Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - The effect of price on word of mouth
T2 - First time versus heavy repeat visitors
AU - Matzler, Kurt
AU - Teichmann, Karin
AU - Strobl, Andreas
AU - Partel, Michael
PY - 2019/2/28
Y1 - 2019/2/28
N2 - Many tourist destinations strongly focus and depend on repeat visitors. A central assumption thereby is that repeat visitors are more profitable (e.g. through lower marketing costs) and that their positive word of mouth (WOM) is essential to attract new guests. In this paper, we present a large-scale empirical study to investigate the effect of price for first time and heavy repeat visitors of ski resorts. Applying a hierarchical linear modelling approach, we show that price is negatively related to WOM for first time visitors and that price has no effect on WOM for repeat visitors. Thus, we show that the effect of price on WOM decreases for repeat visitors.
AB - Many tourist destinations strongly focus and depend on repeat visitors. A central assumption thereby is that repeat visitors are more profitable (e.g. through lower marketing costs) and that their positive word of mouth (WOM) is essential to attract new guests. In this paper, we present a large-scale empirical study to investigate the effect of price for first time and heavy repeat visitors of ski resorts. Applying a hierarchical linear modelling approach, we show that price is negatively related to WOM for first time visitors and that price has no effect on WOM for repeat visitors. Thus, we show that the effect of price on WOM decreases for repeat visitors.
KW - Customer satisfaction
KW - Price
KW - Word of mouth
KW - Hierarchical linear modelling
U2 - 10.1016/j.tourman.2018.09.013
DO - 10.1016/j.tourman.2018.09.013
M3 - Journal article
VL - 70
SP - 453
EP - 459
JO - Tourism Management
JF - Tourism Management
SN - 0261-5177
ER -