TY - JOUR
T1 - A Tale of Two Cultures
T2 - Consumer Reactance and Willingness to Book Fenced Rates
AU - Song, Myungkeun
AU - Noone, Breffni M.
AU - Mattila, Anna S.
N1 - Funding Information:
The author(s) disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: This study was supported by the Marriott Foundation
Publisher Copyright:
© 2017, The Author(s) 2017.
PY - 2018/7/1
Y1 - 2018/7/1
N2 - Rate fences are integral to the practice of revenue management. Prior research suggests that cross-cultural differences in consumer reaction to rate fences exist but little is known about why this is so. This research employed two experimental studies with consumers from the United States and South Korea to explore the mechanisms underlying cultural differences in consumer reaction to nonphysical and physical rate fences. In Study 1, we found that feelings of reactance mediate the restriction-based nonphysical rate fence-willingness to book relationship for highly individualistic cultures, but not for highly collectivist cultures. Study 2’s findings suggest that consumers from low-context cultures favor product-based, over service-based, physical rate fences, while consumers from high-context cultures are unlikely to react differently to product-based, and service-based, physical rate fences. Together, the findings of Study 1 and Study 2 provide tourism managers a framework within which geolocation-based pricing strategies, and associated rate fences, can be evaluated.
AB - Rate fences are integral to the practice of revenue management. Prior research suggests that cross-cultural differences in consumer reaction to rate fences exist but little is known about why this is so. This research employed two experimental studies with consumers from the United States and South Korea to explore the mechanisms underlying cultural differences in consumer reaction to nonphysical and physical rate fences. In Study 1, we found that feelings of reactance mediate the restriction-based nonphysical rate fence-willingness to book relationship for highly individualistic cultures, but not for highly collectivist cultures. Study 2’s findings suggest that consumers from low-context cultures favor product-based, over service-based, physical rate fences, while consumers from high-context cultures are unlikely to react differently to product-based, and service-based, physical rate fences. Together, the findings of Study 1 and Study 2 provide tourism managers a framework within which geolocation-based pricing strategies, and associated rate fences, can be evaluated.
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U2 - 10.1177/0047287517713722
DO - 10.1177/0047287517713722
M3 - Article
AN - SCOPUS:85042940028
SN - 0047-2875
VL - 57
SP - 707
EP - 726
JO - Journal of Travel Research
JF - Journal of Travel Research
IS - 6
ER -