Reactions to a Price Increase: What Makes it Seem Fair

Abstract

Purpose – This study intends to investigate if the Basic Fairness Model (Rutte and Messick 1995) is supported across cultures in Brazil, Germany and the United States. Design/methodology/approach - To test the model across cultures, structured focus groups were conducted in Germany, Brazil and the United States. Findings - The Focus groups generally supported the basic fairness model, although with a few modifications and additions. Culture affects understandings of appropriate behavior. Research limitations/implications - To a great extent, the difference in the Focus group participants’ responses reflected the realities of their different environments. There are also no doubt differences in how different businesses operate. Such differences can lead to perceptual differences.