When size doesn't matter: the impact of unexpected surcharges on consumer reactions

Service firms increasingly use surcharges on complimentary items, yet little is known about how consumers respond to these charges. Across five studies in the restaurant context, we show that even nominal surcharges elicit negative consumer responses. Specifically, adding surcharges to complimentary items lowers engagement with advertisements. Furthermore, even a one-cent surcharge reduces perceived fairness and revisit intention. These effects arise because such surcharges violate communal norms, a type of relationship norm emphasizing genuine concern for others and acts of goodwill. By contrast, the negative effect disappears when exchange norms are activated, while it persists under communal norm activation. Together, these findings advance research on consumer responses to small surcharges on complimentary items and offer practical guidance on how service firms can communicate surcharges to mitigate negative reactions.