The Impact of Price Preciseness, Price Reduction, and Lay Rationalism on Travelers’ Perceptions of Deal Attractiveness, Purchase Intention, and Choice

Abstract

This research investigated the role of price preciseness (rounded vs. precise) in perceiving deal attractiveness, purchase intention, and choice in travel decision-making. Two competing hypotheses (price association vs. fluency) were proposed. Across five empirical studies, we found that the perceived attractiveness of a price promotion deal, along with purchase intention and relative preference, were higher when the original price was presented in a rounded (vs. precise) format (Studies 1A, 1B, and 3). This finding supports the price association-based explanation rather than the fluency-based explanation. In addition, the results were replicated in a consequential choice setting (Study 2). We further demonstrated that the effect of the price rounding is stronger for those with high (vs. low) lay rationalism, suggesting its moderating role (Study 4). The empirical findings of the current research have theoretical implications for various fields, including the behavioral pricing of travel and tourism, and practical implications for practitioners.