Understanding the Dynamics of Participative Pricing: Psychological, Ethical, and Engagement Dimensions in Sustainable Tourism

Abstract

This study explores the effectiveness of participative pricing strategies by examining the interplay between psychological triggers, ethical dilemmas, and tourist engagement in sustainable tourism. Drawing on the Theory of Planned Behaviour and Self-Determination Theory, the research investigates their role in shaping psychological triggers that influence tourist motivation and engagement. Ethical dilemmas are also examined as a moderating factor in the relationship between psychological triggers and motivation. The study employs a quantitative, cross-sectional survey with stratified sampling and SEM analysis to examine psychological triggers, ethical dilemmas, and tourist engagement in participative pricing, advancing insights into sustainable tourism behaviour in India. In a survey of 449 Indian tourists using a structured questionnaire, the findings suggest that psychological ownership fosters psychological triggers, reinforcing tourist motivation towards sustainable engagement. Altruism and novelty-seeking significantly enhance psychological triggers, highlighting their importance in shaping responsible tourism choices. However, emotional gratification does not significantly impact psychological triggers, suggesting that sustainability-driven decisions are more value-oriented than hedonic. Ethical dilemmas play a crucial role in influencing tourist motivation, emphasizing the need for transparency and fairness in participative pricing models. This study enriches theory by linking psychological and ethical factors to participatory pricing in sustainable tourism and guides managers to enhance visitor engagement through ethical pricing, intrinsic motivation, and transparent communication strategies. This study contributes to sustainable tourism literature by examining the psychological and ethical aspects of participative pricing, paving the way for more consumer-centric and ethical tourism models.