The Effects of Customer-Centric Marketing and Revenue Management on Travelers’ Choices

Mathies, Christine;Gudergan, Siegfried P.;Wang, Paul Z.

Abstract

This article examines how the simultaneous use of customer-centric marketing (CCM) and revenue management (RM) affects travelers’ perceptions of fairness and ultimately their purchasing choices. To address this issue, we propose and empirically test a choice model that incorporates reference-dependent fairness adjustments for both price and nonprice attributes within a random utility framework. The findings from two empirical studies using stated-preference choice experiments show that travelers engage in fairness-related reference point comparisons for price and other product attributes induced by RM and CCM. They offer additional evidence concerning the need to account comprehensively for attributes associated with both RM and CCM when predicting customer demand in travel and tourism firms. Accordingly, firms need to account not only for the effects of RM and CCM attributes but also for the corresponding reference-dependent fairness adjustments relating to those attributes.

Journal

Journal of Travel Research

Publication Name

N/A

Volume

ISBN/ISSN

1552-6763

Edition

N/A

Issue

Pages Count

Location

N/A

Publisher

Sage Publications

Publisher Url

N/A

Publisher Location

N/A

Publish Date

N/A

Url

N/A

Date

N/A

EISSN

N/A

DOI

10.1177/0047287513478499