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The Effect of Brand Reputation on Consumers’ Willingness to Pay a Premium Price: A Study of the Hospitality Industry

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AI and Business, and Innovation Research: Understanding the Potential and Risks of AI for Modern Enterprises

Part of the book series: Studies in Systems, Decision and Control ((SSDC,volume 440))

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Abstract

This study examines how customer willingness to pay more for a product in the hospitality sector is influenced by brand reputation. We used a survey-based study approach to gather information from a simple random sample of hotel visitors (278) in the Gaza Strip in order to evaluate our hypothesis. Results indicate that consumers’ willingness to pay more for hotel services is highly influenced by brand reputation. Customers are more likely to spend extra for hotels with a great brand reputation since this denotes a better degree of perceived quality, trust, and general contentment. Additionally, our results imply that brand reputation is a more significant determinant in customers’ willingness to pay than other elements like location and facilities. Overall, this study emphasizes the significance of upholding a strong brand reputation for hotels aiming to charge premium pricing and offers recommendations for hotel managers trying to strengthen their brand reputation in the cutthroat hospitality sector. This research is unique because it focuses on the hotel industry’s unique setting, which hasn’t been thoroughly explored in the literature on the link between brand reputation and customers’ willingness to spend. The study contributes to the body of knowledge by offering concrete proof that consumers’ willingness to pay more for hotel services is significantly influenced by brand reputation.

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Authors and Affiliations

  1. University College of Applied Sciences, Gaza, Palestine

    Mohammed Zedan Salem

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  1. Mohammed Zedan Salem
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Correspondence to Mohammed Zedan Salem .

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Editors and Affiliations

  1. Middle East Technical University, Kalkanlı, Güzelyurt, KKTC, Türkiye

    Bahaaeddin Alareeni

  2. Faculty of Computer Science and Engineering, AlAlamein International University, Alexandria, Egypt

    Islam Elgedawy

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Salem, M.Z. (2024). The Effect of Brand Reputation on Consumers’ Willingness to Pay a Premium Price: A Study of the Hospitality Industry. In: Alareeni, B., Elgedawy, I. (eds) AI and Business, and Innovation Research: Understanding the Potential and Risks of AI for Modern Enterprises. Studies in Systems, Decision and Control, vol 440. Springer, Cham. https://doi.org/10.1007/978-3-031-42085-6_23

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  • DOI: https://doi.org/10.1007/978-3-031-42085-6_23

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-031-42084-9

  • Online ISBN: 978-3-031-42085-6

  • eBook Packages: EngineeringEngineering (R0)

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