Award Date

8-2010

Degree Type

Thesis

Degree Name

Master of Science in Hotel Administration

Department

Hotel Administration

First Committee Member

Billy Bai, Chair

Second Committee Member

Karl Mayer

Third Committee Member

Carola Raab

Fourth Committee Member

John Schibrowsky

Number of Pages

65

Abstract

While hotels come up with various discount strategies to attract consumers, especially during a recession, both hotels and consumers seem to favor dynamic pricing. Yet there are not enough studies available to reveal that dynamic pricing would positively impact consumers. Studies also indicated that price discounts give consumers not only monetary benefits but also positive emotional responses. The purpose of this study was to investigate how uniform pricing and dynamic pricing influence consumers' emotion and behavior, in the presence of low involvement and high involvement consumers. The results of study suggested that high involvement consumers responded more positively to dynamic pricing than uniform pricing. Moreover, younger and female consumers are more likely to be involved in obtaining a discount, and high involvement consumers showed more positive feelings, and were more likely to tell others and make repeat purchases from a discount as compared to low involvement consumers.

Keywords

Consumer behavior; Consumer emotion; Consumers' preferences; Dynamic pricing; Hotels – Rates; Involvement; Markdowns; Price promotion; Special sales; Uniform pricing

Disciplines

Hospitality Administration and Management | Marketing

Language

English


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