How do you respond to fees? Bri Williams, founder of consultancy group People Patterns, blogs that Reserve Bank of Australia (RBA) research shows people reacted to a $2 transaction fee at ATMs much more strongly than expected – branding the response irrational. Contrary to RBA expectations, many customers didn’t continue with their transaction if a “point-of-sale prompt” reminded them they would be charged. Williams writes: “People hate service fees so much because they decouple the value of the good from the service in getting it to them.”
And she warns the RBA experience shows irrationality “should not be underestimated”.