Price formats, discounts, and consumers' perceptions: A comparison between hospitality and non-hospitality industries

Hae Jin Yoon, Khaldoon Nusair, H. G. Parsa, Sandra Naipaul

Research output: Contribution to journalArticle

4 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)51-65
Number of pages15
JournalJournal of Foodservice Business Research
Volume13
Issue number1
DOIs
Publication statusPublished - Jan 2010

Keywords

  • Discount format
  • Discount level
  • Hospitality industry
  • Non-hospitality services
  • Pricing

ASJC Scopus subject areas

  • Food Science

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