The Effects of Price Perception, Promotion, and Service Quality on Stay Decision at Warga Villa Umalas, Bali, through Brand Image

Werry Oksyania and Andini Nurwulandari ()
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Werry Oksyania: National University, Faculty of Economics and Business
Andini Nurwulandari: National University, Faculty of Economics and Business

A chapter in Proceedings of the International Conference on Business, Management, Accounting and Sustainable Economy (ICBMASE 2023), 2024, pp 4-27 from Springer

Abstract: Abstract Bali as a tourist destination has a great demand by both domestic and foreign tourists, has not been spared from the exposure of Covid-19 which has caused people to lose their sources of income and many businesses closed down due to inability to survive the pandemic. Since 2021 the government has reopened access to travel to the island of Bali, thus economic activity on this island is gradually improving. Accommodation providers are starting to compete in providing various facilities to support the activities of tourists while in Bali. One of the lodging service providers is Warga Villa Umalas. Various marketing strategies are carried out to attract consumers to stay. However, the level of villa occupancy is still experiencing very significant fluctuations. This research study seeks to ascertain how Warga Villa Umalas, Bali guests perceive service quality, pricing, and promotions, with brand image serving as an intervening variable. This research involved 150 samples of consumers who had and are currently staying at Warga Villa Umalas, Bali with a purposive sampling technique. Data collection was carried out using a questionnaire in Gform format which was then processed using SmartPLS 4.0 software using the SEM (Structural Equation Modeling) model. The direct effect test results reveal that while service quality and promotion have a positive and substantial influence on the decision to stay and brand image, pricing perception has a positive but not significant impact on both. The indirect effect test results, on the other hand, demonstrate that brand image is unable to mediate how customers perceive prices while deciding to stay. Service quality and promotion can partially influence a customer’s decision to stay by influencing brand perception.

Keywords: Service quality; price perception; promotion; stay decision; brand image (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-394-8_2

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