Value dimensions of a GPT and their effects on satisfaction and behavioral intentions

Abstract

The Group package tour (GPT) has been recognized as a major force in the tourism industry, especially in Asian countries. A good understanding of a GPT's value dimensions could shed light on designing value-added travel packages and improving marketing strategies. The objective of this research is to identify GPT value dimensions and to empirically test their relationships with satisfaction and behavioral intentions. The conceptual framework was developed based on the idea that a GPT is a bundle that includes tangible products and intangible services in one package. Through a literature review, a multidimensional approach was adopted and two competing models, first-order and second-order, were established. Five GPT value dimensions were identified; namely, Functional Value, Functional Product Quality, Emotional Value, Social Value and Functional Service. The proposed models were empirically tested using survey data obtained from 561 GPT tourists in Taiwan. Structural Equation Modeling was employed for data analysis and hypotheses testing. The results show that both first-order and second-order models have similar and adequate fits indicating that there are two different value structures in a GPT setting. Emotional Value, Functional Service and the overall perceived value of a GPT have positive effects on Satisfaction, and Satisfaction has positive effects on Behavioral Intentions. Tourists' previous travel experience moderates the relationship from GPT value dimensions to Satisfaction and from Satisfaction to Behavioral Intentions. High experienced tourists were more satisfied with their GPT purchase, while low experience tourists had stronger future behavioral intentions. The findings offer important theoretical, managerial and marketing insights. From a theoretical perspective, the findings contribute to theory development on the specific value dimensions of a GPT. From a managerial perspective, suggestions made by this research contribute towards designing value-added GPT products to satisfy tourists. The limitations of the current research and suggestions for further research are also discussed.

Date of Award	2012
Original language	English