An examination of the role of booking lead time in consumers’ reactions to online scarcity messages

Scarcity messaging is frequently employed by travel marketers to drive consumer conversion rate in the online sales environment. This study examines the effects of two types of scarcity messages, unit and option scarcity, on consumer booking intentions and explores the role of booking lead time on the scarcity messaging-booking intentions relationship in the context of the purchase of hotel accommodation. Findings suggest that when booking lead-time is long, unit scarcity messages will be more effective than option scarcity messages in influencing booking intentions as they are perceived as more credible, and induce higher perceptions of a sellout risk. When booking lead-time is short, consumers perceive no differences in the credibility of unit and option scarcity messages: both are equally effective in driving booking intentions. This research provides marketers with guidance on how and when to leverage scarcity appeals to drive consumer conversion rate.     

The power of design: How does design affect consumers’ online hotel booking?

Emphasizing experiential appeals to consumers through design is most notable in the emerging lifestyle hotel segment of the lodging industry. This study identifies which lodging design mechanisms evoke consumer responses and provides a novel understanding of the relationships among consumer perception of hotel product/service design and booking intention by incorporating consumer emotional arousal and quality expectations in a theoretical model. The findings of this study suggest that aesthetics and symbolism in hotel design shape booking intention through emotional arousal and quality expectation. The functional dimension of design affects booking intention only through quality expectation. The findings will be particularly meaningful to the lodging industry because online booking requires both emotional and cognitive responses on the part of consumers.     

Determinants of consumers’ choices in hotel online searches: A comparison of consideration and booking stages

Using a stated choice experiment, this study uncovers how hotel review- and price-related attributes affect consumers’ formation of consideration sets and hotel bookings based on online search results alongside a two-stage model of consideration and choice. Empirical findings indicate that consumers’ evaluations of certain attributes vary across these stages. During the consideration stage, the listed hotel price, promotional discount, overall rating, review volume, and booking popularity are significant attributes for prospective guests, whereas price disparities across websites are not. Insignificant interaction effects among these determinants imply that in this stage, consumers employ fast-frugal heuristics and a noncompensatory strategy. During the booking stage, listed price, promotional discount, overall rating, and review volume inform consumers’ booking decisions. Furthermore, the interaction effects point to consumers’ adoption of a compensatory strategy in making a final booking decision. Finally, this study concludes with implications for hotel pricing and system optimization of online platforms.     

Mindset matters in purchasing online food deliveries during the pandemic: The application of construal level and regulatory focus theories

Online delivery providers (ODPs), representing a growing hospitality industry sector, are playing an unprecedented role in the coronavirus pandemic. Applying construal level theory and regulatory focus theory, this research investigates how the interplay of construal mindsets and message frames affects consumers’ purchase intention regarding online food deliveries during the pandemic. Two 2 × 2 experiments were conducted in severe and mild pandemic regions and revealed different results in consumers’ responses. Specifically, promotion-framed messages are more effective when matching a “how” construal mindset in severe regions. In contrast, promotion-framed messages are more persuasive in conjecture with a “why” construal mindset in mild pandemic areas. Besides, the persuasion process is mediated through self-efficacy in severe regions but through perceived benefit in mild regions. The study also reveals different moderating effects of risk propensity in the two regions. The findings provide guidelines for ODPs in engaging consumers with online food delivery services.     

The influence of trust perceptions on German tourists’ intention to book a sustainable hotel: a new approach to analysing marketing information

ABSTRACT

This study examined the relationship between German tourists’ trust perceptions and their intention to book a sustainable hotel, pioneering a new quantitative approach to sustainable tourism marketing. Data came from 300 respondents who participated in an online survey. Respondents were given a digital brochure to read containing information about a “fictitious” three-star beach hotel in Portugal, before completing a questionnaire that measured inter alia their intention to book this sustainable hotel. Both individual “general trust” (perception of others’ trustworthiness) and “specific trust” towards the fictitious hotel in the brochure were measured. The survey also evaluated respondents’ perceptions about the usefulness of the information in the brochure. Multiple regression analysis of the data indicated that general trust, trusting the hotel and perceived usefulness of the brochure were positively and significantly related to booking intentions. An interaction between general trust and perceived usefulness was also observed. This means that the higher the perception rate about the brochure's usefulness, the higher general trust was for booking intentions and vice versa. The practical implications of the results suggest that tourists could be motivated to book a hotel if its sustainability attributes and amenities were communicated in a trust inspiring way in marketing material.     

