Why do consumers think it is fair to pay more when buying from producers versus retailers

Consumers in today’s multi-channel marketplace have an abundance of choice, in terms of both the number of products available to buy and the number of channels from which to make purchases. However, minimal research to date explores consumers’ cross-channel price perceptions. Two studies (each from the consumer’s perspective) compare fair prices across channels, providing initial evidence that producers (i.e., brands’ direct channels) can charge a higher price than retailers (e.g., department stores) for the exact same product. The authors build on this intriguing finding by discussing directions for future research on consumer price perceptions in the multi-channel marketplace.