The effects of procedural and distributive fairness in supplier-buyer relationships

Fairness has until recently rarely been studied in supplier-buyer relationships. The purpose of this study is to enrich the well-established perceived value satisfaction behavioral intention framework by considering the direct and moderating effects of both procedural fairness and distributive fairness. The suggested extended model is tested in the social couponing industry through a survey on a sample of firms purchasing advertising services from a daily deal website. The findings highlight both a direct effect of procedural fairness on satisfaction and a direct effect of distributive fairness on behavioral intentions. Finally, the analysis shows a negative moderating effect of procedural fairness on the relationship linking market performance to satisfaction. High levels of procedural fairness may in part compensate for low market performance and thereby avoiding a reduction in satisfaction.