發表論文全文: WHAT KIND OF DISCOUNT OF ONLINE GPT PRODUCT WILL ATTRACT TOURISTS TO CLICK IN? Shao-Cheng Cheng Graduate School of International Trade Chinese Culture University Pei-Yen Tsung Graduate School of International Trade Chinese Culture University and Hsueh-Ching Wang Graduate School of International Trade Chinese Culture University ABSTRACT Nowadays the competition between the agency websites and commercials are getting hotter, how to attract tourists’ and browsers’ interest to click into a firm’s website has been a tough theme. How can a discount catch people’s intention to click in and to desire more about the travel products? In this study, we investigated how a discount type and a discount depth will influence consumers to click into website and to buy travel products. Results show that a discount depth can influence click-in intention. Furthermore, the main influence is a corporate image. Research implications and management implications are also discussed as below. Key Words: discount type, discount depth, GPT (group package tour products) INTRODUCTION When the e-commence and cyber eras are coming, how people can get travel information and where people can purchase travel products are becoming more convenient and easy. As we know, the Internet using rates have been raising faster than ever. Internet has become to a roll of a supplier who supply from daily consumer goods to all kind of products to meet of everybody’s demand. 1 Prior studies have indicated that most of travelers during this generation are demand more information of travel services, products, and prices by internet. The Internet serves have became as a communication and distribution channel for online travel shopper and firms of travel services and products (Law, Leung, and Wong, 2004). One research from “ACNielsen Global Online Consumer Confidence Study “ in 2005 found that over 86 million consumers made hotel and/or tour bookings and Close to 135 million people made plane reservations in this world in 2005. The most popular items purchased on the Internet are books (34%), airline tickets or room reservations (21%) and clothing or shoes (20%). With the important of the Internet, the process of fast information transmission can be addressed effectively in a short time and make firms or tourists’ cost down. For instance, travelers can receive timely, relevant and comprehensive discount price or any other relevant information in a virtual place to assess if they want to know more about this product (Law et al., 2004). It’s says travel industry is growing faster and faster, also many firms have started to use website to contact or attract potential customers via websites’ commercial advertisement , and even make business through Internet. Group Package Travel (GPT) is a very popular product in Asia; lots of Asian will chose Internet to purchase GPT from travel agency websites. But it seems like a little attention has been given to the influence of discount type and discount depth on tourists choosing travel websites. RESEARCH BACKGROUND Numerous attempts have been made by scholars to show the impact of sale promotion on retail industry (Dickson and Sawyer, 1990; Gendall, Hoek, Pope, and Young, 2006; DelVecchio, Krishnan, and Smith, 2007). As we know discounts can make people spend more and shop more on their one-way shopping trip. However the prices of groceries are cheap and they can be always or often used in their daily life. The average prices of online group package tour products are normally higher than groceries; the using rate is less than our daily products (Kim, Lehto, and Morrison, 2007; Rao and Smith, 2006). As more people are buying products online and the travel business is developing, the Internet has had a profound impact on all facets of people’s shopping behavior and their life style, especially on shopping online (Caspar, Chorus, Arentze, and Timmermans, 2007). The travel business no matter in Western 2 countries or in Asia has been identified as a industry likely to be most influenced by Internet from now and ever. Previous research on retail industry has shown that monetary value of the sale promotion (like discount depth and discount type) influences choice during the promotion period in the grocery store on daily or durable products (Kalwani and Yim, 1992; Raju and Hastak, 1983; Shoemaker, 1979). According to the product characteristics, a sales manager may need many different discount framings to win the consumer’s awareness on price. When the percentage discount type with the deepen discount depth, first it can get customers’ attention, furthermore it can stimulate and increase consumer’s willing to buy; On the contrary, it may cause risk of quality decreasing that the consumers refuse to purchase (Chen, Monroe, and Lou 1998; Gendall et al., 2006; Heath, Chatterjee, and France, 1995; DelVecchio et al., 2007). How on-line discount types and on-line discount depths can get people to click in, browse, and know more about product information, when travel agents offer special discounts for their group package tour products? RESEARCH HYPOTHESIS According to the pass research in retail industry, the firm used to transport price promotion message by labeled price or a tag promotion messages, offering the different discount type and discount depth to lure consumers’ response and to make companies’ economic benefit in the store (Folkes and Wheat, 1995).From now, searching for the best price discount is the online shopper’s main motivation to browse websites (Korgaonkar and Wolin, 1999). The prospect theory of Kahneman and Tversky (1979) can