Effects of Perceived Price Dispersion on Travel Agency Platforms: Mental Stimulation to Consumer Cognition

Despite free access to complete information regarding hotel quality and reference prices, consumers perceive significant price differences across different online platforms. We explore how perceived price dispersion on online travel agency platforms influences consumer purchase intention through mental account theory and propose a psychological mechanism explaining why consumers may tolerate and even embrace price discrepancies. Study 1 employs a scenario-based experiment that manipulates differing levels of price dispersion for the same hotel booking, demonstrating that higher PPD significantly amplifies perceived transaction utility and, in turn, acquisition utility. Study 2 corroborates these findings through an online survey with judgment sampling, highlighting that consumers—despite access to comprehensive OTA information—are often motivated, rather than deterred, by price discrepancies; multiple variable combinations were tested to ensure robust findings. This study challenges traditional marketing theories suggesting that price dispersion signals market unfairness and reduces consumers’ purchasing intention; instead, it mentally stimulates consumers. This perception enhances transaction and acquisition utility, positively impacting purchase intention. We also offer a robust model for mechanism study and provide insights for leveraging price dispersion as a cost-less promotional strategy, potentially increasing consumer engagement without additional marketing expenditure. We contribute to the literature by integrating the mental account theory into the context of online marketplaces and developing a price dispersion model with psychological utility in the consumer decision-making process.