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

Sa？etak The application of the Internet and other digital technologies has had a considerable influence on 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, and the issue of price fairness has also emerged. Unfavorable customers' perceptions of dynamically determined prices could lead to different consequences for the company, such as negative word-of-mouth and social media communication, and a decrease in customer 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