Perceived fairness and trust in consumer's reactions to revenue management

This paper explores interventions of perceptions of fairness and trust in the relationships between the practice of revenue management and consumer satisfaction. The consumers, when confronting discriminations during the buying process or the selling period, may perceive unfair transactions and some untrustworthy firms. Satisfaction may decrease accordingly. Using structural equation modelling, the analysis of responses to a survey of international travellers finds a negative influence of price variations on perceptions and attitudes. The results document a mediation of perceived fairness, trust on satisfaction. As an implication, revenue managers should tailor their pricing schemes to maintain trust in the firm.