Summary: Information Disclosure

1115 Words5 Pages
2.5 Information Disclosure Under globalisation and the growing of Internet, information are more easily being accessed by the customer. However, as suggested in the research by Ferguson & Ellen (2013), when the brand takes an active role making the information of price change available, there would be a positive impact on perceptions of fairness. Simintiras et al. (2015) proposed that having clear and available price change information allows consumer to judge the price fairness as consumer can evaluate the best alternative in the market for the consideration. Besides, accurate and easily comprehensible price information is having an impact on consumers’ perceived price fairness (Diller, 2008). Thus, the following hypothesis are stated: Hypothesis…show more content…
As pricing is a critical for consumer when deciding whether buying that product, failing in being transparent about the product price may foster distrust toward the brand (Ferguson & Ellen, 2013). On the other hand, if the firm acts transparently would be treated as fair, thus builds goodwill and trust between customers. In the research of Mittal & Agrawal (2016), in the case of Wal-Mart stores, the fairness of the price transparency practices is posting a certain effect on customers’ assurance of their own…show more content…
A conceptual framework has been constructed to show the hypothesis relationships of transparent pricing and its antecedents. The conceptual framework of this study consists of four major components. They are (1) strategies of transparent pricing, consumers’ perception including (2) perceived price fairness, (3) perceived brands credibility and consumer assurance; lastly (4) consumers’ response respectively. For the first component, strategies of transparent pricing, that includes information disclosure and information symmetry. It is being treated as an independent variable that influences the perceived price fairness. The second component, perceived price fairness, is a dependent variable of the third component which is the perceived brand’s credibility and consumer assurance. At the same time, it is also an independent variable of the first component (i.e. strategies of transparent
Open Document