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8/17/2019 Effective Promotions for Membership.discount vs. Bonus
1/10
Effective promotions for membership subscriptions and renewals
to tourist attractions: Discount vs. bonus
Jaemun Byun 1, SooCheong (Shawn) Jang*
School of Hospitality and Tourism Management, Purdue University, Marriott Hall, 900 W. State Street, West Lafayette, IN, 47907, USA
h i g h l i g h t s
We investigated the effective promotions for tourist attraction membership.
Bonus was more effective than discount for new membership subscriptions.
Tourists who had previously renewed memberships did not distinguish between discount and bonus for renewal promotions.
Tourists who had never renewed memberships preferred bonus at hedonic attractions but discount at utilitarian attractions.
a r t i c l e i n f o
Article history:
Received 15 September 2014
Accepted 4 February 2015
Available online 24 February 2015
Keywords:
Tourist attraction
Membership
SubscriptionRenewal
Promotion
Discount
Bonus
a b s t r a c t
Tourist attractions actively promote membership subscriptions and renewals. Although discount pro-
motions are commonly utilized in practice, the literature review suggested that bonus promotions, such
as an “extra three months,” could be more effective. Two experiments were conducted to identify
effective promotions for membership subscriptions and renewals. Bonus promotions were found to be
more effective than discount promotions at generating more positive tourist attitudes and behavioral
intentions toward new subscriptions. In contrast, neither bonus nor discount renewal promotions were
more effective for tourists who had previously renewed membership. However, tourists who had never
renewed memberships to utilitarian attractions, such as botanic gardens, preferred discount promotions,
whereas tourists who had never renewed membership to hedonic attractions, such as theme parks,
preferred bonus promotions. This implies that attraction managers should offer tailored promotions to
encourage membership subscriptions and renewals.
© 2015 Elsevier Ltd. All rights reserved.
1. Introduction
Tourist attractions, such as theme parks, museums, botanic
gardens, and aquariums, are one of the most crucial businesses in
tourism (Leask, 2010; Swarbrooke, 2001). There were more than
400 theme parks and similar attractions in the United States withapproximately 290 million annual visitors in 2010 (International
Association of Amusement Parks and Attractions, 2012). Even
though each tourist attraction provides diverse services ranging
from entertainment, food, and beverages to hotels, shopping, and
education, admission fees are their single largest source of income.
In fact, admission fees account for approximately half of tourist
attractions' total revenues (Milman & Kaak, 2013).
Admission fees are generally collected in two forms: tickets and
membership. A ticket allows a visitor to access the attraction a
certain number of times, commonly once, whereas a membership
allows unlimited access during a certain period of time, usually ayear. Even though most tourist attractions utilize both forms, the
price of an annual membership is generally only 3e7 times more
expensive than that of a daily ticket. This can thus add up to a huge
discount considering the number of possible admissions.
Membership plays an important role for tourist attractions. It
promotes more frequent visits by members and, accordingly,
contributes to cross-sales by restaurants and retail shops. Mem-
bership also helps tourist attractions optimize the number of daily
visitors, which allows facilities (e.g., rides or shows) to ef ciently
operate and manage staf ng. Financial stability can also be* Corresponding author. Tel.: þ1 765 496 3610; fax: þ1 765 494 0327.
E-mail addresses: [email protected] (J. Byun), [email protected] (S. Jang).1 Tel.: þ 1 765 631 4093.
Contents lists available at ScienceDirect
Tourism Management
j o u r n a l h o m e p a g e : w w w . e l s e v i e r . c o m/ l o c a t e / t o u r m a n
http://dx.doi.org/10.1016/j.tourman.2015.02.002
0261-5177/©
2015 Elsevier Ltd. All rights reserved.
Tourism Management 50 (2015) 194e203
mailto:[email protected]:[email protected]://www.sciencedirect.com/science/journal/02615177http://www.elsevier.com/locate/tourmanhttp://dx.doi.org/10.1016/j.tourman.2015.02.002http://dx.doi.org/10.1016/j.tourman.2015.02.002http://dx.doi.org/10.1016/j.tourman.2015.02.002http://dx.doi.org/10.1016/j.tourman.2015.02.002http://dx.doi.org/10.1016/j.tourman.2015.02.002http://dx.doi.org/10.1016/j.tourman.2015.02.002http://www.elsevier.com/locate/tourmanhttp://www.sciencedirect.com/science/journal/02615177http://crossmark.crossref.org/dialog/?doi=10.1016/j.tourman.2015.02.002&domain=pdfmailto:[email protected]:[email protected]
8/17/2019 Effective Promotions for Membership.discount vs. Bonus
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strengthened by collecting membership fees upfront. In sum, suc-
cessfully managing membership is benecial for tourist attractions.
Tourist attractions actively promote both membership sub-
scriptions and renewals. They often provide additional benets for
members, such as free parking, designated entrances, or free
magazines. Further, membership fee discount promotions are
commonly witnessed at many tourist attractions. For example, Six
Flags offered a New Year's promotion with a 46% discount on its
season passes (Six Flags Magic Mountain, 2014). Likewise, Walt
Disney World provided a 15% discount for annual pass renewals,
Universal Studios Hollywood offered an 11% discount, and LEGO
Land offered a 25% discount (from LEGO Land, 2014; Universal
Studios Hollywood, 2014; Walt Disney World, 2014).
