BRADFORD BUSINESS SCHOOL
MA International Business Management
Module: Research Methods
Research Proposal
Analysis of “Qunar” Tourism Online Advertising for The Global Customers
1. Introduction:
E-commerce and online shopping as well as online consumption are not the new term in the business arena. These are the most used term in the business side and the consumer side. These terms are basically adopted by the business people to be acquainted with the wider network in the specific industry. This network is the way to make cheap business transaction which in turns reduces the intermediaries between producers and consumers. Furthermore, network always update business people by providing latest information which ultimately help to make a good decision. On the other hand this network will also help consumers for making proper purchasing decisions.
In this context online advertising providing network information as a new marketing approach as a result its role has become more pivotal for the business people as well as consumers to make a good decision. Side by side, various business fields has been adopted online advertising due to the increasing demand of the consumers as well as to be competitive in the market. Tourism is one of fast moving business field where thousands of companies working around the globe. Due to the fast development of tourism industry, most of the companies working in this field have been adopted online advertising to promote their products and services to the consumers around the globe. Online advertising is more favourite in the tourism sector because this is the only way to send all the promotional messages to the consumers more easily and cheaply. On the other sense, online advertising is capable to stimulate the consumer psychology to go to travelling. So, considering the importance, this study attempts to identify the way how to upgrade the level of effectiveness of tourism online advertising by utilizing various components of consumer psychology. And the study can promote the development of China’s travel industry.
Qunar tourism website (Qunar.com) is a travel website based in china which claims that it is the world largest website. It has been launched in May 2005 and its headquarters is located in Beijing, China. Qunar is one of the best media for travelling in China which can help Chinese people to make proper choices of travelling. This travel media adopted very intelligent and user friendly search engine to provide the travel information to their consumers with reliability, credibility and a comprehensive approach.
Considering the previous context, it is necessary to evaluate the level effectiveness of Qunar tourism online advertising based on consumer psychology. The output of this study might be used by the other online tourism advertising companies to improve the design and approach online advertising which in turn help to understand the advertising messages and will help to make sustainable growth in tourism industry of China.
This study will try to explore the overview of the of domestic and international tourism effectiveness and related research evaluation through analyzing the secondary information. Finally this information will help to identify the effectiveness of Qunar tourism online advertising. On the other hand, this study analysed tourism, consumer psychology and related theories based on secondary data which in turn has given 23 indicators evaluation system to judge the prime objectives of the study. By summarizing whole indicators the author has been chosen six fundamental factors and those are: travel information, emotional drive, awareness, attractiveness, memory effect and credibility.
2. Background and Significance of the Study:
In this century the internet is the most important part and parcel of human being, in some cases people using internet as a fashion to search information. But in the developed countries it is only the way to communicate as well as to perform daily activities even shopping as well. Chinese population has increases by about 80 millions every year and among them 38.3 percent people of China are using and dependent on internet. In every year internet market in around over 155.5 billion yuan and the amount of e-commerce transaction would around 6 trillion Chinese yuan. So, it is clear that how big this market is and because of new fashion it is developing faster. Due to the capacity of delivering fast and reliable information, the number of internet based advertising has been increasing tremendously. Most of the capable companies are adopting internet based advertising for acquisition of loyal customers and their sustainability. Network marketing as a global communication area, a really open market, is now be considered as the five advertising media except TV, newspaper, radio and magazine.
Sequential increasing dependency on online services from last decades, online advertising has been increased their importance as well as the reliance of business people on online advertising. Most of the giant companies are snatching the benefit by adopting the internet facility by developing their websites, promoting their products by online advertisement and staying in competitive situation. The newly launched corporations are also aggressive to update them by incorporating internet that means they are developing their webpage. In the developed and modern society, there is big difference between the commodities in peoples mind and its reality. Capacity to stimulate consumer psychology is the mastermind of the effective online advertising which in turn can capture customer acquisition or jump out from others.
