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CQXXXX10.1177/1938965516630424Cornell Hospitality QuarterlyLiu and Mattila
Article
Cornell Hospitality Quarterly
Abstract
This research draws on regulatory focus theory to explore how to effectively advertise technology-based hospitality
services. In an experiment, we compare four types of service ads: narrative-comparative, narrative-noncomparative,
list-comparative, and list-noncomparative. Results reveal that narrative-comparative ads, portraying a superior service
experience with the advertised brand against its competitors, can elicit gain perceptions, and therefore, they are more
effective among promotion-focused individuals than their more prevention-focused counterparts. Conversely, list-
comparative ads, presenting attributes of the advertised brand and its competitors side-by-side, can induce either gain
or loss perceptions, thus being effective among both promotion-focused and prevention-focused individuals. With no
mention of a reference brand, noncomparative ads fail to generate regulatory fit thereby being less persuasive. Managerial
implications for hospitality marketers are discussed.
Keywords
message framing, advertising, regulatory focus, information technology
The boom of information technology (IT) creates new technologies. Utilizing an experimental design, the current
opportunities for the hospitality industry to delight its study strives to answer the following questions: Are com-
sophisticated customers (Law, Leung, & Au, 2013). More parative ads more persuasive than noncomparative ads in
and more hospitality operators have recognized the critical promoting technology-based hospitality services? What
role of IT in value creation and service differentiation. For role does regulatory focus play in influencing consumers’
example, Starwood recently introduced a keyless check-in responses to comparative ads and noncomparative ads? Do
app that enables guests to bypass the front office. Clearly, consumers process narrative and list ads differently? The
hospitality firms strive to incorporate the latest IT into their study findings will help hospitality marketers gain a better
services to establish a sustained competitive advantage understanding of comparative advertising.
(Piccoli, 2008). A burning question for marketers is, how
can we effectively advertise these IT-enabled competitive
advantages?
Background Literature
Hospitality researchers are increasingly utilizing message- IT in the Hospitality Industry
framing strategies to maximize communication effectiveness
(S. A. Lee & Oh, 2014). In the lodging sector, previous Since the adoption of computer hardware and software by
research has explored the persuasiveness of substantive ver- hospitality operators in the 1980s, IT has become a power-
sus associative claims (Hu, 2012), emotional versus rational ful force driving the hospitality industry (Law et al., 2013;
appeals (Mattila, 2001), positive versus negative message Piccoli, 2008). While there is extensive literature examin-
frames (Kim & Kim, 2014), and gain versus loss frames and ing IT from the operations and revenue management per-
high versus low proximity frames (Blose, Mack, & Pitts, spective (Law et al., 2013; O’Connor & Murphy, 2004;
2015). While message framing has become an important Siguaw, Enz, & Namasivayam, 2000), research viewing
research topic, the hospitality field has not considered the hospitality technology as a marketing tool is scant. This
effects of comparative framing (Grewal, Kavanoor, Fern, neglect is surprising as attracting guests with novel
Costley, & Barnes, 1997; Jackson, Brown, & Harmon, 1979; technology-based services (e.g., mobile check-in, wireless
Wilkie & Farris, 1975), where the focal company is com-
pared with another company in an advertisement. 1
Pennsylvania State University, University Park, USA
Drawing on the regulatory focus theory (Crowe & Corresponding Author:
Higgins, 1997; Higgins, 1998), this study examines the Stephanie Qing Liu
effectiveness of comparative advertising in promoting new Email: stephliu2016@gmail.com
charging stations) is gaining popularity. Indeed, service to their focus on gains, whereas stressing competitors’ infe-
differentiation and value creation are critical in strengthen- riority is more effective among prevention-focused indi-
ing brand competitiveness (Barney, 1991; Porter, 2008). viduals whose focus is on avoiding losses. The current
Novel hospitality technologies such as robotic butlers are study extends their findings by contrasting the persuasive-
likely to provide a more memorable experience, thus creat- ness of comparative advertising against noncomparative
ing extra value for the customer. Therefore, hospitality advertising. We speculate that people with a promotion
operators should strategically communicate their unique (prevention) goal are eagerly seeking gains (vigilantly
technology-based service offerings to consumers. We argue avoiding losses); therefore, they tend to interpret compara-
that comparative advertising might be particularly effec- tive ads in a manner that fits their regulatory goals. This
tive in the hospitality context as consumers have a natural regulatory fit, in turn, will transfer into higher levels of pur-
tendency to compare existing options and they value chase intention toward the advertised brand (Aaker & Lee,
unique and special experiences (Bettman, Luce, & Payne, 2006; Avnet & Higgins, 2003, 2006). In contrast, with no
1998; Keinan & Kivetz, 2011; Zauberman, Ratner, & Kim, mention of a reference brand, noncomparative ads fail to
2009). trigger gain or loss perceptions, thus they will not boost pur-
chase intention.
