Research Paper

Investigating the effects of sales promotions on customer behavioral intentions at duty-free shops

Author:

Jin-Woo Park1, Yu-Jin Choi1, Woo-Choon Moon2

Introduction

Today, airports worldwide are putting more effort into generating profit by focusing on commercial viability. The importance of airport duty-free shops has been increasing because lots of airports are now putting greater emphasis on deriving operating profit from non- aeronautical revenue rather than aeronautical revenue. To increase the profits from duty-free shops and to attract more airport duty-free shop customers, airports should utilize various promotion strategies. The present paper therefore explores the effects of sales promotions. Here the effect of sales promotions on customer buying behavior is explored by examining a conceptual model that considers price, coupons, free gifts, points, satisfaction, value, image, and behavioral intentions simultaneously.

Literature Review:

This paper seeks to investigate the effects of sales promotions at airport duty-free shops by testing a conceptual model that considers price, coupons, free gifts, points, satisfaction, value, image, and behavioral intentions simultaneously.

For this testing, structural equation modeling was applied to data collected from duty-free shop users at Incheon International Airport.

Price and coupons were found as significant drivers of customer satisfaction, which was directly related to customer value, image, and behavioral intentions. This paper is the first research that examines the effects of sales promotions at the duty-free shops of Incheon International Airport. The identified sales promotion factors that influence the behavioral intentions of customers at duty-free shops are potentially useful for analyzing the possible trends and changes in duty-free shop customer buying behavior.

A sales promotion is a marketing event focusing in which a corporate entity attempts to influence customers...