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

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.

KEYWORDS:

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