We examine narrative ads and list ads separately as pre-
Regulatory Focus
sentation format influences consumers’ information pro-
Regulatory focus theory distinguishes between two motiva- cessing strategies (Adaval & Wyer, 1998; Boller, 1988;
tional orientations in goal pursuit: a promotion focus, which Mattila, 2000; Padgett & Allen, 1997). Narratives portray
is concerned with achievement and growth, and a preven- the audience as a character in the story (Padgett & Allen,
tion focus, which is concerned with responsibilities and 1997) and they tend to lead to a greater transportation into
safety (Higgins, 1997, 1998). As a result, promotion- an experience and reduced cognitive counterarguing
focused individuals are motivated to maximize the occur- (Escalas, 2004; Green & Brock, 2000). Narrative-
rence of positive outcomes and are driven toward gains. In comparative ads depict a superior service experience with
contrast, prevention-focused individuals strive to minimize the advertised brand against its competitors. Consequently,
the occurrence of negative outcomes; therefore, they tend to narrative-comparative ads should be particularly persuasive
exhibit heightened vigilance against losses (Crowe & among promotion-focused individuals (Jain et al., 2006,
Higgins, 1997; Higgins, 1998, 2002). Jain et al., 2007). On the contrary, such ads might not be as
Previous research on regulatory fit suggests that when effective among prevention-focused individuals because
people pursue goals in a strategic manner that sustains their there is no explicit information about loss avoidance or
regulatory orientations, they “feel right” about what they are inferiority. Taken together, narrative-comparative ads are
doing. Such fit feelings, in turn, influence their subsequent expected to be effective among promotion-focused individ-
judgments and evaluations (Aaker & Lee, 2006; Avnet & uals. Formally,
Higgins, 2006; Cesario, Grant, & Higgins, 2004; Higgins,
2000; Higgins, Idson, Freitas, Spiegel, & Molden, 2003). Hypothesis 1: For technology-based service ads in a
For instance, A. Y. Lee and Aaker (2004) demonstrate that narrative format, promotion-focused individuals will
advertising appeals presented in a gain frame are more per- generate more gain-approach perceptions when the
suasive for health-promoting products, whereas loss-framed ads are comparative (vs. noncomparative); in con-
appeals are more persuasive for disease-preventing prod- trast, this difference will not occur among prevention-
ucts. Regulatory fit also has a powerful impact on consum- focused individuals.
ers’ perceived value. Avnet and Higgins (2003) show that Hypothesis 2: For technology-based service ads in a
people are willing to pay 40% more for the same book-light narrative format, promotion-focused individuals will
when there is (vs. is not) a fit between the strategy used in exhibit higher levels of purchase intention when the
choosing the book-light and the consumer’s regulatory ads are comparative (vs. noncomparative); in con-
orientation. trast, this difference will not occur among prevention-
focused individuals.
