Analysis the impact of price promotional strategy on the consumer perceived values (GC01410)

Table of Contents

1.0 Introduction.

1.1 Research background.

1.2 Research problems.

1.3 Aim and objectives.

1.4 Research Questions.

2.0 Literature Review.

2.1 Concept of price promotional strategy.

2.2 Price promotional strategies used in the UK travel industry.

2.4 Customers’ perceived values.

2.5 Impact of promotional strategies on consumer perceived values.

3.0 Research Methodology.

3.1 Research philosophy.

3.2 Research design.

3.3 Research approach.

3.4 Data collection methods.

3.5 Data sources.

3.5 Questionnaire design.

3.6 Sampling techniques.

3.7 Data analysis techniques.

3.8 Research ethics.

4.0 Research Timetable.

5.0 Conclusion.

6.0 References.

1.0 Introduction

A price promotional strategy is a kind of marketing strategy which is applied to promote a company’s product and services to the target and potential customers (Kotler et al., 2014). According to Engel and Warshaw (2016), the term ‘Promotional Strategy’ is a process of promotional discounts and advertising to promote a particular product or service of a business. Gelder and Woodcock (2017) said this promotional strategy is very significant for any kind of business that helps the business organizations to make a proper marketing plan, develop the financial goals and understand the clients. The effective promotional strategy helps a company to gain long-term success, brand reputation and profitability (Kokemuller, 2016). However, many organizations, mainly in the tourism sector, face difficulties to develop effective price promotion strategies to increase consumer perceived values. Therefore, this proposed study does a study on how to price promotion strategy on consumer perceived values. First of all, research background, research problems, research aims, objectives and questions are described. Secondly, a literature review is described based on the research topic. Thirdly, research methodologies for the proposed research paper are outlined. Finally, the research timetable is given in the last section of this research.

1.1 Research background

According to Middleton (2016), the travel and tourism industry is a large business sector across the world. The key goal of this industry is to offer desired and proper products and services to travelers. According to Ali (2015), travelers spend 5% to 10% of their total income on travel and tourism activities. Research shows by Campbell and Evans (2016 that the global travel industry is offering a job in 2.4 seconds and earning about £3 trillion per year. Travel marketers of the UK use several promotional strategies to draw the attention of the customers and gain the perceived values of the customers. According to Makens and Kotler (2017), in the UK travel industry price, promotional strategies are not used just because to gain the customers perceived values but also to develop the marketing plan and create strategic planning. Morrison and Mill (2017) argued that by using the price promotional strategies travel marketers identify customers’ satisfaction level about their products and services. Efficient promotional strategies also help the travel marketer to gain brand reputation and brand awareness in the marketplace. Sharpley (2016) stated that without proper and effective promotional strategies a marketer cannot gain the customer perceived value and organizational goal

1.2 Research problems

Morrison and Mill (2017) identified several challenges for the travel and tourism industry that mainly come from the competitors in the industry. Beaver (2016) said it has been very challenging travel and tourism industry to recognize the customer perceived value. This is because they face challenges from finance cost, political risk, new government rules, currency fluctuation and taxes. According to Ross (2016), in the travel and tourism industry pricing the products and services are depended on the pricing strategies of its competitors, both local and international rules of the government, customer buying behavior, seasonality, geographic location etc. As a result, travel marketers face problems to fix the price of the products and recognize the perceived value of the customers. Morrison and Mill (2017) said it is a very challenging issue for the UK traveler to define the price promotional strategy and recognize the perceived value of the customers because tax issues, airport expansion and holidaymakers of the UK are giving hard time to the travel industry of UK. Thus, it has become an important issue for the travel businesses in the UK how price promotional strategy affects customer perceived value (Ross, 2016). Thus, this study will conduct a study to analyze the effectiveness of price promotion strategy to increase consumer perceived values.

1.3 Aim and objectives

Aim

The proposed study aims to conduct an effective study on the price promotion strategy and its impact on consumer perceived values. In addition, the proposed study will give guidelines to the UK travel industry’s marketers about how to use promotional strategies and gain perceives the value of consumers.

Objectives

To analyze the effectiveness of several price promotion strategies used in the UK travel industry
To evaluate the importance of gaining customer perceived value in the UK travel industry
To provide effective guidelines to the UK travel industry’s marketers about how to use promotional strategy and gain customer perceived value

1.4 Research Questions

Which price promotional strategies are effective in the UK travel industry?
What is customer perceived value important in the UK travel industry?
What are the guidelines for the UK travel industry’s marketers about how to use promotional strategy and gain customer perceived value?

2.0 Literature Review

2.1 Concept of price promotional strategy

According to Engel and Warshaw (2016), a price promotional strategy is a process of finding a proper marketplace for any product or service by utilizing all the aspects of promotion including discounts or advertising to promote that product or service. Kokemuller (2016) said an effective price promotional strategy helps a company to gain long-term success, brand reputation and profitability. Several factors are considered in the promotional strategies development. Palmer (2017) said the travel industry’s price promotional strategies depend on the competitor’s pricing, rules of government, currency fluctuation, seasonality and tax. Michael (2017) stated that travel marketers consider the product positioning, market share, competitive situation and supply and demand chain when developing promotional strategies.

Proposal for Postgraduate