The product category role in the perceived price fairness of multichannel price differentiation strategies

Purpose The purpose of this study was to identify the role of product category in consumers' price fairness perception of cross-channel price differentiation strategies in multichannel retail. Design/methodology/approach Experimental method based on a scenario approach was used, employing the between-subjects research design. 898 respondents assessed their perception of price fairness, measured on a three-item scale (acceptable, justifiable, reasonable). Three product categories of different purchase frequency (toys, cosmetics, food & beverages) were tested in scenarios where cross-channel discount and purchase urgency were manipulated. Nonparametric independent samples tests, regression SPSS PROCESS macro (Hayes, 2012), and artificial neural networks (Multilayer Perceptron) were used to analyse the data. Findings First, the low cross-channel price discount (−10%) should not impact the customer fairness perception in comparison to the price parity scenario, in a situation where online order delivery costs are assumed. Second, the price discount online is perceived as less fair in more frequent-purchase product categories, such as cosmetics or food & beverages. Third, age relates to a more favourable assessment of price differentiation strategies: the 55+ respondents assess it the most fair, while 18–24-year-old respondents assess it the least fair. Originality/value This study, to our knowledge, is the first to analyse frequently purchased products in the context of price fairness of cross-channel price difference strategies implementation in multichannel retail. It extends the scope of product categories, and depth of discount, and includes purchase urgency, and the channel/delivery scheme choice.