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Hospitality firms aim to increase their profits by implementing a variety of marketing activities, including using decoy pricing to provide alternative choices for consumers. Decoys are relatively higher-priced offerings that signal lower value than the other offerings in the consideration set. The purpose of this research is to investigate the influence of decoy pricing on consumer choices across various contexts in the foodservice and hotel industries.

Across the pilot and four main studies, the current research employs a sequential exploratory mixed-method design to investigate the influence of decoy pricing in the foodservice and lodging industries. The qualitative part of this research was based on two focus groups, followed by a pilot study and four main study experiments.

The results show that decoy pricing escalates consumers’ choices of more expensive product bundles in both restaurant and hotel cancellation policy contexts. However, decoy pricing does not increase the selection of more expensive hotel product bundles.

While decoy pricing has been utilized as an effective revenue maximization strategy for product placement in retail stores, less is known about how promotional advertisements with decoy offers influence hotel and restaurant customers to choose more costly options. Specifically, this is the first study that explores whether decoy pricing and product/service bundling can encourage customers to select more expensive offers in hotel and restaurant contexts, considering the types of hospitality bundles that may limit this effect.

The purpose of this paper is to investigate the impact of peripheral services offered by distance education (DE) institutes on student involvement in DE and, examine whether this impact is mediated by student experience quality.

Quantitative research approach based on cross-sectional survey design was used where data were collected using a structured questionnaire. Sample consisted of 400 undergraduates of the Open University of Sri Lanka, drawn using simple random sampling technique. Collected data were analyzed using the structural equation model.

Data analysis revealed that there is a significant direct impact of peripheral services offered by DE institutes on student involvement in the Sri Lankan context. Furthermore, it is validated that this impact is mediated by student experience quality.

Focus of the study is only on the impact of contextual elements rather than personal or demographic factors of students which can have an important impact on their experience quality as well as involvement.

Findings are useful in designing and redesigning service offering and policy development by DE institutes to make their services more appealing.

Even though previous studies have identified student dropout and lower academic excellence as issues in DE, how service offering can be used to overcome them via student involvement has not received considerable attention. Hence, the tested conceptual model developed on multiple theories is a novel contribution to the existing knowledge base.