Member segmentation and value network of a paid travel club: A perspective of relationship marketing

Ruomei Feng, Purdue University

Abstract

This research consisted of three studies that aimed to systematically understand the value creation of memberships from the perspective of members with paid memberships. Study one developed a 2 x 2 behavior-based member segmentation along the dimensions of price sensitivity (price-insensitive/price-sensitive) and member status (first-time member/repeat member). The identified segments were found to be significantly different in terms of gender, age, occupation, marital status, household income, and primary reason to join the current membership. They were also different in attitudes on perceived vacation quality and enjoyment, perceived vacation value, perceived dissemination of organization knowledge, social identification, convenience, perceived membership quality, vacation variety, and perceived membership value. Both price sensitivity and member status explained the attitudinal disparity among the segments. The results also indicated that four variables (age, marital status, household income, and primary reason to join the current membership) predicted a member's segment in price sensitivity. Study two investigated the influence of member-perceived quality to the development of a value network of membership consisting of mutual value to members and the membership organization. Member perceived value was found to have two levels: perceived product value and membership value, while value for organization included three the dimensions of retention, commitment and cooperation. It was found that both perceived product quality and perceived membership quality influenced both perceived product value and perceived membership value. The magnitude of influence of perceived membership quality was greater than that of perceived product quality. From the perspective of value for organization, commitment and cooperation were affected more strongly than retention was. Study three explored the influence of social identification to the development of the value network of membership comprising mutual value for members and the membership organization. The results suggested that social identification influenced both perceived product value and perceived membership value. Subsequently, the total effect of social identification to retention was relatively lower than its influences on commitment and cooperation. In addition, the level of social identification was significantly different in terms of age, education, occupation, marital status, household income, and primary reasons to join the current membership.

Degree

Ph.D.

Advisors

Morrison, Purdue University.

Subject Area

Marketing|Recreation

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