THE EFFECT OF PERCEIVED PRICE FAIRNESS ON CUSTOMER SATISFACTION: THE CASE OF ADAMA STEEL AND NAIL FACTORY, EAST SHOA OF OROMIA REGION, ETHIOPIA

Abstract

The purpose of the study is to examine the effect of perceived price fairness on customer satisfaction in the case of Adama Steel and Nail Factory. Data for the current study were collected from 400 customers; the unit of analysis of the current study was customers of the case company in Adama City. Descriptive statistics, correlation, and multiple linear regressions were used to analyze data. The study showed that there is a significant Pearson correlation between the variables included in the study. Furthermore, the multiple linear regression results revealed that perceived price fairness, product quality, and service quality significantly affect customer satisfaction at a 5% level of significance. Based on these findings the company should have to increase perceived price fairness to increase customer satisfaction.