Expectation Formation in Case of Newer Hotels: The Role of Advertising, Price, and Culture

Nath, Prithwiraj, Devlin, James and Reid, Veronica (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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Official URL: https://doi.org/10.1177/0047287514541003


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: Article
Uncontrolled Keywords: Advertisement, culture, hotel service, power distance, price, uncertainty avoidance
Subjects: L700 Human and Social Geography
N100 Business studies
N500 Marketing
Department: Faculties > Business and Law > Newcastle Business School
Depositing User: John Coen
Date Deposited: 05 May 2020 13:06
Last Modified: 31 Jul 2021 18:16
URI: http://nrl.northumbria.ac.uk/id/eprint/43015

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