ABSTRACT
Built upon the compensatory decision-making model and anchor effect from the prospect theory, the current research examines the interactive effects of sales promotion and rating disadvantage on the intention to choose a low-rating hotel over a high-rating hotel. A 4 (sales promotions: control vs. monetary vs. non-monetary vs. combined) by 2 (rating disadvantage: small vs. big) scenario experiment was conducted to investigate participants’ hotel choice intentions. Two-way ANCOVA results suggest that respondents’ intention to choose the lower-rating hotel increases when it has a small rating disadvantage and provides a combined promotion (i.e. discount + free gift).
Acknowledgments
This work was supported by the University of Nevada, Las Vegas.
Data availability statement
The data set used in this paper is available upon request.
Disclosure statement
No potential conflict of interest was reported by the author(s).