Price fairness perceptions and hotel customers’ behavioral intentions

Abstract

This study examines the causal relationship between consumers' price fairness perceptions and behavioral intentions in the context of online hotel bookings. Using a cross-sectional sample of 506 customers of a budget hotel chain in the United Kingdom, structural equation modeling (using the partial least squares approach), multigroup t-test, and permutation tests were conducted to (1) validate the structural model where price fairness is the exogenous variable and behavioral intention is the endogenous variable and (2) examine whether the causal model is invariant (equivalent) across customers from different market segments-including, first-time and repeat customers, leisure, and business travelers. Results from the analysis supported a significant, direct relationship between customers' perceptions of price fairness and behavioral intentions. The results of the multigroup test and permutation tests further indicated that first-time leisure customers are more sensitive to dynamic pricing practices and tend to perceive these practices as unfair. Thus, the budget hotel chain may want to be very cautious with new customers who are not familiar with this pricing practice.

Does restaurant menu information affect customer attitudes and behavioral intentions? A cross-segment empirical analysis using PLS-SEM

“…Discriminant validity is "supported when the average shared variance of a construct and its indicators exceed the shared variance with every other construct of the model. Thus, the square root of AVE for each of the constructs should surpass the correlation coefficient of that construct with every other construct in the model" (Haddad et al, 2015). This is the case in our model ( Table 6).…”

“…Multigroup t-test was used to examine potential differences in the relationships among the model constructs. Permutation tests examined differences in the weights of the indicators used to measure each construct as well as the relationships among the constructs across the three segments (Haddad et al, 2015). Both tests are based on unstandardized estimations as the groups have different variances.…”

“…2 Behavioural Intentions was operationalized using three variables adapted from Zeithaml et al (1996): (1) Intention to visit/try the restaurant, (2) Intention to recommend the restaurant, and (3) Intention to say positive things about the restaurant (1 = extremely unlikely, 5 = extremely likely). Behavioural intentions was conceptualized as a formative construct where the measured items form the latent construct (see Song et al, 2011;Haddad et al 2015;Soderlund 2006). A construct is specified as formative under the following conditions: (1) Changes in the indicators are expected to cause changes in the construct; (2) Changes in the construct are not expected to cause changes in the indicators; (3) The indicators do not necessarily share a common theme; (4) Eliminating an indicator may alter the conceptual domain of the construct; and a (5) change in the value of one of the indicators is not expected to be associated with a change in the others (see, Jarvis et al, 2003;Haddad et al, 2015).…”

Percepções sobre a Justiça do Yield Management: uma Análise Comparativa em Hotéis e Companhias Aéreas

“…Nos últimos anos foram realizadas várias pesquisas para documentar e analisar as percepções de justiça sobre as práticas de preços variáveis associadas ao yield management em hotéis, companhias aéreas e restaurantes (por exemplo, ANDRÉS-MARTÍNEZ; GÓMEZ-BORJA; MONDÉJAR-JIMENEZ, 2014;NAMASIVAYAM, 2006;KWANSA, 2008;MATTILA, 2004;MATTILA, 2005;MATTILA, 2006;HADDAD;HALLAK;ASSAKER, 2015;HEO;LEE, 2011;KIMES, 1994;KIMES, 2002;KIMES;NOONE, 2002;ROHLFS;KIMES, 2007;SAHUT;HIKKEROVA;PUPION, 2016;TAYLOR;KIMES, 2010;WIRTZ;KIMES, 2007). Esta seção, porém, examina somente as pesquisas de Kimes (1994Kimes ( , 2002 e Kimes e Noone (2002) pela importância que têm para o trabalho realizado, e por problemas de limitação de espaço.…”

“…Considerando as evidências de que a familiaridade com as práticas de yield management, em geral, está significativamente associada às percepções de que elas são justas (ROHLFS; KIMES, 2007;WIRTZ;KIMES, 2007;TAYLOR;KIMES, 2010;HEO;LEE, 2011;ANDRÉS-MARTÍNEZ;GÓMEZ-BORJA;MONDÉJAR-JIMENEZ, 2014;HADDAD;HALLAK;ASSAKER, 2015), as opiniões expressas pelos respondentes parecem surpreendentes. No entanto, pode-se argumentar que usar os serviços de hotéis e de companhias aéreas é condição suficiente, mas não necessária, para facilitar aceitação das políticas de preços variáveis que eles adotam.…”