explain when consumer deal with discount information, they would editing and evaluation by themselves to confirm this choose is gain or loss then effect their perception of this message. Today, searching for the best price discount profit is the motivation of online shoppers browse websites (Korgaonkar and Wolin, 1999). The prospect theory of Kahneman and Tversky (1979) can explain when a consumer deal with discount information, they would editing and evaluate by themselves to confirm this choose is gain or loss then effect their perception of this message. Gendall et al. (2006) concerned that discount framing by cash-off or percentage-off between the different kind of goods and brands can make a different 3 purchase effecting. For example, percentage-off can be used in bread or cake which belong to stock-up categories; cash-off can be used in cans which belong to non-stock-up categories. For dairy products, consumers are like the deeper discount is, the higher purchase intention will be. It can bring out a positive effect. However, it also can bring a negative effect like increasing perceived risk, decreasing brand value. At the end the negative effects can damage the reputation and customers refuse to purchase from online. (Drozdenko and Jensen, 2005; Harlam et al., 1995; Monroe, 1990). When these discount information explored in websites, a deep discount depth may attract website browsers to click into this discounting advertisement. The exploring of advertising in discount depth and price cuts is just having positive effect to consumer’s perception and purchase intention (Gupta and Cooper, 1992). Before they decide to buy it, they may have the click intention to this advertisement to know more about the product information. In tourism research, the effectiveness of travel advertisements has focused on the extent of a promotional campaign which stimulates tourists visit some particular destinations (Kim, Hwang, and Fesenmaier, 2005). As we know the GPT product are most including accommodations, meal, transportation, and sightseeing. This is a popular travel type in Asia. But most of GPT product or traveling are unexpected and intangiblable. Therefore, pricing and display information on the website are very important when internet browsers surf on websites to searching for discount messages (Rao and Smith, 2006). According to the researcher of website browser perception, Singh, Dalal, and Spears (2005) thought the internet surfers need the information to be introduced by it not by internet surfers themselves. It seems they care about website designs and construct. Actually they don’t care much about the website design and features. Because consumers need the benefits coming from the product itself (Haley, 1968).Consequently, this study proposes two hypotheses as follows: Hypothesis 1: for GPT advertisements, percentage-off as the main discount type can attract more internet users to click in than cash off. Hypothesis 2: for GPT advertisements, a higher discount depth would have a better click-in intention than low. RESEARCH DESIGN 4 Our study examined the discount messages on travel websites by Experimental Design to control two types and two depth levels: cash and percentage, low and high. We also consider the corporate image may influence the subject’s perception, thus we used a well-know and an unknown travel agency in our design. There are four different experiment grids to show different types of discounts in this research. Assumed they are visiting the agency’s website and viewing discounting information. After the respondents read the contents of some travel products and discounts, we asked them to answer the click intention. We designed 7-point scale from “Strongly agree” and “Strongly disagree” to be selected and to show how the respondents feel in each question after they received those information. The interview was taken place from January to February, 2009. The participants in this study were at the age of 18-25 years old, undergraduate and graduate students in the north of Taiwan, enrolled in the course of marketing of the Chinese Culture University. We divided them into eight groups, and each group had 80 students. They were assigned to fill in the questionnaires according to how they felt about the discount advertising. 640 questionnaires were distributed, 570 were returned, and totally 495 valid questionnaires were collected. Our study examined the discount messages on travel websites by Experimental Design to control two types: cash and percentage and two depths level: low and high. We also consider the corporate image may affect the subject’s perception, thus we use a well-know and an unknown travel agency in our design. There are four different experiment grids to show different type of discounts in this research. Assumed they are visiting the agency’s website and viewing discounting information. After the respondents read the content of the travel product and discounts, asking them to answer the click intention. We use 7-point scale from “Strongly agree” and “Strongly disagree” to be selected how the respondents feel in each question after they read different discounts. The participants in this study were at the age of 18-25 undergraduate and graduate students in the north of Taiwan enrolled in the course of marketing of the Chinese Culture University in the period January to February 2009. We divided them into eight groups, and each group had 80 students. They were assigned to fill in the questionnaires according to how they felt about the discount advertising. 