Examining the Impact of Price Fairness on Customer Satisfaction and the Relationship between Customer Satisfaction and Customer Loyalty in the Context of Revenue Management Practices

Abstract

This paper examines the impact of different dimensions of price fairness on customer satisfaction and the further impact of customer satisfaction on customer loyalty. Revenue management shifted to focus more on customers, increasing the importance of understanding how customers perceived price and its consequences on business. Justice theories are applied to explain price fairness in four dimensions: distributive, procedural, interpersonal, and informational. The data are collected from 315 Thai domestic tourists staying in a 3-5 star hotel. The result shows procedural, interpersonal, and informational fairness can influence customer satisfaction. Additionally, customer satisfaction can impact customer loyalty. The findings provide further insights into the multidimensional views of price fairness and its consequences.