Fairness through Transparency: The Influence of Price Transparency on Consumer Perceptions of Price Fairness

This study proposes that price transparency is a significant factor affecting customer judgments of the fairness of sellers’ prices. Cognitive judgments of fairness require a certain amount of information processing; therefore, the level of transparency and the amount of price information affect fairness judgments. The more clear information consumers possess concerning seller prices, the more positive the judgment will be. Customer price fairness judgment is an effective measurement for the evaluation of customer satisfaction that can increase the attitudinal loyalty of customers to the seller. The impact of price transparency on judgments of price fairness and the effects on satisfaction and loyalty are tested using a structural equation model and a sample of 1,459 passengers of a major European train company.