640 questionnaires were distributed, 570 were returned, and totally 495 valid questionnaires were collected. 5 FINDINGS This research aimed at the perceptions toward traveling website discount. The respondents were the undergraduate and graduate students in the marketing class in Taiwan of Chinese Culture University. A total of 640 questionnaires were released, 570 were returned and 495 valid copies were collected with overall response rate at 86.84%.The percentages of male and female respondents are respectively 50.71% and 49.29%. In terms of age distribution of the age range 20 and below is 30.10% and 21 to 30 is 69.90%.The education degree, over to 93.13% of the respondents have received undergraduate degrees. Experience of going abroad is 65.66% (Table 1). Table 1 Demographic characteristics Variable Category Gender Male 215 50.71 Female 244 49.29 20 and below 149 30.10 21-30 346 69.90 Professional school 3 0.61 University or College 461 93.13 Graduate school and above 31 6.26 Go abroad experience None 170 34.34 Yes 325 65.66 How many times go abroad None 170 34.34 1-3 number of times 194 39.19 4-6 number of times 80 16.16 7-9 number of times 21 4.24 More than 10 30 6.06 How many None 277 55.96 times go abroad by GPT 1-3 number of times 193 38.99 4-6 number of times 18 3.64 7-9 number of times 2 0.40 More than 10 5 1.01 Age Education Number Percentage The main point of this study is to examine the influence of discount type and discount depth on click intention, the statistics result is as follows: 6 Table 2 Descriptive Statistics Discount type IV/DV Cash off Percentage off 4.68 4.73 Click intention Discount depth IV/DV Click intention High Low 4.82 4.51 Table 2 reveals that percentage off has higher preference to cash off under the dimensions of click intention (4.73; 4.68), and that high discount depth has better preference to low discount depth of click intention (4.82; 4.51). Furthermore we can learn from the descriptive statistics, discount type preference under the dimensions of click intention is much closed. Moreover, T-test is conducted to check whether the differences achieve the significant. The result is shown in table 3. Table 3 T-test IV Discount type Discount depth Dependent variables Click intention T-value d.f -0.36 2.46 493 Significant level (two-tale) Mean difference Standard error 0.720 -0.046 0.128 0.014* 0.335 0.135 Table 3 reveals that discount type in percentage off or cash off is not significant in this study, the T-value is -0.36, and significant level is P=0.720 > 0.05. Discount depth T-value is 2.46, significant level is P=0.014 < 0.05, it means discount depth can affect the click intention. RESULT Table 4 is the result of this study’s hypotheses. Through the statistics methods in this research we found that discount type can’t attract or increase click intention since the difference between discount types is not achieved the significant level (t=-0.36; P=0.720). It represented that the discount type is not the effective factor to attract 7 consumers’ intention on the agency’s website’s promotion for GPT. We also found that discount depth can attract click intention in the website’s advertising since the difference between discount depths is achieved the significant level (t=2.46; P=0.014). It means the deeper discount depth is, the higher click intention to the GPT products will be. This result represented that the higher discount depth can increase the purchase intention, because consumers want more price cut or benefit from the website’s promotion. Also, they need stimulation of lower price when they see the advertising on website, before consumers have intention to buy products online. Table 4 The result of hypotheses hypotheses H1 H2 contents for GPT advertisements, percentage off as the main discount type can attract more internet users to click than cash off. for GPT advertisements, a higher discount depth would have a better click intention than low. results Reject supported CONCLUSIONS The results from the analysis first have showed that deeper discount depth can increase the click intention and attract more people to search other products on the website. Because searching for the best price is what the online shoppers most wants and they will pay more attention and spend more time to make a right decision (Korgaonkar and Wolin, 1999). Sales promotion advertisements delivered by Internet aimed to address different effective and cognitive processes, and therefore difference of consumes price perception (Kim et al., 2007). Secondly, tourist behavior patterns have changed in this century. Most of online shoppers may not know their precise attributes in terms of travel times, cost and destination. But they display low levels of loyalty to any website and appear to be motivated by the search for better price/offer (Stockdale, 2006). That may represent why the discount type wouldn’t make any effect to the click intention in this time. However deeper discount depth can increase the intention of internet surfers to know more about GPT products and to stimulate their willing to browse the agency’s website then attract them to buy the products by the price or promotion. FUTURE RESEARCH 8 In this study, we focused on the click intention and how consumers feel about discount of a GPT Product. In order to proceed our investigation, we have interviewed many students from Chinese Culture University in Taiwan. Hereby I would like to thank them for their best support and great help. In our further research we may take different samples of consumers to discuss different issue. 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