Perceived Firm Innovativeness in Cruise Travelers' Experience and Perceived Luxury Value: The Moderating Effect of Advertising Effectiveness

Abstract

This study examines the role of perceived firm innovativeness in forming cruise travelers' experience and perceived luxury value. Based on a literature review, perceived firm innovativeness was expected to have positive effects on cruise travelers' experience related to education, entertainment, esthetics, and escapism. In addition, cruise travelers' experience was hypothesized to influence perceived luxury value. Furthermore, this study proposed the possible moderating role of advertising effectiveness (AE) in the relationship between cruise travelers' experiences and perceived firm innovativeness. The proposed hypotheses were tested using data from 315 luxury cruise travelers in the USA. According to the results, perceived firm innovativeness was an important factor influencing the formation of cruise travelers' experience, and this experience had a significant effect on perceived luxury value. Finally, AE had a moderating effect on the relationship between cruise travelers' experience and perceived firm innovativeness. The results have important theoretical and managerial implications.