Location
University of Nevada, Las Vegas
Start Date
8-6-2010 12:00 AM
End Date
10-6-2010 12:00 AM
Description
The study proposes that deal-seeking travelers' perception of risk may have a dual and contradicting impact on Expected Utility and, consequently, on their propensity to search for a better deal and book the travel product. According to a traditionally utilitarian motivation, a high level of risk and the prospect of negative results reduce Expected Utility, and they are therefore likely to reduce search activities and increase booking. This study argues that, due to hedonic motivations, consumers may enjoy the risk elements of their search for a better deal and, consequently, may respond to higher levels of induced risk perception by increasing search activities and reducing booking. The study explains how this finding impacts the way revenue-managing hotels, which seek to impact their customers' behavior by inducing risk perceptions, should adapt their strategies.
Keywords
Advanced booking; Consumers; Cost; Hedonic motivations; Hotel revenue management; Hotels; Risk perception; Risk perceptions; Utilitarian motivations
Disciplines
Hospitality Administration and Management
The Impact of hedonic and utilitarian motivations on the hotel customers' risk perception
University of Nevada, Las Vegas
The study proposes that deal-seeking travelers' perception of risk may have a dual and contradicting impact on Expected Utility and, consequently, on their propensity to search for a better deal and book the travel product. According to a traditionally utilitarian motivation, a high level of risk and the prospect of negative results reduce Expected Utility, and they are therefore likely to reduce search activities and increase booking. This study argues that, due to hedonic motivations, consumers may enjoy the risk elements of their search for a better deal and, consequently, may respond to higher levels of induced risk perception by increasing search activities and reducing booking. The study explains how this finding impacts the way revenue-managing hotels, which seek to impact their customers' behavior by inducing risk perceptions, should adapt their strategies.