Impact of Price Promotional Strategy on The Consumer Perceived Values (GC01512)
Acknowledgment
Firstly I would like to thank our GOD for creating us and give the intelligence to us for doing something. By the grace of almighty, I also can run my study. I also respectfully thank my father and mother who is the real world for me. They always help and support me to do my study, also financial and mental supports. I also thank my better half to inspire me to do this task. I would like to thank respectfully to my honorable supervisor for helping me in every aspect of the work. He was very friendly, attractive, dynamic, helpful and well experienced in all aspects. He was helped me in all matters very cordially that make me more confident to do this research. I also specially thank my some friends to help me when I need help. I also cordially thank my colleagues and classmate for making this research effective. Without their help, this research can’t be effective and efficient.
Abstract
The prime goal of this study is to analyze the impact of promotional pricing strategies on the consumer perceived values in the UK travel and tourism industry, and then to provide suggestions to the travel and tourism agents on how they can improve their price promotional strategies to attract customers and perceive their values. The objectives of this study are: to explore price promotional strategies which applied in the UK travel and tourism industry; to analyze the factors that influence customer perceived values in the travel and tourism industry of UK; to analyze the impact of price promotional strategy on the consumer perceived values in the travel and tourism industry of UK; to provide suggestions to the travel and tourism agents on how they can improve their price promotional strategies to attract customers and perceive their values.
Based on the topic of the research, the researcher has been applied also not only primary information but also secondary information. To collect primary data, the researcher has been used a survey questionnaire that includes both quantitative and qualitative and also open-ended as well as closed-ended questions. In the questionnaire, 12 questions were close-ended and the remaining 3 questions were open-ended questions. To reduce the time and cost, the researcher has been applied the sampling method. The sample size was 100 people who were travelers of UK travels. The researcher has selected both male and female travelers and their age levels were different like 16-25, 26-35, 36-45, 46-55, and 56+. Finally, the researcher has been represented the finding by applying SPSS and MS Excel Sheet.
The researcher has been found that the pricing strategies include commission facility to the passengers, promotional packages for a special time, last minute offers, free gifts to the passengers like T-shirt, discount facilities to the travelers etc. the researcher also found that there are different kinds of facilities to the travelers like discounts, free gifts to the passengers like T-shirt, wallets, mug etc. From the secondary data, the researcher has found that the travel agencies can be improved the price promotion strategy by using social media marketing campaigns. They also use an online ticket booking system for the customers. They can be opened an account on Facebook, Twitter, YouTube and email by which they can connect with the virtual world and build a strong relationship with customers.
Chapter 1: Introduction
1.0 Introduction
The number of travelers’ agencies is also increasing day by day in the UK as well as around the world. There is an existence of huge competition among them and customers have enough alternatives to choose travel agencies (Bearden and David, 2015). That is why; travel agencies make a plan for promotional strategies to attract customers. This research focuses the price promotion strategy to assess the perceived values of the customers in the travel industry of the UK. In the first chapter, the researcher discusses the background of the research study, research rationale, research aim, objectives, questions of the research, significance of the research and research outlines.
1.1 Background of the study
At present, the world has become a global village and communication among countries is increasing day by day (James, 2014). Due to this increasing trend in communication, people need transportations like buses, trains, airlines and others. As a result, the number of travelers in the UK also is an increasing trend. To support these travelers, the number of travelers’ agencies is also increasing day by day. Kotler et al. (2015) stated that there is an existence of huge competition among them and customers have enough alternatives to choose a travel agency. For this reason, travel agencies make a plan for promotional strategies to attract customers. In the UK, the travel business is one of the largest and fastest growth businesses in the last previous year. Bolton and Joseph (2015) mentioned that most people spend their earnings visiting different new places and new countries. Dekimpe and Dominique (2015) also agreed on the above view and mentioned that the employment problem from the world is eliminated by the tourism industry.
This industry makes a job for unemployed people within 2.4 seconds that size is £3 trillion in a year. However, the number of travel agencies in UK marketing is growing fast and the competition among them also growing fast. For this reason, UK travel agencies make effective promotional strategies to attract their new and potential clients. An effective price promotional strategy can help to determine the perceived values of the customers (Gupta and Lee, 2017). James (2014) mentioned that an effective price promotional strategy depends on market research and feedback from the customers. Gupta and Lee (2017) stated the definition of promotional strategy is the method of changing buyer behavior and attracting customers to buy. Han et al. (2014) stated that promotional strategy can be regarded as the strategy that includes commissions, discounts, packages, gifts and lottery facility to the customers to attract them and retain them for a long period of time. Bradely (2016) said that the importance of promotional strategies can’t be ignored by any firm in this modern market. Every firm is required to promotional strategies to understand the perceived values of the customers. According to Han, and Donald (2014), customer perceived value can be defined as the level of satisfaction of customers on specific goods and services. Kalwani and Chi (2017) mentioned that every firm needs to understand customer value for producing quality goods and services and attracting the customers as well as retaining them as loyal customers. Since the importance of market promotional strategies and customers’ perceived value can’t be avoided, this research is prepared for identifying the effect of market promotional strategies on the customer’s perceived value in the UK travel industry.
1.2 Research rationale
In the UK, the most profitable and growing business is the traveling business. This business has contributed to the development of the economy of the UK (James, 2014). In the GDP of the UK, the travel industry contributes a large part of the whole support. VisitBritain (2015) has revealed that the forecasted assets of the travel industry can be £257 billion within the year 2025 in the UK market. In 2015, the travel industry contributes 9.6% GDP of the whole amount of GDP in the UK. Besides this capability, the travel agency also estimates that they can contribute to the economic growth of 3.8% within 2025. In addition, this sector predicts 3.8% growth by 2025. The value of the whole travel agency can be forecasted to increase from £21 billion to 31 billion within 2025. The study suggests that more than 37.6 million travelers visited in the UK from several countries that amount were £22.5 billion. This year, the travel agencies in the UK hold the top position all over the world. In the year 2016, the travel agencies in UK hold were managed around 39% travelers of total travelers in the world that were higher than other top countries like Germany, France and USA. Among these 39% travelers, 53% travelers were attracted by London and the remaining 47% travelers are attracted by Wales and Scotland.
The UK Civil Aviation Authority (2017) mentioned that EasyJet is the largest traveling company in that holds 43% of the total market stock. This company has already held 85% seats of the whole seat all over the UK. This company also carried more than 4751 million visitors in the year 2017. In the UK, British Airway is the 2nd largest traveling company in that holds 30% of the total market stock. This company has already hold 78.3% seats of the whole seats all over the UK. This company also carried more than 32.97 million visitors in the year 2017. The other airline’s company in the UK are included Flybe, Virgin Atlantic, Monarch and Jet2 those hold a small part of the share in the capital market.
At the ranking of expensive travel all over the world, UK is considered as the expensive travels around the world. World Economic Forum (2015) ranked the traveling agencies all over the world on the basis of competitive price and found that the UK has ranked 138th among 140 countries. Therefore, it is high time to recover this position effectively and efficiently. Kamins and Valerie (2014) stated that promotional strategy can be regarded as the success of travel agencies and to survive in the UK market as well as the world market (Kalwani and Chi, 2017). Since all passengers are very conscious about the price of traveling, therefore travel agencies must be considered this promotional strategy very carefully…………
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