Abstract:
Simultaneous use of customer centric marketing
(CCM) and revenue management (RM) in
service firms can create conflicts and perceived
unfairness for customers. We introduce a conceptual
framework to describe purchase decisions for services
as a process involving utility judgements that are
adjusted by a reference-dependent fairness component.
Findings from focus group research with airline
passengers and hotel guests provide empirical support
for the role of fairness in customer decision making,
and for the influence of a set of antecedents on
reference point formation and resultant perceptions of
fairness.