Due the rapid globalization of business, advertising market especially online advertising market is growing rapidly. According to the report regarding Chinese internet advertising market depicted that the rate of growth is more than 30 percent which means network advertising is becoming the necessary part for promotion (iResearch, 2012). However, if it was looked into the developed countries, most of the business organizations are using network advertising to promote their product and services because of its relative advantages that’s are low cost, high interactivity, cover a huge geographic area and so on. The Chinese market is still lagging behind compared to developed countries and huge opportunities are waiting for the investors.
Purpose of the Study
Qunar tourism website (Qunar.com) is a travel website based in China which claims that it is the world largest website. It has been launched in May 2005 and it’s headquarter is located in Beijing, China. Qunar is one of the best media for travelling in China which can help Chinese people to make proper choices of travelling. This travel media adopted very intelligent and user friendly search engine to provide the travel information to their consumers with reliability, credibility and a comprehensive approach.
Considering the previous context, it is necessary to evaluate the level effectiveness of Qunar tourism online advertising based on consumer psychology. The output of this study might be used by the other online tourism advertising companies to improve the design and approach online advertising which in turn help to understand the advertising messages and will help to make sustainable growth in tourism industry of China.
This study will try to explore the overview of the domestic and international tourism effectiveness and related research evaluation through analyzing the secondary information. Finally this information will help to identify the effectiveness of Qunar tourism online advertising. On the other hand, this study analysed tourism, consumer psychology and related theories based on secondary data which in turn has given 23 indicators evaluation system to judge the prime objectives of the study. By summarizing whole indicators the author has been chosen six fundamental factors and those are: travel information, emotional drive, awareness, attractiveness, memory effect and credibility.
Most of the research in this area has been focused on the technological side and no research has been found on the issue where study adopted especially to evaluate the effectiveness of network advertising. A handful of researcher has been found who did their research on network advertising but at the same time the effectiveness of tourism advertising effect is the issue which can bear economic value and it is only based on consumer psychology. This study will review literature from home and abroad on the basis of tourism network advertising and combines with the features of tourism, analysis the categories, characteristics and research findings of Internet advertising do, not only enrich the areas of tourism advertising from the consumer perspectives.
Rationale
Qunar tourism website (Qunar.com) is a travel website based in china which claims that it is the world largest website. It has been launched in May 2005 and it’s headquarter is located in Beijing, China. Qunar is one of the best media for travelling in China which can help Chinese people to make proper choices of travelling. This travel media adopted very intelligent and user friendly search engine to provide the travel information to their consumers with reliability, credibility and a comprehensive approach.
Considering the previous context, it is necessary to evaluate the level effectiveness of Qunar tourism online advertising based on consumer psychology. The output of this study might be used by the other online tourism advertising companies to improve the design and approach online advertising which in turn help to understand the advertising messages and will help to make sustainable growth in tourism industry of China.
This study will try to explore the overview of the domestic and international tourism effectiveness and related research evaluation through analyzing the secondary information. Finally this information will help to identify the effectiveness of Qunar tourism online advertising. On the other hand, this study analyzed tourism, consumer psychology and related theories based on secondary data which in turn has given 23 indicators evaluation system to judge the prime objectives of the study. By summarizing whole indicators the author has been chosen six fundamental factors and those are: travel information, emotional drive, awareness, attractiveness, memory effect and credibility.
In 2014, the income of network travel service is 4.95 per cent which scale is only one twenty in the total travel income in China. But in the USA it is 39 percent in the total income which is 8 times more than Chinese market. Based on the secondary data it is evident that China still far behind to the way to develop tourism industry. Because of the high requirement, dependence of the network advertising quality and quantity of the consumers, understanding the requirement of consumers, correct evaluate the consumer psychology of “Qunar” advertising is extremely urgent, which will also promote our tourism industry development and improve the quality of tourism network advertising (Zhao, 2002).
Therefore, a conclusion can be drawn based on the previous discussion that a study should have to be adopted for evaluating tourism online advertising based on consumer psychology. The main objective of this study is to find out the factors impact the effect of tourism online advertising. The Qunar tourism advertising has been selected as a special representative to analyses the effectiveness of indicators in tourism online advertising. Finally based on the output of the study a complete set up of a credible system can be developed and it will help to promote domestic tourism industry development in Chinese market.
The challenges that the internet brings to Online Travel Agents (OTAs).
