Choosing the Right Promotional Tool in the Hotel Industry: The Case of the Chinese Consumer.

Ma, Jenny Wei-Chen and Gad Mohsen, Marwa (2016) Choosing the Right Promotional Tool in the Hotel Industry: The Case of the Chinese Consumer. In: Global Marketing Conference 2016, 21-24 July, 2016, Conrad Hong Kong, Hong Kong. (Unpublished)

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Abstract

The rapid growth of the Chinese tourism has stimulated competition within tourism-related industries, such as the hospitality industry. The purpose of this study is to examine the Chinese consumer reaction to different promotional tools used by hotels in China and, thus, to provide a deeper understanding for marketers of how to use sales promotion effectively to generate appropriate consumer responses. An experimental survey was administered yielding a total sample of 319 Chinese customers, who were probed using different types of sales promotion tools. Data analysis indicates that bonus packs (e.g. a 3-night stay at a hotel for the price of 2) induced the highest consumer perceived value, brand switching, and purchase acceleration intention, whereas price discounts resulted in the highest intention to spend more. Although this study has its limitations given its reliance on a convenience sample, it offers insightful practical implications for hotel business owners in Asia regarding targeting the right customers with the right promotional tools, where it is proposed that bonus packs successfully attract new Chinese customers and price discounts support in generating more sales.

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