Effects of concealing vs. displaying prices on consumer perceptions of hospitality products |
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| Institution: | 1. Department of Marketing, Auckland University of Technology, 120 Mayoral Drive, Auckland 1010, New Zealand;2. Department of Marketing, Spears School of Business, Oklahoma State University, 477 Business Building, Stillwater, OK, 74078, USA;3. School of Hotel & Tourism Management, The Hong Kong Polytechnic University, 17 Science Museum Road, TST East, Kowloon, Hong Kong;4. College of International Management, Ritsumeikan Asia Pacific University, 1-1 Jumonjibaru, Beppu, Oita, 874-8577, Japan;1. Faculty of Economics and Business Administration, Ruppin Academic Center, Israel;2. Paris School of Business, France;1. Department of Food & Beverage Management, Taipei University of Marine Technology, No. 212, Sec.9, Yen Ping N., Taipei City, 111, Taiwan, ROC;2. Business School, Nanfang College of Sun Yat-Sen University, No. 882 Wenquan Avenue, Conghua District, Guangzhou, Guangdong Province, 510970, China;3. Department of Artificial Intelligence, CTBC Business School, No. 600, Sec. 3, Taijiang Blvd., Annan District, Tainan City, 709, Taiwan, ROC;4. Department of Hospitality Management, Ming Chuan University, No. 5 De Ming Rd., Gui Shan District, Taoyuan City, 333, Taiwan, ROC;1. Department of Hotel and Tourism Management, Guilford Glazer Faculty of Business and Management, Ben-Gurion University of the Negev, Israel;2. Hospitality and Tourism Program, Pamplin College of Business, Virginia Polytechnic Institute and State University, Israel;3. Department of Hotel and Tourism Management, Guilford Glazer Faculty of Business and Management, Ben-Gurion University of the Negev, P.O. Box 653, Beer-Sheba 84105, Israel;1. Division of Engineering, Business, and Computing Penn State Berks Tulpehocken Road, P.O. Box 7009, Reading, PA 19610, United States;2. School of Hospitality & Tourism Management, Oklahoma State University, 365 Human Sciences, Stillwater, OK 74078, United States;3. The School of Hospitality Business, Broad College of Business, Michigan State University, 667 North Shaw Lane, East Lansing, MI 48824, United States;1. Department of Tourism, Chienkuo Technology University, Taiwan;2. Department of Business Administration, Dayeh University, Taiwan;3. Department of Industrial Education and Technology, National Changhua University of Education, Taiwan |
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| Abstract: | 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). |
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| Keywords: | Price Expensiveness Value Quality Purchase intention Price consciousness Price fairness |
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