The effect of the type-pricing strategy on perceived price fairness and behavioral outcomes in beverage establishments

Lately, beverage establishments have grown in popularity by generating over US$18 billion in annual revenue in the United States, however research on this industry is very limited. The main purpose of this article is to investigate the influence of pricing strategies for beverage establishments on price fairness and the subsequent behavioral outcomes. In this article, we used a sequential transformative mixed method design. The first part of the study involved interviews with the managers of beverage establishments and a focus group study. In the second part of this study, a theoretical model was tested with an experimental design. The findings suggest that regular customers should be rewarded with more stable prices, while prices can be more varied for low‐patronage customers. As one of the first empirical studies in the context of beverage establishments, the results of this study broaden the understanding of pricing strategies in the context of beverage establishments and serves as a foundation for further research.