IDEAS home Printed from https://ideas.repec.org/a/pal/jorapm/v15y2016i3d10.1057_rpm.2016.17.html
   My bibliography  Save this article

Revenue management, pricing and the consumer

Author

Listed:
  • Una McMahon-Beattie

    (Ulster University Business School, Ulster University)

  • Mairead McEntee

    (Ulster University Business School, Ulster University)

  • Robert McKenna

    (Ulster University Business School, Ulster University)

  • Ian Yeoman

    (School of Management, Victoria University of Wellington)

  • Lynsey Hollywood

    (Ulster University Business School, Ulster University)

Abstract

Revenue Management (RM) emerged as a specific discipline in the mid-1980s. However, despite the fact that it has been seen as a set of techniques to influence customer demand and exploit the consumer surplus, there has been a tendency for much of the research in the area to lack a consumer focus. What research there is tends to focus on three main areas, namely, the algorithm modelling of consumer behaviour, consumer trust and fairness and consumer-centric marketing. The purpose of this article therefore is to consolidate and synthesise existing consumer focused research in RM in these three key areas.

Suggested Citation

  • Una McMahon-Beattie & Mairead McEntee & Robert McKenna & Ian Yeoman & Lynsey Hollywood, 2016. "Revenue management, pricing and the consumer," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 15(3), pages 299-305, July.
    • Handle: RePEc:pal:jorapm:v:15:y:2016:i:3:d:10.1057_rpm.2016.17
    DOI: 10.1057/rpm.2016.17
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/rpm.2016.17
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/rpm.2016.17?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1986. "Fairness and the Assumptions of Economics," The Journal of Business, University of Chicago Press, vol. 59(4), pages 285-300, October.
    2. Dan Zhang, 2011. "An Improved Dynamic Programming Decomposition Approach for Network Revenue Management," Manufacturing & Service Operations Management, INFORMS, vol. 13(1), pages 35-52, April.
    3. Sumit Kunnumkal & Huseyin Topaloglu, 2010. "Computing Time-Dependent Bid Prices in Network Revenue Management Problems," Transportation Science, INFORMS, vol. 44(1), pages 38-62, February.
    4. Meissner, Joern & Strauss, Arne, 2012. "Network revenue management with inventory-sensitive bid prices and customer choice," European Journal of Operational Research, Elsevier, vol. 216(2), pages 459-468.
    5. Petr Fiala, 2012. "A framework for solving network revenue management problems with customer choice behavior," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 20(3), pages 383-392, September.
    6. Kalyan Talluri & Garrett van Ryzin, 2004. "Revenue Management Under a General Discrete Choice Model of Consumer Behavior," Management Science, INFORMS, vol. 50(1), pages 15-33, January.
    7. Jeffrey I. McGill & Garrett J. van Ryzin, 1999. "Revenue Management: Research Overview and Prospects," Transportation Science, INFORMS, vol. 33(2), pages 233-256, May.
    8. Qian Liu & Garrett van Ryzin, 2008. "On the Choice-Based Linear Programming Model for Network Revenue Management," Manufacturing & Service Operations Management, INFORMS, vol. 10(2), pages 288-310, October.
    9. Shadi Azadeh & M. Hosseinalifam & G. Savard, 2015. "The impact of customer behavior models on revenue management systems," Computational Management Science, Springer, vol. 12(1), pages 99-109, January.
    10. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard, 1986. "Fairness as a Constraint on Profit Seeking: Entitlements in the Market," American Economic Review, American Economic Association, vol. 76(4), pages 728-741, September.
    11. Sumit Kunnumkal, 2014. "Randomization Approaches for Network Revenue Management with Customer Choice Behavior," Production and Operations Management, Production and Operations Management Society, vol. 23(9), pages 1617-1633, September.
    12. Aurelio Mauri, 2007. "Yield management and perceptions of fairness in the hotel business," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 54(2), pages 284-293, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kwanglim Seo, 2019. "Same-day discounting’s effect on consumers’ evaluations of a hotel," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(2), pages 107-111, April.
