Service fairness: What it is and why it matters

Executive Overview As consumer skepticism grows, companies are forced to compete for credibility in the marketplace. The customer confidence needed for long-term loyalty can be earned only by firms that establish an image of fairness. Fairness is especially important for service firms, whose product is intangible and difficult to evaluate, forcing consumers to rely on trust. When consumers are vulnerable or disadvantaged, violation of justice principles can trigger perceptions of unfairness. Such perceptions produce intense reactions from customers, who are often driven to get even with the firm.