Business Commons^™

The Impact Of Hedonic And Utilitarian Motivations On The Hotel Customers' Risk Perception, Chih-Chien Chen, Zvi Schwartz

Caesars Hospitality Research Summit

The study proposes that deal-seeking travelers' perception of risk may have a dual and contradicting impact on Expected Utility and, consequently, on their propensity to search for a better deal and book the travel product. According to a traditionally utilitarian motivation, a high level of risk and the prospect of negative results reduce Expected Utility, and they are therefore likely to reduce search activities and increase booking. This study argues that, due to hedonic motivations, consumers may enjoy the risk elements of their search for a better deal and, consequently, may respond to higher levels of induced risk perception by …