Examining the Impact of Multidimensional Price Fairness and Relationship Quality on Customer Engagement and Loyalty in Tourism & Hospitality Revenue Management

Abstract

The dissertation aims to investigate the different dimensions of price fairness and their impact on relationship quality and long-term relationship outcomes. Understanding how customers perceive price fairness is crucial as it can influence longterm relationships between customers and firms, especially for tourism & hospitality businesses, which extensively apply revenue management practices. This dissertation applies justice theories to explain different aspects of how customers evaluate the fairness of prices and how it can impact relationship quality (trust, commitment, and satisfaction). Further impacts of relationship quality on customer loyalty and customer engagement are also investigated. Data from 344 Thai domestic tourists were analysed using a structural modeling equation to investigate the relationships among the variables. The findings indicate that different dimensions of price fairness have different impacts on different dimensions of relationship quality. To highlight, procedural and informational fairness are shown to be important aspects of price fairness for building good relationship quality, whereas distributive fairness seems to be less crucial. In addition, the findings suggest that customer loyalty is heavily influenced by satisfaction, and customer engagement is heavily influenced by commitment. Hence, the findings provide in-depth insights into the conceptualisation of multidimensional price fairness and its consequences on the long-term relationship between customers and firms.