 Money illusion under tourists: deceived by larger numbers?Andrea Saayman, ShiNa Li, Alicia Fourie and Marco Scholtz Current Issues in Tourism, 2022, vol. 25, issue 5, 792-807 Abstract: The difference of price perception between using foreign and home currencies is considered a form of money illusion. People may view a product as expensive in a foreign currency with a higher nominal face value, causing under-spending. Since most developing countries have considerably weaker currencies than developed countries – often the main origin of tourists – this problem have real implications for these destinations. This research investigates money illusion of tourists whose home currencies are equal to a multiple of the destination country. Framing and anchoring effects are applied to explain this form of money illusion. The results show that more than 80% of respondents suffer from money illusion. The results also demonstrate that money illusion is greater for less valuable goods, dependent on the origin of the respondent, and less prevalent under females and those with higher levels of education. Relevant implications are proposed regarding forming pricing strategy. Date: 2022 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:rcitxx:v:25:y:2022:i:5:p:792-807 Ordering information: This journal article can be ordered from DOI: 10.1080/13683500.2021.1887825 Access Statistics for this article Current Issues in Tourism is currently edited by Jennifer Tunstall More articles in Current Issues in Tourism from Taylor & Francis Journals |
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