Did I Get The Best Discount? Counterfactual Thinking Of Tourism Products

Keywords

counterfactual thinking; discount rate; perceived regret; temporal distance

Abstract

Current trends in the tourism industry indicate that most potential travelers purchase tourism products from online travel agents that provide price promotions. Even though the range of price promotions often varies, the tourism literature does not address potential travelers’ perceptions after purchasing products at various discount rates. This study examined the relationships among different discount rates, temporal distance, and counterfactual thinking—a mental undoing of existing outcomes. Results showed that the relationship between discount rate and counterfactual thinking had a U-shaped curve. Furthermore, the shape differed by temporal distance. The optimal discount rate for minimizing counterfactual thinking was 29.62% when the reservation was made 15 days prior to departure but rose to 33.33% when the reservation was made three months prior to departure. This study suggested that counterfactual thinking mediates the relationship between discount rate and perceived regret.

Publication Date

1-1-2018

Publication Title

Journal of Travel Research

Volume

57

Issue

1

Number of Pages

17-30

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1177/0047287516680775

Socpus ID

85038219510 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/85038219510

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