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• W2070346137 abstract "Purpose This study's goal is to examine how an intensified room rate signal affects customers' perceptions, their propensity to book, and consequently hotels' revenue maximization. Design/methodology/approach Subjects were asked to assess quality, sellout risk and the likelihood of getting a better deal based on an advanced booking scenario, where the signal's intensity was manipulated through the level of uncertainty. Analysis was conducted using a GLM multivariate procedure and a polytomous universal model. Findings The results suggest that high quoted rates might affect customers' perceptions, their propensity to book, and consequently the hotel's revenues. Surprisingly, the impact of the high room rate signal on the sellout risk perception reversed its direction with the intensified signal. Research limitations/implications The results imply that the maximal achievable revenue levels reported in a previous theoretical study ought to be re‐calculated because the assumptions used were not supported by the study's findings. Practical implications The study demonstrated yet again that price affects the booking decision beyond the monetary value. It sends a signal that affects several perceptions and shapes the consumers' booking decision. Moreover, the intensity of the signal might change the direction of the impact. Originality/value The study is a first attempt to examine price signal intensity and the impact of the signal's strength in an advanced booking environment. The theoretical and practical implications underscore the need to better understand the complex impact that price changes have on consumer reactions and consequently on the effectiveness of hotels' revenue management policies." @default.
• W2070346137 created "2016-06-24" @default.
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• W2070346137 date "2010-02-09" @default.
• W2070346137 modified "2023-09-27" @default.
• W2070346137 title "The peculiar impact of higher room rates on customers' propensity to book" @default.
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• W2070346137 doi "https://doi.org/10.1108/09596111011013462" @default.
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