Price Formats, Discounts, and Consumers' Perceptions: A Comparison Between Hospitality and Non-Hospitality Industries

Keywords

pricing, discount level, discount format, hospitality industry, non-hospitality services

Abstract

Price promotions play a crucial role in enhancing value and creating an economic incentive for consumers to purchase products and services. Results from this study clearly demonstrate that different discount levels and discount formats have a significant impact on consumers' perceptions. Non-hospitality services differed significantly from hospitality firms preferring the percentage format over the dollar format for value perceptions and purchase intentions. There is little or no preference for discount formats in the case of hospitality services. In contrast, the relationship between the four discount levels and value perceptions is positive and direct, except at the 80% level. The relationship between discount levels and other dependent variables was found to be significantly different between hospitality and non-hospitality firms.

Publication Date

3-2-2010

Original Citation

Yoon, H., Nusair, K., Parsa, H.G., Naipaul, S. (2010). Price formats, discounts and consumers’ perceptions: A comparison between hospitality and non-hospitality industries. Journal of Food and Business Service Review. 13(1), 51-65.

Number of Pages

51-65

Document Type

Paper

Language

English

Source Title

Journal of Foodservice Business Research

Volume

13

Issue

1

College

Rosen College of Hospitality Management

Location

Rosen College of Hospitality Management

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