Roles of passengers' engagement memory and two-way communication in the premium price and information cost perceptions of a luxury cruise

Abstract

The luxury cruise line is considered to be one of the most promising target markets because of its tremendous growth potential. However, because the service is expensive, the establishment of an effective price strategy is necessary. This study empirically demonstrates cruise passengers' engagement roles in the perception of two-way communication with employees, which relates to passengers' price and information cost perceptions. Passengers' engagement is measured in terms of five dimensions: identification, enthusiasm, attention, absorption, and interaction. Structural equation modeling is used based on questionnaire data. The findings of this study suggest an alternative price strategy to alter passengers' price perceptions.