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

Author

Listed:
  • Sven Tuzovic
  • Merlin C. Simpson
  • Volker G. Kuppelwieser

    (Pôle Markets, Brands & Experiences - Rouen Business School - Rouen Business School)

  • Jörg Finsterwalder

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.

Suggested Citation

  • Sven Tuzovic & Merlin C. Simpson & Volker G. Kuppelwieser & Jörg Finsterwalder, 2013. "From 'free' to fee: Acceptability of airline ancillary fees and the effects on customer behavior," Post-Print hal-00909329, HAL.
    • Handle: RePEc:hal:journl:hal-00909329
    DOI: 10.1016/j.jretconser.2013.09.007
    as

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