How Do Consumers React to Bdpp? Negative Emotions, Their Antecedents, and the Spillover Effects

This research adopts a mixed-method approach to study the mechanism of customers’ reactions to big data-based personalized pricing (BDPP). Specifically, study 1 constructs a "cognition-emotion-behavior" model to demonstrate consumers’ reaction to BDPP by analyzing online review and combining it with literature research. Study 2 uses the empirical data from questionnaires to further verify the robustness of the model. The results show that two negative emotions mainly elicit, namely: anger and worry; both emotions come from the cognitive appraisal of specific events in BDPP, and anger comes from the perception of price unfairness (PPU) and perceived betrayal (PB), PB plays a partial mediating role between PPU and anger. Worry comes from privacy concerns; further, both negative emotions lead to discontinuous usage of shopping platforms and negative word-of-mouth. The study provides a comprehensive understanding of customers’ reactions to BDPP and responds to the call to study BDPP from the perspective of customers