Measuring Price Fairness: Development of a Multidimensional Scale

ABSTRACT

Although differential pricing strategies in the tourism industries have raised fairness issues so far, price fairness studies from a consumer perspective are still lacking as opposed to pricing research based on the managerial approach. Thus, this study developed a scale to measure price fairness in line with the procedures recommended by the literature, and tested if the proposed items and dimensionality of the construct best fit the empirical data. Consequently, it was found that price fairness embraces two dimensions of cognitive and affective fairness. The valid and reliable measurement of price fairness may have far reaching theoretical and managerial implications.

KEYWORDS:

• Affective price fairness
• ancillary fees
• cognitive price fairness
• price fairness
• revenue management
• scale development

ORCID

Jin Young Chung http://orcid.org/0000-0001-6951-0621

Additional information

Notes on contributors

Jin Young Chung

Jin Young Chung is Assistant Professor, College of Northeast Asian Economics and Commerce, Incheon National University, 119 Academy-ro, Yeonsu-gu, Incheon, 406–840, South Korea (E-mail: [email protected]).

James F. Petrick

James F. Petrick, PhD, Department of Recreation, Parks and Tourism Sciences, Texas A&M University, TAMU 2261 College Station, TX 77843–2261, USA (E-mail: [email protected]).