The Influence of Hotel Price on Perceived Service Quality and Value in e-tourism

The Moderating Role of StarRating and TripType

The aggregate results indicate that price has an impact on both perceived qual-

ity and value. Accordingly, it is of interest to look further at price effects across 

different star ratings and trip types. The coefficients of StarRating 

× ln(Price) 

and  TripType 

×  ln(Price)  in Tables 2 and 5 illustrate the moderating role of 

StarRating and TripType on the effect of price on perceived quality and value.

Table 3

Total Variance Explained

Component

Total

% of Variance

Cumulative %

1

2.477

61.923

61.923

2

0.721

18.018

79.941

3

0.439

10.985

90.927

4

0.363

9.073

100.000

Table 4

Results of Factor Analysis

Mean

Standard 

Deviation

Factor I 

Extraction Matrix

Factor I Score 

Coefficient

Comfort

3.92

0.904

0.848

0.342

Location

4.01

0.883

0.628

0.253

Cleanliness

4.06

0.862

0.832

0.336

Service

3.91

0.931

0.819

0.331

Extraction sum of square loadings: 61.923%

KMO measure of sampling adequacy: 0.775

Bartlett’s test: Significance .000

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Ye et al. / INFLUENCE OF HOTEL PRICE ON PERCEIVED SERVICE QUALITY  33

In Tables 2 and 5, StarRating shows a significant effect on perceived value 

and quality, while the coefficient of StarRating 

× ln(Price) is also significant, 

indicating that price is diversified across different star-rated hotels. It is then 

necessary to test how this moderates the relationships between price and per-

ceived value as well as quality. We reran the models, and the results of this are 

shown in Table 6. In terms of perceived value, as star rating improves, price plays 

a more important role in customers’ ratings, and the quality ratio declines accord-

ingly (refer to the standardized coefficients given in parentheses). However, 

price has an insignificant effect on perceived value for economy hotels and a 

significant effect for midscale (p < .1) and luxury (p < .01) hotels. Accordingly, 

Hypotheses 3a and H3b are supported.