When to Buy: The Impact of Temporal Perspective on Predicting Price Increases or Decreases for Immediate Purchasing Decisions

Although dynamic pricing strategies in the tourism and hospitality industry have been widely studied, there is limited information on how individual attributes affect responses to price changes. Accordingly, this study investigates the interaction between an individual’s temporal perspective (linear or cyclical) and the direction of price change cues (increase or decrease) on immediate purchase intention. The results of five scenario-based experiments reveal that decreasing (increasing) prices, paired with a cyclical (linear) perspective, could lead to higher immediate purchase intention. The results further demonstrate the mediating effect of predicted future price trends and the moderating roles of the duration of comparison interval and the magnitude of changes. This study assists practitioners in better matching price changes and temporal perspectives to promote consumers’ immediate purchase intentions.