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The effects of persuasion heuristics presentation strategies on consumers’ hotel booking decisions on foreign online travel agency websites


2020. 10

Hyuk Jin Kwon, & Chung Hun Lee

We face vast amounts of information and various decisions in modern society. Therefore, people are reluctant to explore information deeply and rely on heuristics for their own decision making. This method is also applied in the tourism and hospitality industry. Many OTAs have recently chosen revenue management tactics based on persuasive and empirical approaches. The purpose of this study is to understand the effect of scarcity messages, social proof evidence, and persuasion of the cancellation policy on deciding on hotel reservations using OTAs. Therefore, based on persuasive heuristic-system information processing theory, this study identified the factors and influences on the irrational decision-making process of consumers to provide insights. We conducted an ANOVA analysis based on information processing theory and persuasion theory based on two scenarios (scarcity message / no scarcity message) x 2 (social proof evidence / no social proof evidence) x 2 (free cancellation / no cancellation policy). As a result, respondents who were exposed to free cancellation policy banners and social clues showed higher perceived competitiveness and hotel booking intention than those who did not have a free cancellation policy, and less anticipated regret was expected. The results of this study are expected to provide theoretical and practical implications for effective revenue management and marketing communication in hotels and OTAs.

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