Pricing in a social world: The influence of non‐price information on hotel choice

Effective pricing requires an understanding of how consumers use price and non‐price information in purchase decisions. In this study we use discrete choice analysis to examine how hotel consumers trade off price and three sources of non‐price information – user‐generated content (UGC), UGC‐derived ratings and brand name – during the choice process. Although all types of information had a significant effect on hotel choice, review valence emerged as the dominant choice driver. Further, a qualitative data analysis suggests that consumers integrate price with non‐price information to assess value pre‐purchase, and can be swayed to a higher price if non‐price data suggest a superior experience. Implications for revenue management practitioners are discussed.