IDEAS home Printed from https://ideas.repec.org/a/pal/jorapm/v21y2022i3d10.1057_s41272-021-00336-9.html
   My bibliography  Save this article

Price sensitivities of the consumer in a tourist market

Author

Listed:
  • Dixie Button

    (Embry-Riddle Aeronautical University)

Abstract

Are tourists sensitive to price? A field experiment was conducted to draw conclusions regarding the effect of three different price strategies on the revenues of a small business selling to tourists. Price elasticity determinations during each phase of the pricing experiment were also computed. This research was conducted in a tourist-based monopolistic competition market structure. Results from the pricing strategies examined indicated little to no difference in sales revenues regardless of pricing strategy employed. This finding is relevant for small businesses operating in a tourist market who often compete on price.

Suggested Citation

  • Dixie Button, 2022. "Price sensitivities of the consumer in a tourist market," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(3), pages 291-298, June.
    • Handle: RePEc:pal:jorapm:v:21:y:2022:i:3:d:10.1057_s41272-021-00336-9
    DOI: 10.1057/s41272-021-00336-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41272-021-00336-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41272-021-00336-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. K. Sudhir, 2001. "Competitive Pricing Behavior in the Auto Market: A Structural Analysis," Marketing Science, INFORMS, vol. 20(1), pages 42-60, January.
    2. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
    3. Andreas Hinterhuber & Stephan M. Liozu, 2018. "Thoughts: premium pricing in B2C and B2B," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(4), pages 301-305, August.
    4. Rook, Dennis W & Fisher, Robert J, 1995. "Normative Influences on Impulsive Buying Behavior," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 22(3), pages 305-313, December.
    5. Deneckere, Raymond & Marvel, Howard P & Peck, James, 1997. "Demand Uncertainty and Price Maintenance: Markdowns as Destructive Competition," American Economic Review, American Economic Association, vol. 87(4), pages 619-641, September.
    6. Deneckere, Raymond & Marvel, Howard P & Peck, James, 1997. "Demand Uncertainty and Price Maintenance: Markdowns as Destructive Competition," American Economic Review, American Economic Association, vol. 87(4), pages 619-641, September.
    7. Sirgy, M Joseph, 1982. "Self-Concept in Consumer Behavior: A Critical Review," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 9(3), pages 287-300, December.
    8. K. Sudhir, 2001. "Competitive Pricing Behavior in the US Auto Market: A Structural Analysis," Yale School of Management Working Papers ysm228, Yale School of Management.
    9. Jin, Haipeng & Moscardo, Gianna & Murphy, Laurie, 2017. "Making sense of tourist shopping research: A critical review," Tourism Management, Elsevier, vol. 62(C), pages 120-134.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alexandra Kontolaimou & Pródromos-Ioánnis Prodromídis & Ioanna Konstantakopoulou, 2019. "The issue of fixed book pricing: Evidence based on the Greek experience," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 13(2), pages 102-120, December.
    2. Qu, Zhan & Raff, Horst & Schmitt, Nicolas, 2018. "Incentives through inventory control in supply chains," International Journal of Industrial Organization, Elsevier, vol. 59(C), pages 486-513.
    3. A. Yeşim Orhun & Sriram Venkataraman & Pradeep K. Chintagunta, 2016. "Impact of Competition on Product Decisions: Movie Choices of Exhibitors," Marketing Science, INFORMS, vol. 35(1), pages 73-92, January.
    4. Qu, Zhan & Raff, Horst & Schmitt, Nicolas, 2016. "A theory of intermediation in supply chains based on inventory control," CEPIE Working Papers 09/16, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    5. Sergio Meza & K. Sudhir, 2006. "Pass-through timing," Quantitative Marketing and Economics (QME), Springer, vol. 4(4), pages 351-382, December.
    6. Pasquale Schiraldi, 2006. "Second-Hand Markets and Collusion by Manufacturers of Semidurable Goods," Boston University - Department of Economics - Working Papers Series WP2006-028, Boston University - Department of Economics.
    7. Xinbo Hu & Paul J. Zak, 2022. "A Procedure to Set Prices and Select Inventory in Thinly Traded Markets Using Data from eBay," JRFM, MDPI, vol. 15(7), pages 1-8, July.
    8. Kohei Kawaguchi, 2021. "When Will Workers Follow an Algorithm? A Field Experiment with a Retail Business," Management Science, INFORMS, vol. 67(3), pages 1670-1695, March.
    9. Verboven, Frank & Bourreau, Marc & Sun, Yutec, 2018. "Market Entry, Fighting Brands and Tacit Collusion: The Case of the French Mobile Telecommunications Market," CEPR Discussion Papers 12866, C.E.P.R. Discussion Papers.
    10. Claude, DASPREMONT & Rodolphe, DOS SANTOS FERREIRA & Jacques, THEPOT, 2007. "Hawks and doves in segmented markets : a formal approach to competitive aggressiveness," Discussion Papers (ECON - Département des Sciences Economiques) 2007039, Université catholique de Louvain, Département des Sciences Economiques.
    11. Ting Zhu & Hongju Liu & Pradeep Chintagunta, 2015. "Wireless Carriers’ Exclusive Handset Arrangements: an Empirical Look at the iPhone," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 2(2), pages 177-190, June.
    12. Edward E. Schlee, 2013. "Surplus Maximization and Optimality," American Economic Review, American Economic Association, vol. 103(6), pages 2585-2611, October.
    13. Chatterjee, Sheshadri & Chaudhuri, Ranjan & Vrontis, Demetris, 2023. "Masstige marketing: An empirical study of consumer perception and product attributes with moderating role of status, emotion, and pride," Journal of Business Research, Elsevier, vol. 155(PA).
    14. Edward Schlee, 2008. "Expected consumer’s surplus as an approximate welfare measure," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 34(1), pages 127-155, January.
    15. Abhik Roy & Jagmohan Raju, 2011. "The influence of demand factors on dynamic competitive pricing strategy: An empirical study," Marketing Letters, Springer, vol. 22(3), pages 259-281, September.
    16. John Asker & Heski Bar-Isaac, 2020. "Vertical Information Restraints: Pro- and Anticompetitive Impacts of Minimum-Advertised-Price Restrictions," Journal of Law and Economics, University of Chicago Press, vol. 63(1), pages 111-148.
    17. Alden, Dana L. & He, Yi & Chen, Qimei, 2010. "Service recommendations and customer evaluations in the international marketplace: Cultural and situational contingencies," Journal of Business Research, Elsevier, vol. 63(1), pages 38-44, January.
    18. Bradlow, Eric T. & Gangwar, Manish & Kopalle, Praveen & Voleti, Sudhir, 2017. "The Role of Big Data and Predictive Analytics in Retailing," Journal of Retailing, Elsevier, vol. 93(1), pages 79-95.
    19. Nan Chen & Zemin (Zachary) Zhong, 2024. "History and Country-of-Origin Effects," Marketing Science, INFORMS, vol. 43(1), pages 192-212, January.
    20. Qi Wang & Huazhong Zhao & Jinhong Xie, 2016. "Intra-Standard Competition: The Joint Impact of an Installed-User Base and a Supporting-Firm Base in Markets with Network Effects," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 3(3), pages 159-174, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorapm:v:21:y:2022:i:3:d:10.1057_s41272-021-00336-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.