Not all that glitters is golden: The impact of procedural fairness perceptions on firm evaluations and customer satisfaction with favorable outcomes

Pragya Mathur and Shalini Sarin Jain

Journal of Business Research, 2020, vol. 117, issue C, 357-367

Abstract: Firms often strive to delight their customers and build strong customer-firm relationships by providing favored benefits to their customers. Drawing from the organizational justice literature, we show that even when customers receive favorable outcomes from distributively fair firm actions, considerations of procedural unfairness may adversely affect their firm evaluations. Procedural fairness salience and customers’ perceived relationship with the firm determine the extent to which procedural fairness affects firm-evaluations. Customers in communal relationships, focused on social/relational factors, are more sensitive to procedural fairness, leading to improved (diminished) firm evaluations when the procedure is perceived as fair (unfair). Those in exchange relationships are unaffected by procedural fairness and evaluate the firm based largely on outcome favorability. Firm trustworthiness mediates the impact of procedural fairness on evaluations. Implications of procedural fairness being driven by relational and non-instrumental considerations are discussed.

Keywords: Procedural fairness; Procedural fairness salience; Communal and exchange customer-firm relationships; Trustworthiness; Firm evaluation (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:117:y:2020:i:c:p:357-367

DOI: 10.1016/j.jbusres.2020.06.006

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