The effect of 99-ending calories and anticipated guilt on restaurant menu development strategy

This study focused on the “just below calorie labeling (e.g., 199 vs. 200)” effect on consumers’ responses to purchasing indulgent foods. Based on the price context (e.g., $10.00 vs. $9.99), this study conducted a scenario-based online survey and found the interaction effect between anticipated guilt and the left-digit calorie effect to predict restaurant consumers’ choice of indulgent foods (i.e., hamburger advertisement with its calorie information, such as 399 vs. 400). The empirical findings showed that the calorie amount manipulation led to different levels of anticipated guilt for ordering the food and beliefs in the food’s calorie information (i.e., 399 < 400 calories) regardless of consumers’ level of health-related personal value.     

Exploring effective price presentation format to reduce decision difficulty and increase decision satisfaction

Variable pricing is frequently employed by service firms that adopt revenue management practices. This strategy is effective in stimulating and increasing revenue by appealing to customers with different levels of price sensitivity. However, by providing excessive price options, a company may cause choice overload for customers. Within the framework of behavioral economics, this study explores an effective price presentation strategy to mitigate choice overload due to a large assortment size of price options in the context of hotels. The findings of the experimental design study suggest that the number of categories that distinguish and organize price options positively affects consumers' perceived decision difficulty and consequent decision satisfaction when a large assortment size of price options is provided. This research extends the understanding of the effect of variable pricing on consumers' responses and provides marketers with guidance on how to manage variable pricing and its price presentation format.     

The influence of the compromise and travel temporal construal heuristics on a purchase decision

This study empirically investigated the effects of temporal construal upon the compromise effect; the extent to which the importance of price and quality attributes to selecting a compromised option changed over time; and the malleability of the influence of the temporal construal heuristic by changing the time parameters. Three hundred and ninety-four questionnaires were used for further data analysis. The study's results suggested that the compromise effect was present in the tourism context, but with weakened effectiveness when the time frame in which the purchase can be used was moved back. The importance of price and quality was different between those groups who selected each of three options. The importance of price level in selecting a middle option was not different in terms of temporal construal, but the quality level was a more important consideration in selecting a middle option for future use than for use today.     

Health halo effects in sequential food consumption: The moderating roles of health-consciousness and attribute framing

Has the huge increase in healthful food options indeed promoted consumer health? Previous studies have noted the health halo effects of such foods, which subconsciously lead consumers to rather unhealthful eating. This study examined whether the health halos of entrées increase the subsequent intention for desserts in restaurants when moderated by internal and external cues: health-consciousness and attribute framing. A 2 (perceived healthiness of entrées) × 2 (health-consciousness) × 2 (attribute framing of desserts) quasi-experimental design was employed using a scenario-based online survey, and 427 consumers participated in the survey. The results revealed that the effect of the perceived healthiness of entrées on increasing the intention for desserts was more salient among less (vs. highly) health-conscious consumers and when the desserts were framed as healthy (vs. tasty). The findings provide theoretical implications for consumer food behavior and sequential consumption literature, and highlight practical implications for consumers, health professionals, public officials, and restaurateurs.     

Service customization: To upgrade or to downgrade? An investigation of how option framing affects tourists’ choice of package-tour services

Package-tour operators often tailor trips to fit travelers’ personal requirements to create higher customer value. In practice, there are various options available for presenting an identical package tour to potential customers. This research investigates how option framing influences travelers’ decision making in a package-tour customization task. Based on a behavioral study and a logistic regression analysis, our results show that: (1) when both upgrading (i.e., starting from an economic package and customizing upwards) and downgrading (i.e., beginning with a luxury package and customizing downwards) methods are available, more consumers prefer upgrading to downgrading; (2) consumers customize their tour packages to a higher total price in the downgrading condition; (3) after separating peripheral service from core service attributes, our results further reveal that option framing affects peripheral services more than core services; and (4) consumers who are quality conscious and promotion-focused are more likely to choose a downgrading method for package-tour customization. Combined, these findings offer important managerial implications for travel companies.     

