Over the last few years, ancillary fees have become a significant source of revenue for businesses in various service industries. The popular press in the U.S. has used the term “nickel and dimed” as companies charge consumers numerous (optional and otherwise) fees for new and/or those earlier considered as “free.” Despite media-focused controversy, cross- industry research on consumers’ perceptions of ancillary fees has been sparse. Based on attribution and fairness theory, the objective of this paper is to investigate consumer appraisals of being “nickel and dimed” in three consumer service industries (banking, hotels, and airlines). Implications for managers and researchers are discussed