While discount promotions are popular with tourist attractions,
bonus promotions, such as an “extra free three months,” are also
commonly utilized in other industries, such as cable TV, Internet
services, rental businesses, magazines and newspapers. Further,
among tourist attractions, SeaWorld started to offer a bonus pro-
motion for its annual pass e “Buy 1 Year and Get the 2 nd Year
Free!” (SeaWorld, 2014). The attractiveness of discount and bonus
promotions might appear similar when the associated benets and
costs are the same. For example, a 10% price discount promotion
seems more or less similar to a 10% quantity bonus promotion interms of savings and costs. However, the extant research in mar-
keting indicates that the effectiveness of such promotions can differ
based on product type and customer characteristics (e.g., Diamond,
1992; Diamond & Campbell, 1989; Hardesty & Bearden, 2003;
Kamins, Folkes, & Fedorikhin, 2009; Mishra & Mishra, 2011).
There is little empirical evidence on the effectiveness of dis-
count promotions, which have conventionally been used by tourist
attractions. In general, there are few studies on marketing or pro-
motions for tourist attractions (Leask, 2010). This study intends to
ll this gap by investigating the effectiveness of membership fee
discount promotions on customers' attitudes and behavioral in-
tentions in comparison with extra membership period bonus pro-
motions. This study will help tourist attractions to identify
appropriate promotions to attract new visitors and maintain cur-rent members. Managers of tourist attractions can offer tailored
promotions for their visitors and members.
To achieve these objectives, this study rst reviewed the liter-
ature to identify diverse factors that might inuence customers'
preferences between the two types of promotions (i.e., discount and
bonus). Then, hypotheses on effective promotions for tourist at-
tractions were developed by applying the above factors to both
membership subscriptions and renewals. Two experimental de-
signs employing the survey method, one examining new member
subscriptions and the other focusing on renewals, were used to test
the hypotheses. Finally, the results of the ANOVA analysis and the
implications were discussed.
2. Literature review
Prospect theory (Kahneman & Tversky, 1979, 1984; Tversky &
Kahneman, 1992) is the theoretical foundation for the argument
that bonus promotions are preferred over discount promotions
(e.g., Chandran & Morwitz, 2006; Diamond, 1992; Diamond &
Sanyal, 1990). Prospect theory describes decision making under
risks and indicates that choosing between risky alternatives is
inuenced by how the choices are framed. The option framed as a
gain is perceived as better than an alternative framed as reduced
losses (Kahneman & Tversky, 1979, 1984; Tversky & Kahneman,
1992). Prospect theory has been widely conrmed in diverse situ-
ations (Diamond & Sanyal, 1990; Thaler, 1985). On the other hand,
researchers have also argued that customers' preferences toward
discount or bonus promotions can be affected by other factors, such
as product stack-ability or customers' familiarity with the product
(e.g., Hardesty & Bearden, 2003; Mishra & Mishra, 2011; Ong, Ho, &
Tripp, 1997; Smith & Sinha, 200 0). Thus, some customers may
prefer discount promotions rather than bonus promotions.
Section 2.1 below investigates diverse factors that inuence
customers' preferences between discount and bonus promotions.
Then, these factors are applied to identify effective promotions for
membership subscriptions and renewals in Section 2.2.
2.1. Preferences between discount and bonus promotions
Customers generally prefer bonus promotions rather than dis-
count promotions. First, Diamond and Sanyal (1990) claimed that
bonus promotions are preferred based on prospect theory
(Kahneman & Tversky, 1979, 1984; Tversky & Kahneman, 1992)
because customers tend to consider a quantity bonus as an extra
gain but a price discount as reduced losses (refer to Diamond, 1992
as well). Second, Chandran and Morwitz (2006) argued that bonus
promotions are preferred because a quantity bonus is viewed as
free from negative contextual information such as quality issues.
Their experiment showed that “free shipping” yields signicantly
higher purchase intentions for used books than price discount
promotions, even when both offers amount to the same economic
benets (Chandran & Morwitz, 2006). Lastly, Chen, Marmorstein,
Tsiros, and Rao (2012) argued that bonus promotions are
preferred because customers do not pay much attention to the base
value of a product or service and, consequently, prefer the nomi-
nally higher percentage of the bonus promotion rather than the
lower percentage of the economically equivalent price discount
promotion. For example, a 50% bonus promotion was considered as
superior to a 35% price discount promotion even though they were
similar in terms of dollar per unit value (i.e., [email protected] for bonus vs.
[email protected] for discount) (Chen et al., 2012).
However, researchers have also identied several circumstances
where customers' preferences can be moderated in favor of dis-
count promotions. The ndings on these moderators are summa-
rized in Table 1. First, Smith and Sinha (2000) found that customersprefer price discounts for expensive products but bonus pro-
motions for inexpensive products (refer to Chen et al., 2012 as well).
For example, when the price is high, a 33% off promotion is
signicantly preferred over a 33% more promotion (Chen et al.,
2012). Second, Smith and Sinha (2000) also claimed that price
discounts are generally preferred for non-stackable goods, such as
perishables. For example, their experiment (Smith & Sinha, 2000)
found that a discount promotion is more effective for bread and
cheese than bath tissue and detergent. Third, Mishra and Mishra
(2011) found that a price discount is more effective for vice foods,
such as chocolate chip cookies, while a bonus pack is more effective
Table 1Moderators on preference toward bonus vs. discount promotion.