The dynamic environment brings online travel agents more challenges in marketing strategy than before as a result of the technology. The technology has changed the distribution channel and brings more competitors. Consumers are more complex and demanding. From the view of competitors, many suppliers such as hotels and airlines can provide better products and prices for consumers directly. There are many high and new technology-based online travel sectors coming into the market and focusing on different market segmentation. There are some Chinese electronic commerce websites such as Taobao.com andJingdong.com and search engines such as Google and baidu.com also joining the online travel market. From the view of consumers, they have more personalized needs and attach more importance to the service quality instead of low price. They have more options and the transitional cost is low. Nowadays, online travel industry in China is still belonging to the immature market, many online travel sectors are in need of broadeningthe market share and attracting more Chinese consumers. Developing mobile clients still needsgreat efforts and is in 4the process of exploring. According toYilu Zhao,CSO of Qunar.com, she thinks there are four main challenges faced by online travel market. Price, the variety of products, service and payment security are the core tasks (“Qunar appoints,”2014).
Problem Discussion
In China, you can see many consumers waiting in a long line for many hours at the ticket office just to buy tickets or book travel products. One of the main reasons that they refuse to use online travel is that they are concerned about payment security. Another reason that prevents consumers from buying online is privacy issue (Kolsaker, Lee‐Kelley, & Choy, 2004). Or they do not know how to use it. This is different from the developed countries, such as the USA where most people search and book travels on the web because it is more convenient, and the types of products are very productive. The price is transparent and it is easy to compare prices for price -sensitive consumers. Consumers can book the travel on the web 24 hours seven days and confirm instantly. Consumers can get personalized products and service by consulting customer service representatives (CSRs)either on line or by calling service center. The internet has a great impact on social, organizational and public life (Castells, 2010). The internet has changed the distribution channels about tourism-related information. It also changes the consumer behaviors that people used to plan and travel (
Buhalis & Law, 2008). Online travel is internet-based. So information technology plays an important role in the tourism industry. Although some studies have been done in this field, the marketing environment of online travel has changed to large degree in the past several years, the online travel agents face different challenges than before. So the research needs to be updated. Travel industry belongs to the service industry and it could bring huge economic profits and improve the life of people. China plans to develop it with great support and putting up with many encouraging policies, such as putting forward the new tourism law. Chinese consumers nowadays would like travel in spare time or on vacation. But now there are some problems coming up in the travel market, such as the price competition, increasing consumers’ complaints, internet safety and decreasing trust issue and traffic jam. Besides, the history of online travel booking industry in China is not long. So it has many problems which need to be solved and it still has a long distance compared with America and European travel industry.
Research Question
Based on the literature review and problem discussion mentioned above, the main research question of this study is what are the challenges in marketing strategy encountered by online travel agents in China? In order to discuss and analyze the challenges in depth, four sub-questions are formulated revolving around the marketing strategies.
(1) How to attract more Chinese consumers to use OTAs?5
(2)What are the competitive advantages of OTAs compared with traditional (offline) travel agencies?
(3)What are the impacts of technology on OTAs?
(4)What are the future marketing strategies of OTAs?
Research Purpose
The main purpose of the dissertation is to demonstrate challenges faced by Qunar.com, online travel agent in China and put forward some suggested solutions about how to cope with these difficulties, shortcomings and challenges. The online travel industry in China falls far behind the USA and the market is open worldwide. If we do not improve ours, we will face not only challenges from domestic competitors but also threats overseas. So it is urgent to solve the problems.
3. Review of the Contemporary Literatures:
In this part of the proposal, all relevant and contemporary literature will be evaluated critically which is an important part for any research. The main purpose of this literature review is to find and disclose what other researchers studied and their output of the study. This part will be divided into two parts, one is the domestic side and other is the international side.
The International Literature Review
The Development of Network Advertising
Once upon a time most of the companies taken their all promotional advertisement without internet, but now situation is totally different. Without internet no companies might think to pass a single day without internet. It is really unbelievable that a man even can pass a day without internet. By internet most of the consumers are interested to get deliveries, store showing and TV selling as well. The data regarding internet suggests that it is growing so fast and using as a most useful tools and favorable media in the last ten years (Evans and Ilbery, 2002).
