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Internet, Price Strategy and Yield Management

  • Lubica Hikkerova
  • Jean-Michel Sahut

The object of this article is to study the consumer perception of innovative Yield Management (YM) strategies in the hotel sector. Hotels use these practices in order to increase their incomes. These strategies rely heavily on ICT and are more comparable with the development of the Internet. However, economic literature suggests that if YM practices are considered to be unfair, they are likely to influence customers’ purchasing intentions negatively, that we verify empirically. Our study shows that the assumption that the YM induces dissatisfaction in all circumstances is rejected. But when a practice of YM is perceived as unfair, it causes a loss of customers. Moreover, the manner of presenting the YM practices to consumers (positive or negative frame) has a considerable influence on their perception. From this point of view, there are several managerial levers in the communication of tariff practices and the management of loyalty programs to avoid or reduce the conflicts with customers.

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Paper provided by Department of Research, Ipag Business School in its series Working Papers with number 2014-192.

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Length: 13 pages
Date of creation: 25 Feb 2014
Date of revision:
Handle: RePEc:ipg:wpaper:2014-192
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