Category Moderator Preference toward
promotionType Level/Condition
Product Price High Discount
Low Bonus
Stack-ability High Bonus
Low Discount
Guilty Feeling Vice Goods Discount
Virtue Goods Bonus
Customer Familiarity with
products and services
High Bonus/Indifferent
Low Discount
Usage Frequency High Bonus
Low Discount
Promotion Size of Promotion Large Discount
Small Bonus/Indifferent
J. Byun, S. Jang / Tourism Management 50 (2015) 194e 203 195
8/17/2019 Effective Promotions for Membership.discount vs. Bonus
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for virtue foods, such as fruit salad. To explain this phenomenon,
they argued that a discount promotion makes it easier for cus-
tomers to justify the consumption of vice goods by alleviating
associated feelings of guilt. In contrast, consumers are willing to
consume more virtue goods with a bonus promotion because it is
considered an extra benet with no associated psychological con-
ict or guilt (Mishra & Mishra, 2011). Fourth, Chen et al. (2012)
found that customers prefer discount promotions for unfamiliar
products whereas they are indifferent regarding the type of pro-
motion for familiar products. In their experiment (Chen et al.,
2012), participants showed greater preferences toward discount
promotions rather than bonus promotions for new coffee brands.
Yet, they did not distinguish between the two types of promotions
for familiar coffee brands. Fifth, Ong et al. (1997) claimed that usage
frequency acts as a moderator. Light users prefer discount pro-
motions, while heavy users prefer bonus promotions. In their
experiment, light users showed stronger preferences toward dis-
counted lotion than extra free lotion, compared with heavy users
(Ong et al., 1997). Lastly, Hardesty and Bearden (2003) argued that
customers prefer discount promotions when the size of the pro-
motion is large. For instance, when a promotion level is high (e.g.,
50%) customers evaluate a price discount more favorably than a
quantity bonus, whereas they tend to be indifferent when a pro-motion levels is moderate (e.g., 25%) (Hardesty & Bearden, 2003).
2.2. Tourist attractions and promotion preferences
Even though tourist attractions are dened slightly differently
by various researchers (Hede & Hall, 2006; Hu & Wall, 2005; Leask,
2010; Pearce,1991), it is generally acceptedthat they include theme
parks or amusement parks, museums and galleries, natural land-
scapes, heritage sites, religious sites, cultural and industrial visitor
centers, and animal facilities (Leask, 2010). Most tourist attractions
are regarded as services for hedonic consumption (Milman, 2001)
and utilize similar business models and marketing strategies as
commercial products and services. By analyzing whether the
moderators in Table 1 can be applied to membership promotions
for tourist attractions, this study developed the following
hypotheses.
There appear to be no moderators that favor discount pro-
motions for new membership subscriptions, as summarized in
Table 2. (1) Even though the absolute price of the membership may
be expensive, the relative price compared with a daily ticket would
still be considered moderate or inexpensive. For example, although
the price of Walt Disney World's annual pass is around $630, it is
only around 2.3 times more expensive than a 3-day ticket and 6.4
times more expensive than a daily ticket (Walt Disney World, 2014).
It is likely that tourists who consider a membership will recognize
that the price per visit is much less expensive than a daily pass and
therefore prefer a bonus promotion. (2) The high stack-ability of
membership works in favor of bonus promotions as well. (3)
Tourists are not likely to feel guilty because the feeling of guilt
which results from violating one's own moral and internal stan-
dards, such as wasting time or money, will not occur ( Burnett &
Lunsford, 1994). Rather, members may feel guiltless because they
can spend more time with their family (Burnett & Lunsford, 1994),
which usually serves as the main ‘guest unit’ for tourist attractions
(Milman, 2001). However, it is still possible that members of
extremely hedonic tourist attractions, such as theme parks with
extreme rides, might feel guilty because hedonic consumption is
commonly associated with guilt (Dhar & Wertenbroch, 2000). Thus,
this paper classied tourist attractions into relatively hedonic and
utilitarian tourist attractions to conrm the moderating effect of
guilt. (4) It is reasonable to assume that individuals who consider
purchasing a membership are familiar with a tourist attraction
enough to prefera bonus promotion or not distinguish between the
two promotions. (5) It would be reasonable to assume that in-
dividuals considering a membership expect to visit the attraction
frequently enough to prefer a bonus promotion. Otherwise, they
would not subscribe to a membership. (6) Membership promotions
for tourist attractions generally range from 10% to 25% bonus or
discount, which is a small or moderate size. This suggests thattourists would prefer a bonus promotion (Hardesty & Bearden,
2003). In sum, almost all of the moderators indicate that tourists
would show positive attitudes toward bonus promotions. Greater
positive attitudes toward bonus promotions are expected to lead to
stronger subscription intentions and recommendation intentions
(Ajzen, 1985). Therefore, the following specic hypotheses are
proposed:
H1. Bonus promotions are more effective than discount promotions
in inducing positive attitudes (H 1-1), subscriptions intentions (H 1-2)
and recommendation intentions (H 1-3) for new membership sub-
scriptions to tourist attractions; whereas
H2. discount promotions are more effective than bonus promotions
in inducing positive attitudes (H 2-1), subscriptions intentions (H 2-2)and recommendation intentions (H 2-3) for extremely hedonic tourist
attractions.
In the case of membership renewal promotions, usage fre-
quency would act as a moderator in favor of discount promotions
for tourists who realize they visit infrequently. The other conditions
of the moderators remain more or less unchanged, as summarized
in Table 2. (1) Annual or seasonal membership prices are not ex-
pected to change much, although economic or strategic conditions
might require a slight price increase or decrease. Thus, there is no
reason to assume preferences toward a bonus promotion will
change. (2) The high stack-ability of memberships will continue to
work in favor of bonus promotions as well. (3) It is unlikely that
Table 2
Rationales for hypotheses development.
