Impact of prices ending with .99 in online travel portals for budget hotels in New Zealand

Running head: MANAGING RESEARCH
Managing research
Name of student
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1MANAGING RESEARCH
Table of Contents
1. Introduction..................................................................................................................................3
1.0 Background of research.........................................................................................................3
1.1 Research significance.............................................................................................................3
1.2 Problem statement..................................................................................................................4
1.3 Research aim..........................................................................................................................4
1.4 Research objectives................................................................................................................4
2. Literature review..........................................................................................................................5
Impact of Prices ending with .99.................................................................................................5
Influence on consumer buying behaviors....................................................................................5
Research gaps...............................................................................................................................6
Potential contribution...................................................................................................................6
3. Research methodology.................................................................................................................7
3.0 Hypothesis for the research....................................................................................................7
3.1 Research philosophy..............................................................................................................7
3.2 Research design......................................................................................................................8
3.3 Sampling technique................................................................................................................8
3.4 Data collection.......................................................................................................................8
3.5 Data analysis..........................................................................................................................9

2MANAGING RESEARCH
4. Implications of study...................................................................................................................9
5. Limitations.................................................................................................................................10
6. Conclusion.................................................................................................................................10
References......................................................................................................................................12

3MANAGING RESEARCH
Title: Impact of prices ending with .99 in online travel portals for the budget hotels in New
Zealand
1. Introduction
1.0 Background of research
The background of research sheds light on the fact that prices set by the budget hotels in
New Zealand on the online travel portals ending with .99 has created a positive impact on the
buying behaviors of consumers. The budget hotels have been using this marketing strategy by
providing discounts for the services provided and manipulating the price tags often by ending it
with .99, which is a common thing that the consumers often notice nowadays (Nickolayev &
Dennisov, 2010). It can be an effective sales tactic that influences consumer behaviors and
because the clients read the price from left to right the first digit resonates among them the most
and this allows the budget hotels to create a price sensitive experience by encouraging clients to
try out the $4.99 item rather than $5 item.
1.1 Research significance
The significance of the research is that it will focus on the budget hotels and are price
sensitive, due to which, prices are often discounted and kept like this to create a positive
psychological mindset among the people. This allows for reducing the amount of effort put
forward to make product decisions and at the same time, setting price as .99 can help in making
the service available with discount or on sale, which acts as a pricing cue to motivate the clients
regarding purchase (Mattila & Gao, 2016).