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Open Access
Article
Publication date: 13 February 2024

Fangxuan (Sam) Li

Three scenario-based experiments were conducted to explore the influence of the base option’s price format (just-at vs just-below) on tourists’ upgrade intention. The findings of…

Abstract

Three scenario-based experiments were conducted to explore the influence of the base option’s price format (just-at vs just-below) on tourists’ upgrade intention. The findings of this research indicated that tourists are more inclined to upgrade the option when the base option’s price is presented in a just-at condition due to the mediating role of tourists’ price perceptions of the upgrade option. This study discovered that the just-at (vs just-below) pricing strategy can lower tourists’ price perceptions of the upgrade choice. This research further explored the moderating of tourists’ mindsets. It was found the threshold-crossing effect will disappear for tourists with fixed mindsets. This study also provides practical implications for travel service providers to set up appropriate pricing strategies to attract tourists to make upgrade decisions.

Details

Tourism Critiques: Practice and Theory, vol. 5 no. 1
Type: Research Article
ISSN: 2633-1225

Keywords

Article
Publication date: 4 June 2024

Ismael Gómez-Talal, Pilar Talón-Ballestero, Veronica Leoni and Lydia González-Serrano

This study aims to examine how dynamic pricing impacts customer perceptions of restaurants and sentiment toward prices via online reputation metrics. In addition, to deepen the…

Abstract

Purpose

This study aims to examine how dynamic pricing impacts customer perceptions of restaurants and sentiment toward prices via online reputation metrics. In addition, to deepen the debate on dynamic pricing, a novel definition is drawn by exploring the specific forms of discrimination that can manifest in different industries.

Design/methodology/approach

Leveraging a comprehensive data set of restaurant reviews sourced from TripAdvisor, the study focuses on restaurants affiliated with one of the largest groups of restaurants in Spain. We used a quasi-experimental method (difference-in-differences), to study how dynamic pricing strategies influence customers’ perceptions of value based on numerical ratings. Meanwhile, we used a Bidirectional Encoder Representations from Transformers model on the textual component of reviews to dissect the emotional nuances of dynamic pricing.

Findings

Results did not reveal a causal impact of dynamic pricing strategies on customers’ perceptions. Moreover, the sentiment analysis shows no heightened negative view after introducing dynamic pricing in restaurants compared to the control group. Contrary to what previous literature suggests, our findings indicate that implementing dynamic pricing does not adversely affect customers’ perceptions or sentiments regarding prices in restaurants.

Research limitations/implications

The quasi-experimental setting of the study presents inherent challenges in establishing causality that require further investigation using controlled experimental settings. Nevertheless, our study reveals that restaurant customers do not perceive dynamic pricing as unfair. This finding is critical for restaurant managers when considering the implementation of dynamic pricing and revenue management strategies. In addition, our study highlights the importance of considering not only numerical ratings but customer sentiment analysis as well. This more holistic approach to assessing the impact of pricing strategies can give restaurant managers a deeper understanding of customer reactions. In addition, a more rigorous definition of dynamic pricing is provided, clarifying its nature and its distinction in using different price discrimination.

Originality/value

This study contributes to the evolving understanding of dynamic pricing strategies’ impact on customers’ perceptions and sentiments in the restaurant industry. It aims to fill the gap in understanding customer reactions to algorithmically determined prices (via revenue management systems such as DynamEat) in this industry. The combination of causal inference and sentiment analysis offers a novel perspective, shedding light on the nuanced connections between dynamic pricing implementation and customers’ emotions.

目的

本研究考察动态定价如何通过在线声誉指标影响顾客对餐厅的感知和对价格的情绪。此外, 为了深化对动态定价的讨论, 通过探索不同行业中可能表现出的具体歧视形式, 提出了一个新的定义。

设计/方法/途径

利用从TripAdvisor获取的餐厅评论的全面数据集, 研究聚焦于与西班牙最大的餐厅集团之一相关联的餐厅。我们采用了准实验方法(差异中的差异), 研究动态定价策略如何根据数值评分影响顾客对价值的感知。同时, 我们运用BERT模型对评论的文本成分进行分析, 以解析动态定价的情感细微差别。

