—Does Demand Fall When Customers Perceive That Prices Are Unfair? The Case of Premium Pricing for Large Sizes

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Eric T. Anderson; Duncan I. Simester;
  • Journal: Marketing Science, volume 27, issue 3 05-06, pages 492-500
  • Identifiers: doi: 10.1287/mksc.1070.0323
  • Subject: product line pricing, price discrimination, fairness, price promotion, experimental economics

We analyze a large-scale field test conducted with a mail-order catalog firm to investigate how customers react to premium prices for larger sizes of women's apparel. We find that customers who demand large sizes react unfavorably to paying a higher price than customers... View more
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