Gains-focused vs risk-averse orientations and their impact on location-based marketing services in tourism

Purpose Regulatory focus theory proposes that people make decisions and engage in the pursuit of goals based on either promotional goals indicating sensitivity to gains/nongains or preventional goals reflecting sensitivity to losses/nonlosses (Aaker and Lee, 2001). The purpose of this study is to examine the roles of regulatory foci and their impact on the perceived value and usage of location-based services (LBS) in travel experiences. Design/methodology/approach Travel planning strategies are framed along promotional or preventional lines to evaluate regulatory focus orientation and respondents’ perceptions of value in location-based marketing (LBM) services are examined. Regression analysis evaluates the primary relationships, followed by analysis evaluating the mediating effects of “travel interest messages” (discount coupons, etc.) in the regulatory-focus-perceived value in LBM relationship. Findings The findings indicate that the effects of promotional focus are significantly greater than those of preventional regulatory focus. Additionally, the importance of travel interest messages (discount coupons, maps, etc.) was more significant with a promotional regulatory focus than preventional regulatory focus orientation. Practical implications The findings provide proof of regulatory focus as a differentiator in travel consumption behavior and demonstrate how it can be used to effectively target marketing messages to augment the travel experience. Destination marketing organizations can apply regulatory focus theory in organizational settings in the areas of leadership, decision-making and front-line employee creativity that can enhance the delivery of memorable travel experiences. Originality/value To the best of the authors’ knowledge, this study is one of the first to examine the relationship between gains-focused/risk-averse travel planning and their impact on perceptions of value in LBS programs in travel experiences.