@mastersthesis{Skudinski2024,
  type      = {Bachelor Thesis},
  author    = {Skudinski, Anna-Lena Sonja},
  title     = {Surprising Preferences: How the Less-Is-Better Effect Influences Consumer Behavior in Tourism},
  institution = {BMP - Business Management and Psychology},
  pages     = {103},
  year      = {2024},
  abstract  = {This bachelor thesis examines the phenomenon of the "less-is-better" effect in the tourism industry. The less-is-better effect demonstrates that individuals often exhibit a preference for a less valuable option when two options are evaluated separately but opt for a more valuable option when the options are evaluated jointly. This thesis builds upon the seminal work of Tversky and Kahneman on cognitive biases and Hsee's research on the less-is-better effect. Six empirical studies were conducted with the objective of exploring a variety of scenarios, including evaluations of hypothetical gifts, hotel rooms, breakfast buffets, hotel reviews, cleaning work and travel packages. The findings consistently demonstrate that context and presentation exert a significant influence on consumer preferences and perceived value. For instance, in separate evaluations, participants assigned higher values to lower-priced hotel rooms or simpler cleaning services, whereas joint evaluations led to preferences for higher-priced rooms and more comprehensive services. The results underscore the importance of cognitive biases in marketing and pricing strategies within the tourism sector. By emphasizing the relative value of offerings and carefully considering the presentation context, businesses can better align their strategies with consumer decision-making processes.},
  language  = {en}
}