Luxury Cruise Travelers : Other Customer Perceptions

Abstract

The purpose of this study was to understand the role of other customer perceptions (OCP) in the formation of luxury cruise travelers’ social value, brand attachment, and willingness to pay a price premium. Based on a literature review, theoretical causal relationships between study variables were proposed. During the theory-building process, it was hypothesized that travelers’ face-consciousness levels could play a moderating role in the relationship between OCP and social value. The proposed hypotheses were empirically tested using data collected from 342 U.S. travelers who had taken a luxury cruise. Based on the results of data analysis, it was found that all three dimensions of OCP are critical factors in the formation of social value. More importantly, it was revealed only face-conscious travelers feel social value when they identify with the other upper-class passengers on a luxury cruise. The managerial implications of these findings are discussed.