Distributive fairness marketing focuses on ensuring that customers perceive the outcomes of their transactions as fair, particularly in relation to what they have contributed (inputs) compared to what others receive. This concept draws heavily on the principles of distributive justice, which examines how individuals assess the fairness of resource allocations. In marketing, this translates to ensuring that customers feel they are receiving value commensurate with their investment.
According to Franke, Keinz, and Klausberger (2013), distributive fairness centers on the perceived fairness of outcomes allocated to different exchange partners in relation to the inputs. This means that customers don't just consider their own outcomes in isolation; they compare them to others, and to their own effort or investment.
Understanding Distributive Fairness in Marketing
Distributive fairness in a marketing context is primarily about ensuring customers feel they receive the right value for their expenditure. It goes beyond simple pricing, it also incorporates the perceived value of product quality, service, and even the overall brand experience.
Key Elements of Distributive Fairness
Here’s a breakdown of the elements that impact the customer's perception of fairness:
- Input: What the customer gives up or contributes to the exchange. This could be money, time, effort, data privacy, or loyalty.
- Outcome: What the customer receives from the exchange. This includes the product/service itself, its quality, any associated benefits, discounts, or rewards.
- Comparison: How the customer's input-to-outcome ratio compares to others. This involves both individual and social comparisons.
Practical Examples of Distributive Fairness in Marketing
| Scenario | Input | Outcome | Perceived Fairness Impact |
|---|---|---|---|
| Discount Codes | Following Brand on Social Media | 10% off discount | If widely available, low impact. If exclusive, higher fairness. |
| Loyalty Program | Frequent Purchases | Exclusive Rewards/Points/Tier Status | Very high fairness perceived for loyal customers rewarded differently from one time purchasers. |
| Pricing Variations | Geolocation/Purchase History | Different price for same product | Can be seen as unfair without clear explanation. Transparency and clear justification are vital to maintain fairness perception. |
| Customer Service | Time spent waiting /Problem explaining | Helpful resolution and apology | Higher perception of fairness if the issue is resolved promptly and efficiently |
How to Achieve Distributive Fairness in Marketing
- Transparency: Clearly communicate pricing structures, terms of service, and any varying levels of rewards.
- Consistency: Avoid offering different deals or perks to different customers without a rational and transparent explanation.
- Value Focus: Ensure the product or service offers demonstrable value aligned with the price and customer input.
- Personalization: Offer customized deals and rewards based on loyalty, engagement, and purchase history. This can enhance the feeling of fair treatment.
- Effective Communication: When errors occur, communicate transparently, and provide appropriate compensation to restore fairness.
Distributive fairness is not about absolute equality but about perceived proportionality and justification. Customers expect to receive an outcome commensurate with their contribution. When this perception of fairness is violated, it can erode trust and loyalty.
By proactively addressing distributive fairness, businesses can cultivate stronger customer relationships, fostering loyalty and positive brand perception.