Regulatory Fit in Comparative Advertising In contrast, the list format facilitates the audience to
Two prior studies have explored regulatory fit in the context actively compare the advertised brand and its competitor on
of comparative advertising (Jain, Agrawal, & Maheswaran, an attribute-by-attribute basis (Swinyard, 1981), and such a
2006; Jain, Lindsey, Agrawal, & Maheswaran, 2007). process is characterized with increased cognitive elabora-
Findings of these two studies suggest that an ad message tion and analytical processing (Muehling, Stoltman, &
emphasizing a brand’s superiority over its competitors is Grossbart, 1990; Thompson & Hamilton, 2006). Due to
more effective among promotion-focused individuals due people’s motivational states of goal pursuit, the same
Results
Manipulation Checks
There was a significant difference in the manipulation check
between the prevention focus (M = 2.35) and promotion focus
condition (M = 5.70), t(252) = 16.56, p < .001. There was also
a significant difference in the manipulation check between the
Hymes, 1994; Liberman, Molden, Idson, & Higgins, 2001; narrative format (M = 2.11) and list format conditions (M =
Scholer, Ozaki, & Higgins, 2014). Participants in the promo- 6.28), t(252) = 23.76, p < .001. In addition, there was a signifi-
tion focus condition were asked to write down their current cant difference in the manipulation check between the non-
“hopes and aspirations” and explain how the current “hopes comparative (M = 2.57) and comparative conditions (M =
and aspirations” differ from those they had when growing up. 5.62), t(252) = 14.01, p < .001. Finally, the mean rating on
Conversely, participants in the prevention focus condition stimuli realism was 5.60, indicating that participants in this
were instructed to write down their current “duties and obli- study perceived the stimuli to reflect real-life hotel ads. In
gations,” the differences between their current “duties and conclusion, our experimental manipulations were effective.
obligations,” and those they had when growing up.
Next, participants were randomly assigned to view an
advertisement featuring a “keyless check-in” service at a Results of the Narrative Format
fictitious hotel (Royal Crown). They were told the follow- We first examine ads in a narrative presentation format. A
ing prior to their exposure to the ad: “Imagine that Royal Regulatory Focus × Comparison Framing two-way ANOVA
Crown Hotel is located in a city you are traveling to. Please was performed on loss–gain perceptions (see Figure 2).
examine the following hotel advertisement.” There were Results revealed a main effect of regulatory focus,
four versions of the ad: narrative-comparative, narrative- F(1, 127) = 6.52, p < .05, and a Comparison Framing ×
noncomparative, list-comparative, and list-noncomparative. Regulatory Focus interaction, F(1, 127) = 6.61, p < .05. A
The narrative-comparative ad used a story-telling style to series of planned contrasts with one-tailed tests (Aaker &
actively convey how the check-in experience at Royal Lee, 2001) showed that promotion-focused individuals
Crown is superior to its major competitors, whereas the experienced greater gain perceptions when the ad was com-
narrative-noncomparative ad did not contain any compari- parative (M = 6.34) rather than noncomparative (M = 5.46),
son information (see Appendix A). The list-comparative ad t(127) = 2.83, p < .01. As expected, such a difference was
presented attributes of the check-in process at Royal Crown not detected among prevention-focused individuals, t(127)
versus its major competitors and let the consumer decide = 0.78, ns. These findings are congruent with Hypothesis 1.
which attribute was superior or inferior, whereas the list- To test Hypothesis 2, we ran a two-way ANOVA on pur-
noncomparative ad excluded the competitor information chase intention (see Figure 3). There were main effects of
(see Appendix B). Finally, participants indicated their pur- comparison framing, F(1, 127) = 4.65, p < .05, and regula-
chase intention and loss–gain perceptions, and responded to tory focus, F(1, 127) = 4.88, p < .05, but these two main
manipulation check questions and demographic questions. effects were qualified by a significant Comparison Framing
× Regulatory Focus interaction, F(1, 127) = 3.94, p < .05.
The patterns were similar to those of loss–gain perceptions.
