Role of need for closure on perceived price fairness

Abstract

In contemporary years, need for closure as a driver of consumer behaviour has received significant attention. The present research would extend the extant pricing literature by including a cognitive factor, i.e., need for closure, which is predicted to have a substantial impact on perceived price fairness. When exposed to negative and/or undesirable incident such as price increase, need for closure (low vs high) influences cognitive attribution. Moreover, this cognitive attribution would thereby influence price fairness perceptions. It is significant for managers and marketers to comprehend the effect of cognitive need for closure on perceived price fairness so as to maintain positive customer's perception of price, which can result in positive outcomes and enhance firms' competitiveness.