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Expectation Formation in Case of Newer Hotels

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journal contribution
posted on 03.06.2020, 11:42 by Prithwiraj Nath, James Devlin, Veronica Reid

Advertisement and price cues are important sources of information, which influence tourists when forming service expectations, particularly in the case of newer hotels. However, it is not clear if such hotels need to promise more or less through their advertisement; or price high or low through their price cues. Extant research is also uncertain about the role of culture (uncertainty avoidance and power distance) in moderating the impact of advertisement and price cues on expectations. Using an experimental setup with 218 tourists from three different countries, this study finds that a newer hotel is likely to be better off by offering more service promises through its advertising and high price cues to its prospective visitors. The results suggest that culture influences how tourists process advertising cues but has no influence on price cues. The study provides insights for managers on how to develop a segmentation strategy using the cultural profiles of tourists.

History

Citation

Nath, P., Devlin, J., & Reid, V. (2016). Expectation Formation in Case of Newer Hotels: The Role of Advertising, Price, and Culture. Journal of Travel Research, 55(2), 261–275. https://doi.org/10.1177/0047287514541003

Version

AM (Accepted Manuscript)

Published in

Journal of Travel Research

Volume

55

Issue

2

Pagination

261 - 275

Publisher

SAGE Publications (UK and US) for Travel and Tourism Research Association

issn

0047-2875

eissn

1552-6763

Copyright date

2014

Language

en

Publisher version

https://journals.sagepub.com/doi/full/10.1177/0047287514541003