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  6. Has Revenue Management Become Acceptable? Findings from an International Study on the Perceived Fairness of Rate Fences

Has Revenue Management Become Acceptable? Findings from an International Study on the Perceived Fairness of Rate Fences

File(s)
Kimes26_Has_revenue_management.pdf (469.69 KB)
Permanent Link(s)
https://hdl.handle.net/1813/72346
Collections
SHA Articles and Chapters
Author
Kimes, Sheryl E.
Wirtz, Jochen
Abstract

Demand-based pricing is underused in many service industries, because customers are believed to perceive such pricing as unfair. Fencing can be highly effective in improving the perceived fairness of demand-based pricing. In this study, five fences were explored in a restaurant context across three countries (Singapore, Sweden, and the United States). Demand-based pricing in the form of coupons (two for the price of one), time-of-day pricing, and lunch/dinner pricing were perceived as fair. Weekday/weekend pricing was seen as neutral to slightly unfair. Table location pricing was seen as somewhat unfair with potential negative consumer reactions to this practice. Furthermore, framing demand-based pricing as discounts improved perceived fairness. The findings were largely consistent for the three countries. Specifically, framing demand-based pricing as discounts or gains showed no country-specific effect.

Date Issued
2003-01-01
Keywords
revenue management
•
pricing
•
perceived fairness
•
international
•
restaurants
Related DOI
https://doi.org/10.1177/1094670503257038
Rights
Required Publisher Statement: © SAGE. Final version published as: Kimes, S. E., & Wirtz, J. (2003). Has revenue management become acceptable? Findings from an international study on the perceived fairness of rate fences. Journal of Service Research, 6(2), 125-135. doi: 10.1177/1094670503257038 Reprinted with permission. All rights reserved.
Type
article

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