Variable Details:


Bolton, Lisa E., Luk Warlop, and Joseph W. Alba (2003), "Consumer Perceptions of Price (Un)Fairness", Journal of Consumer Research, 29, 474-491.



  • Participants were given prices for blouses at two stores. At store A, the blouse was priced at $29.95; at store B, the blouse was priced at $39.95. Overall costs and net profit were held constant. Respondents were then given an explanation for the price difference and asked to assess the fair price of the blouse at each store: “Store A charges a lower price because it follows a ‘volume strategy.’ It charges a lower price, which increases sales; with a lower margin per sale but higher volume of sales, it makes the same profit as Store B. Store B, following a ‘margin strategy,’ charges a higher price; its lower volume of sales is offset by a higher margin in order to make the same profit.”