Abstract:

This research has been conducted to explore the effects of consumer ethnocentrism and fairness perceptions of consumers on behavioral intentions of consumers when faced with price increases made by foreign or local firms with low and high market shares This study also tried to analyze whether consumers suspect the motives behind price increases of the firms These research objectives have not been examined in Turkish marketing society extensively The dual entitlement principle attribution theory and consumer ethnocentrism concepts have been used in the conceptual framework of the study Subjects were exposed to one of the four different fictional scenarios before responding to the questions and statements in the questionnaire The findings revealed that consumer ethnocentrism had a significant effect on purchase intention for high market share foreign firm while perceived fairness had significant effect for high and low market shareTurkish firms and low market share foreign firm It was also seen that “profit” was evaluated as the major motive for raising prices and consistent with the DE principle subjects responded negatively to “fairness of price increase due to extraction of higher profits” for all firms On the other hand price increases due to “rising costs” or “quality improvement” were assessed to be fair

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