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Examining framing effect in travel package purchase: An application of double-entry mental accounting theory

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  • Wen, Tong
  • Leung, Xi Y.
  • Li, Bin
  • Hu, Lingyan

Abstract

Based on the double-entry mental accounting theory, we explore the effect of option framing on travelers' purchase decisions regarding customized travel packages through three experiments. The results confirm that subtractive framing leads to higher purchase intentions and willingness to pay than additive framing. However, in the distant future, additive framing leads to higher purchase intention. Pleasure attenuation mediates the option framing effect on travel package purchase decisions, especially for travelers who make travel plans for the near future and those with higher price sensitivity. Pain buffering only plays a mediator role in student samples. The findings provide implications for travel agencies to adopt subtractive framing for customized travel packages and improve the hedonic experiences embedded in packages.

Suggested Citation

  • Wen, Tong & Leung, Xi Y. & Li, Bin & Hu, Lingyan, 2021. "Examining framing effect in travel package purchase: An application of double-entry mental accounting theory," Annals of Tourism Research, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:anture:v:90:y:2021:i:c:s0160738321001432
    DOI: 10.1016/j.annals.2021.103265
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    4. Lam Khanh Tran & Hung Tri Tang & Thien Huu Nguyen, 2024. "The interdisciplinary nature of psychology and accounting: A review and research," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 14(3), pages 94-108.
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    6. Silva, Emmanuel Marques & Moreira, Rafael de Lacerda & Bortolon, Patricia Maria, 2023. "Mental Accounting and decision making: a systematic literature review," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 107(C).
    7. Gustafsson, Peter & Nilsson, Peter & David, Lucinda & Marañon, Antonia, 2021. "Framing energy choices in consumer decision-making Evidence from a random experiment in Sweden," Papers in Innovation Studies 2021/14, Lund University, CIRCLE - Centre for Innovation Research.

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