price fairness

Price fairness is described as the aspect of price perception that determines whether a customer perceives a price as fair or not fair.

The assessment depends on the individual willingness to pay. If the perceived benefit of a service exceeds the willingness to pay, a price is perceived as fair. Components of this perceived fairness are price-performance ratio, price consistency, price transparency, but also goodwill regulations after a purchase. In assessing price fairness, both past experiences and competitive prices are considered. Increasing price differentiation by online merchants has an intensified negative effect on the perceived price fairness, which is why new pricing models have been developed independently of usage, such as streaming or telephone flat rates.

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