发现

结果没有揭示动态定价策略对顾客感知产生因果影响。此外, 情绪分析显示, 在餐厅引入动态定价后, 与对照组相比, 没有增加消极观点。与以往文献所述相反, 我们的发现表明, 实施动态定价并不会对顾客对价格的感知或情绪产生负面影响。

研究限制/含义

研究的准实验设置存在确立因果关系的固有挑战, 需要通过控制实验设置进一步调查。尽管如此, 我们的研究揭示了餐厅顾客不认为动态定价不公平。这一发现对餐厅经理在考虑实施动态定价和收入管理策略时至关重要。此外, 我们的研究强调, 考虑顾客情绪分析和数值评分的重要性。这种更全面的方法评估定价策略的影响, 可以让餐厅经理更深入地理解顾客反应。此外, 提供了一个更严格的动态定价定义, 澄清了其性质及其在使用不同价格歧视中的区别。

原创性/价值

本研究对于理解动态定价策略对餐厅行业顾客感知和情绪影响的不断发展有所贡献。它旨在填补对客户对算法确定的价格(通过收入管理系统(RMS)例如DynamEat)在此行业中反应的理解空白。因果推断与情绪分析的结合提供了新的视角, 揭示了动态定价实施与顾客情绪之间微妙的联系。

Propósito

Este estudio examina cómo la fijación dinámica de precios impacta en las percepciones de los clientes de los restaurantes y en el sentimiento hacia los precios a través de métricas de reputación en línea. Además, para profundizar en el debate sobre la fijación dinámica de precios, se propone una definición novedosa explorando las formas específicas de discriminación que pueden manifestarse en diferentes industrias.

Diseño/metodología/enfoque

Utilizando un conjunto de datos exhaustivo de reseñas de restaurantes obtenidas de TripAdvisor, el estudio se centra en los restaurantes afiliados a uno de los mayores grupos de restaurantes en España. Empleamos un método cuasiexperimental (diferencias en diferencias) para estudiar cómo las estrategias de precios dinámicos influyen en las percepciones de valor de los clientes basándonos en las calificaciones numéricas. Mientras tanto, empleamos un modelo BERT en el componente textual de las reseñas para desentrañar los matices emocionales de la fijación dinámica de precios.

Hallazgos

Los resultados no revelaron un impacto causal de las estrategias de precios dinámicos en las percepciones de los clientes. Además, el análisis de sentimiento no muestra una visión negativa aumentada después de introducir la fijación dinámica de precios en los restaurantes en comparación con el grupo de control. Contrariamente a lo que sugiere la literatura previa, nuestros hallazgos indican que la implementación de precios dinámicos no afecta negativamente las percepciones o los sentimientos de los clientes respecto a los precios en los restaurantes.

Limitaciones/implicaciones de la investigación

La configuración cuasiexperimental del estudio presenta desafíos inherentes para establecer la causalidad que requieren una investigación más profunda utilizando entornos experimentales controlados. Sin embargo, nuestro estudio revela que los clientes de restaurantes no perciben la fijación de precios dinámica como injusta. Este hallazgo es crítico para los gerentes de restaurantes al considerar la implementación de la fijación de precios dinámica y estrategias de gestión de ingresos. Además, nuestro estudio resalta la importancia de considerar no solo las calificaciones numéricas sino también el análisis del sentimiento del cliente. Este enfoque más holístico para evaluar el impacto de las estrategias de precios puede dar a los gerentes de restaurantes una comprensión más profunda de las reacciones de los clientes. Además, se proporciona una definición de fijación de precios dinámica más rigurosa, aclarando su naturaleza y su distinción en el uso de diferentes discriminaciones de precios.

Originalidad/valor

Este estudio contribuye a la comprensión en evolución del impacto de las estrategias de fijación de precios dinámicos en las percepciones y sentimientos de los clientes en la industria restaurantera. Su objetivo es llenar el vacío en la comprensión de las reacciones de los clientes a los precios determinados algorítmicamente (a través de sistemas de gestión de ingresos (RMS) como DynamEat) en esta industria. La combinación de inferencia causal y análisis de sentimientos ofrece una perspectiva novedosa, arrojando luz sobre las conexiones matizadas entre la implementación de la fijación de precios dinámicos y las emociones de los clientes.