No. Potential
Moderator
Membership promotion
New subscription Renewal
Level of Moderator Preference toward promotion Level of Moderator Preference toward promotion
(1) Price (Relatively) Low Bonus (Relatively) Low Bonus
(2) Stack-ability Very High Bonus Very High Bonus
(3) Guilty Feeling Low Bonus Low Bonus
Can be high in extremely
hedonic tourist attractions
Discount Can be high in extremely
hedonic tourist attractions
Discount
(4) Familiarity Moderate or High Bonus/Indifferent High Bonus/Indifferent
( 5) Expec ted Usage
Frequency
High Bonus High or Low Bonus/Discount
(6) Size of Promotion Small or Moderate Bonus/Indifferent Small or Moderate Bonus/Indifferent
J. Byun, S. Jang / Tourism Management 50 (2015) 194e 203196
8/17/2019 Effective Promotions for Membership.discount vs. Bonus
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tourists would suddenly feel guilty about membership renewals
because they can spend more time with their family without
violating their moral standards (Burnett & Lunsford, 1994). In
contrast, it is likely that members of extremely hedonic tourist
attractions would continue to feel guilty regarding their hedonic
consumption (Dhar & Wertenbroch, 2000). (4) Tourists' familiarity
with the tourist attraction would be enhanced and their preference
toward bonus promotions would continue. (5) It is plausible that
some tourists would realize that they do not visit the tourist
attraction as frequently as they originally expected. Indeed, this is
one of the most commonly cited reasons for not purchasing or
renewing tourist attraction membership. For example, for tourists
who visit Walt Disney World no more than 6 days a year it is
economically more reasonable to purchase daily tickets. Therefore,
individuals who realize they infrequently use the membership will
not renew it. Further, they will prefer a membership fee discount
promotion because the extra membership period would not really
matter to them since they would not benet from it. On the other
hand, tourists who use their membership frequently are likely to
renew the membership and continue to prefer a bonus promotion.
(6) The size of most renewal promotions is generally small or
moderate enough for tourists to continue to prefer a bonus pro-
motion. In conclusion, almost all of the moderators continue toencourage tourists to show greater positive attitudes, and conse-
quently stronger renewal and recommendation intentions, toward
bonus promotions. However, usage frequency would act as a
moderator for tourists who choose not to renew a membership due
to infrequent usage. They would show greater positive attitudes
and stronger renewal and recommendation intentions toward
discount promotions. The specic hypotheses are proposed as
follows:
H3. Bonus promotions are more effective than discount promotions
in inducing positive attitudes (H 3-1), renewals intentions (H 3-2) and
recommendation intentions (H 3-3) for membership renewals; whereas
H4. discount promotions are more effective than bonus promotions
in inducing positive attitudes (H 4-1), renewals intentions (H 4-2), andrecommendation intentions (H 4-3) for membership renewals for
tourists who choose not to renew their membership.
H5. Discount promotions are more effective than bonus promotions
in inducing positive attitudes (H 5-1), renewals intentions (H 5-2), and
recommendation intentions (H 5-3) for membership renewals to
extremely hedonic tourist attractions.
3. Methods
This study employedan experiment with a tourist attraction and
promotion between-subject design to analyze new subscription
promotions: Study 1e
2 (attraction: hedonic vs. utilitarian) 2(promotion: discount vs. bonus). The survey questionnaire rst
asked participants to imagine that they were considering sub-
scribing to a membership at either a theme park or a botanic gar-
den. Only respondents who have never subscribed to membership
of tourist attractions were recruited and randomly assigned to one
of the four promotions, as presented in the Appendix: (1) theme
park and discount promotion, (2) theme park and bonus promo-
tion, (3) botanic garden and discount promotion, and (4) botanic
garden and bonus promotion. Then, they answered questions about
their attitudes and behavioral intentions toward the assigned
promotion.
Next, this study employed a three-way ANOVA experiment
including a tourist attraction, renewal experience, and promotion
between-subject design to analyze renewal promotions: Study 2e
2
(attraction: hedonic vs. utilitarian) 2 (renewal: ever vs. never) 2
(promotion: discount vs. bonus). The survey recruited respondents
who have previously subscribed to membership at either a theme
park or botanic garden. The tourist attraction was assigned ac-
cording to participants' previous membership. For example, in-
dividuals who had been a member of a theme park were randomly
assigned to either the discount or bonus promotion for member-
ship renewal at a theme park. They were asked to remember their
experience with a previous membership and imagine that they had
seen the renewal promotion included in the Appendix. Then, they
answered the same questions included in the new subscription
promotion survey. In addition, they were asked whether they had
ever renewed their real membership. A manipulation question was
included to verify whether members of theme parks and botanic
gardens as groups were similar in terms of satisfaction.
Since this study employed random assignment experimental
design, which facilitates causal inference (Shadish, Cook, &
Campbell, 2002), the validity of the experiment is established.
The advertisements as a treatment were designed to reect realistic
and plausible promotions as seen in the Appendix. Further, alter-
native plausible explanations for differences in travelers' attitudes
and behavioral intentions, such as satisfaction with previous ex-
periences at each tourist attraction and the plausibility and credi-bility of the promotions, were also examined. The reliability of the
measures was conrmed with Cronbach's alphas. In addition, the
reliability of the tourist attractions selection (i.e., theme park and
botanic garden) was conrmed with the hedonic/utilitarian attri-
bute manipulation questions.
3.1. Tourist attraction selection
Through a panel discussion including industry experts and
tourism professors, a theme park was selected as a hedonic tourist
attraction, whereas a botanic garden was selected for a utilitarian
tourist attraction. They represent not only hedonic or utilitarian
tourist attractions but also major tourist attractions in terms of
market size and number of visitors (Dong & Siu, 2013; InternationalAssociation of Amusement Parks and Attractions, 2012). Each sur-
vey included manipulation questions regarding the hedonic or
utilitarian attributes of the assigned tourist attraction.
