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

Yi-Wen Kuo, Cheng-Hsien Hsieh, Cheng-Min Feng and Wen-Ya Yeh

Transportation Planning and Technology, 2013, vol. 36, issue 8, 722-738

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.

Date: 2013
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DOI: 10.1080/03081060.2013.851508

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