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Do price promotions drive consumer spending on luxury hotel services? The moderating roles of room price and user-generated content

Jang, Seongsoo and Moutinho, Luiz 2019. Do price promotions drive consumer spending on luxury hotel services? The moderating roles of room price and user-generated content. International Journal of Hospitality Management 78 , pp. 27-35. 10.1016/j.ijhm.2018.11.010
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Abstract

Price promotion, as price information, and user-generated content (UGC), as non-price information, play an important role in generating luxury hotel revenue. This study empirically investigates how price promotion influences actual consumer spending on luxury hotel services except room price, by considering the contingency role of room price and volume and valence of UGC. Combined data of daily settlements and Tripadvisor customer reviews of a regional luxury hotel chain are used for the analyses. The results indicate that, overall, price promotion negatively influences consumer spending on luxury hotel services and its negative effect is strengthened when the room is higher priced or the valence of UGC is high. Furthermore, a larger volume of intrinsic attribute-related UGC–amenity and location–with price promotion leads to more consumer spending than a larger volume of extrinsic attribute-related UGC–food and staff. The findings provide hotel managers with important insights into pricing and UGC management.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Publisher: Elsevier
ISSN: 0278-4319
Date of First Compliant Deposit: 21 November 2018
Date of Acceptance: 12 November 2018
Last Modified: 26 Nov 2018 09:55
URI: http://orca.cf.ac.uk/id/eprint/116966

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