Setting Fair Prices – Fundamental Principle Of Sustainable Marketing

In commercial area, the price has a major importance, being frequently considered among the main criteria used in buying decision process. Price fairness derives from equity theory and it is focused on assuring in a transaction a reasonable report between the customer’s sacrifice and the value offered by the seller. In three marketing experiments we have evaluated customers’ fairness perceptions of differential prices, this tactic being frequently used by sellers. One important finding was that the motive for setting differential prices is important in fairness evaluation. Price differences based on social motives are perceived fairer than those motivated by company’s interest. The differential prices on customer category are perceived fairer than zone prices. In all three marketing experiments it was demonstrated that price fairness has a significant influence on value perception and on buying intentions. Fair prices setting is one of the principles sustainable marketing is based on, reflecting a long term orientation for a company. By following this decisional direction, the commercial firm increases the value offered to its customers and it becomes more socially responsible.sustainable development, sustainable marketing, fair price, price fairness, differential prices, distributive fairness, procedural fairness

The Fairness of Pricing Tactics for Hotels: Perceptions of Romanian Customers

This study focuses on analysing the perceptions of pricing tactics the hotels from Romania use, and also on the degree of influence these perceptions have on buying intentions. Given the importance of perceived fairness, it is essential to understand the major factors that influence customers’ perception of the fairness of prices set by revenue management methods. A nationwide survey was conducted to identify the perception of fairness of the price setting methods, the perception of price fairness in relation to certain factors of influence, the perceived fairness of different pricing tactics, and the evaluation of price fairness for the latest experience in a hotel and the influence on the purchasing intentions. Structural equation modelling was used to assess the influence of distributive and procedural fairness on the perceived value and the buying intentions. The resulting model essentially shows that tourists who perceive a price as fair are inclined to consider the method used to set that price as correct. The main findings regarding revenue management-type approaches emphasize that the price setting method oriented on competition is considered the fairest method for setting prices. Most survey participants believe that the most frequent situation of unfair price is found in accommodation services. Among the unfair pricing tactics are, on the one hand the difference of prices based on the nationality of the customers (higher prices for tourists from abroad) and, on the other hand, the 9-ending prices. Offering lower prices for longer periods and for larger groups represents the fairest pricing tactics that hotels can use. The manners in which Romanian customers use to rate price fairness for hotel services mainly relies on the comparison of the current price to a previous one, and on their own belief of what fair price should be. The managerial implication of this study is linked to the setting prices decisions in order to be perceived as fair prices/tariff

Price search behaviour in digital markets – A perspective from Romania

Price represents a source of information customers may rely on in the buying decision making process. The literature in this area shows that on the Internet, the process of searching for price information is more complex than on traditional stores, being influenced by various factors. This paper aims to identify and describe the relations between two categories of variables. On the one hand there are the variables related to the price searching behaviour on the online environment, and on the other hand there are the variables related to the buying process. This research is based on a survey, the sample consisting of 1112 online buyers. The relationships between these variables were represented through a conceptual model based on a structural equation modeling approach. The main findings of the research show that the more a customer searches for price information online, the more he/she acquires abilities to search, becoming more predisposed to perceive a better value from shopping online and intending more to purchase from the Internet. The managerial implications concern the communication strategies adopted by online stores, the information provided by them influencing the perceived value of doing online shopping and the buying intentions on the Internet

Relationship Marketing Stage of Development in Romanian Banking Industry

The paper emphasizes the relationship marketing stage of development within the banking industry in Romania, by identifying the extent to which business objectives and marketing strategies of companies are customer oriented. In order to achieve this aim a qualitative marketing research was conducted, by applying in-depth semi-structured interviews. The target group of the research consisted of nine banking companies, selected according to the market share, while the research participants were employees responsible for marketing, sales and customer relationship management activities. Due to respondents’ expertise, during the interviews could be applied mixed research methods in the process of data collection and subsequently, in data analysis. According to research objectives and results, although there is an increase in the importance of customer orientation within banking policies, the integration of relationship marketing optics at the institutional management level is facing a number of deficiencies, especially with regard to the concerns about employees’ satisfaction and loyalty or to the development of relationships with other stakeholders. The degree of satisfaction with the adoption of customer relationship management technology is relatively high among banks, being appreciated mainly those banking performance achieved in terms of retention rate, cross-selling and customer satisfaction. Most banks use the gross customer retention index as the main indicator of customer portfolio stability, although retention objectives tend to be set differently depending on customer value. Internal marketing strategies are developed around staff training processes, while performance evaluation criteria are rather specific to a transactional marketing approach. Results of the research provide clues on the relationship marketing processes and activities that need to be improved, in order to strengthen the current customer base and the competitive position in the banking industry

