From ‘free’ to fee: Acceptability of airline ancillary fees and the effects on customer behavior

Sven Tuzovic, Merlin C. Simpson, Volker G. Kuppelwieser and Finsterwalder, Jörg

Journal of Retailing and Consumer Services, 2014, vol. 21, issue 2, 98-107

Abstract: Businesses in various consumer service industries have begun to unbundle their service offerings by introducing numerous fees for products and services that were previously provided as “free.†Anecdotal evidence in the media indicates that these fees cause widespread public displeasure, frustration, and outrage. This paper develops a framework of fee acceptability, negative emotions, and dysfunctional customer behavior, which is tested using data from the airline industry. Findings identify the strongest effects on betrayal in the case of baggage fees, followed by charges for comfort. Also, betrayal has a direct effect on complaining, whereas anger mediates the relationship between betrayal and negative word of mouth.

Keywords: Ancillary fees; Airlines; Service unbundling; Anger; Retaliatory behavior (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:21:y:2014:i:2:p:98-107

DOI: 10.1016/j.jretconser.2013.09.007

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