• Title/Summary/Keyword: upselling

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Will You Buy It Now?: Predicting Passengers that Purchase Premium Promotions Using the PAX Model

  • Al Emadi, Noora;Thirumuruganathan, Saravanan;Robillos, Dianne Ramirez;Jansen, Bernard Jim
    • Journal of Smart Tourism
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    • v.1 no.1
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    • pp.53-64
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    • 2021
  • Upselling is often a critical factor in revenue generation for businesses in the tourism and travel industry. Utilizing passenger data from a major international airline company, we develop the PAX (Passenger, Airline, eXternal) model to predict passengers that are most likely to accept an upgrade offer from economy to premium. Formulating the problem as an extremely unbalanced, cost-sensitive, supervised binary classification, we predict if a customer will take an upgrade offer. We use a feature vector created from the historical data of 3 million passenger records from 2017 to 2019, in which passengers received approximately 635,000 upgrade offers worth more than $422,000,000 U.S. dollars. The model has an F1-score of 0.75, outperforming the airline's current rule-based approach. Findings have several practical applications, including identifying promising customers for upselling and minimizing the number of indiscriminate emails sent to customers. Accurately identifying the few customers who will react positively to upgrade offers is of paramount importance given the airline 'industry's razor-thin margins. Research results have significant real-world impacts because there is the potential to improve targeted upselling to customers in the airline and related industries.

Strategic Framework for Website Evaluation based on a Review of Tourism and Hospitality Literature from 2010-2023

  • Xiaonan Li;Dave C. F. Chan;Rob Law
    • Journal of Smart Tourism
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    • v.3 no.3
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    • pp.17-27
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    • 2023
  • This study examines the scientific publications on website evaluation in hospitality and tourism from 2010 to 2023 through a systematic review and discusses implications for future research. The reviewed literature from publication years, journals, research methods, website-related stakeholders, context, various forms of Internet presence (Internet forms), and theories are analyzed to create a comprehensive website evaluation dimension. Furthermore, a conceptual framework is developed to show the relationship between the website characteristics, stakeholders-channels interaction, and stakeholders' reactions. The proposed website evaluation framework in hospitality and tourism synthesizes the existing knowledge, identifies gaps, and further advances our understanding of this research area.

A Design of an Intelligent Specialized Customer Module based on One to One Marketing (일대일 마켓팅 기반의 지능형 고객 특화 모듈의 설계)

  • 나윤지;한군희
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.5 no.2
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    • pp.108-113
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    • 2004
  • Various studies to increase customer satisfaction of a web based system are performed actively. Also in recent days an interest about the one-on-one marketing that supporting a customer viewpoint service was raised. The study that supporting the one-on-one marketing is required in a web based system. In this study, We designed the intelligent specialized customer module which supporting one-on-one marketing. The proposed system used a data mining technique as a target selling, a cross selling, and upselling so that supporting one-on-one marketing. Also, In experiment on prototype, we show a proposed system was usable in an actual Web base system applying the mining result based on the specialized customer module.

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The interaction effect of descriptive norm message and regulatory focus in online context of franchise system (프랜차이즈 시스템의 온라인 맥락에서 서술적 규범 메시지와 조절초점의 상호작용 효과)

  • Kim, Sae-Rom;Lee, Dong-il
    • The Korean Journal of Franchise Management
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    • v.9 no.2
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    • pp.31-38
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    • 2018
  • Purpose - In recent years, many companies include franchises have acquire customers by making an online stores and they are carrying out permission marketing activities with e-mail and SMS. Permission marketing requires voluntary customer approval for receiving commercial messages such as cross-selling and upselling. Therefore, it is necessary for the business to induce the customer's acceptance. The purpose of this study is to examine which type of different messages can affect higher in consumer persuasion. Thus, we investigated the impact of descriptive norm message on intention of reception in an online store context, and its interaction with chronic regulatory focus. Research design, data, and methodology - This study hypothesized that the descriptive norm message would affect positive influences to consumers' intension of reception. Specially, this study inquired into whether the interaction effect between descriptive norm and regulatory focus. To verify the hypothesis, we conducted 2 × 2 between-subject factorial design with message type (general message and descriptive norm message) and regulatory focus(promotion focus and prevention focus) as independent variables. Participants of the experiment were assigned to one of 2 kind experimental situations randomly according to characteristics of message type. A total of 131 participants (descriptive norm message: 65, general message: 66) responded for this study. The data were analyzed using frequency analysis, exploratory factor analysis, and two-way ANOVA. Result - The results of the study are as follows. First, we found main effects of the descriptive norm message. The intention of reception were significantly higher in the descriptive norm message rather than general message as in previous researches. Second, interaction effect between the descriptive norm message and regulatory focus was significant. The prevention focus (vs. promotion focus) were hight in a positive behavior intention when the descriptive norm message was given. Conclusions - This study verifies the main effect and interaction effect of descriptive norm message and regulatory focus on the consumers' intention of reception in permission marketing, and persuasive message in the online store context. The results of this study will provide various advantages to companies that want to establish long lasting relationship with customers by carrying out permission marketing in the future.