Abstract
On 4 January 1996 a young woman named Denise Katzman filed a class action lawsuit against Victoria’s Secret, the popular lingerie brand. Her bone of contention? A colleague of hers received a catalog in which the same product was offered at a lower price. Was there a lot of money at stake? Not really. She was offered the product at a $10 discount while her colleague was offered a $25 discount. The absurdity of the situation becomes a little more apparent if you take into account the legal fees—$5000—she had to pay for the entire litigation process. It gets even curioser and curioser! It turns out that her colleague who was unfairly “favored” by Victoria’s Secret was male, which likely (though not definitively) indicates that her colleague may not even be in a position to “enjoy” that differential discount.
Unfairness is in the eye of the beholder.
Anonymous
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Farago, R. (2010), Dynamic Pricing Leaves Some Consumers Spending More Than Others, http://www.zippycart.com/ecommerce-news/1185-dynamic-pricing-leaves-consumers-spending-more/, date accessed 2 November 2014.
Streitfeld, D. (2000), On the Web, Price Tags Blur, Washington Post, 27 September, A01.
Anderson, Eric T. and Simester, Duncan I. (2008), Does Demand Fall When Customers Perceive That Prices Are Unfair? The Case of Premium Pricing for Large Sizes, Marketing Science, Vol. 27, No. 3, May-June, 492–500.
Gourville, John T. (1999), Note on Behavioral Pricing, Harvard Business School, 9–599-114, 25 May.
Heat Playoff History 1997, http://www.nba.com/heat/history/playoff_history_1997.html, date accessed 2 November 2014.
Moore, Stephen (2006), Time for Action On Huggable, Lovable Dolls, Wall Street Journal, 24 November.
Richtel, Matt (2007), A Year Later, the Same Scene: Long Lines for the Elusive Wii, New York Times, 14 December.
Stoller, G. (2008), Fees Rising for Extra Checked Bags and Overweight Luggage, USA Today, 19 February.
Consumer Reports Magazine (2011), Carriers Continue to Squeeze With Fees, http://www.consumerreports.org/cro/magazinearchive/2011/june/money/airlines/airline-fees/index.htm, date accessed 2 November 2014.
Maynard, M. (2008), The Catch Phrase is “A La Carte” as Airlines Push Additional Fees, New York Times, 19 June.
Graham, J., Haidt, J. and Nosek, B. A. (2009), Liberals and Conservatives Rely on Different Sets of Moral Foundations, Journal of Personality and Social Psychology, 96, 1029–46.
Reinartz, Werner and Kumar, V. (2002), The Mismanagement of Customer Loyalty, Harvard Business Review, Product No. 1407.
Hilsenrath, Jon E. and Sanders, Peter (2005), Inflation Toehold? Firms Gain Power to Boost Prices, New York Times, 2 November.
Chase, Marilyn (2007), Blind Ambition: Genentech’s Big Drug for Eyes Faces a Rival, Wall Street Journal, 22 February.
Whoriskey, Peter and Keating, Dan (2013), An Effective Eye Drug is Available for $50 But Many Doctors Choose a $2,000 Alternative, Washington Post, 7 December.
Bolton, L. E., Warlop, L. and Alba, J. W. (2003), Consumer Perceptions of Price (Un)Fairness, Journal of Consumer Research, 29 (4), 474–91.
Williams, Daniel R., Vogt, Christine A. and Vittersø, Joar (1999), Structural Equation Modeling of User’s Responses to Wilderness Recreation Fees, Journal of Leisure Research, Vol. 31, No. 3, 245–68.
Kotler, Philip and Waldemar, Pförtsch (2010), Ingredient Branding — Making the Invisible Visible, Springer.
Hays, C. L. (1999), Variable-Price Coke Machine Being Tested, New York Times, 28 October.
Leonhardt, D. (2005), Why Variable Pricing Fails at the Vending Machine, New York Times, 27 June.
Angwin, Julia and Mattioli, Dana (2012), Coming Soon: Toilet Paper Priced Like Airline Tickets, Wall Street Journal, 5 September, http://online.wsj.com/articles/SB10000872396390444914904577617333130724846, date accessed 2 November 2014.
Federal Trade Commission (2006), Investigation of Gasoline Price Manipulation and Post-Katrina Gasoline Price Increases, Report, Spring, http://www.ftc.gov/reports/federal-trade-commission-investigation-gasoline-pricemanipulation-post-katrina-gasoline, date accessed 2 November 2014.
Welborn, A. A. and Flynn, A. M. (2005), Price Increases In the Aftermath of Hurricane Katrina: Authority to Limit Price Gouging, CRS Report for Congress, #RS22236 (2 September), http://fas.org/sgp/crs/misc/RS22236.pdf date accessed 2 November 2014.
scnow.com (2009), SC AG Ends Investigation Over Gas Price Gouging, 9 July, http://www.scnow.com/news/state/article_70496394-de0f-5195–9c39-f227a3390ec6.html, date accessed 2 November 2014.
State of South Carolina Office of the Attorney General (2009), Gas Price Gouging Report, 25 June, http://www.scattorneygeneral.com/newsroom/pdf/2009/gaspricegouging.pdf date accessed 2 November 2014.
Badertscher, N. (2005), 15 Cited for Gouging Gas Prices, Atlanta Journal-Constitution, November 16, Home Edn, 1B.
Author information
Authors and Affiliations
Copyright information
© 2015 Amitav Chakravarti and Manoj Thomas
About this chapter
Cite this chapter
Chakravarti, A., Thomas, M. (2015). Paying for medicines and Tickle Me Elmo. In: Why People (Don’t) BUY. Palgrave Macmillan, London. https://doi.org/10.1057/9781137466693_8
Download citation
DOI: https://doi.org/10.1057/9781137466693_8
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-49988-5
Online ISBN: 978-1-137-46669-3
eBook Packages: Palgrave Business & Management CollectionBusiness and Management (R0)