engleski

Dynamic pricing and customers' perceptions of price fairness in the airline industry

The application of Internet and other digital technologies has significantly influenced all elements of the marketing mix, including pricing. This is especially important in the context of service industries, such as hotels and airline companies, where digital technologies dramatically altered pricing policies. This process is dominated by dynamic pricing, a pricing discrimination technique which leverages real-time pricing and individualizes prices. Customers are aware that companies are charging different prices for the same products or services, but the issue of price fairness emerges. Unfavorable customers' perceptions of dynamically determined prices could lead to different consequences for the company, such as unfavorable word-of-mouth, unfavorable social media communication, and decrease in customers' loyalty. The aim of the article is to present the current scientific evidence on dynamic pricing and customers' perceptions of fairness of dynamically determined prices, with the focus on the airline industry. The importance of researching customers' perceptions of dynamic pricing is discussed and future research proposals are provided.

dynamic pricing; yield management; fairness; customers' perceptions; airline industry

nije evidentirano