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Examining framing effect in travel package purchase: An application of double-entry mental accounting theory

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  • Wen, Tong
  • Leung, Xi Y.
  • Li, Bin
  • Hu, Lingyan

Abstract

Based on the double-entry mental accounting theory, we explore the effect of option framing on travelers' purchase decisions regarding customized travel packages through three experiments. The results confirm that subtractive framing leads to higher purchase intentions and willingness to pay than additive framing. However, in the distant future, additive framing leads to higher purchase intention. Pleasure attenuation mediates the option framing effect on travel package purchase decisions, especially for travelers who make travel plans for the near future and those with higher price sensitivity. Pain buffering only plays a mediator role in student samples. The findings provide implications for travel agencies to adopt subtractive framing for customized travel packages and improve the hedonic experiences embedded in packages.

Suggested Citation

  • Wen, Tong & Leung, Xi Y. & Li, Bin & Hu, Lingyan, 2021. "Examining framing effect in travel package purchase: An application of double-entry mental accounting theory," Annals of Tourism Research, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:anture:v:90:y:2021:i:c:s0160738321001432
    DOI: 10.1016/j.annals.2021.103265
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    Cited by:

    1. Yang, Bi & Li, Shanshi & Chen, Zhenyu & Mattila, Anna S., 2023. "Consumer responses to time-based sales messages," Annals of Tourism Research, Elsevier, vol. 99(C).
    2. Liu, Xing (Stella) & Wan, Lisa C. & Yi, Xiao (Shannon), 2022. "Humanoid versus non-humanoid robots: How mortality salience shapes preference for robot services under the COVID-19 pandemic?," Annals of Tourism Research, Elsevier, vol. 94(C).
    3. Qiu, Shangzhi & Wu, Laurie & Yang, Yanjia & Zeng, Guojun, 2022. "Offering the right incentive at the right time: Leveraging customer mental accounting to promote prepaid service," Annals of Tourism Research, Elsevier, vol. 93(C).
    4. Gustafsson, Peter & Nilsson, Peter & David, Lucinda & Marañon, Antonia, 2021. "Framing energy choices in consumer decision-making Evidence from a random experiment in Sweden," Papers in Innovation Studies 2021/14, Lund University, CIRCLE - Centre for Innovation Research.

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