The Effect of Perceived Price Fairness on Customers Loyalty Mediated by Customers Satisfaction and Perceived Switching Cost

The aim of this research is to develop a conceptual background that examines how perceived price fairness affects customer loyalty, with the mediating impact of two variables: customer satisfaction and customer loyalty. Perceived price fairness refers to the judgement customers have of the prices of a good or service being, just, satisfactory and rational. Generally, the customer’s judgment of price fairness impacts their level of satisfaction and loyalty behavior. In addition, perceived switching costs greatly impact customers willingness to maintain a relationship with the business. This study implemented the deductive approach using a sample population of 381student customers of markets/supermarkets in North Cyprus. Quantitative data has been obtained through the use of questionnaires and the above mentioned relationships are analyzed using SPSS statistical software. Results show that the impact of perceived price fairness on customer loyalty is significantly influenced by the levels of customer satisfaction and perceived switching costs. When prices are perceived as unfair, loyalty may still persist if a customer enjoys satisfaction or has high perceived switching cost for shopping from alternative markets. Keywords: perceived price fairness, customer satisfaction, customer loyalty, perceived switching cost, supermarkets in North Cyprus.