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How do Benefit and Cost Shape Perceived Value of Hotel Stays?

Abstract
Hotel online reviews are important for hoteliers because they provide the aggregated digital footprints of tourists’ experience and behavior. This paper explores the effects of hotel attributes, reviewer attributes, experience attributes, and their interactions on hotel customers’ perceived value, with a special focus on the relationship between benefit and cost in shaping customers’ perceived value of hotel stays. A sample consists of 39,222 reviews from 166 hotels in Los Angeles was extracted from TripAdvisor. Mix effect ordered logit model was employed. Results shows that hotel price and hotel reputation (star level and overall rating) negatively affects perceived value. Customers’ experience quality positively affects perceived value and moderates the effect of price on perceived value. Customers’ review expertise positively affects perceived value, but negatively moderates the effect of experience quality on perceived value. Findings support social exchange theory and expectation disconfirmation theory. Some marketing practices are recommended based on the findings.
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event
Date
2016
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