Why Do We Care What Others Pay? The Effect of Other Consumers’ Prices on Inferences of Seller (Dis)Respect and Perceptions of Deservingness Violation

Comparisons to other consumers have been identified as particularly meaningful in shaping price fairness judgments, but why they should be so is not clear. The current work argues that fairness judgments reflect both the extent to which consumers receive what they believe they deserve and inferences about seller respect. We suggest that comparisons to consumers paying lower prices are a particularly potent source of unfairness because they highlight the violation of deservingness and readily communicate information about sellers’ opinions of consumers. Three experiments investigate these ideas. Implications for fairness theory and marketing are discussed.

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► This research investigates why consumers care so much about what others pay.
► Others’ lower prices highlight deservingness violation and disrespect by seller.
► Disrespect especially likely when lower price from same store or for poor reason.
► Deservingness violation worse when other consumers brag about lower price.
► Good reasons for price differentials mitigate both sources of unfairness.