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The formation of the tourist's loyalty to the tourism distribution channel: how does it affect price discounts?

✍ Scribed by Sara Campo; Maria Jesús Yagüe


Publisher
John Wiley and Sons
Year
2007
Tongue
English
Weight
173 KB
Volume
9
Category
Article
ISSN
1099-2340

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✦ Synopsis


Abstract

Given that distribution agents who wish to maximize long‐term business profits should not only attract new consumers but also keep them loyal, this study analyses the variables that determine the consumer's loyalty to distribution agents for tourism. Although retailers in the service industry employ price discounts on products to motivate short‐term sales, they often establish promotional policies without considering their effect on the long‐term business results. This paper presents an empirical study of the effect of price promotions on tourists who travelled with a package tour. The results indicate that price discounts do not erode consumer loyalty directly, and that the key to obtaining loyal consumers is to offer package tours that customers perceive as providing high‐quality service. Copyright © 2007 John Wiley & Sons, Ltd.