Attitude toward luxury cruise, fantasy, and willingness to pay a price premium

Abstract

This study applies the functional theory of attitudes in examining the structural relationships among the social-adjustive, value-expressive, hedonic, and utilitarian functions of attitudes, fantasy, and willingness to pay a premium. This study also identifies the moderating roles of sensory innovativeness and maximization in the relationships between the four functions of attitudes and fantasy. An online survey (N=543) was conducted to collect data from American respondents. Structural equation modeling analysis was conducted to test proposed hypotheses. Results showed that the four functions of attitudes had significant positive effects on fantasy. In subsequent process, fantasy had a significant positive effect on willingness to pay a premium. Sensory innovativeness moderated the relationship between value-expressive function and fantasy, and maximization moderated the relationship between fantasy and willingness to pay a price premium. Given these findings, valuable theoretical and practical implications are discussed regarding the role of fantasy in luxury cruise decision-making.