THE ANALYSIS OF ONLINE PACKAGE TOUR PROMOTION IMPACT ON BUYING INTENTION IN BEIJING, CHINA

Abstract

In recent years, the online tourism market became highly competitive. To attract consumers to buy their products, online travel agencies all use the promotion strategy to increase consumers' buying intention. Promotion refers to online travel agencies put forward low-cost packages tours to stimulate consumers to buy package tours.

In this research, the author will use statistical methodology to examine two promotion types and promotion intensity affects buying intention. For promotion types, one is percentage promotion, for example, 50% and 20% off. Another one is cash reduction promotion. There have two levels for the promotion intensity, high and low, for example, 800 cash reduction and 50% off are high promotion, 200 cash reduction and 20% off is low promotion. The purpose of this study is to examine whether consumers' buying intention will be influenced by two promotion types and promotion intensity, and which promotion types and promotion price intensity can increase consumers’ buying intention. This thesis first reviews the literature on how promotion type and promotion price intensity influence buying intention respectively, and then construct a conceptual framework, then defines the concepts of the online package tours, promotion type, promotion intensity as well as buying intention. Based on the Psychological account theory, this thesis combined with the characteristics of the two different types of online package tours, the moderator variable is package tours, there are two independent variables, promotion type and promotion intensity, the dependent variable is buying intention. Then the author uses first-hand data obtained from the online questionnaire to do the data analysis.