The relations between sector features, pricing behavior, and the concept of social responsibility: An example of the accommodation sector

Cigdem Ozkan, Canakkale Onsekiz Mart UniversityFollow

Abstract

The aim of this study is to examine the relations between the cost structure of sector features and pricing behaviors through the example of the accommodation sector in terms of social responsibility. This has benefited from both the analytical geometry and the income and cost data of a real accommodation enterprise. The findings point out this situation: In the accommodation sector, the fixed costs are high, and the variable costs are low. Thus, the effects of the cost in determining the optimal price, in view of the short term, are at a very low level. There is such a very close relationship between these facts that managers of accommodation enterprises allow more limited time to the subject concerning pricing, instead of to internal matters of the company. In addition, this structure of the sector has an important role in the prevalence of an error in the public opinion that accommodation enterprises allow prohibitive (excessive) prices.

Keywords

demand, cost, price, pricing, accommodation, fixed variable

Chinese Abstract

行业特征、定价行为、及社会责任概念之间的关系：以住宿业为例

本文旨在通过住宿业在社会责任方面的例子，研究行业特征的成本结构和定价行为之间的关系。研究得益于解析几何和真实住宿企业的收入与成本数据。结果发现，住宿业固定成本高而变动成本低。因此，从短期来看，成本对于最佳定价的影响很小。这些事实紧密交织，导致住宿企业的经理人将更多有限的时间用于定价问题，而非留给公司的内部事务。此外，该行业结构使公众普遍错误认为住宿企业允许过高定价的发生。

需求、成本、价格、定价、住宿、固定因素

DOI

10.5038/2640-6489.5.1.1122

Recommended Citation

Ozkan, C. (2020). The relations between sector features, pricing behavior, and the concept of social responsibility: An example of the accommodation sector. Journal of Global Business Insights, 5(1), 47-56. https://www.doi.org/10.5038/2640-6489.5.1.1122