Measures Results suggested that promotion-focused individuals
Purchase intention was measured via a three-item scale: exhibited higher levels of purchase intention when the ad
unlikely = 1/likely = 7, impossible = 1/possible = 7, and was comparative (M = 5.64) as opposed to noncomparative
improbable = 1/probable = 7 (Cronbach’s α = .92), adapted (M = 4.71), t(127) = 2.89, p < .01; in contrast, comparison
from Mattila (2000) and Yi (1993). To gain insight into framing had no effect among prevention-focused individu-
whether the ads induced loss–gain perceptions, we asked als, t(127) = 0.39, ns. Thus, Hypothesis 2 is supported.
Figure 2. Figure 4.
Effects of regulatory focus and comparison framing on Effects of regulatory focus and comparison framing on
loss–gain perceptions (narrative format). loss–gain perceptions (list format).
Discussion
Our findings contribute to the hospitality literature in several
ways. First, our findings demonstrate that comparative
advertising enhances persuasion by taking advantage of con-
Results of the List Format sumers’ motivation to attain gain (promotion goals) or avoid
We then examine ads in a list presentation format. A two-way losses (prevention goals). Moreover, the study findings pro-
ANOVA on loss–gain perceptions (see Figure 4) revealed a vide insight into how gain- or loss-related perceptions influ-
main effect of regulatory focus, F(1, 119) = 5.16, p < .05, and a ence consumers’ purchase intention. These findings are
Comparison Framing × Regulatory Focus interaction, consistent with previous regulatory fit research showing that
F(1, 119) = 7.35, p < .01. Consumers’ regulatory focus drove the experience of regulatory fit can transfer into consumers’
their loss–gain perceptions: promotion-focused individuals evaluation of an advertised product (Cesario et al., 2004;
experienced higher gain-approach perceptions with the com- Crowe & Higgins, 1997; Higgins, 1998). Using noncom-
parative (vs. noncomparative) ad (M = 6.34 vs. M = 5.46), t(119) parative ads as a control condition, we show that noncom-
= 1.85, p < .05; prevention-focused individuals, conversely, indi- parative ads fail to trigger consumers’ loss or gain
cated greater loss-avoidance perceptions with the comparative perceptions, and consequently, they do not benefit from a
(vs. noncomparative) ad (M = 4.83 vs. M = 5.52), t(119) = 1.97, boost of regulatory fit. In sum, our findings suggest that
p < .05. Thus, Hypotheses 3a and 3b are also supported. regulatory focus is an important factor in understanding con-
To test Hypothesis 4, we conducted a two-way ANOVA sumers’ reactions to hospitality/service advertising.
on purchase intention (see Figure 5). Results revealed a main Second, this study identifies presentation format as a criti-
effect of comparison framing, F(1, 119) = 10.23, p < .01. As cal boundary condition in comparative advertising. To the best
expected, promotion-focused individuals exhibited higher of our knowledge, previous research has failed to contrast the
levels of purchase intention when the ad was comparative narrative and list formats in a single study. More importantly,
Managerial Implications
Despite the increasing importance of innovative technolo-
gies, only a few hospitality companies have considered using
comparative messages to highlight their superiority. The
findings of this study indicate that it is important to under-
stand that consumers have different regulatory goals and
these goals make them more susceptible to certain types of
messages. For example, consumers with a promotion goal
seek for opportunities to attain gains or advantages, whereas
consumers with a prevention goal focus on avoiding losses or
disadvantages. Consequently, hospitality marketers can high-
light their unique technology-based offerings by creating
comparisons with other companies who are less innovative.
Table 2. Such comparative advertisements imply that consumers can
2 × 2 × 2 ANOVA Table for Loss–Gain Perceptions and attain advantages or avoid disadvantages by choosing the
Purchase Intention (N = 254). focal brand, thus enhancing consumers’ purchase intention.
