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

Tuzovic, Sven, Simpson, Merlin C., Kuppelwieser, Volker G., & Finsterwalder, Jörg (2014) From ‘free’ to fee: Acceptability of airline ancillary fees and the effects on customer behavior. Journal of Retailing and Consumer Services, 21(2), pp. 98-107.

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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.

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1 citations in Scopus
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ID Code: 86238
Item Type: Journal Article
Refereed: Yes
Keywords: Ancillary Fees, Airlines, Service Unbundling, Anger, Retalatory Behavior
DOI: 10.1016/j.jretconser.2013.09.007
ISSN: 0969-6989
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > MARKETING (150500) > Marketing Management (incl. Strategy and Customer Relations) (150503)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Management
Deposited On: 05 Aug 2015 23:22
Last Modified: 18 Aug 2015 01:51

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