Tourists’ willingness to pay for an accommodation: The effect of eWOM and internal reference price

Understanding the determinants of consumers’ willingness to pay (WTP) is an important challenge especially for practitioners. This study evaluates the effect of external information (eWOM valence and volume) and internal information (internal reference price) on consumers’ WTP for an accommodation. The results of an online experiment (n = 766) show a direct effect of valence on WTP which is strengthened by both volume and the internal reference price. Consumers with high reference prices are more sensitive to the effect of an increase in valence. Moreover, internal reference price has a non-linear influence on WTP. The findings suggest the relevant role of eWOM as well as internal reference price in determining consumers’ WTP. The inclusion of these two variables in dynamic pricing strategies could lead to greater benefits for hospitality managers.     

Effect of Price Change Alert on Perceptions of Hotel Attribute-based Room Pricing (ABP) versus Traditional Room Pricing (TRP)

Aside from marketing information on traditional room rates, hotels and online travel agents (OTAs) are trying a new pricing technique based on the attributes of guestrooms. This research investigates how attribute-based room pricing (ABP) differs from traditional room pricing (TRP) in influencing consumer reactions when consumers receive a price change alert before (vs. after) sales. Through a series of experiments, we found that TRP and ABP result in similar alert attitude, brand attitude, and visit intention for presale price change alert. However, ABP leads to more favorable results for postsale price change alert. We examined the underlying mechanism and found that perceived fairness mediates the effect of pricing strategy on brand attitude, price alert attitude, and visit intention for postsale alert only. This research provides hotel managers and OTA marketers with guidance on when to send either type of price change message to consumers.     

Do Blue Flag promotions influence tourists’ willingness to pay a price premium for coastal destinations?

The Blue Flag is a popular eco-label in tourism. This study aims at examining the effectiveness of Blue Flag promotion on tourists' willingness to pay a price premium to coastal destinations via two online experiments. Study 1 shows (n = 152) that the Blue Flag stimulates higher willingness to pay a price premium for coastal destinations directly as well as indirectly through self-congruity and destination brand identification. Study 2 (n = 160) used a new sample to enhance external validity and generalizability of the Study 1 findings. Study 2 shows that destination brand quality and destination brand identification serially mediate the effect of Blue Flag promotions on the tourist's willingness to pay a price premium. The findings suggest that destination managers should deploy the Blue Flag Logo in destination promotions to enhance self-congruence, destination brand identification, perceived destination quality, and the tourist's willingness to pay a price premium.     

How handwriting reduces negative online ratings

This research investigates whether handwriting during the tourism experience reduces subsequent negative and extreme online rating scores. We portray that handwriting, due to a more deeply rooted elaboration of information, activates emotional empathy. Study 1, a field experiment in the hospitality context, suggests that handwriting reduces the extremeness of subsequent online rating scores. Study 2 compares handwritten vs. typed comments and complements the initial findings by clarifying the mediating role of emotional empathy on this relationship. We discuss the boundary conditions for the effect and offer practical implications on how to nudge tourists to reduce negative online rating scores. Hotel operators should use their enhanced emotional bonding with tourists when competing with peer-to-peer operators.     

The moderating role of context in the effects of choice attributes on hotel choice: A discrete choice experiment

This study used discrete choice modeling to identify the moderating role of context in the effects of cognitive, affective, and sensory attributes on hotel choice. To evaluate a hotel consumer's choice for attributes in a different choice context (leisure vs. business), a stated preference experiment based on D-optimal design was conducted using both a multinomial logit (MNL) model and a random parameter logit (RPL) model. The results show that while leisure travelers' choices for family vacation trips were more influenced by price and overall atmosphere than were business travelers', business travelers put an emphasis on room quality and comfort when on a business trip alone. The study demonstrates the trade-offs made by leisure and business travelers when choosing a hotel through discrete choice modeling. The findings provide hotel managers with important insights and implications in terms of target segmentation, product development, and marketing communication strategy.     

When online reviews meet virtual reality: Effects on consumer hotel booking

This study examines the direct and interaction effects of online reviews (quality and quantity) and virtual reality on consumer hotel booking. Data were collected from two 2 × 2 experimental studies. The results show a direct effect of both online review and virtual reality's application on behavioral intention, and the influence of online reviews on behavioral intention was weakened when virtual reality was applied. Moreover, online reviews and virtual reality had a significant combined effect on behavioral intention, with greater strength than that of online reviews alone. The findings provide insights for travel and tourism managers to enhance marketing communication effects by proper use of virtual reality to complement online reviews.     