Article
Publication date: 28 August 2024

Visar Hoxha

The present study aims to investigate the relationship between building regulations, urban planning, and perceptions of housing affordability and prices in Prishtina, Kosovo.

Abstract

Purpose

The present study aims to investigate the relationship between building regulations, urban planning, and perceptions of housing affordability and prices in Prishtina, Kosovo.

Design/methodology/approach

A self-report survey with 1,000 respondents, selected through stratified probability sampling, provided the necessary data. Principal component analysis was applied to the questionnaire's internal structure, while regression analysis helped uncover housing affordability and housing prices perception predictors.

Findings

The study found that building regulation standards and zoning/land-use regulations reveal positive relationships with housing prices and housing affordability perception. Among these components, building regulations and standards show a stronger connection with housing affordability and price perception in comparison to urban planning and development.

Research limitations/implications

By investigating the relationship between building regulations, urban planning, and housing affordability and price perception in Prishtina, the present research makes a valuable contribution to the existing literature. The findings of this research hold significant implications for policymakers, urban planners, and developers, highlighting the relevance of adopting a well-balanced approach to building regulations and urban planning in order to uphold and maintain housing affordability and understand housing price dynamics.

Originality/value

The novelty of this research originates from the investigation of these relationships within a rapidly urbanizing city context, contributing to a deeper understanding of the complex dynamics between regulatory policies and outcomes in the housing market. Further research should examine additional dimensions and employ longitudinal designs to gain a deeper understanding of the components predicting housing affordability and price perception in Prishtina and similar urban contexts.

Details

International Journal of Building Pathology and Adaptation, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2398-4708

Keywords

Article
Publication date: 6 September 2024

Yuqi Zhu

The study explores the relationship between self-control and various online promotional methods faced by consumers simultaneously, simulating how consumers with distinct levels of…

Abstract

Purpose

The study explores the relationship between self-control and various online promotional methods faced by consumers simultaneously, simulating how consumers with distinct levels of self-control act in the current Chinese Internet market.

Design/methodology/approach

The sample was collected from response of participants to the survey containing a self-control test and attitudes towards different promotional methods. This is a quantitative study using regression and analysis of variance (ANOVA).

Findings

Initially, the empirical study focuses on discount margin for both price-discounts and full-discounts, which implies that high discount margin has a negative impact on the quality perception of consumers. However, this impact is weakened under full-discounts. Subsequently, the study identifies that the negative influence of high discounts on quality perception is insignificant for the high self-control group facing various promotional activities simultaneously. Furthermore, it is found that consumers with a high level of self-control rely more on their quality perception rather than the discount margin of products.

Originality/value

The study covers self-control of consumers, a variety of promotional methods and simulation of the present Chinese online market, enriching the research topic of consumer behavior as well as Internet marketing.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 19 April 2024

Wagner Junior Ladeira, Vinicius Nardi, Marlon Dalmoro, Fernando de Oliveira Santini, William Carvalho Jardim and Debdutta Choudhury

Understanding the effect of assortment composition on attentional levels is an essential topic for academic researchers and practitioners. This work has important implications…

Abstract

Purpose

Understanding the effect of assortment composition on attentional levels is an essential topic for academic researchers and practitioners. This work has important implications when analyzing the influence of shopping frame time and search effort on the relationship between the reaction to assortment composition and visual attention to stock-keeping units (SKUs) pricing.

Design/methodology/approach

Two experimental studies through gauze behavior analysis technology (using eye-tracking equipment) analyze the variable's large assortment, visual attention to SKU pricing, search effort and shopping frame time.

Findings

The results suggest that, although it increases the search effort, a large assortment decreases the visual attention to SKU pricing. Further, our results indicate a moderating effect associated with mitigating the negative effect by medium-low levels of search effort and a moderating impact of time in this relation.

Practical implications

Marketing professionals can carefully optimize the in-store experience by managing the assortment and variety and by influencing consumers' visual attention to SKU pricing along the journey as part of the experience. Assortment and SKU pricing strategies need to be aligned with consumer journey design.