The effect of online reviews on hotel booking intention: The role of reader-reviewer similarity

Due to the experiential nature of travel-related products, online reviews have become an increasingly popular information source in travel planning and have a profound effect on consumers’ buying decisions, particularly in hotel booking. On the basis of homophily and similarity-attraction theory, we posit that review valence is positively related to consumers’ hotel booking intentions, and expect this relationship to be moderated by surface- (demographic) and deep-level (preference) similarities. The findings from two experiments conducted in Germany and Macau indicate that review valence significantly affects hotel booking intention, and that reader-reviewer demographic similarity moderates this effect. This three-way interaction reveals a substituting moderation effect between demographic similarity and preference similarity. One practical implication is that travel websites should find methods of exposing users to reviews written by those with either similar demographic characteristics or preferences, which facilitate travelers’ decision-making processes.     

Booking now or later: Do online peer reviews matter?

Consumers always face a tradeoff between making a purchase decision now and continuing information searching with delayed purchase decision. This study extends extant literature by empirically investigating the effects of online peer reviews on consumers’ timing of booking a restaurant using a merged data set of online peer reviews and consumer reservation records. The results show that the rating valence, rating variation, and review content richness of online peer reviews positively motivate potential consumers to book a restaurant earlier, while the time interval between successive reviews hinders consumers’ booking decision. It is also found that the effects of rating valence on timing of restaurant booking depend on the different levels of rating variation and review content richness. The findings of this study help practitioners better understand consumers’ purchase decision process and improve marketing strategies.     

Investigating the effect of message framing on event attendees’ engagement with advertisement promoting food waste reduction practices

This research aims to examine the optimal communication strategies to persuade event attendees to engage in food waste reduction (FWR) practices by utilizing the concepts of regulatory focus and reference points in advertising message framing. An online experiment study was conducted to investigate the interaction effects between regulatory focus (prevention- or promotion-focus) and reference points (self- or other-referencing) on consumers’ perceived intrinsic motives of event organizations’ green activities, their attitude toward the company’s FWR practices, and their behavioral intention toward participating in the company’s FWR practices as well as mediating effect of perceived intrinsic motives. Findings revealed a significant interaction effect between regulatory focus and reference points on persuasiveness of green appeals in the context of FWR practices. Mediation analysis revealed that the impact of regulatory focus message on behavioral intention is serially mediated via perceived intrinsic motives and attitude and this serial mediation effects vary in different reference points. Theoretical and managerial implications are discussed.     

Feelings of uncertainty and powerlessness from Covid-19: Implications for advertising appeals in the restaurant industry

Are rational (emotional) advertising appeals more congruent with healthy (indulgent) products? Prior research shows inconsistent results on the congruency effect between appeal type and product category. This study sheds light on this topic by examining the moderating effect of two psychological states (i.e., feelings of uncertainty and powerlessness) caused by Covid-19 on the relative effectiveness of rational vs. emotional appeals in the context of food advertisements. The results suggest that people with low levels of uncertainty respond more favorably to rational (vs. emotional) appeals of a healthy food item, and this effect is attenuated among people with high levels of uncertainty. On the other hand, powerful people find emotional (vs. rational) appeals of an indulgent food item more attractive, and this effect is attenuated among powerless people. Theoretical and managerial implications are discussed.     

The impact of language style on consumers′ reactions to online reviews

The current research examines the novel impact of an online review's language style (figurative vs. literal) on consumers' attitudes towards a hotel and their reservation intention. Previous marketing research advocated for the use of figurative language to advertise hedonic consumptions. Yet, we found that, in the context of online hotel reviews, figurative language doesn't offer significant advantages in terms of persuasive power. Specifically, our findings indicate that, when a review is posted by a reviewer with low expertise level, consumers actually exhibit lower levels of attitude and reservation intention if the review is written in figurative (vs. literal) language. When the reviewer possesses high expertise level, the language style effect was attenuated. Finally, serial mediation tests show that the causal link between language typicality → perceived reviewer expertise explains the language style effect on consumers' pre-purchase evaluations.     

Facebook Pages Content,Does it Really Matter? Consumers’ Responses to Luxury Hotel Posts with Emotional and Informational Content

This paper examines clients’ responses to luxury hotel posts with either an informational or an emotional appeal. The luxury hotel industry is selected for its hedonic characteristics and its use of Facebook as a branding tool. An experiment with repeated measurement was conducted involving 45 young adults, clients of luxury hotels, and users of Facebook. An informational appeal is more effective in improving the attitude toward the hotel signature (“Sheraton”, in the context of this study) and in improving the perception of quality than an emotional appeal. Yet, the content of the posts has no influence on the intention to stay at the hotel and the intention to follow the hotel on Facebook. Managerial implications are drawn on the choice of content of Facebook pages.     

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.     