In recent studies shows that there are three important media in the 20th century and those are radio, TV and internet. TV stored 50 million audiences through 13 years, radio 38 years, however, Internet only through 5 years (Wang, 2000). As a result a handsome amount of businessman recognized that the fast speed development of internet and accordingly they adopted internet facilities in their business to promote their products by using internet (Liu and Wang, 2008). Simultaneously e-commerce has been increased rapidly and started their promotion in the international market.
Internet advertising is such a promotional tool which is used widely by the marketing companies to develop their brand images and sales promotions. Sometimes it is used in combination with other promotional tools (Tu, 2000). Due to effectiveness and efficiency in delivering the messages to the consumer’s network advertising has been drawn greater attention to businessman as well as potential consumers.
The USA is in the leading position in case of network business all over the world. In 1996 USA established the Internet Advertising Bureau which has changed the name in 2011 that is Interactive Advertising Bureau. Based on the IAB report, from 1996-2000 the income was .268 billion dollar and the growth rate was 238% (IAB,2001).
Tourism Advertising Results Evaluation
Transformation method is one of the well-known methods to evaluate the effectiveness of advertising. Most of the researchers widely used this method to judge the effectiveness of advertisement and it is really consumer directed (Jiang, 2001). Mitchell (1977) pointed out that consumers reaction to the advertising can directly affect the attitudes of the consumers. Woodside and Roy (1984) stated that advertising can change the attitudes to product and it can influence in the purchase decision making. Scholars argued that responding to the advertising consumer usually shoe their emotional responses and this responses can be divided into three parts; upbeat feelings, negative feelings and warm feelings. Woodside (1984) argued that emotional responses can be divided into three dimensions and those are: pleasure, arousal and dominance.
Mitchell (1997) argued that consumer’s perception of tourism advertising is widely influenced by the age of the people. Wang (2008) used different tourism related brochure and found that different media can influence the consumer decision making.
Consumer Psychological Perspectives for Internet Advertising
Some indicators of internet advertising result evaluation will be click- through and conversions which regard as the main indicators. Most of the researchers are afraid that the two types of measure are correct or not. On the other hand some researcher has turned to the two old indicators. Apart from this there are some representative researcher contributed in this period. Wen (2008) established the evaluation likelihood model to evaluate the influences of online advertising to buyer behaviors. Wang (2008) analyzed in his research some cognitive and memory factors to find out the main factors including browsing mode, page layout design and exposure time which is useful to evaluate the advertising result.
Tourism Online Advertising Results Evaluation
Since the 1970s, there is a number of experts focus on the study of tourism advertising in the advertising media, accounting to the repost from a research that chooses Lancaster, Pennsylvania, an ancient community actual investigation as an example and find that tourism brochure is a good way for sells promotion, and attract tourist consumers. Woodside and Reid (1976) depicted that media selection budget and cost together and choose newspaper and magazine as an example to do the research to enhance the credibility. Due to the increasing development of the internet technology, tourism advertising organization starts to think by emphasizing more attention to the new media. Jiang (2012) points out that organizational promotion should rely on the development of communication technology as well as design creative idea in the online advertising for tourism promotion. Taking all above mentioned researches into consideration, the research main points of them various which are hard to do the following research, and there do not exist research system and evaluation standard, only relative theories can be used for the future research.
The model of consumer psychology to accept advertising
From the beginning of the 20th century, a lot of AD researchers have began to conduct extensive research on the psychological acceptance model for advertising, and has formed a series of advertising psychological effect model, including the AIDA formula, DAGMAR model, L&S mode, the CSP model and Robertson.
AIDA model
This model has been developed for making effective communication. It is first introduced by a gentleman named Elmo in 1988. This model has contributed a lot in the communication arena. There are a lot of research has been done to develop a concept how communication can be effective. In this context AIDA model has established its footsteps in the communication industry. Jiang (2001) stated that AIDA model is the best tool for persuasion of consumers. This method directs the sequential steps from weak to strong and those steps are as follows: attention, interest, desire and action. In 1925, strong modified and support this model and it has been established its effectiveness by measuring advertising effectiveness effectively. As a result it has become the first advertising effectiveness measurement model in the world (Hackley, 2005).
