Revenue management in the context of movie theaters: Is it fair?

Choi, Choongbeom; Jeong, Mi‐Ae; Mattila, Anna S.

doi:10.1057/rpm.2014.30

Cited by 21 publications

(20 citation statements)

References 26 publications

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“…Much of the research in the domain of rate fences has focused on the perceived fairness of rate fences (e.g., C. Choi, Jeong, and Mattila 2015; S.…”

Section: Literature Reviewmentioning

confidence: 99%

A Tale of Two Cultures: Consumer Reactance and Willingness to Book Fenced Rates

Myungkeun

Noone

Mattila

2017

Journal of Travel Research

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Rate fences are integral to the practice of revenue management. Prior research suggests that cross-cultural differences in consumer reaction to rate fences exist but little is known about why this is so. This research employed two experimental studies with consumers from the United States and South Korea to explore the mechanisms underlying cultural differences in consumer reaction to nonphysical and physical rate fences. In Study 1, we found that feelings of reactance mediate the restriction-based nonphysical rate fence-willingness to book relationship for highly individualistic cultures, but not for highly collectivist cultures. Study 2’s findings suggest that consumers from low-context cultures favor product-based, over service-based, physical rate fences, while consumers from high-context cultures are unlikely to react differently to product-based, and service-based, physical rate fences. Together, the findings of Study 1 and Study 2 provide tourism managers a framework within which geolocation-based pricing strategies, and associated rate fences, can be evaluated.

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“…Much of the research in the domain of rate fences has focused on the perceived fairness of rate fences (e.g., C. Choi, Jeong, and Mattila 2015; S.…”

Section: Literature Reviewmentioning

confidence: 99%

A Tale of Two Cultures: Consumer Reactance and Willingness to Book Fenced Rates

Myungkeun

Noone

Mattila

2017

Journal of Travel Research

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“…The major part of research regarding dynamic pricing and revenue management has been done within traditional revenue management industries, such as airlines, hotels, and rental car companies (Denizci Guillet & Mohammed, 2015;Wang et al, 2015). Nevertheless, a number of studies have covered the non-traditional industries, such as attractions (e.g., Heo & Lee, 2009;Hoseason, 2006;Leask et al, 2013Leask et al, , 2000, national parks (e.g., Mejía & Brandt, 2015;Schwartz et al, 2012), cruise and ferry lines (e.g., Hoseason, 2000;Li et al, 2014;Namin et al, 2020;Sun et al, 2011), resorts (e.g., Pinchuk, 2006), golf clubs (e.g., Licata & Tiger, 2010;Noone et al, 2019), entertainment (e.g., Choi et al, 2015;Volpano, 2003), and sporting events (e.g., Barlow, 2000;Courty & Davey, 2020;Drayer et al, 2012;, 2014Shapiro et al, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

“…However, given that skiers' preferences are not evenly distributed, ski resort managers have to find effective ways to communicate the value of a skiing experience on a particular day based on customer needs and preferences and understandably justify why prices vary among the various days. Because customers claim to prefer easily understandable pricing schemes that are potentially available for all (see e.g., Choi et al, 2015;Kimes & Wirtz, 2003;Lynn, 1990).…”

Section: Conclusion and Managerial Implicationsmentioning

confidence: 99%

Dynamic pricing assuming demand shifting: the alpine skiing industry

Malasevska

Haugom

Hinterhuber

et al. 2020

Journal of Travel & Tourism Marketing

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Changes in a company's pricing strategy have the potential to influence profitability. Data from choice-based conjoint questionnaire were used to estimate revenue-maximizing dynamic prices accounting for both demand shifting and market expansion. The results show that dynamic prices induce greater demand and could increase revenue by 0.5% to 7.5%. Moreover, skiers have a strong preference and higher willingness-to-pay for good weather-related skiing conditions, suggesting that skiers prefer skiing during the midweek at a higher price, instead of on the weekend, if the skiing conditions are better in the midweek. Relevant implications are provided for practitioners.

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“…Because of its success in airline and hotel industries, researchers and practitioners have attempted to adopt it in a wide range of industries such as restaurants, theaters, casinos, etc. (Choi et al, 2015;Chiang et al, 2007).…”

Section: Industries Applying Revenue Management Practicesmentioning

confidence: 99%

Are customers ready to accept revenue management practices in the restaurant industry?

Etemad‐Sajadi

2018

IJQRM

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Purpose -The purpose of this research is to investigate the application of revenue management practices to the restaurant industry. We want to observe customers' readiness to accept revenue management practices based on price variation, booking policy, table management, and control duration. We also want to measure the impact of these four practices on customer patronage intention. Design/methodology/approach -A survey was conducted with 251 respondents. As we had several latent variables, we used partial least squares (PLS), a variance-based structural equation modeling method. Findings -We found that the majority of these practices are perceived unfair. The only two practices that are considered as fair are price variation between lunch/dinner, and cancellation in case of late. The most unfairly felt practice is the policy related time spent at the table. Results also showed that the perceived fairness of these practices influences customer patronage intention. We observed that price variation according to the lunch/dinner period, Weekday/Weekend period, and time of the day will influence the desire to frequent the restaurant. Booking policy will also impact customer patronage intention. Table management and control duration policies do not impact customer patronage intention, even if these practices are perceived unfair. Practical implications -Restaurant managers, desiring to apply revenue management practices, should be aware of the fact that practices linked to price variation will have a stronger influence on the customer intention to revisit the company than control duration practices. Moreover, restaurant managers must "educate" their clients by clearly communicating the advantages of these practices for the customers. Originality/value -Even if several studies focused on the fairness perceived of revenue management practices in hospitality industry, there is a lack of research about the impact of price variation and control duration on patronage intention, especially for the restaurant industry. This is the first time we measured the concrete impact of price variation, booking policy, table management, and control duration on patronage intention. Moreover, we integrated several new practices that have never been studied in the past such as the date of booking (e.g. 5% reduction if the booking was done 4 days in advance) or the fact of changing tables for dessert and coffee.

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Revenue management in the context of movie theaters: Is it fair?

Cited by 21 publications

References 26 publications

A Tale of Two Cultures: Consumer Reactance and Willingness to Book Fenced Rates

A Tale of Two Cultures: Consumer Reactance and Willingness to Book Fenced Rates

Dynamic pricing assuming demand shifting: the alpine skiing industry

Are customers ready to accept revenue management practices in the restaurant industry?

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