Many hospitality companies are striving to attract con-
Loss–gain sumers with new service technologies. For example, Marriott
perceptions Purchase intention
and JetBlue have become the first major hotel chain and air-
Source df F p F p line to accept Apple Pay. Starbucks has introduced free wire-
less charging for smartphone in select stores and McDonald’s
RF 1 11.602 .001** 1.120 .291
is planning to make wireless charging spots available in
CF 1 0.870 .352 14.162 .000**
2,000 restaurants by 2016. The findings of this study suggest
PF 1 0.982 .323 0.045 .832
that these hospitality companies should use comparative
RF × CF 1 14.011 .000** 3.209 .074
advertising to highlight their superior IT offerings. Hospitality
RF × PF 1 0.002 .961 4.494 .035*
CF × PF 1 1.148 .285 0.437 .509
marketers can create comparative advertisements based on
RF × CF × PF 1 0.070 .792 1.129 .289 ad examples in our study (see Appendices A and B). Thus, the
current study offers hospitality managers a novel means to
Note. RF = regulatory focus; CF = comparison framing; PF = presentation enhance their advertising effectiveness.
format. Moreover, hospitality marketers should consider the role of
*p < .05. **p < .001.
presentation format when creating comparative advertisements.
While the narrative format elicits gain perceptions and as such
the current study examines how regulatory focus affects con- is particularly effective among promotion-focused consumers
sumer responses to comparative ads across different presenta- (e.g., U.S. consumers), the list format can generate either gain
tion formats. The findings of this study suggest that the or loss perceptions, depending on the viewer’s regulatory focus.
interpretation of gains and losses is more flexible with com- Consequently, the list format appeals to both promotion-focused
parative ads in a list (vs. narrative) format. Specifically, the list and prevention-focused consumers. When it is difficult to
format enables consumers to actively adopt a viewpoint (i.e., assess the target market’s regulatory focus or when the target
attaining advantages or avoiding disadvantages) that matches market has mixed regulatory orientations (e.g., Hong Kong,
their regulatory focus, and such a “fit” experience elevates Singapore), the list format might be more effective.
consumers’ purchase intention. Therefore, the present study
also adds to the hospitality/service advertising literature by
demonstrating an interactive effect between regulatory focus
Limitations and Future Research
and ad presentation format on persuasion. As any experiment, this study has several limitations. First,
Finally, previous research on regulatory focus and com- we used ad stimuli for a hypothetical hotel brand. It is pos-
parative advertising has mainly focused on material goods sible that other factors, such as familiarity or prior experi-
rather than experiential services. This neglect is surprising ence with the brand, might affect consumers’ evaluations.
as recent research shows that consumers may engage in dif- Second, we measured participants’ purchase intention
ferent decision-making processes when evaluating services rather than actual purchase behaviors. To overcome these
versus goods (Bolton & Alba, 2006; Carter & Gilovich, limitations, empirical investigations in a field setting are
Table 3.
Cell Means (Standard Errors) for Loss–Gain Perceptions and Purchase Intention.
needed. Third, because this research was limited to a single needed to gain a better understanding of how consumers
study, replications and extensions to other types of experi- process comparative messages and what other factors influ-
ential services are needed for enhanced generalizability. ence advertising effectiveness. One direction is to look into
Finally, the sample was U.S. consumers. Future research the role of power in influencing information processing
should examine potential cross-cultural differences. (Choi & Mattila, 2014). Another potential direction is to
This study is an initial examination of comparative explore comparative advertising in the context of pricing
advertising in the hospitality industry. Future research is and sales promotions.
Appendix A
Narrative Ads.
Appendix B
List Ads.
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Thompson, D. V., & Hamilton, R. W. (2006). The effects of Author Biographies
information processing mode on consumers’ responses to
Stephanie Qing Liu
comparative advertising. Journal of Consumer Research, 32,
530-540. Anna S. Mattila, PhD, is the Marriott professor of lodging manage-
Trejos, N. (2014). Going keyless is the key: The hotel room ment in the School of Hospitality Management at the Pennsylvania
key goes mobile. http://www.usatoday.com/story/travel/ State University. She received her PhD in services marketing from
hotels/2014/06/26/hotel-room-key-goes-mobile/11418971/ Cornell University. She currently serves on numerous editorial
(accessed Janurary 30, 2016). boards of various service and hospitality management journals.