Abstract:
The concurrent use of customer centric marketing and perishable asset revenue management
practices can dampen demand as a result of unfairness perceptions. In this paper, we provide
a model for explaining variations in customer demand in capacity constraint firms taking into
account fairness judgements. According to our model, purchase decisions for services are
based on the evaluation of alternative service offerings and their prices. This evaluation is, in
turn, influenced by the coding of these service offerings. The rationale underlying this coding
phase is based on theories from behavioural decision making and psychology.
