Carlos Alberto Fernandes Sampaio, Ricardo José de Ascensão Gouveia Rodrigues, José Manuel Hernández Mogollón
This study seeks to study the nature of the relationship between competitor orientation, a strategy based on low prices and hotel business performance and to test if a low-price strategy moderates the relationship between competitor orientation and business performance in the hotel industry. A structural equation modelling approach is used and a sample obtained in the Portuguese mid-range hotel industry, specifically three and four-star hotels, is used to assess the proposed hypotheses. According to the research results, the competitor orientation has a positive effect on business performance. Furthermore, results show that the relationship between competitor orientation and business performance is moderated by a pricing strategy based on low prices. Moreover, results confirm a negative relationship between a pricing strategy based on low prices and business performance
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