A cross-cultural comparison of perceived fairness and satisfaction in the context of hotel room pricing

In this study, we examined the role of culture in influencing customer reactions to differential pricing policies. Specifically, we investigated how two factors, price outcome (worse/same/better price) and information on the hotel's pricing policy, influence perceived fairness and satisfaction judgments of customers from two different cultures—USA (Western, individualistic culture) and South Korea (Eastern, collectivist culture). Our results indicate that US consumers seem to prefer equitable outcomes to better or worse price. Moreover, offering information on the hotel's pricing policy had a more positive impact on Korean travelers than their American counterparts.