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Price sensitivities of the consumer in a tourist market

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  • Dixie Button

    (Embry-Riddle Aeronautical University)

Abstract

Are tourists sensitive to price? A field experiment was conducted to draw conclusions regarding the effect of three different price strategies on the revenues of a small business selling to tourists. Price elasticity determinations during each phase of the pricing experiment were also computed. This research was conducted in a tourist-based monopolistic competition market structure. Results from the pricing strategies examined indicated little to no difference in sales revenues regardless of pricing strategy employed. This finding is relevant for small businesses operating in a tourist market who often compete on price.

Suggested Citation

  • Dixie Button, 2022. "Price sensitivities of the consumer in a tourist market," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(3), pages 291-298, June.
    • Handle: RePEc:pal:jorapm:v:21:y:2022:i:3:d:10.1057_s41272-021-00336-9
    DOI: 10.1057/s41272-021-00336-9
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    References listed on IDEAS

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    Cited by:

    1. Seyed Parsa Parvasi & Ata Allah Taleizadeh & Park Thaichon, 2025. "Price optimization for manufacturers in a competitive retail market: imported products and online crowdfunding option," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 24(1), pages 12-29, February.

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