3.2. Promotion design
Two promotional advertisements were created for each tourist
attraction: theme park and botanic garden. The advertisements
differ only in terms of the promotion. A 15% discount rate and two
extra months of bonus were employed. Monthly membership fees
for both promotions are more or less economically equivalent. For
example, when the regular membership fee is $100 a year, the price
per month for discount and bonus promotions is 7.08 (¼$85@12)
and 7.14 ( ¼$100@14), respectively. In addition, it was deliberatelystated that two extra months are equivalent to a 15% price discount
in the bonus promotion advertisement. The percentage term of the
bonus promotion, 16.7% (¼ 2 months/12 months), was not stated to
prevent preferences for a nominally higher percentage (Chen et al.,
2012). The nal promotional advertisements are provided in the
Appendix.
3.3. Data collection
For data collection, two separate nationwide web-based surveys
were conducted by an online research rm. The rst survey was
randomly distributed to its survey panels who had never sub-
scribed to a membership fora tourist attraction in the United States.
Respondents were randomly assigned to one of the four
J. Byun, S. Jang / Tourism Management 50 (2015) 194e 203 197
8/17/2019 Effective Promotions for Membership.discount vs. Bonus
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promotions. After eliminating unusable responses, 165 out of 186
returned responses were used for analysis. Next, a second survey
was distributed to individuals who have been a member of either a
theme park or a botanic garden in the United States. They were
randomly assigned to one of the discount or bonus promotions for
the tourist attraction they had previously subscribed to. A total of
222 responses were collected, and after eliminating 13 unusable
responses 209 responses were used for analysis.
3.4. Variables and measures
The questionnaire for the new subscription promotion survey
consisted of three sections. The rst section assessed attitudes and
behavioral intentions. To assess attitudes toward the promotion,
the most frequently cited 8-item, 7-point Likert bipolar scales (e.g.,
bad/good, dislike/like, negative/positive, unfavorable/favorable,
unpleasant/pleasant, undesirable/desirable, awful/nice, and inef-
fective/effective) were employed. Next, behavioral intentions were
assessed based on subscription intentions and willingness to
recommend. Frequently cited scales were adopted with modica-
tions for the current experiment setting. Subscription intentions
were measured by four statements on a 7-point Likert scale: “I
would like/am willing to subscribe to an annual pass (or mem-bership),” “If everything goes as I think, I plan to subscribe to an
annual pass in the future,” and “I will make an effort to subscribe to
an annual pass.” Recommendation intentions were measured by
the following two statements: “I would like to recommend sub-
scribing to an annual pass to others” and “I would like to spread
positive things about this subscription policy to others.”
The second section included several questions to conrm the
manipulation and identify potential moderators. First, the hedonic/
utilitarian attributes of theme parks and botanic gardens were each
measured with 6 item, 7-point Likert scales (e.g., pleasant, exciting,
and fun for hedonic attributes vs. practical, useful, and valuable for
utilitarian attributes). The scales were adopted from a previous
study on the hedonic and utilitarian meanings of tourism attrac-
tions by Snepenger, Murphy, Snepenger, and Anderson (2004).Second, guilt as a potential moderator was measured with 3 item,
7-point Likert scales adopted from previous studies (Basil, Ridgway,
& Basil, 2008; Burnett & Lunsford,1994; Mishra & Mishra, 2011): “I
would feel guilty if I subscribed to an annual pass (or member-
ship),” “If I subscribe to an annual pass, I will feel guilty that I might
spend more time there,” and “It will cost me a regretful amount of
money to subscribe to an annual pass.” Finally, participants were
asked to rate the plausibility of the promotions with 3 item, 7-point
Likert scales (Drolet, Williams, & Lau-Gesk, 2007): “This promotion
is believable/realistic/credible.” The last section included questions
about demographic information such as gender, age, race, educa-
tion, and marital status.
The renewal promotion survey included all of the above ques-
tions with some modications for the renewal experiment setting.For instance, the items for renewal intentions were revised as fol-
lows: “I would like to renew the annual pass (or membership).” In
addition, satisfaction with the previous membership experience
was measured with 3 item, 7-point Likert scales (Bigne, Andreu, &
Gnoth, 2005) (e.g., I am satis ed with my decision to subscribe to the
annual pass).
4. Results
4.1. Sample pro les
Table 3 shows the demographic statistics of the participants in
each survey. In the survey on newsubscription promotions,51.5% of
the participants (n¼
85) were male and 48.5% (n¼
80) were female.
The participants were 32 years old on average and the majority was
Caucasian (70.9%). More than half (60.0%) were single, while a
majority of the respondents (82.7%) graduated from at least a 2-year
college. In the survey on membership renewal promotions, 61.7%(n ¼ 129) of participants were male and 38.3% (n ¼ 80) were female,
implying that men tend to subscribe to tourist attraction
membership more than women. The participants were 31 years old
on average and 71.3% were Caucasian. 58.4% were single, and 72.3%
were graduates of a 2-year college or higher.
4.2. Results for new subscription promotions (study 1)
The results of the manipulation analysis were conrmed to be
successful as expected. The hedonic/utilitarian index, which was
computed by subtracting the mean score on the 3-item hedonic
attribute scale (Cronbach's alpha ¼ 0.88) from the mean score of the
3-item utilitarian attribute scale (Cronbach's alpha ¼ 0.92),
conrmed that theme parks and botanic gardens are viewed assignicantly more hedonic and utilitarian, respectively (M Theme
park ¼ 1.56 vs. M Botanic Garden ¼ 0.10, t(163) ¼ 10.71, p < 0.001).
