Expectation formation in case of newer hotels

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...

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Main Authors: Nath, Prithwiraj, Devlin, James, Reid, Veronica
Format: Article
Published: SAGE 2016
Subjects:
Online Access:https://eprints.nottingham.ac.uk/52492/
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author Nath, Prithwiraj
Devlin, James
Reid, Veronica
author_facet Nath, Prithwiraj
Devlin, James
Reid, Veronica
author_sort Nath, Prithwiraj
building Nottingham Research Data Repository
collection Online Access
description 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.
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spelling nottingham-524922020-05-04T17:29:03Z https://eprints.nottingham.ac.uk/52492/ Expectation formation in case of newer hotels Nath, Prithwiraj Devlin, James Reid, Veronica 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. SAGE 2016-02-01 Article PeerReviewed Nath, Prithwiraj, Devlin, James and Reid, Veronica (2016) Expectation formation in case of newer hotels. Journal of Travel Research, 55 (2). pp. 261-275. ISSN 0047-2875 advertisement culture hotel service power distance price uncertainty avoidance http://journals.sagepub.com/doi/10.1177/0047287514541003 doi:10.1177/0047287514541003 doi:10.1177/0047287514541003
spellingShingle advertisement
culture
hotel service
power distance
price
uncertainty avoidance
Nath, Prithwiraj
Devlin, James
Reid, Veronica
Expectation formation in case of newer hotels
title Expectation formation in case of newer hotels
title_full Expectation formation in case of newer hotels
title_fullStr Expectation formation in case of newer hotels
title_full_unstemmed Expectation formation in case of newer hotels
title_short Expectation formation in case of newer hotels
title_sort expectation formation in case of newer hotels
topic advertisement
culture
hotel service
power distance
price
uncertainty avoidance
url https://eprints.nottingham.ac.uk/52492/
https://eprints.nottingham.ac.uk/52492/
https://eprints.nottingham.ac.uk/52492/