Price Fairness Scale

The Price Fairness Scale (PFS), developed by Xia, Monroe, and Cox (2004), measures customer perception of whether a charged price is fair and reasonable relative to value received and market comparison. Price fairness assessment differs from absolute price satisfaction: customers may perceive a price as high but fair if quality justifies it, or as low but unfair if they suspect price discrimination or exploitation. The PFS captures three dimensions of price fairness judgment: Distributive Fairness (whether the price-value ratio is equitable), Procedural Fairness (whether the pricing process is transparent and non-discriminatory), and Interactional Fairness (whether pricing explanations are respectful). The scale is critical for premium pricing strategy, price increases, and dynamic pricing implementation.