Fairness Case Study

1057 Words5 Pages
Many types of research indicate that being successful in business is directly proportional to fairness. Hence, numerous employees theoretically figure out the importance of fairness in business when starting their careers. However, the facts in the business world are different. Specifically, many western experts have developed their arguments on this issue since nearly 30 years. According to (Velasquez, et al, 1990) discussions about fairness have a long time tradition in Western civilization. Recently, there is a significant debate between employees, managers, and customers related to the issue of fairness in business. Initially, the definition of fairness must be explained clearly in order to do a rational analysis. Warlop (2003) pointed…show more content…
In particular, the behaviour of employees and managers in labour intensive sector such as hotels, banking etc. with each other and their customers may depend on the degree of fairness. Fairness is a virtue which shows high standard behaviour according to Rubin, (2011). Also, revenue management is one of the most significant issues between customers and employees in terms of price fairness. Yeoman (2000) pointed out that yield management includes many techniques which are convenient for separating limited sources, such as hotel rooms or airplane seats, between different customers. For this reason, the purpose of this essay is to determine yield management and perceptions of fairness in the hotel business. Also, this paper is organized into four sections including an introduction. The second part will introduce and find the concept of perceived fairness. In addition, the third part is going to focus on the integration between revenue management and the development of customer focused systems. Finally, this paper conclusion will explain with some remarks concerning ethical situation linked to the adaptation of yield management…show more content…
Clients may understand yield management as an opportunistic behaviour of the business company and the prediction of these practices as unfair. As a result of this situation, customers’ confidence and loyalty against the hotel brand may decrease significantly. Also, fairness perceptions are related to company profitability (Kahneman, et al, 1986). The emotion of fairness has been studied especially with regard to pricing policies. However, sense of unfairness may also relate to the determination that affects the nature of the service itself or decrease the service quality. Moreover, as can be seen, some techniques for inventory control which is capacity restriction and overbooking, may lead to comprehending unfairness as well. According to empirical and theoretical studies, the considerable effect of fairness price perceptions there can be seen many lists. In addition, there are many considerable impacts of fairness price perceptions (Xia, et al, 2004). Firstly, similarity and choice of comparative other parties; transactions might be different for multiple reasons. For instance, different service qualities, proportions, purchase process, timing, etc. Also, the special features of the sides involved are significant issue (Martins and
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