
The Price of Power: How Firm’s Market Power Affects Perceived Fairness of Price Increases
How does? Market power effect the consumer purchase attention and buying behavior? To answer our research question in hypothetically and significant important perspective of price increase, we illustrate that (i) when the price increase is due to cost of goods sold consumer price fairness observation will decay with market power (ii) this fairness issue increase due to greater awareness of controllability of the firms with high market power (iii) when the price increase is not in the control of firms (and in this way saw as similarly reasonable for firms. with high and low market power). In our research above, predictions are empirically supported through quantitative studies of the survey. To address the research problem, we collect the data through convenience sampling from the consumers of Retail outlets. Our findings highlight how firm market power and pricing strategies influence the consumer awareness of price unfairness and the firm’s competition in the retail marketplace.