Trade-Off Analysis of Perceived Customer Value: The Case of a Travel Vacation Club

ABSTRACT Perceived value has been described as a tradeoff between customer sacrifice and the benefits received in return. However, conspicuously absent in the travel marketing literature is the examination of the actual tradeoff that prevails between the sacrifice and the returns. Using principal components factor analysis, the study first identified the underlying dimensions of perceived value of membership in a travel vacation club. Thereon, differences in perceived value dimensions were determined based on the primary motivations for membership. Results indicate significant differences in perceived value between the three motivations for membership initiation (convenience, packages offered, and monetary reasons). The findings of the study provide insights for market segmentation and tailored communications. Theoretical implications are also discussed.

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