJECTIVE:To present the process of transcultural adaptation of the Richmond Compulsive Buying Scale to Brazilian Portuguese.METHODS:For the semantic adaptation step, the scale was translated to Portuguese and then back-translated to English by two professional translators and one psychologist, without any communication between them. The scale was then applied to 20 participants from the general population for language adjustments. For the construct validation step, an exploratory factor analysis was performed, using the scree plot test, principal component analysis for factor extraction, and Varimax rotation. For convergent validity, the correlation matrix was analyzed through Pearson's coefficient.RESULTS:The scale showed easy applicability, satisfactory internal consistency (Cronbach's alpha=.87), and a high correlation with other rating scales for compulsive buying disorder, indicating that it is suitable to be used in the assessment and diagnosis of compulsive buying disorder, as it presents psychometric validity.CONCLUSION:The Brazilian Portuguese version of the Richmond Compulsive Buying Scale has good validity and reliability.

Previous research has shown that if consumers are aware that they are paying more than another customer for a similar transaction, then they may perceive the price to be unfair. A concept closely related to fairness is transaction value, defined as consumers' perceptions of the psychological satisfaction or pleasure from taking advantage of a price deal. In this research, we conceptualize that although consumers' perceptions of price fairness and transaction value share many similarities, nevertheless there are also important differences. Using three studies, we empirically examine these differences. We show that although a "bad deal" is typically perceived to be an unfair price, a "good deal" is not necessarily perceived to be the fairest price.

PurposePrevious research indicates that the goals consumers have when shopping influence their attention to and processing of information they encounter. The purpose of this paper is to study the effects of consumers' pre‐purchase goals on their responses to price promotions.Design/methodology/approachIn three experiments, the existence of consumer goals (i.e. with or without a pre‐purchase goal) were manipulated and promotion characteristics including message framing, promotion format, and promotion depth were systematically varied to examine how consumers respond to these price promotions.FindingsConsumers with a pre‐purchase goal were found to be more attracted to the promotion than those without a goal. More importantly, pre‐purchase goals interact with promotion characteristics and produce differential effects on willingness to buy. Consumers with a pre‐purchase goal are more attracted to promotions emphasizing reduced losses while those without a goal responded more favorably toward promotions emphasizing gains. Moreover, consumers with and without a pre‐purchase goal respond differently to various discount levels.Originality/valueExisting research on price promotions has not examined the influence of consumers' pre‐purchase goals. This paper brings a new dimension to price promotion research. Understanding these variations in pre‐purchase goals across consumers will help sellers design more effective promotion programs

PurposeThis paper aims to link conceptually the concepts of price fairness and customer satisfaction and empirically demonstrate the influence of perceived price fairness on satisfaction judgments. Further, it seeks to examine specific factors that influence fairness perceptions including price perception and consumer vulnerability.Design/methodology/approachThe study is conducted in the context of automobile purchases in major German car dealerships. Based on a theoretical conceptualization of the constructs and an empirical pretest, 246 car buyers were surveyed and their fairness perceptions and satisfaction judgments with the car buying process measured.FindingsThe research shows that price perceptions directly influence satisfaction judgments as well as indirectly through perceptions of price fairness. Results also indicated that consumers' vulnerability, which is induced by a perceived demand‐supply relationship and the urgency of need from the consumers' side, had a negative effect on perceived price offer fairness.Research limitations/implicationsThe research demonstrated the influence of perceived price fairness on satisfaction judgments empirically. The study was conducted in the context of car purchases and the generalizability of the model should be further tested.Practical implicationsThe effect of consumer vulnerability implies that sellers should not only avoid exploiting their customers but should also anticipate consumers' potential feelings of being exploited. Being sensitive to the buyers’ psychological state and assuring buyers of fair treatment will enhance perceptions of price fairness without changing the price offer.Originality/valueBoth the direct and indirect effects of price perception on satisfaction judgment were examined in the paper. Specifically, the influences of consumer vulnerability and price procedure fairness on satisfaction judgments are new and contribute to the dual‐entitlement principle and our existing knowledge in price fairness.