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Decoy Eff ect In Luxury Hotel Booking

Zirui Han

Abstract


This paper aims to test the decoy effect in the context of luxury hotel booking by conducting a survey experiment. By adding a strong decoy or a weak decoy to the treatment group’s choice set and calculating the shift of participants’ preferences, the paper came with two main findings. First, adding a strong decoy to the choice set will significantly change participants’ preferences towards the target rate. Second, adding an unsuccessfully designed weak decoy will cause an undesirable preference shift and attenuate the decoy effect.

Keywords


Decoy effect, Participants'preferences

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References


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DOI: http://dx.doi.org/10.18686/fm.v6i3.3519

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