Originality/value

Our findings contribute to assortment theory and management by detailing the relationship between consumers' reactions to assortment perception and visual attention to SKU pricing in time flow. We reinforce the importance of considering assortment strategies from the consumer perspective and giving reliable information about in-store behavior.

Details

Marketing Intelligence & Planning, vol. 42 no. 5
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 9 August 2024

Kacy Kim, Yuhosua Ryoo, Srdan Zdravkovic and Sukki Yoon

In the digital era, price transparency—the practice of disclosing cost breakdowns in product manufacturing—has become present on digital platforms. Although its benefits are…

Abstract

Purpose

In the digital era, price transparency—the practice of disclosing cost breakdowns in product manufacturing—has become present on digital platforms. Although its benefits are well-documented and consumers should theoretically desire costless and relevant information for informed decision-making, this paper proposes that consumers may resist overly transparent pricing, particularly when it pertains to premium-priced (vs regular-priced) products from countries with high equity.

Design/methodology/approach

Our research comprises three experimental studies utilizing both student and representative online Prolific samples, covering various products and countries with different equity levels. Initially, a pilot study identifies an interpersonal should-want conflict induced by price transparency when purchasing premium-priced products, leading to information avoidance. Subsequent studies further explore this phenomenon by examining the moderating role of country equity and the mediating role of price unfairness perceptions.

Findings

Price transparency can backfire when purchasing premium-priced products due to the want-should conflict among consumers—the desire to receive disclosure of cost breakdowns versus the inclination not to view it. This conflict results in increased resistance to receiving transparent price information and decreased brand attitudes and purchase intentions, especially for products originating from high-equity countries. Heightened perceptions of price unfairness explain these dynamics.

Research limitations/implications

The study primarily relies on experimental designs with limited sample sizes. To enhance the generalizability of the findings, incorporating large-scale real market data across diverse domains and countries would be beneficial.

Originality/value

Grounded in the should-want conflict and information avoidance theories, this paper uniquely explores the adverse effects of price transparency on digital platforms. We extend this by demonstrating that this conflict is influenced by country equity, where the perceived value added by the association of a product with a given country name affects whether consumers experience the conflict. Our investigation of perceived price unfairness further deepens our understanding of the nuanced effects of price transparency.

Details

International Marketing Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 9 August 2024

Mohamed A. Khashan, Mohamed A. Ghonim, Mariam Ashraf Aziz, Thamir Hamad Alasker and Mohamed M. Elsotouhy

The current study used the Stimuli-Organism-Response (S-O-R) paradigm to analyze value co-creation and customer gratitude influence on hotel guests' online reviews. It also…

Abstract

Purpose

The current study used the Stimuli-Organism-Response (S-O-R) paradigm to analyze value co-creation and customer gratitude influence on hotel guests' online reviews. It also examines the price fairness perception moderating influence on value co-creation and consumer gratitude.

Design/methodology/approach

Data were collected from 436 customers using an Internet-based questionnaire. PLS-SEM was utilized to assess hypotheses based on WarpPLS.7 software.

Findings

The findings demonstrated that value co-creation (co-production and value in use) significantly impacted customer gratitude and willingness to post positive online reviews. Gratitude positively influenced customers’ willingness to post online reviews. Gratitude mediated the relation between value co-creation and willingness to post positive online reviews. Price fairness perception moderated the relationship between value co-creation dimensions and customer gratitude.

Originality/value

The S-O-R framework underpins this study to measure the effects of co-production and value in use (stimuli) on consumer gratitude (organisms) and willingness to post positive online reviews (response). No prior studies examined this paradigm in an emerging market like Egypt. In addition, the study investigated the fair price fairness perception as a new moderating variable. Theoretical and managerial consequences are addressed.

Details

EuroMed Journal of Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1450-2194

Keywords

Article
Publication date: 3 June 2024

Savaş Artuğer, Kursad Sayın and Songül Kilinç Şahi̇n

The aim of this research is to determine the price fairness of the social servicescape and the effect of price fairness on customer trust. In this context, first of all, the…

Abstract

Purpose

The aim of this research is to determine the price fairness of the social servicescape and the effect of price fairness on customer trust. In this context, first of all, the effect of the social servicescape on price fairness and then the effect of price fairness on customer trust were tested.

