Research Article The effect of the type-pricing strategy on perceived price fairness and behavioral outcomes in beverage establishments Received (in revised form): 11th November 2013 Milos Bujisic a , Anil Bilgihan b and Joe Hutchinson a a University of Central Florida, Orlando, FL; and b Florida Atlantic University, Boca Raton, FL Milos Bujisic is a PhD candidate at the Rosen College of Hospitality Management, University of Central Florida. Before perusing a PhD, in Hospitality Management. He served for 5 years as a general manager of several food and beverage establishments and additional 5 years as a sales manager. Anil Bilgihan is an Assistant Professor at the Florida Atlantic University, College of Business. He earned his PhD from Rosen College of Hospitality management, Master of Science degree from university of Delaware in Hospitality Information Management. His Bachelor of Science in computer technology and information systems is from Bilkent University. He has several academic publications in the area of e-commerce and Information Systems. He serves on the editorial board of international journals. Joe Hutchinson is an Associate Professor and Chair of the Department of Foodservice and Lodging Manage- ment. He has a number of years of management consulting experience with large international accounting/ consulting firms. He also was involved in the management of both chain and independently operated casual theme restaurants. He has taught courses in restaurant management, food and beverage cost controls, club management, tourism management, casino management, hospitality accounting, hospitality finance, intro to hospitality, guest services, hospitality law and timeshare operations. His research interests include customer satisfaction, service quality, golf travelers and destination marketing. Correspondence: Milos Bujisic, University of Central Florida, 9907 Universal Blvd, Orlando, FL 32819, USA. ABSTRACT Lately, beverage establishments have grown in popularity by generating over US$18 billion in annual revenue in the United States, however research on this industry is very limited. The main purpose of this article is to investigate the influence of pricing strategies for beverage establishments on price fairness and the subsequent behavioral outcomes. In this article, we used a sequential transformative mixed method design. The first part of the study involved interviews with the managers of beverage establishments and a focus group study. In the second part of this study, a theoretical model was tested with an experimental design. The findings suggest that regular customers should be rewarded with more stable prices, while prices can be more varied for low-patronage customers. As one of the first empirical studies in the context of beverage establishments, the results of this study broaden the understanding of pricing strategies in the context of beverage establishments and serves as a foundation for further research. Journal of Revenue and Pricing Management (2014) 13, 35–60. doi:10.1057/rpm.2013.38 Keywords: beverage establishments; revenue management; mixed method; price fairness; pricing © 2014 Macmillan Publishers Ltd. 1476-6930 Journal of Revenue and Pricing Management Vol. 13, 1, 35–60 www.palgrave-journals.com/rpm/