Consumers' Choice of Package Tours Influenced by Reference Prices and Competitors
The study looked at how prices influence people's choices when booking package tours. Consumers pay attention to prices because they can change based on the economy. The researchers found that consumers compare the price of a tour to what they paid in the past or what competitors are charging. If a competitor's price is higher, consumers are more likely to choose the tour. The study also found that where the tour price falls in relation to internal reference prices affects consumer choices. Overall, consumers consider both current market prices and past prices when deciding on a package tour.