The Effect of Brand, Agent, and Price on Consumer Evaluation of Travel Services

Abstract

Intense competition in the travel industry magnifies the importance of knowing what cues influence potential customers' perceptions of travel services. This research uses an established model to examine how price, brand and store variables (operationalized as vacation price, travel service brand name, and travel agent name) influence consumers' perceptions of travel service quality, perceived service value, and willingness to buy travel services. Results indicate that: (1) price has a substantial direct effect on consumer perceptions of quality and an inverse effect on consumer perceptions of value and willingness to buy, (2) perception of travel agent has a substantial direct effect on perceived quality and value, and (3) the only significant brand effect is the effect of airline brand on perceived quality.

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