Segmenting Cruise Passengers With Perceived Reputation

Abstract

Research has found that corporate reputations are particularly important for service firms. Yet, extant, similar research has not been conducted in the tourism sector where customers typically purchase complex bundles of services. Hoping to assist in filling this void, the purpose of this study was to segment cruise passengers based on their perceptions of a cruise line's reputation and identify differences between the resultant reputation groups. Data were collected on two separate 7-day Caribbean voyages, on board the same Holland America Line (HAL) ship. Vast differences were found between reputation groups and their perceptions of prior experiences. It was further revealed that reputation has a great influence over cruise passengers' perceptions of price sensitivity, monetary price, behavioral price, quality, value, satisfaction, word of mouth, and repurchase intentions. Theoretical and managerial implications are discussed.