Figure 2 The AIDA model
4.
Colley model
DAGMAR is another influential model by which researcher can measure advertising effectiveness and it is developed by the Colley in 1984. Colley stated in his articles, DAGMAR model is a unique model to evaluate to evaluate the psychological process in advertising which divides psychological process into four steps and those are: awareness, comprehension, conviction and action. Again Colley argued that it is easy to pick any stage in the communication process and use it to define advertising objectives. Since its publication there are many arguments come from many scholars and suggest some sequential disorders which can be minimized the effectiveness (Jones 1986). Another dimension of this model is it is sometimes called hierarchy of effects model where you can see some sequential phases of communication that is progressing from initial awareness up to the decision to make a purchase.
Figure 3 DAGMAR model
Lavidge&Steiners Hierarchy of effects model
Another dimension of this model is it is sometimes called hierarchy of effects model where you can see some sequential phases of communication that is progressing from initial awareness up to the decision to make a purchase. Lavidge and Steiner(L&S model) refer that by using six steps it is easy to describe the consumers reaction to advertising and those steps are: awareness knowledge, liking, preference, conviction and purchase (Lavidge and Steiner, 1961).
Figure 4 L&S model
CSP model
This model has been designed by a largest advertising company under the Dentsu group of Japan. In 1968, this company developed a system by which you can test advertisement whether the ad is liked by the people or not. And this system was fully computerized and measured by six steps are: unknown, know, understand, preference, desire and action six aspects (Jiang, 2001).
Figure 5 CSP model
5.
6.
Robertson model
In 1971, Robertson suggested to modify the traditional hierarchy model and proposed that sometimes some specific consumers under specific condition might follow the the sequential steps in the way to make a purchase decisions. Zhao (2005) suggested that consumers can learn from previous experience and shape the awareness to purchase pattern.
Figure 6 Robertson model
Literature Review
The Development of Network Advertising
According to the iResearch report (2012) in 2002 the total cost of network advertising was .49 billion Chinese Yuan compared with 2001 and the growth rate was 26 percent. Simultaneously, in 2003 cost was 1.08 billion Chinese Yuan and in 2005 it was 1.41 billion Chinese Yuan.
Although Internet advertising in China is in a rapid development stage in the future, the problems are still exist:
(a) Consumption concept
In case of consumer’s perception, almost every consumer does not believe advertisement easily. In the second stage, as a new product network advertising is not getting wide recognition and a large amount of illegal, false and vulgar information in advertising mostly confused the consumers. On the other hand some advertising is coming automatically which mostly hated by the consumers (Wang, 2008).
(b) Insufficient of network infrastructure
Most of the developed country developed their internet infrastructure in an excellent way but it is totally opposite in the developing countries. Main infrastructural problem like poor stability, poor stability, narrow bandwidth, poor fidelity performance, information transmission speed slow and so on. Network users are not patient to wait the download (Wang, 2008).
(c) Human resources management
As newly developed industry in china, there are still some problems. China had no institutional education on network advertising and no educated talent has been found to solve the problems immediately. But now situation is gradually changing. There are a handsome amount of institution are offering the technical degree on network advertising. But still quality of the professionals is not high. At present, most of Internet advertising is designed by network technician not the professional people, because of professional limitation by them, online advertising lack of the cooperation among marketing, communication and design which reduce the effect of online advertising (Wang, 2008).
(d) Legal problem
In every industry there should be some rules and regulations to monitor and control the whole industry. At present china has no rules and regulation to run the whole industry but hopefully it will be developed within a very short period of time. As the online industry is more complex than other industry and series of problems arising in everyday activities in the advertising industry.
Tourism Online Advertising
Tourism is a combination of many more products and services. It is such a special product that cannot be transferred as well as stored (Ma, 2012). Most of the recent customers are not interested for blind consumption. Accordingly they will collect and compare a handsome amount of information regarding tourism.
