Competitor orientation, pricing strategy, and business performance

Sampaio, Carlos; Rodrigues, Ricardo Gouveia; Hernández-Mogollón, José Manuel

http://hdl.handle.net/10400.11/7439

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Authors

Sampaio, Carlos

Rodrigues, Ricardo Gouveia

Hernández-Mogollón, José Manuel

Abstract(s)

This study proposes to study the nature of the relationship between competitor orientation, a strategy based on low prices and hotel business performance, and to test if a low-price strategy plays a mediating role in the relationship between competitor orientation and business performance. A structural equation modeling approach is used, and a sample from the Italian hotel industry was used to evaluate the proposed hypotheses. Results show that competitor orientation is positively related to business performance and a strategy based on low prices. Furthermore, it is found that a low-price strategy has adverse effects on business performance. Additionally, the mediating role of the low-price strategy was not confirmed.

Keywords

Hotel industry Competitor orientation Market orientation Business performance Tourism marketing, Pricing strategy Mediating effect PLS-SEM

URI

http://hdl.handle.net/10400.11/7439

Citation

Sampaio, C., Rodrigues, R., & Hernández-Mogollón, J. (2020). Competitor orientation, pricing strategy, and business performance. In L. Farinha & D. Raposo (Eds.), Handbook of research on driving industrial competitiveness with innovative design principles. IGI Global. doi:10.4018/978-1-7998-3628-5.ch008. pp. 115–128.