Nonetheless, no signicant differences were conrmed in terms of
feelings of guilt regarding subscriptions to theme parks or botanic
gardens (Cronbach's alpha ¼ 0.77, t(163) ¼ 0.37, p ¼ 0.71). More
importantly both mean scores were low, which (M Theme park ¼ 2.80
and M Botanic Garden ¼ 2.71) conrmed that guilt is not expected to act
as a moderator to encourage a preference toward discount pro-
motions. Lastly, both promotions were viewed as realistic and
credible (Cronbach's alpha ¼ 0.95, M Discount ¼ 5.27 and
M Bonus ¼ 5.55), and no signicant difference was found
(t(163) ¼ 1.50, p ¼ 0.14).
After the manipulation conrmation, the effects of discount and
bonus promotions on tourists' attitudes were examined. The results
Table 3
Sample proles.
Variable New subscription
promotion
Membership renewal
promotion
Frequency
(n ¼ 165)
Percentage
(%)
Frequency
(n ¼ 209)
Percentage
(%)
Gender
Male 85 51.5 129 61.7
Female 80 48.5 80 38.3
Age
19e29 years 90 54.6 121 57.9
30e39 years 50 30.3 56 26.8
40e49 years 11 6.6 19 9.1
50e59 years 8 4.8 10 4.8
Over 60 years 6 3.6 3 1.5
Ethnicity
White/Caucasian 117 70.9 149 71.3
African American 14 8.5 14 6.7
Hispanic 12 7.3 18 8.6
Asian 16 9.7 19 9.1
Native American 2 1.2 2 1.0
Pacic Islander 2 1.2 2 1.0
Other 2 1.2 5 2.4
EducationLess than High School 1 0.6
High School/GED 44 26.7 58 27.8
2-year College 37 22.4 43 20.6
4-year University 68 41.2 96 45.9
Master's or above 15 9.1 12 5.8
Marital Status
Single, never married 99 60.0 122 58.4
Married 53 32.1 78 37.3
Divorced/Separated 13 7.9 9 4.3
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of 2 (attraction: theme park vs. botanic garden) 2 (promotion:
discount vs. bonus) ANOVA on the mean scores of the attitude scales
(Cronbach's alpha ¼ 0.96) yielded a signicant effect only for the
promotion (F(1,161) ¼ 5.82, p < 0.05). As expected, participants
showed greater positive attitudes toward the bonus promotion
than the discount promotion (M Discount ¼ 4.70 vs. M Bonus ¼ 5.17). In
other words, the result conrmed that potential moderators, such
as price and familiarity, favor discount promotions. Therefore, H1-1is supported. Likewise, no interaction effect was conrmed for the
inuence of guilt, even for extremely hedonic tourist attractions.
Therefore, H2-1 is not supported. The statistical details are listed in
Table 4.
Next, the effects of discount and bonus promotions on tourists'behavioral intentions were examined. The result of another ANOVA
on the mean scores of the subscription intention scales (Cronbach's
alpha ¼ 0.97) also yielded a signicant main effect only for the
promotion (F(1,161) ¼ 4.39, p
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(F(1,201) ¼ 8.54, p < 0.01), and a signicant three-way interaction
effect for tourist attraction renewal promotion
(F(1,201) ¼ 6.23, p < 0.05). The contrast analyses presented in
Table 8 reveal that participants who had previously renewed a
membership showed no difference in attitudes between the dis-
count and bonus promotions for the theme park (F(1,201) ¼ 1.64,
p ¼ 0.20) or the botanic garden (F(1,201) ¼ 0.13, p ¼ 0.72). In
contrast, participants who had not previously renewed a mem-
bership showed a signicant difference in attitudes between thetheme park (F(1,201) ¼ 6.30, p < 0.05) and the botanic garden
(F(1,201) ¼ 7.31, p < 0.01). Since we hypothesized greater positive
attitudes toward the bonus promotion among those who renewed
a membership, H3-1 is not supported. However, as expected, those
who had not renewed a membership to a botanic garden showed
greater positive attitudes toward the discount promotion (M Botanic
Garden-Never Renew-Discount ¼ 5 .59 vs. M Botanic Garden-Never Renew-
Bonus ¼ 4.47). On the other hand, those who had not renewed a
membership to a theme park surprisingly showed greater positive
attitudes toward the bonus promotion than the discount promo-
tion (M Theme park-Never Renew-Discount ¼ 5.21 vs. M Theme park-Never Renew-
Bonus ¼ 5.79). Therefore, it is concluded that H4-1 is partially
supported.
Next, the effects of discount and bonus promotions on tour-ists' behavioral intentions were examined. The results of another
ANOVA on the mean scores of the renewal intention scales
(Cronbach's alpha ¼ 0.95) also yielded a signicant main effect for
tourist attraction (F(1,201) ¼ 4.81, p < 0.05) and renewal experi-
ence (F(1,201) ¼ 66.40, p < 0.001), a signicant two-way inter-
action effect for tourist attraction promotion (F(1,201) ¼ 4.03,
p < 0.05), and a signicant three-way interaction effect for tourist
attraction renewal experience promotion (F(1,201) ¼ 7.44,
p < 0.01), as shown in Table 9. The contrast analysis revealed that
participants who had previously renewed a membership showed
no difference in renewal intentions between discount and bonus
promotions for the theme park (F(1,201) ¼ 0.15, p ¼ 0.70) or the
botanic garden (F(1,201) ¼ 0.73, p ¼ 0.39). Therefore, H3-2 is not
supported. Likewise, participants who had never previouslyrenewed a botanic garden membership showed no signicant
difference in renewal intentions (F(1,201) ¼ 1.76, p ¼ 0.18), even
though they showed greater positive renewal intentions toward
the discount promotion (M Botanic Garden-Non Renewal-Discount ¼ 4.31
vs. M Botanic Garden-Non Renewal-Bonus ¼ 3.59). However, individuals
who had never renewed a theme park membership showed
signicantly different renewal intentions (F(1,201) ¼ 16.192,
p < 0.001) and, surprisingly, greater positive renewal intentions
toward the bonus promotion (M Theme park-Non Renewal-Discount ¼ 3.77
vs. M Theme park-Non Renewal-Bonus ¼ 4.99). Therefore, H4-2 is not
supported. The statistical details of the contrast analysis are lis-
ted in Table 10.
