Title

Influence of Scarcity on Travel Decisions and Cognitive Dissonance

Document Type

Article

Publication Date

2-2-2020

Publication Title

Asia Pacific Journal of Tourism Research

First page number:

1

Last page number:

15

Abstract

Online travel agencies advertise limited availability by indicating room inventories and the number of other travelers. This research investigates the effect of limited availability using supply and demand-based scarcity with price promotion on traveler decisions and cognitive dissonance. Two experimental approaches (between and within subjects) examine the causal effects of scarcity. Demand-based scarcity decreases booking decisions while supply-based scarcity increases booking decisions, especially at a discounted price in a within-subjects design. Scarcity produces cognitive dissonance and intention to undo the decisions. For effective applications, scarcity messages should be transparent, and include non-scarce options for comparison. Multiple scarcity messages minimize undo-intentions.

Keywords

Scarcity; Supply-Based Scarcity; Demand-Based Scarcity; Booking Decision; Tourist Decision Making; Cognitive Dissonance; Dissonance Reduction; Experiment; Between-Subject; Within-Subject

Disciplines

Business | Hospitality Administration and Management

Language

English

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