Placement
Students on the Job Market
Students on the Job Market
Please note this page will be updated throughout the fall.
Marketing
Serena Hagerty
Abstract:
- Zero-Sum Perceptions Reduce Acceptability of Premium Offerings
- Many firms offer premium services that provide ease, expedience, and access to those who can afford them. These services provide clear benefits to the individuals who use them and the firms that may profit from them. However, anecdotal evidence suggests that many– particularly non- premium consumers – often believe that when firms offer premium services, the consumers of basic services are made worse off. Six studies demonstrate the importance of these zero-sum perceptions on the perceived acceptability of premium services. While it is morally acceptable for a firm to offer enhanced services at high prices, it is unacceptable for a firm to offer a premium service that detracts from the experiences of other customers. However, not all consumers react equally to zero-sum perceptions in their moral evaluations of premium services. Individuals with strong beliefs in upward mobility are less sensitive to zero-sum perceptions, such that they find premium services to be more acceptable, even when zero-sum perceptions are high. Contributing to norm violation literature, these studies show that beyond moral judgments, zero-sum perceptions may lead to negative evaluations of the firm and retaliation behavior.