Finally, Table 11 shows that the results of the other ANOVA on
the mean scores of the recommendation intention scales (Cron-
bach's alpha ¼ 0.93) are similar to those for renewal intentions.
A signicant three-way interaction effect for tourist
attraction renewal experience promotion (F(1,201) ¼ 3.99, p < 0.05) was again conrmed. The contrast analysis in Table 12
reveals that participants who previously renewed a membership
showed no difference in recommendation intentions between the
discount and bonus promotions for either the theme park
(F(1,201) ¼ 1.66, p ¼ 0.20) or the botanic garden (F(1,201) ¼ 0.04,
p ¼ 0.85). Therefore, H3-3 is not supported. Participants who had
never renewed a membership for a theme park showed signi-
cantly different recommendation intentions (F(1,201) ¼ 11.34,
p < 0.001), whereas botanic garden subscribers had only marginally
different recommendation intentions (F(1,201) ¼ 3.78, p < 0.1). As
expected, participants who had never renewed a botanic garden
membership showed greater positive recommendation intentions
toward the discount promotion (M Botanic Garden-Non Renewal-
Discount ¼ 4.34 vs. M Botanic Garden-Non Renewal-Bonus ¼ 3.19). On the other
Table 9
ANOVA for renewal intention (Study 2 e Renewal Promotion).
Sum of squares df Mean squares F Sig.
Tourist attraction 7.429 1 7.429 4.814 0.029
Renewal 102.486 1 102.486 66.401 0.000
Promotion 2.282 1 2.282 1.479 0.225
Attraction Renewal 0.017 1 0.017 0.011 0.917
Attraction Promotion 6.221 1 6.221 4.031 0.046
Renewal Promotion 0.000 1 0.000 0.000 0.996Attraction Renewal
Promotion
11.486 1 11.486 7.442 0.007
Error 310.233 201 1.543
Total 483.923 208
Table 10
Contrast analysis for renewal intention (Study 2 e Renewal Promotion).
Renewal experience Tourist attraction Promotion F Sig.
Discount Bonus
Ever Theme Park 6.012 6.144 0.147 0.702
Botanic Garden 5.396 5.792 0.731 0.394
Never Theme Park 3.773 4.986 16.192 0.000
Botanic Garden 4.313 3.594 1.785 0.183
Table 11
ANOVA for recommendation intention (Study 2 e Renewal Promotion).
Sum of squares df Mean squares F Sig.
Tourist attraction 6.309 1 6.309 3.346 0.069
Renewal 64.068 1 64.068 33.978 0.000
Promotion 0.143 1 0.143 0.076 0.783
Attraction Renewal 2.258 1 2.258 1.197 0.275
Attraction Promotion 17.601 1 17.601 9.335 0.003
Renewal Promotion 0.232 1 0.232 0.123 0.726Attraction Renewal
Promotion
7.527 1 7.527 3.992 0.047
Error 378.996 201 1.886
Total 481.722 208
Table 12
Contrast analysis for recommendation intention (Study 2 e Renewal Promotion).
Renewal experience Tourist attraction Promotion F Sig.
Discount Bonus
Ever Theme Park 5.302 5.682 1.661 0.199
Botanic Garden 5.375 5.278 0.036 0.850
Never Theme Park 3.864 4.986 11.342 0.001
Botanic Garden 4.344 3.187 3.781 0.053
Table 13
Results of hypothesis tests.
Hypotheses
Number Attitudes
(HX-1)
Behavioral intentions
Subscription/
Renewal (HX-2)
Recommendation
(HX-3)
New
subscription
H1 Support ed Supporte d S uppor ted
H2 Not supported Not supported Not supported
Renewal H3 Not supported Not supported Not supported
H4 Partially
supported
Not supported Partially
supported
H5 Not supported Not supported Not supported
J. Byun, S. Jang / Tourism Management 50 (2015) 194e 203200
http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-
8/17/2019 Effective Promotions for Membership.discount vs. Bonus
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hand, those who had never renewed a theme park membership
showed greater positive recommendation intentions toward the
bonus promotion (M Theme park-Non Renewal-Discount ¼ 3.86 vs. M Theme
park-Non Renewal-Bonus ¼ 4.99). Therefore, H4-3 is marginally and
partially supported.
5. Conclusion
5.1. Summary and discussion
This study attempted to investigate effective promotions to
encourage membership subscriptions and renewals for tourist at-
tractions. The results of the hypothesis tests are summarized in
Table 13.
