TY - JOUR
T1 - The importance of meeting price expectations
T2 - Linking price to service quality
AU - Toncar, Mark F.
AU - Alon, Ilan
AU - Misati, Everlyne
PY - 2010
Y1 - 2010
N2 - Purpose: The purpose of this research paper is to investigate the role of price and price expectations in service quality evaluations based on a study of the US hotel sector. Design/methodology/approach: The paper is based on an experimental study to test service quality and price congruency through randomly assigned treatments to a quota sample of 120 students. Findings: The research shows that the degree to which subjects' price expectations are met influences their evaluations of service quality. This is especially true in the case of a price loss; when the actual price exceeds the expected price. However, when there is a price gain, subjects' evaluations of service quality were not affected. Research limitations/implications: The experiment sacrificed external validity for internal control; an artificial stimulus was used in a carefully controlled experimental setting to control the subjects' exposure to price and service manipulations. A small sample size of student subjects was used; only 20 subjects in each treatment group. The results obtained were based on subjects' evaluation of a written script, and not an actual service encounter. By virtue of using an experimental design, the experiment did not consider a broad range of potential factors. Originality/value: The paper uses an experiment to test the effects of price gains and price losses on consumers' perceptions of the quality of a service encounter.
AB - Purpose: The purpose of this research paper is to investigate the role of price and price expectations in service quality evaluations based on a study of the US hotel sector. Design/methodology/approach: The paper is based on an experimental study to test service quality and price congruency through randomly assigned treatments to a quota sample of 120 students. Findings: The research shows that the degree to which subjects' price expectations are met influences their evaluations of service quality. This is especially true in the case of a price loss; when the actual price exceeds the expected price. However, when there is a price gain, subjects' evaluations of service quality were not affected. Research limitations/implications: The experiment sacrificed external validity for internal control; an artificial stimulus was used in a carefully controlled experimental setting to control the subjects' exposure to price and service manipulations. A small sample size of student subjects was used; only 20 subjects in each treatment group. The results obtained were based on subjects' evaluation of a written script, and not an actual service encounter. By virtue of using an experimental design, the experiment did not consider a broad range of potential factors. Originality/value: The paper uses an experiment to test the effects of price gains and price losses on consumers' perceptions of the quality of a service encounter.
KW - Consumer behaviour
KW - Pricing
KW - Service levels
UR - http://www.scopus.com/inward/record.url?scp=77955070614&partnerID=8YFLogxK
U2 - 10.1108/10610421011059612
DO - 10.1108/10610421011059612
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AN - SCOPUS:77955070614
SN - 1061-0421
VL - 19
SP - 295
EP - 305
JO - Journal of Product and Brand Management
JF - Journal of Product and Brand Management
IS - 4
ER -