Abstract:
Capacity constrained service firms simultaneously employ customer centric marketing (CCM)
and perishable asset revenue management (PARM), which can create conflicts and perceived
unfairness for the consumer. We first introduce a conceptual model to explain variations in
customer demand as a result of fairness judgements. According to our model, purchase
decisions for services are based on a) utility judgements of their product and price attributes,
and b) a coding phase to adjust for any fairness issues. Focus group research provides first
empirical support for all but two constructs of the model, and clarifies which PARM and
CCM attributes matter most for airline travellers.