Design/methodology/approach

The universe of the research consists of people who visit Starbucks coffee stores. In the study, data were collected from 338 people who visited Starbucks coffee stores. The relationships between the variables were analyzed using the Structural Equation Modeling (SEM) Technique.

Findings

As a result of the research, it was concluded that employees, other customers and social crowds, which are from the dimensions of the social servicescape, do not have a significant effect on price fairness, the interaction between employee and customer, which is from the sub-dimensions of the social servicescape, has an effect on customers' perception of price fairness, and price fairness also has an effect on customer trust.

Originality/value

The important point in this research is to determine the effect of the social servicescape on price fairness, which has not been studied in the literature before. Although the effect of physical servicescape on price justice has been investigated, the effect of social servicescape on price justice has not been investigated. When evaluated from this point of view, it is thought that the research will have an important contribution to the literature.

Details

British Food Journal, vol. 126 no. 7
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 5 May 2023

Laura H. Atuesta and Monserrat Carrasco

Between 2006 and 2012, Mexico implemented a “frontal war against organized crime”. This strategy increased criminal violence and triggered negative consequences across the…

Abstract

Purpose

Between 2006 and 2012, Mexico implemented a “frontal war against organized crime”. This strategy increased criminal violence and triggered negative consequences across the country’s economic, political and social spheres. This study aims to analyse how the magnitude and visibility of criminal violence impact the housing market of Mexico City.

Design/methodology/approach

The authors used different violent proxies to measure the effect of the magnitude and visibility of violence in housing prices. The structure of the data set is an unbalanced panel with no conditions of strict exogeneity. To address endogeneity, the authors calculate the first differences to estimate an Arellano–Bond estimator and use the lags of the dependent variable to instrumentalise the endogenous variable.

Findings

Results suggest that the magnitude of violence negatively impacts housing prices. Similarly, housing prices are negatively affected the closer the property is to visible violence, measured through narcomessages placed next to the bodies of executed victims. Lastly, housing prices are not always affected when a violent event occurs nearby, specifically, when neighbours or potential buyers consider this event as sporadic violence.

Originality/value

There are only a few studies of violence in housing prices using data from developing countries, and most of these studies are conducted with aggregated data at the municipality or state level. The authors are using geocoded information, both violence events and housing prices, to estimate more disaggregated effects. Moreover, the authors used different proxies to measure different characteristics of violence (magnitude and visibility) to estimate the heterogeneous effects of violence on housing prices.

Details

International Journal of Housing Markets and Analysis, vol. 17 no. 5
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 16 August 2024

Liming Zhao, Yingqiao Wang and Xu Cheng

To examine the impact of manufacturer reputation, retailer reputation, and product price on consumers’ perceived quality and purchasing behavior regarding organic milk.

Abstract

Purpose

To examine the impact of manufacturer reputation, retailer reputation, and product price on consumers’ perceived quality and purchasing behavior regarding organic milk.

Design/methodology/approach

Employing a 2 × 2 experiment, data were collected from 1,259 consumers in 32 provinces in China.

Findings

When a low-reputation manufacturer sells products through a high-reputation retailer, it improves consumers’ perception of quality and positively influences their purchasing behavior. Interestingly, setting higher prices for products manufactured by low-reputation companies and selling them through high-reputation retailers did not significantly enhance consumers’ perceived quality and deter their purchasing behavior.

Originality/value

The analysis expands the framework for cue diagnosis. While the existing framework primarily focuses on the influence of cue-type combinations on perceived quality, it does not integrate purchasing behavior into the conceptual framework. This limitation hinders people understanding of the theoretical mechanisms underlying the use of cues in purchasing decisions. This paper address this by gradually introducing variables, such as retailer reputation and product price, into the baseline model, thereby extending this theory. In addition, this paper advances the marketing research literature within the business-to-business-to-consumer context by examining the additive effects of manufacturer reputation, retailer reputation, and product price on consumers’ perception of quality and purchasing behavior.

Details

British Food Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0007-070X

Keywords

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