Expectation formation in case of newer hotels: the role of advertising, price, and culture

Nath, P., Devlin, J. ORCID: 0000-0002-1526-8793 and Reid, V., 2016. Expectation formation in case of newer hotels: the role of advertising, price, and culture. Journal of Travel Research, 55 (2), pp. 261-275. ISSN 0047-2875

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Advertisement and price cues are important sources of information that influence tourists’ service expectations, particularly in the case of newer, less-established hotels. However, it is not clear if such hotels benefit from promising more or less through their advertisements; or price high or low through their price cues. Extant research is also uncertain about the role of culture in moderating the impact of advertisement and price cues on expectations. Using an experimental setup with 218 tourists from three different countries, this study finds that a newer hotel is likely to be better off by offering more service promises through its advertising and high price cues to its prospective visitors. The results suggest that culture influences how tourists process advertising cues but has no influence on price cue influence. The study provides insights for managers on how to develop a segmentation strategy using the cultural profiles of tourists.

Item Type: Journal article
Publication Title: Journal of Travel Research
Creators: Nath, P., Devlin, J. and Reid, V.
Publisher: Sage
Date: February 2016
Volume: 55
Number: 2
ISSN: 0047-2875
Divisions: Schools > Nottingham Business School
Record created by: Jonathan Gallacher
Date Added: 11 Jan 2023 16:58
Last Modified: 11 Jan 2023 16:58
URI: https://irep.ntu.ac.uk/id/eprint/47827

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