By: Juan L.

Nicolau1 and Ricardo Sellers1

Journal of Travel Research May 2012 vol. 51 no. 3 243-249

Title: The Free Breakfast Effect

An Experimental Approach to the Zero Price Model in Tourism
Title Creator Subject Description The Free Breakfast Effect: An Experimental Approach to the Zero Price Model in Tourism SAGE Publications Tourism, Research This article presents the first evidence of the zero price effect in tourism. The multi component nature of tourism products adds complexity to the price-setting process, but also allows managers to take advantage of the interrelationships among the different components to maximize sales. Taking the zero price models, the authors adapt and apply it to a twocomponent tourism product. The experiments conducted show evidence in favor of the free breakfast effect: even though people lean toward their preferred, more expensive alternative, when the cheaper option offers a free breakfast, the demand for the latter increases and for the former it decreases. This result shows that the zero price effect is not confined to single products but also applies in multi component contexts. Important managerial implications in the realm of sales promotion policies are drawn. SAGE Publications

Publisher

Contributor Date Type Format Identifier Source Language Relation Coverage Rights

Univesiti Teknologi MARA (UiTM) Nov 3, 2011 Pdf, text Journal http://jtr.sagepub.com/content/51/3/243.abstract English

Copyright 2012 by SAGE Publications