A temporal construal theory explanation of the price-quality relationship in online dynamic pricing

Guizzardi, A., Mariani, M. M. ORCID: https://orcid.org/0000-0002-7916-2576 and Stacchini, A. (2022) A temporal construal theory explanation of the price-quality relationship in online dynamic pricing. Journal of Business Research, 146. pp. 32-44. ISSN 0148-2963 doi: 10.1016/j.jbusres.2022.03.058

Abstract/Summary

According to construal theory, the desirability of a product influences consumers’ choices from a temporally, socially, spatially and hypothetically distant perspective. The purpose of this study is to test the temporal dimension of such theory with reference to hotel room prices, also distinguishing by firm size. Temporal distance is measured through the days of advance booking, in a varying-coefficient model reflecting both the dynamic pricing behaviour of the supply and the seasonal oscillation pattern of the demand. Results support the appropriateness of the temporal construal theory as an interpretative framework for the effectiveness of dynamic pricing, from the perspective of behavioural psychology. On average, the influence of quality on price in small hotels is lower than in large hotels; however, its variability is higher in small hotels. Large hotels charge a premium price during peak season dates, while small firms apply discounts, likely aiming to reach full occupation.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/104361
Item Type	Article
Refereed	Yes
Divisions	Henley Business School > Leadership, Organisations, Behaviour and Reputation
Publisher	Elsevier
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