The Effect of Tangible Promotions on an Intangible Environment
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http://hdl.handle.net/10045/139613
Title: | The Effect of Tangible Promotions on an Intangible Environment |
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Authors: | Sharma, Abhinav | Santa María Beneyto, María Jesús | Nicolau, Juan Luis |
Research Group/s: | Economía Industrial y Desarrollo Local (EIDL) | Marketing |
Center, Department or Service: | Universidad de Alicante. Departamento de Economía Aplicada y Política Económica | Universidad de Alicante. Departamento de Marketing |
Keywords: | Sales promotion | Price discount | Hierarchy-of-effects theory | Prospect theory | Market value | Tourism marketing |
Issue Date: | 29-Dec-2023 |
Publisher: | SAGE Publications |
Citation: | Journal of Travel Research. 2023. https://doi.org/10.1177/00472875231219240 |
Abstract: | Promotions are frequently deployed by firms in service intensive industries like tourism as a way to boost numbers like visitation and occupancy in times when excess capacity may be anticipated. While promotions may indeed augment revenues and other accounting measures commonly used by tourism firms to assess the success of marketing interventions, the impact of these sales tools on long-run finance-based indicators remains largely unexplored. Exploiting a rich dataset consisting of over 300 corporate level hotel promotions spanning nearly three decades, this study shows that promotions can be detrimental to long run performance of tourism firms. This erosion of the market value is particularly acute for promotions that involve tangible monetary components, such as price discounts. While this result supports the tenets of the hierarchy-of-effects theory and prospect theory, the observed effects of the tangible component of sales promotion entail an extension of these theoretical approaches to an intangible environment. |
URI: | http://hdl.handle.net/10045/139613 |
ISSN: | 0047-2875 (Print) | 1552-6763 (Online) |
DOI: | 10.1177/00472875231219240 |
Language: | eng |
Type: | info:eu-repo/semantics/article |
Rights: | © The Author(s) 2023 |
Peer Review: | si |
Publisher version: | https://doi.org/10.1177/00472875231219240 |
Appears in Collections: | INV - EIDL - Artículos de Revistas INV - MKT - Artículos de Revistas |
Files in This Item:
File | Description | Size | Format | |
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Sharma_etal_2023_JTravelRes_final.pdf | Versión final (acceso restringido) | 284,43 kB | Adobe PDF | Open Request a copy |
Sharma_etal_2023_JTravelRes_preprint.pdf | Preprint (acceso abierto) | 690,31 kB | Adobe PDF | Open Preview |
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