How Power States Influence Consumers' Perceptions of Price Unfairness

Abstract

The present research explores how the power state interacts with comparative references in shaping consumer perceptions of price unfairness. Five experiments found that high-power consumers perceive stronger price unfairness when paying more than other consumers do, whereas low-power consumers perceive stronger unfairness when paying more than they themselves paid in previous transactions. The distinction occurs because consumers experience a threat to their self-importance from different types of disadvantaged comparisons depending on their power states. These results show that the state of power determines consumers' respective channels for maintaining their self-importance and alters the relevance of different comparative standards.