The bonus promotion was more effective than the discount
promotion in arousing greater positive attitudes and stronger
behavioral intentions for new membership subscriptions,
whereas individuals who had previously renewed their
membership tended to show no difference in attitudes and
behavioral intentions toward the renewal promotions. On the
other hand, individuals who had never renewed a theme park
membership tended to prefer the bonus promotion, whereas
those who had never renewed a botanic garden membershiptended to prefer the discount promotion. Likewise, individuals
who had never renewed a theme park membership showed
stronger renewal and recommendation intentions toward the
bonus promotion, whereas those who had never renewed a
botanic garden membership showed stronger recommendation
intentions but no difference in renewal intentions. Finally, it was
also conrmed that feelings of guilt do not act as a moderator for
either new subscriptions or renewal promotions. The bonus
promotion was not preferred even for extremely hedonic tourist
attractions.
In the experiment on renewal promotions, individuals who
had previously renewed their membership revealed no signi-
cant difference in attitudes or behavioral intentions between
the discount and bonus promotions. Even though this was nothypothesized in the paper, the result conrmed previous nd-
ings that customers are indifferent regarding the type of pro-
motion for familiar products and services (Chen et al., 2012).
Those who have previously renewed membership would be so
familiar with the tourist attraction that they would not distin-
guish between the promotions as long as they could reap the
benets.
On the other hand, it is interesting that individuals who have
never renewed a membership to either a theme park or a botanic
garden showed different attitudes and behavioral intentions. The
members of botanic gardens preferred the discount promotion as
expected. It seems that they did not use the membership as often
as they initially expected and, consequently, preferred the dis-
count promotion rather than the bonus promotion that theymight not benet from. On the contrary, members of a theme
park preferred the bonus promotion even though they had
already experienced that they might not visit the park as often as
they thought. One possible explanation may be that the hedonic
attributes of the theme park encourage members to feel rather
than think rationally about whether they can visit the park more
often than the previous year and, thus, prefer the bonus
promotion.
5.2. Implications
This study contributes several important and interesting theo-
retical implications. First, this paper conrmed previous ndings
that bonus promotions are generally more effective than discount
promotions. Even though the nominal rates of bonus promotions
are not revealed, participants still prefer it to discount promotions.
Second, it conrmed that the preference toward bonus promotions
over discount promotions for commercial products and services is
applicable to tourist attractions or tourism settings as well. Third,
this paper identied that the preference toward bonus promotions
can change in the case of membership renewals. Specically, dis-
count promotions can be more effective for individuals who do
not intend to renew their memberships to relatively utilitarian
tourist attractions such as botanic gardens. In contrast, bonus
promotions continue to be more effective for individuals who do
notintend to renewtheir memberships to relatively hedonic tourist
attractions such as theme parks and amusement parks. Lastly, this
paper suggested that the effectiveness of a promotion can differ
according to the characteristics of tourist attractions and potential
visitors.
This study also contributes several important practical im-
plications for attraction managers. First, managers of tourist at-
tractions should consider utilizing bonus promotions to attract
new members, not just relying on discount promotions. Second,
managers should understand that the effectiveness of discount
and bonus promotions can differ in encouraging membership
renewals. For example, for members who did not frequently visitthe botanic garden, discount promotions would be more effec-
tive. However, for members who visited often, bonus promotions
would be more effective than discount promotions. On the other
hand, individuals who intended to renew their memberships to
both hedonic and utilitarian tourist attractions are indifferent
about the type of promotion. Third, managers should understand
the characteristics of their tourist attractions and potential visi-
tors and try to develop tailored promotions for each group of
visitors.
5.3. Limitations and suggestions for future research
Even though this study provides important theoretical and
managerial implications, a few limitations still exist. For instance,
the online samples used in this study might not reect the
true population distributions at tourist attractions. It would
be more realistic and practical to analyze the preferences of
actual members in cooperation with actual tourist attractions next
time.
Nonetheless, this research is a pioneering study that investi-
gated effective promotions for tourist attractions to encourage
new subscriptions and renewals from visitors' perspectives.
There are still lots of areas for further studies to contribute to the
marketing and promotions of tourist attractions. For example, a
study on how rate fencing or different pricing in both daily
tickets and membership fees inuence tourists' behaviors would
help managers develop optimal pricing policies. Research
investigating promotional strategies that appeal to individuals
who have previously renewed their memberships will also be
helpful for attraction managers because this segment of tourists
was indifferent regarding the type of promotion in this study.
Given the importance of tourist attractions in the tourism in-
dustry, continuous future research on effective management
strategies and techniques for tourist attractions will make a
meaningful contribution to both academia and the industry
alike.
Appendix
1. Experiment for new subscription promotion: Study 1e2
(Attraction)
2 (Promotion).
J. Byun, S. Jang / Tourism Management 50 (2015) 194e 203 201
8/17/2019 Effective Promotions for Membership.discount vs. Bonus
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2. Experiment for renewal promotion: Study 2e2
(Attraction) 2 (Renewal) 2 (Promotion).
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Jaemun Byun, M.B.A. is Doctoral student in the School of Hospitality and Tourism Management, Purdue Universityin USA. His research interests include tourism marketingand destination management.
SooCheong (Shawn) Jang , Ph.D. is Professor in the Schoolof Hospitality and Tourism Management, Purdue Univer-sity in USA. His research interests are twofold: hospitalitynance/strategic management and hospitality/tourismmarketing. Dr. Jang has more than 150 published articles inrefereed top-tier HTM and business journals and hasreceived numerous accolades including the W. BradfordWiley Memorial Best Research Paper of the Year Award2009 and the Michael D. Olsen Research Achievement Award
2015. In addition, he was recognized as the top-rankedauthor in HTM academia during the past decade (Journalof Hospitality and Tourism Research (2011), 35(3)). Dr.
Jan g is fre que ntl y inv ite d as a sp eak er for aca dem icresearch or interdisciplinary research by many universities
as well as international conferences.
J. Byun, S. Jang / Tourism Management 50 (2015) 194e 203 203
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