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.