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Hotel discount strategies on consumer responses: the role of involvement

Seung Hyun Lee (based at Rosen College of Hospitality Management, University of Central Florida, Orlando, Florida, USA)
Billy Bai (based at William F. Harrah College of Hotel Administration, University of Nevada Las Vegas, Las Vegas, Nevada, USA)

Tourism Review

ISSN: 1660-5373

Article publication date: 11 November 2014

Abstract

Purpose

This paper aims to examine the impact of hotel discount strategies on consumers’ emotional and behavioral responses in the presence of differential levels of involvement in discount acquisition.

Design/methodology/approach

Discount strategies and the high- and low-involvement variables were fully cross-examined, yielding a 2 × 2 factorial quasi experimental design. In all, 120 surveys were collected, and multivariate analysis of variance was used for data analysis.

Findings

The results suggest that fenced discounts that require consumers to accept restrictions to receive a discount generated more positive emotion and stronger behavioral intention. Moreover, an interaction effect was found between consumer’s involvement and discounts on emotional and behavioral responses toward discount-acquiring experience. Highly involved consumers resulted in more positive emotional and stronger behavioral responses (e.g. pride, gratitude, word-of-mouth and retention) from obtaining a fenced discount that requires consumers’ efforts or sacrifices. On contrary, consumers with low involvement tend to appreciate more of a fixed discount given to anyone without restrictions.

Practical implications

Hotels should implement a fenced discount when they design discounts targeting at high-involvement consumers. For low-involvement consumers, a fixed discount appears to generate more positive emotion and stronger behavioral intention.

Originality/value

The study enhances the theoretical understanding of consumers’ emotional and behavioral responses toward discount-acquiring experience with different levels of involvement.

Keywords

Citation

Hyun Lee, S. and Bai, B. (2014), "Hotel discount strategies on consumer responses: the role of involvement", Tourism Review, Vol. 69 No. 4, pp. 284-296. https://doi.org/10.1108/TR-04-2014-0014

Publisher

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Emerald Group Publishing Limited

Copyright © 2014, Emerald Group Publishing Limited