Nuisance Fees and the Brand: You Are What You Charge

By Hall, Robert; Peppers, Don et al. | ABA Bank Marketing, April 2008 | Go to article overview

Nuisance Fees and the Brand: You Are What You Charge


Hall, Robert, Peppers, Don, Rogers, Martha, ABA Bank Marketing


FeeDisclosure.com ... allows mortgage customer to break down the fees they can expect to pay if they buy a new house or refinance their current one. It calls out the fees that are bogus. Example: $100 email fees. It benchmarks more standard costs. such as title searches across the country, and it's bringing sorely needed transparency to that business. Its tagline: Transparency breeds trust.

--By Don Peppers & Martha Rogers. Ph.D.

My wife and I recently experienced one of those wonderful spur-of-the-moment weekend getaways in the Caribbean. It was perfect and the place where we stayed was just exquisite. In fact everything about the trip was idyllic except one thing: At checkout, they charged us a 10 percent condominium maintenance fee that had not been disclosed at the time we booked the place nor was it on the written confirmation. We paid the fee, but it left a bad taste in our mouth.

Fees have become prevalent. I am, in many respects, a believer in fees because they can have the virtue of charging only those who use or access special privileges. Toll roads charge only those who use the road. Change fees for airline tickets only apply to those who change their flights. ATMs charge only noncustomers who extract cash. Overdraft charges only apply to those who make unauthorized loans on the bank's funds. Fees reimburse for the unique cost associated with a service.

Yet fees exist in the context of a relationship, and it seems that increasingly institutions hungry for revenue are using fees to weaken customer relationships. They have created weasel ways to classify parts of the base offering as a fee or to overcharge for what should be minor additional costs. It feels like tricked-up revenue that takes advantage of customer misfortune.

For example, when the cost for the three-minute phone conversation to change the airline reservation is a fee of $100 on a $400 airline ticket, it gives me pause. Let's see, the cost to change the ticket represented 25 percent of the cost of the plane, maintenance, airport facility, fuel, crew, and head-office expenses? It says to me, you really want that fee more than you want me. Somewhere you got out of the business of serving for profit and got into to the business of punishing for profit. I don't expect you to lose money on nay misfortune. However, I really would prefer for it not to be your primary source of profit.

Banking is no different. Oliver Wyman estimates that there are now about 400,000 ATMs in the United States compared to 139,000 in 1996. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Nuisance Fees and the Brand: You Are What You Charge
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.