Perceived price fairness of price discrimination in the restaurant industry: the case of Switzerland

RIS ID

26459

Publication Details

Engeler, I. & Laesser, C. (2008). Perceived price fairness of price discrimination in the restaurant industry: the case of Switzerland. Proceedings of the European Marketing Academy Conference Brighton: University of Brighton.

Abstract

This paper discusses the concept of perceived price fairness and its application to demand-based price system in the restaurant industry. Although the service literature suggests applying a demand-based instead of a cost-based pricing approach, price discrimination is underused in today's restaurant industry, mainly due to a fear of potential price unfairness perception. Although the service literature suggests applying a demand-based instead of a cost-based pricing approach, price discrimination is underused in today's restaurant industry - mainly due to a fear of potential price unfairness perception. This paper offers some innovative price systems and empirically tests their fairness perception on Swiss restaurant guests. This paper offers some innovative price systems and empirically tests their perception on fairness Swiss restaurant guests. Results indicate that (1) price discrimination based on output is perceived as fairer than based on time, (2) for attributes that increase perceived value, a price premium is considered fair. Results indicate that (1) price discrimination based on output is perceived as fairer than based on time, (2) for attributes that increase perceived value, a price premium is considered fair.

Link to publisher version (URL)

European Marketing Academy Conference

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