Price Strategy, Market Orientation, and Business Performance in the Hotel Industry

Abstract

This study seeks to study the relationship between market orientation and business performance and to evaluate the mediating effect of adopting a low-price strategy in this relationship in the hotel industry. A sample from the Spanish and Portuguese hotel industry is used. Results show that the effect of market orientation on business performance is positive and direct. On the other hand, the results do not confirm the mediating effect of a strategy based on low-price in the strength of this relationship. Moreover, results indicate that a price strategy based on low-price is negatively related to hotel business performance.

Assessing the link between market orientation and hotel performance: the mediating role of value-based marketing innovation

“…According to the study's analyses, MO has a direct positive effect on hotel performance. This finding supports earlier empirical studies on the subject (Campo et al , 2014; Hinson et al , 2017; Kazemian et al , 2021; Otysna and Kamewor, 2022; Sampaio et al , 2019a, b, 2021). Following the definition of MO by Narver and Slater (1990), it is conceivable to assert that MO results in superior customer value, resulting in a continuous increase in business performance.…”

“…The connection between MO and hotel performance has been proven in numerous studies. Some research discovered a direct positive association (Campo et al , 2014; Hinson et al , 2017; Kazemian et al , 2021; Otysna and Kamewor, 2022; Sampaio et al , 2019a, b, 2021), while others found no significant effect (Alnawas and Hemsley-Brown, 2019; Phan et al , 2021; Qu, 2014). The most plausible reason for these contradictory outcomes is that MO is insufficient to increase hotel performance.…”

“…The hotel industry faces several challenges, including fluctuating demand, a competitive business climate and high fixed costs, exerting pressure on hotel performance (Sampaio et al , 2021). External shocks, most notably the COVID-19 pandemic, have significantly exacerbated the challenges.…”

“…A firm can establish a competitive advantage in obtaining better performance only if it takes the necessary strategic actions to leverage MO (Ketchen et al , 2007). Prior researches have used different mediators to transmit MO to hotel performance, such as absorptive capacity (Otysna and Kamewor, 2022), price strategy (Sampaio et al , 2021), service quality and innovation (Phan et al , 2021), branding, customer relationship and service innovation capabilities (Alnawas and Hemsley-Brown, 2019), customer loyalty (Sampaio et al , 2019b), creative marketing programs (Dabrowski et al , 2019) and service quality (Kaliappen et al , 2017; Sampaio et al , 2019a). In addition to the mediators listed above, this research explores the indirect impact of MO on hotel performance through value-based marketing innovation.…”

Understanding the adoption context of China’s digital currency electronic payment

“…Common factors influencing users’ switching behavior include quality, satisfaction, value, trust, commitment, price perception, alternative attitudes, social impacts, switching costs, previous switching behavior, and diversification tendencies (Kesharwani et al 2021 ; Li 2021 ; Rahman et al 2020 ; Rouibah et al 2021 ; Sampaio et al 2021 ; Shiau et al 2021 ; ZareRavasan and Krčál 2021 ). Digital currency and electronic payment research focusing on consumers’ choices of payment tools is increasing (Wu et al 2022 ).…”