Price fairness

The purpose of this article is to integrate the various strands of fair price research into a concise conceptual model.

The proposed price fairness model is based on a review of the fair pricing literature, incorporating research reported in not only English but also German.

The proposed fair price model depicts seven components of a fair price: distributive fairness, consistent behaviour, personal respect and regard for the partner, fair dealing, price honesty, price reliability, and influence/right of co‐determination.

Since buyers' purchase decisions are influenced by their subjective perception of price fairness, sellers need to understand what constitutes a fair price.

This model provides a concise representation of the multi‐dimensional concept of price fairness. It identifies aspects of a fair price which have hitherto received little research; for example, the need for personal respect for the partner and the right of co‐determination.