    2. Andreas Hinterhuber & Sara Viberti, 2023. "Pricing practices of football and basketball clubs in Italy," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(3), pages 201-206, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Strauss, Arne K. & Klein, Robert & Steinhardt, Claudius, 2018. "A review of choice-based revenue management: Theory and methods," European Journal of Operational Research, Elsevier, vol. 271(2), pages 375-387.
    2. Paat Rusmevichientong & Huseyin Topaloglu, 2012. "Robust Assortment Optimization in Revenue Management Under the Multinomial Logit Choice Model," Operations Research, INFORMS, vol. 60(4), pages 865-882, August.
    3. Meissner, Joern & Strauss, Arne, 2012. "Improved bid prices for choice-based network revenue management," European Journal of Operational Research, Elsevier, vol. 217(2), pages 417-427.
    4. Sumit Kunnumkal & Kalyan Talluri, 2016. "On a Piecewise-Linear Approximation for Network Revenue Management," Mathematics of Operations Research, INFORMS, vol. 41(1), pages 72-91, February.
    5. Sierag, D.D. & Koole, G.M. & van der Mei, R.D. & van der Rest, J.I. & Zwart, B., 2015. "Revenue management under customer choice behaviour with cancellations and overbooking," European Journal of Operational Research, Elsevier, vol. 246(1), pages 170-185.
    6. Meissner, Joern & Strauss, Arne, 2012. "Network revenue management with inventory-sensitive bid prices and customer choice," European Journal of Operational Research, Elsevier, vol. 216(2), pages 459-468.
    7. Thomas W. M. Vossen & Dan Zhang, 2015. "Reductions of Approximate Linear Programs for Network Revenue Management," Operations Research, INFORMS, vol. 63(6), pages 1352-1371, December.
    8. Peng Hu & Stephen Shum & Man Yu, 2016. "Joint Inventory and Markdown Management for Perishable Goods with Strategic Consumer Behavior," Operations Research, INFORMS, vol. 64(1), pages 118-134, February.
    9. Wuyang Yuan & Lei Nie & Xin Wu & Huiling Fu, 2018. "A dynamic bid price approach for the seat inventory control problem in railway networks with consideration of passenger transfer," PLOS ONE, Public Library of Science, vol. 13(8), pages 1-23, August.
    10. Nicolas Houy & François Le Grand, 2015. "The Monte Carlo first-come-first-served heuristic for network revenue management," Working Papers halshs-01155698, HAL.
    11. Huang, Kuancheng & Lin, Chia-Yi, 2014. "A simulation analysis for the re-solving issue of the network revenue management problem," Journal of Air Transport Management, Elsevier, vol. 38(C), pages 36-42.
    12. Mika Sumida & Huseyin Topaloglu, 2019. "An Approximation Algorithm for Capacity Allocation Over a Single Flight Leg with Fare-Locking," INFORMS Journal on Computing, INFORMS, vol. 31(1), pages 83-99, February.
    13. Kavitha Balaiyan & R. K. Amit & Atul Kumar Malik & Xiaodong Luo & Amit Agarwal, 2019. "Joint forecasting for airline pricing and revenue management," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(6), pages 465-482, December.
    14. Paat Rusmevichientong & Zuo-Jun Max Shen & David B. Shmoys, 2010. "Dynamic Assortment Optimization with a Multinomial Logit Choice Model and Capacity Constraint," Operations Research, INFORMS, vol. 58(6), pages 1666-1680, December.
    15. Ødegaard, Fredrik & Wilson, John G., 2016. "Dynamic pricing of primary products and ancillary services," European Journal of Operational Research, Elsevier, vol. 251(2), pages 586-599.
    16. Shuyu Zhou & Yeming (Yale) Gong & René de Koster, 2016. "Designing self-storage warehouses with customer choice," International Journal of Production Research, Taylor & Francis Journals, vol. 54(10), pages 3080-3104, May.
    17. Li, Dong & Pang, Zhan, 2017. "Dynamic booking control for car rental revenue management: A decomposition approach," European Journal of Operational Research, Elsevier, vol. 256(3), pages 850-867.
    18. Dan Zhang, 2011. "An Improved Dynamic Programming Decomposition Approach for Network Revenue Management," Manufacturing & Service Operations Management, INFORMS, vol. 13(1), pages 35-52, April.
    19. Friesen, Mark, 2020. "A dynamic perspective on consumers’ price fairness perception: Empirical evidence from the airline industry," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 74(4), pages 403-425.
    20. Milad HajMirzaei & Koorush Ziarati & Alireza Nikseresht, 2022. "A customer type discovery algorithm in hotel revenue management systems," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(2), pages 200-211, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorapm:v:15:y:2016:i:3:d:10.1057_rpm.2016.17. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.