The role of social media as a distribution channel for promoting pricing strategies

Abstract

Purpose The purpose of this paper is to investigate how using social media (SM) as a tool to influence demand motivates the distribution of different price promotion strategies to encourage consumers to utilize direct bookings, along with how this impacts revenue strategies and profitability. Design/methodology/approach This study surveyed hotel executives who hold managerial positions and revenue managers with a direct influence on pricing decisions and developed multiple regression analysis models for various pricing approaches. Findings This study confirms the relationship between distribution channels and dynamic pricing strategies, although the same is not true with respect to traditional pricing techniques. The authors found that the adoption of SM as a strategic tool provides a platform to promote tactical revenue management strategies and to practice differential pricing motives. Originality/value The findings of the study will help hotel revenue managers to take into account a new way of thinking – namely, an interactive response to consumers’ preferences to improve profitability, based on different pricing methods distributed through SM. In this context, SM has elevated pricing strategies to a new and particularly challenging level.

Ethical Consumerism and its effect on Purchase Decision: Evidence from Fashion Industry of Pakistan

“…Price is the common factor while buying any product, but it also depends on when it is an ethical product because in ethical manufacturing products, the prices are quite high because every product that is being created, the elements that are being used in making the product is costly due to which ethical products are high in price. Ampountolas et al (2019) revealed that pricing strategies have effect on buying decision and demand of products. Because of that consumer think before purchasing the product as they can make alternative choices by comparing the ethical product by the normal product in the market which could cause an adverse effect in the market of ethical products.…”

The role of elaboration likelihood routes in relationships between user-generated content and willingness to pay more

“…Social media is defined as “a group of internet-based applications that are built on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of user-generated content (UGC)” (Kaplan and Haenlein, 2010, p. 61). Consumers can use social media to gain social status, prestige and obtain information (Ampountolas et al , 2019; Kang, 2018; Küçükergin and Dedeoğlu, 2014; Xiang and Gretzel, 2010). The desire for prestige and appreciation can motivate people to share their experiences using social media tools.…”

Examining the relationships between market indicators and hotel pricing approaches

“…While consumer channel alternatives continue to rise over a growing variety of Internet systems that continue to advance the extended pricing capabilities, alternate means of pricing optimization techniques have been introduced (Anderson, 2012). Nevertheless, we witnessed that the existing practice of everyday hotel operations has been somewhat different (Ampountolas et al, 2019). Hotels encounter challenges because of the pricing complexity and any viable variable pricing initiatives (Bodea and Ferguson, 2014; Phillips, 2005).…”

“…If the consumer is price-sensitive, they pay less than other consumers. Consumers are myopic, so they buy goods or services shortly as the price is lower than they are willing to pay (Ampountolas et al, 2019). In early papers, Gallego and van Ryzin (1994, 1997) examine the DP approach and optimal pricing decision situation over a given time so that the company can maximize revenue.…”