Advertising, price and hotel service quality: a signalling perspective
-
Hsien-Hung Chiu [1] ; Chiang-Ming Chen [1]
-
[1] National Chi Nan University
National Chi Nan University
Puli Township, Taiwán
-
- Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 20, Nº. 5, 2014, págs. 1013-1025
- Idioma: inglés
- Texto completo no disponible (Saber más ...)
-
Resumen
This study investigates two main issues: the relationship between advertising expenditure and service quality, and the relationship between price and service quality in the hotel industry. The authors consider an asymmetric-information environment, in which consumers are uncertain about service quality, and address the above issues from a signalling perspective. Building on signalling and counter-signalling theory in economics, the authors propose a number of testable hypotheses and conduct an empirical study using data for Taiwanese international tourist hotels. The empirical results support the hypothesis that the advertising�quality relationship is inverted-U shaped, whereas the price�quality relationship is positive and monotonic. Hence, higher prices may signal higher service quality, whereas higher advertising expenditure does not necessarily signal higher service quality.
