Business Case

The purpose of this paper is to examine the effect of price on customers' return intention. So the authors studied two major questions:

1. Does satisfaction with a service experience weaken the effect of price on return intentions?

2. Does reward membership negate any negative effect of price on return intentions?

The article first did literature review, then introduced the methodology, and finally drew the conclusion.

Two hypotheses were used:

1. Satisfaction does not moderate the effect of price on return intentions. Regardless of satisfaction levels, price has a direct negative effect on customers' return intentions.

2. Reward program membership does not moderate the negative effect of price on return intent.

Hypotheses were tested using a survey database from a major hotel chain which practises revenue management. Hierarchical multiple regression analysis was applied. The finding suggested that, regardless the satisfaction level, price has a direct and negative effect on customers' return intention. Also, reward program internship has no influence over the effect of price on return intention.

The findings suggested that managers should actively investigate the price sensitivity of their various market segments. They need to differentiate their product and service, and foster customers' emotional tie to their brand.

There are some limitations about this research. First, it was limited to one service and one segment. Secondly, data used was gotten from an existing database. Thirdly, the study did not cover all antecedents of return intentions.

From 1998 to 2005, the percentage of air flight tickets sold on internet was increased from less than 1% to 35%. At the same time, the average yield was dropped significantly. This paper examines how customers change their air ticket purchase approach because of internet, and how they understand the interaction of those processes with changes in air fares.

This is an exploratory research. 15 'experienced' travelers were chosen and a semi-structured interview was conducted. Also, 'snowballing' skill was used to find respondents. Totally, 11 interviews were conducted in persons and another 4 using telephone.

There were five major findings after the data analysis:

1. Expanded search breadth and enhanced personal control are the primary concern;

2. Internet purchase process is an important experience in itself;

3. Internet search process reinforces people's social network;

4. People