부산대학교 도서관

Many passengers hold frequent flyer program miles which function as currency, but are not cash. As passengers are increasingly able to pay for airline tickets and services in various combinations of currencies, an understanding of how passengers react to combined-currency pricing is important for airline managers. Based on a cognitive perspective, this research explores factors that affect passengers' decisions to spend or keep their accumulated miles. Specifically, this research examines how computational ease, price discount framing (dollars-off versus percentage-off) and calculation motivations (high price versus low price) influence passengers' preference for combined-currency pricing. We found that passengers are more likely to choose combined-currency when they can easily compute the savings by using the accumulated miles. Furthermore, when the ticket price is high, combined-currency pricing with computational ease and dollars-off framing leads to higher willingness to spend the accumulated miles. Passengers prefer to select combined-currency pricing with computational ease and percentage-off framing when the ticket price is low.