The effect of price on return intentions: Do satisfaction and reward programme membership matter?

The purpose of this study was to examine the effect of price on customers' return intentions. Specifically, we looked at the moderating influence of satisfaction and reward programme membership on the relationship between price and return intent. Hierarchical multiple regression, using data drawn from the survey database of a major hotel chain, was employed to test hypotheses. Results for the leisure customer segment indicate that, regardless of customers' satisfaction levels with a given service experience, the price paid for that experience has a direct, negative effect on return intent. Furthermore, reward programme membership does not negate the negative effect of price on customers' intent to repatronise a service provider.