Enhancing the customer experience with virtual and augmented reality: The impact of content and device type

Virtual and augmented reality are changing how companies interact with customers. However, previous research has paid little attention to compare their effectiveness. This study focuses on the perceptions of presence elicited by different types of contents (real or digital) and embodied devices (head-mounted display or smartphone), and their impact on user’s pre-experiences with hotels. Results from a lab experiment show that contents with high levels of factual realism (360-degree videos) have a positive influence on perceptions of presence, ease of imagination, and visual appeal, and on booking intentions. These effects are stronger when high embodied devices (head-mounted displays) are applied. Additionally, presence positively influences ease of imagination and visual appeal, which mediate the impact of content on booking intentions. These findings stress the importance of inducing presence as a key driver for behavioral intentions in hospitality. The comparative influence of conventional VR and AR experiences is also discussed.     

Exploring the online buying behavior of specialty food shoppers

Food producers are experiencing a fast-growing need to use the Internet to enhance competitive advantage. Past researchers have urged the need to understand market segmentation mechanisms as applied to different consumer behavior models to better understand the online buying behavior of consumers. This study integrates the Theory of Planned Behavior and food-related lifestyle to explore consumer's characteristics of online specialty food buying behavior, and the differences in the online buying process among consumers with different FRL. 569 undergraduate students who purchased specialty food online were surveyed. Findings indicated that consumers have positive attitudes toward purchasing specialty food online; more are inclined to heed the suggestions of others, perceive higher levels of control when using a website, and experienced a higher intention to purchase online. The study then classified consumers into ‘traditionalists’ or ‘adventurous and healthy-conscious’ groups based on their FRL via a two-step cluster analysis. These two groups of consumers had significant differences in terms of (a) attitudes toward online specialty food buying, (b) subjective norms, (c) perceived control, (d) behavioral intention, (e) demographics and (f) online specialty food-buying behavior. This investigation explored whether there is a correlation between consumer FRL and online specialty food-buying behavior. Findings reveal relevant ways for managers to enhance their website marketing strategies.     

The impact of latent topic valence of online reviews on purchase intention for the accommodation industry

This study utilizes machine learning (ML) natural language processing (NLP) algorithms and statistical methods in order to measure the impact that qualitative textual reviews have on booking intentions for accommodations. Using over 400,000 online reviews from 1256 accommodations in South Korea, latent Dirichlet allocation (LDA) is used to determine the topic of the review content, convolutional neural networks (CNNs) are used to identify the valence of the reviews, and spatial probit models are used to determine the impact of the review content and valence on booking intention, while controlling for several other variables. It is found that positive reviews about an accommodation’s ambiance, value, service, front office, accessibility, surrounding neighborhood and room capacity result in significantly higher booking intentions, while negative reviews in the service, front office and surrounding neighborhood result in lower probability of booking. A number of explanatory variables also have varying effects on booking intentions.     

Impact of online reviews on hotel booking intention: The moderating role of brand image,star category,and price

This paper analyses the impact of online reviews on hotel booking intention. The moderating effect of brand image, star category, and price on this relationship was also tested. A quantitative approach has been followed by collecting questionnaires from a convenience sample of 432 customers who have previous experience with online booking. Results of the research revealed that reviews with positive valence do not affect booking intention, while reviews with negative valence have a strong impact. In addition, it was found that several moderators made this impact more or less severe. Brand image demonstrated a slight moderating effect due to the factor's inherent subjective nature. A moderating effect was also observed for both price importance and star category on the relationship. In conclusion, this study emphasizes the need for hotel managers to address online customer reviews, and specifically negative ones, to take advantage of promotional opportunities.     

What factors influence Generation Y’s employee retention in the hospitality industry?: An internal marketing approach

Individuals from Generation Y are entering into the hospitality job market, but little is known about their intention to remain in the hospitality business. The purpose of this study was to examine what factors affect a Generation Y employee’s intention to remain with a hospitality company with respect to internal marketing tactics. Qualtrics, an online survey service company, was used to distribute and collect a self-administered questionnaire survey. A theoretically proposed model was tested using structural equation modeling. The results of this study indicated that “work environment” significantly influence Generation Y employees’ job satisfaction, followed by “empowerment,” “pay,” and “relationships with managers,” which in turn, influences “employee commitment” and “intention to remain in hospitality business.” The implications of the study are discussed.     

The effect of hotel lobby design on booking intentions: An intergenerational examination

This paper aims to understand what elements of the hotel lobby design influence guest booking intentions. Lobbies are the first point of face-to-face communication between guests and staff upon arrival, impacting the initial guest perception of the property as well as playing an essential role in creating first impressions. Building on the Stimulus-Organism-Response framework, the study investigates preferences of millennial and non-millennial travelers towards hotel lobby design concerning style (contemporary vs. traditional) and biophilic elements (present vs. absent). This quantitative study is designed as an online, virtual, scenario-based experiment. The hypotheses were tested using MANOVA, ANOVA, and linear regression. The findings of the study reveal that the lobby interior design style has a significant impact on booking intention across different generations. Moreover, millennials are more impacted by the design style of the hotel lobby than non-millennials. Biophilic design has also been found to impact the satisfaction and emotions of guests across different generations.