The Social Responsibility of Retailers through the Eyes of Students of a Commerce Faculty – a Qualitative Approach

Retailers’ social responsibility is treated in the literature in association with such topics as trade justice, ethics, or fairness. The concept can be defined according to various dimensions, involving characteristics such as quality products, price fairness, honesty, and ethical interactions with consumers. This paper aims to evaluate students' attitude towards retailers’ social responsibility in implementing the strategic and tactical decisions about product, price, distribution and promotion. It is based on a qualitative research exploring the opinions of the students in business administration about this issue, both as consumers and prospective decision makers in the retail sector. The research was conducted in two focus groups, where the students played the roles of “consumers”, respectively “managers”. It was found out that there were differences in the responses of the two groups. The members of the “consumers” group were emotionally involved and they preferred a demand driven approach that focuses on finding solutions to their needs, while the members of the “managers” group have adopted a more detached attitude and they were concerned with the identification of gain as a consequence of social responsibility actions

Decision-Making Factors in the Purchase of Ecologic Products

This paper attempts to empirically investigate the main variables that might exert a significant influence over the green purchase decisions of a Romanian consumer. An online survey was conducted on a sample of 915 individuals. The objectives of the study aim to evaluate the influence of different types of variables (related to the person, the environment, the product and the reference group) on the decision to purchase green products. For data analysis, both descriptive statistics measurements and a logit regression model were used. One of the most important findings shows that there is a significant and positive relationship between environmental factors (e.g., pollution reduction, greenhouse effect reduction) and the decision to purchase organic products; furthermore, Romanian consumers are less willing to pay high prices for green products. By offering important information on new variables relevant for a deeper understanding of a consumer located in a green emerging market such as Romania, this study may be useful for both academics and companies that could be interested in entering new local markets

The impact of innovative commercial technologies on students’ behaviour of an economic university

In a dynamic business environment, implementing innovative commercial technologies facilitates the winning of new competitive advantages in the retail industry, given the manifested influence on consumer buying behaviour towards commercial units, as well as the significant contribution to the development of modern shops image. This paper presents the attitude of students from the Bucharest University of Economic Studies towards the adoption of innovative retail technologies within hypermarkets in Romania, based on a selective marketing research, conducted on a sample of 359 students from undergraduate and master cycles. The main objectives focused on identifying: the image of certain instruments belonging to the innovative commercial technologies in terms of usefulness in the process of buying; the intention to use innovative commercial technologies; the perception of the main advantages and disadvantages of using innovative commercial technologies in the buying process; the importance of commercial technologies in relation to other attributes underlying the development of a hypermarket image. Research results show a relatively low level of awareness among buyers, due to a reduced exposure to innovative commercial technologies, but a relatively high availability of acceptance in the purchasing process. Thus, there is a favourable assessment of the utility of commercial instruments in the buying process and a relatively high intention of use. The paper also highlights the influence of innovative commercial technologies on store image and loyalty of buyers

Decision-Making Factors in the Purchase of Ecologic Products

This paper attempts to empirically investigate the main variables that might exert a significant influence over the green purchase decisions of a Romanian consumer. An online survey was conducted on a sample of 915 individuals. The objectives of the study aim to evaluate the influence of different types of variables (related to the person, the environment, the product and the reference group) on the decision to purchase green products. For data analysis, both descriptive statistics measurements and a logit regression model were used. One of the most important findings shows that there is a significant and positive relationship between environmental factors (e.g., pollution reduction, greenhouse effect reduction) and the decision to purchase organic products; furthermore, Romanian consumers are less willing to pay high prices for green products. By offering important information on new variables relevant for a deeper understanding of a consumer located in a green emerging market such as Romania, this study may be useful for both academics and companies that could be interested in entering new local markets

Sustainable Social and Individual Implications of Telework: A New Insight into the Romanian Labor Market

This research aims to evaluate the individual and social implications of telework, along with the foreseeable permanent result that could be generated. Consistent with this objective, a survey has been carried out on a sample of 1180 Romanian employees, on which a model has been developed, based on structural equation modelling. The model includes five latent variables, on the one hand targeting telework features and on the other hand, its possible effects on individuals and society. At an individual level, the study results emphasize that telework could contribute to a better work–life balance and could also help teleworkers to develop specific teleworking abilities. At a social level, telework could generate sustainable effects targeting the long-term management of the work force and providing solutions to potential problems at local community levels. The managerial implications of this study are directed toward the need to implement a series of sustainable human resource management strategies and efficient employee training and development programs. Moreover, organizations need to be more proactive in assuming corporate social responsibilities