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Effects of price promotions on potential consumers of high-speed rail

Author

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  • Yi-Wen Kuo
  • Cheng-Hsien Hsieh
  • Cheng-Min Feng
  • Wen-Ya Yeh

Abstract

Effects of price promotions for high-speed rail (HSR) on the choice behaviours of potential consumers are analysed for public transit marketing purposes. A questionnaire survey, with 300 valid samples collected from private vehicle drivers with long-distance trips through freeways, is conducted. Factor analysis is employed to determine the constructs of service quality, while a discrete choice model considering individual heterogeneity, namely a mixed logit model, with stated preference is utilised to explore the diversion of passengers from private vehicle drivers due to price promotions. Analytical results reveal that service qualities, socio-economic characteristics and price promotions significantly affect choice behaviours. Finally, some strategies are developed from these analytical results to help a HSR operator increase its market share.

Suggested Citation

  • Yi-Wen Kuo & Cheng-Hsien Hsieh & Cheng-Min Feng & Wen-Ya Yeh, 2013. "Effects of price promotions on potential consumers of high-speed rail," Transportation Planning and Technology, Taylor & Francis Journals, vol. 36(8), pages 722-738, December.
    • Handle: RePEc:taf:transp:v:36:y:2013:i:8:p:722-738
    DOI: 10.1080/03081060.2013.851508
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