This study examines the intricate dynamics between price discrimination, inferred motives, price fairness perception, and switching costs, focusing on their collective impact on consumer behavior. Price discrimination, a common profit-maximization strategy, can significantly influence perceptions of fairness, particularly when consumers evaluate a firm's underlying motives. This research highlights how inferred motives—whether perceived as positive (e.g., resource optimization) or negative (e.g., market exploitation)—mediate the relationship between price discrimination and price fairness perception. Furthermore, switching costs, which encompass financial, relational, and psychological dimensions, serve as a critical moderating factor in determining consumer responses to price discrimination.

The study adopts a quasi-experimental design utilizing scenarios and surveys to measure these effects within the oligopolistic GSM market in Azerbaijan. Findings suggest that while price discrimination practices generally evoke fairness concerns, inferred motives play a pivotal role in shaping consumer perceptions. Negative motives amplify perceptions of unfairness, potentially deterring repurchase intentions. However, high switching costs mitigate these effects, encouraging consumer retention despite perceived unfairness.

This research contributes to the marketing literature by integrating inferred motives and switching costs into the broader framework of price fairness perception and consumer loyalty. The results emphasize the importance of transparent communication of pricing strategies to alleviate fairness concerns and sustain long-term consumer relationships. Insights from this study offer practical implications for businesses operating in competitive markets, enabling them to balance profitability with ethical pricing practices while leveraging switching costs to maintain customer loyalty.