Differentiated price loss aversion in destination choice: The effect of tourists’ cultural interest

This article looks into the differentiated effects of loss aversion depending on whether individuals show cultural interest when choosing a destination. Based on the fact that perceived value implies not only sacrifices but also the expectations of a certain level of quality and prospects of satisfaction, together with the idea the Prospect Theory applies to tourism prices, the article states the hypothesis that interest in culture when choosing a destination lowers people’s loss aversion. By incorporating the reference-dependent model into a Multinomial Logit Model with Random Parameters – which controls for heterogeneity – the empirical application shows that culture-interested tourists are less loss averse; i.e. the negative effect of finding a higher than expected price diminishes with cultural interest. The expectation of enjoyment of these attributes and the more conscious attitude toward maintenance/restoration activities of cultural sites are hypothesized to lead prices to be evaluated differently when selecting a destination.     

Advance booking and hotel price variability online: Any opportunity for business customers?

Is it possible for business customers to effectively adjust their purchasing strategies, as a response to revenue management? We consider daily online best available rates for a panel of 357 hotels in Milan and Rome, up to an advance booking of 29 days.We analyse price trajectories, finding that dynamic pricing strategies with no established trend towards the arrival date are prevalent, with a predominance of decreasing trajectories for lower-scale hotels in Milan during fairs. We show that price levels are explained by a variety of structural determinants. We quantify the effects of advance booking, room quality, services, competition, seasonality and fairs, underlining their different importance on leisure and business destinations. Other features, such as breakfast and refunding options, appear to be used as marketing tools to differentiate rooms, keeping a low pace in price adjustment. Managerial implications are discussed, with reference to both corporate travel departments and hôteliers.     

Price bundling presentation and consumer's bundle choice: The role of quality certainty

As bundling has become a prevalent marketing strategy, the existing literature has focused on how to present price discount information for bundled products. To further understand bundling in restaurant operations, this study examined the moderating role of consumer quality certainty on the relationship between the effects of price bundling and consumers’ bundle choices. This study analyzed different bundling phenomena from an acquisition–transaction utility theory perspective in order to investigate the effects of price presentation and quality certainty manipulation on consumers’ bundle choices. Hierarchical regression analyses showed that quality certainty had a significant moderating effect. The less confident a consumer is about the quality of the bundled food products, the more likely it is that price presentation strategies will affect his or her willingness to order a bundle menu. The results also showed that transaction utility becomes significant as price discount information is segregated and as consumers are more certain of the quality of the bundled products. Managerial implications for restaurant operations are also discussed.     

Exploring consumers’ bidding results based on starting price,number of bidders and promotion programs

Online auctions are a core dynamic pricing mechanism that is now used widely in the tourism market, and consumers enjoy the exciting experience of bidding for products and services. The rapid development of the online auction market has lead scholars to call for more research into the factors that influence the results of such auctions and how they are related to consumers’ online bidding behavior. To this end, the current study designs a lab environment and mainly explores the influences of the start bidding price (US$0.33 versus US$60), the number of bidders and promotion programs (low price versus quality) on the results of online auctions of hotel coupons. The research results indicate the following market dynamics. (1) Regardless of whether there is a low or high start-bidding price, more bidders lead to higher end-prices, especially with high start-bidding prices. (2) When a seller provides a higher start-bidding price, the end-prices will be higher. (3) Different promotion programs result in different end-prices, especially when the product characteristics are integrated effectively with such programs. When hotel coupons are the main auction product, they are associated with high-quality leisure and lifestyle factors, thus indicating that the integration of high accommodation quality with quality promotion programs can attract consumers to join the bidding process and lead to higher end-prices. (4) Regardless of whether there is a low or high start-bidding price, winners will always report higher ratings regarding distributive fairness, procedural fairness and information fairness than will losers. The research results have important theoretical and practical implications, which are discussed in the conclusions.     

