Journal of the Korean Operations Research and Management Science Society (한국경영과학회지)

The Korean Operations Research and Management Science Society (한국경영과학회)
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The Effect of Deal-Proneness in the Searching Pattern on the Purchase Probability of Customer in Online Travel Services

소비자 키워드광고 탐색패턴에 나타난 촉진지향성이 온라인 여행상품 구매확률에 미치는 영향

  • Kim, Hyun Gyo (Institute of Distribution and Franchise, Sejong University) ;
  • Lee, Dong Il (Department of Business Administration, Sejong University)
  • 김현교 (세종대학교 유통프랜차이즈 연구소) ;
  • 이동일 (세종대학교 경영학과)
  • Received : 2013.10.02
  • Accepted : 2013.11.07
  • Published : 2014.03.31
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Abstract

The recent keyword advertising does not reflect the individual customer searching pattern because it is focused on each keyword at the aggregate level. The purpose of this research is to observe processes of customer searching patterns. To be specific, individual deal-proneness is mainly concerned. This study incorporates location as a control variable. This paper examines the relationship between customers' searching patterns and probability of purchase. A customer searching session, which is the collection of sequence of keyword queries, is utilized as the unit of analysis. The degree of deal-proneness is measured using customer behavior which is revealed by customer searching keywords in the session. Deal-proneness measuring function calculates the discount of deal prone keyword leverage in accordance with customer searching order. Location searching specificity function is also calculated by the same logic. The analyzed data is narrowed down to the customer query session which has more than two keyword queries. The number of the data is 218,305 by session, which is derived from Internet advertising agency's (COMAS) advertisement managing data and the travel business advertisement revenue data from advertiser's. As a research result, there are three types of the deal-prone customer. At first, there is an unconditional active deal-proneness customer. It is the customer who has lower deal-proneness which means that he/she utilizes deal-prone keywords in the last phase. He/she starts searching a keyword like general ones and then finally purchased appropriate products by utilizing deal-prone keywords in the last time. Those two types of customers have the similar rates of purchase. However, the last type of the customer has middle deal-proneness; who utilizes deal-prone keywords in the middle of the process. This type of a customer closely gets into the information by employing deal-prone keywords but he/she could not find out appropriate alternative then would modify other keywords to look for other alternatives. That is the reason why the purchase probability in this case would be decreased Also, this research confirmed that there is a loyalty effect using location searching specificity. The customer who has higher trip loyalty for specificity location responds to selected promotion rather than general promotion. So, this customer has a lower probability to purchase.

Keywords

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