Impact of Hotel Discount Strategies on Consumers’ Emotion and Behavior in the Presence of High and Low Involvement Consumers

Abstract

While hotels come up with various discount strategies to attract consumers, especially during a recession, both hotels and consumers seem to favor dynamic pricing. Previous studies also indicated that price discounts give consumers not only monetary benefits but also positive emotional responses. The purpose of this study was to investigate how uniform pricing and dynamic pricing influence consumers’ emotion and behavior, identifying the role of their involvement. Results of study suggested that high involvement consumers responded more positively to dynamic pricing than uniform pricing. Moreover, younger and female consumers were more likely to be involved in obtaining a discount, and high involvement consumers showed more positive feelings, and were more likely to tell others, and make repeat purchases from a discount as compared to low involvement consumers.