Effects of concealing vs. displaying prices on consumer perceptions of hospitality products

This study was designed to empirically test the psychological consequences of concealing (vs. displaying) the prices of hospitality products on perceptions of expensiveness, quality, value, and purchase intention. To achieve this objective, seven hypotheses were proposed and a series of four experimental studies were conducted. It was found that a cafe that did not (vs. did) display price information was evaluated relatively highly in terms of perceived expensiveness, but relatively low in perceived quality, value, and purchase intention. Specifically, we found that the heightened perception of expensiveness of a price-concealing cafe, along with relatively weak change in quality perception, negatively influenced both perceptions of value and purchase intention in Studies 1 and 2. Further, we found that these relationships are moderated by the consumer personal trait of price consciousness (Study 3) and mediated by price fairness (Study 4).     

Nine-ending prices and consumer's behavior: A field study in a restaurant

The effect of nine-ending prices on customer's behavior was tested in a little restaurant (pizzeria-grill) where 1271 customers who ordered a pizza were observed. A list of nine main dishes was proposed in this restaurant and included five different pizzas. The effect of the price-ending of one pizza was tested. During 2 weeks, all the pizzas were proposed with a round 00-ending price (i.e. 8.00 €) whereas for the other 2 weeks a target-pizza was proposed with a nine-ending price (i.e. 7.99 €) whereas the four other were proposed with a round 00-ending price. A last, a third 2 weeks period was tested where all the pizzas were proposed with a nine-ending price. Results showed that an increase in the choice of the target-pizza by the customers was observed when the price of this item was a nine-ending price and the prices of the other items ended with zero. No difference in the choice of the target-pizza was observed when all the items were presented with the same type of ending (9 or 0).     

Confused by too many choices? Choice overload in tourism

Traditional economic and psychological theories suggest that having more options is beneficial to decision makers. However, according to the choice overload concept too many choices can sometimes cause contradictory results, such as consumers making ‘no choice’ or experiencing increased perceived regret. Considering that tourism suppliers offer an extensive variety of products, the primary objective of this study was to identify whether the choice overload phenomenon exists for tourism products. Using a scenario method, respondents were randomly assigned to one of ten different scenarios (2_{destination types} × 5_{choice sets}). The results of this study showed that having more than 22 choices increased the likelihood of making ‘no choice,’ regardless of destination type, suggesting that choice overload exists in the tourism industry. This study also demonstrated that when fewer than 22 choices were provided participants who made a choice perceived less regret than those who made ‘no choice’. However, the opposite results were found when tourists were provided with too many choices. Further discussion and implications are provided in the main body of this paper.     

Does offering an organic food menu help restaurants excel in competition? An examination of diners’ decision-making

This study aims to examine whether the presence of an organic food menu can positively influence diners’ decision-making. A 3 (restaurant segment: quick service vs. casual dining vs. fine dining) by 2 (price discrepancy between competing restaurants: small vs. large) scenario-based experiment was conducted with 405 U.S. consumers. MANCOVA results indicate that using organic ingredients offers a greater advantage for the quick-service segment regarding perceived food quality, attitudes towards the restaurant, and willingness to select, compared to casual and fine dining segments. The magnitude of a premium price of organic ingredients negatively influences such advantage in the process of consumers’ decision-making. When a large (vs. small) premium price is charged for using organic ingredients, customers’ preferences for the restaurant (over its rival) significantly drops to such an extent that customers are more willing to choose the competitor (i.e., rival restaurant with a conventional menu). Discussions and implications are further elaborated.     

An Empirical Study of an Online Travel Purchase Intention Model

This study empirically tests a structural model of factors affecting consumers' online purchase intentions for travel products. The findings indicate that information quality, service quality, and system quality are valid measurements to evaluate the quality of travel-oriented website designs. In terms of travelers' perceptions, convenience, value, and merchandise options are three effective measurements of travelers' attitudes toward purchasing travel products online. Quality of travel website design, travelers' attitudes, and customers' satisfaction demonstrate significant influence on travelers' purchase intentions. Travelers' attitudes and customers' satisfaction also serve as strong mediators for the links between quality of travel website design and purchase intentions. Future research can capitalize on this study as a basis to formulate other models or to create a new model to test tactics that can increase travelers' repurchase intentions and strengthening consumers' e-loyalty.