Tourism Advertising Results Evaluation
Basically tourism sector has been attracted by the local or domestic researchers from 2000. Most of the research topic was the economic impact of tourism advertising (Qiu, 2003). But now situation is not the same as before. Some domestic researchers are doing study on the consumer’s psychology as well as effectiveness of the tourism advertising. Zha and Zhang (2005) research consumer’s cognition for tourism agency advertising.
Consumer Psychological Perspectives for Internet Advertising
China is a large country with a huge number of populations. As a new industry, online advertising passed four phases in the meantime.
• Simple graphic marketing
• Basic text chain
• Text images
• Column cooperation
Tourism Network Advertising Results Evaluation
In china, before 2008 no literature was on the measuring of effectiveness of advertising but after that some literature can be found and its quality is very high. Liu and Wang (2008) found the advantages of Internet through using the game theory analysis of the tourism advertising a variety of media forms.
Chapter Four
Research Methodology
Philosophical stand is another important part for doing research in the social science. There are lot of debates in the positivism and interpretivism positioning. Some researcher argues that natural scientists always prefer positivism and social science like human psychology always prefer interpretivism. Some researcher will take position in between two philosophies like Realism. Saunders et al. (2012:679) pointed out that realism can be a widely acceptable philosophy for doing social research. This epistemological position is that what we can see and what we can get; what we experience through our senses portrays the world exactly. Taking this mindset, this research is looking like more natural and collect data that will be beneficial for the academic side as it is taken from the viewpoint of the respondents that been analysed. So, this study is suitable to fit into the naturalistic ontology. This ontology has some specific characteristics like natural setting that means keeping realities in their context, qualitative methods, purposive sampling, inductive analysis, grounded theory, case study mode, tentative application of findings and trustworthiness.
This part of this proposal is to make clear to the readers that how this study has been conducted to achieve the ultimate objectives of the study. There are mainly two types of research can be seen, one primary research and another one is secondary research. This differentiation is basically based on the types of data used in the way to research process. Apart from this there might be two dimensions of research, one is qualitative and another one is quantitative. Again, there is lot of data collection techniques and different data collection techniques have been used for qualitative and quantitative research. Below some research techniques has been given.
They are ranges of quantitative research techniques such as:
Questionnaire
Interview
Experiments
Observation
Databases
The study is descriptive in nature that wishing to determine what the dimensions of tourism online advertising is effective, and then establish the evaluation system to evaluate Qunar tourism online advertising effectiveness.
Quantitative Data Collection Method: Questionnaire
In the quantitative data collection techniques questionnaire survey is the most popular survey strategy for doing research. Questionnaire always collect primary data from a large number of sample size and after collecting data some statistical tools has been used to analyze the data (Saunders et al,2009).
Advantages of Questionnaire
Tancy et al (2012) depicted that there are some advantages are in the questionnaire survey which make people feel free to depend on as a primary data collection method in the research, on the contrary it has some disadvantages also. The advantages are given below:
• Practical
• Time is short
• Cost effective
• Validity and reliability is high
• Easily and quickly quantifiable
• Can be analyzed scientifically and objectively
Disadvantages of questionnaire
• Sometimes it’s not economic in terms of time
• Chance to generate unwanted data
• Cause to irritate respondents
• Chance to get vague or inappropriate answer
Questionnaire Design
In this step some important factors have to be considered for designing proper questionnaire. All the necessary factors are given below:
• Deciding what data need to be collect
• The Principle of Choosing Indictors for design questionnaire
• Tourism Online Advertising Indictors
• The analysis of measures advertising psychological index in China
Table3
Quantitative Data Analysis technique: SPSS
Quantitative data is raw data, which is, before someone process and analyse, these data convey very little to most people. Therefore, data analysis is needed and should be processed to make data useful. Quantitative data refer these data can be product of all research strategies. And quantitative analysis techniques assist researchers in the study process, they through table, diagrams to show different meanings. Data were analysed by hand until the advent of powerful personal computers. Therefore, quantitative analysis has been incorporated into relatively inexpensive personal-computer-based analysis software such as SPSS for Windows.
7. Proposed Schedule for the Study:
The proposed schedule for the study shall cover 6 months, which would be comprised of the different activities for the study in the following manner:
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