Save:
Favorite
Share:
Calculator Allowed: Yes

Question

Answer

Transcription of this question: 3.Road Trip WizardLeisureLogix is an independent technology company. It recently introduced an online travel softwareproduct called “Road Trip Wizard” that prepares a personalized itinerary (travel plan) for thosetravelling by car based on their interests and trip preferences, such as romantic trips, business journeysor family holidays. The itinerary includes maps, driving directions, tourist attractions and hotels.Discounts are offered if booked using Road Trip Wizard.Road Trip Wizard software was developed because market research indicated that:88 % Of leisure travel in the United States (US) is done on the road• the online marketplace is mainly focused on air travel• online booking for tourism products is becoming less popular: last year, 9% fewer Americansbooked travel online compared to the previous years because they are tired Of spending two orthree hours trying to find the airline, hotel or vacation package that meets their needs• travellers who drive are a less profitable market segment than those who fly• 85% of road travellers in the US book mid-range or expensive hotels.Road Trip Wizard will be promoted to US consumers to capture new market segments and to fill amajor gap in the online travel business market, which is experiencing growing revenue but with fewercustomers.[Source: adapted from The New York limes, 29 October 2007 and http:/,/u•a•.v eyetravel_cotn./, 26 October 20071(a)(b)(c)(d)Define the term market segment.(i) Explain how the online travel business can have “growing revenue butwith fewer customers”.(ii) Explain two primary market research techniques that could have been usedby LeisureLogix to obtain its market research results.With reference to Road Trip Wizard, analyse the usefulness Of marketsegmentation.Discuss promotional strategies that LeisureLogix could implement to increasethe use Of Road Trip Wizard by American (US) consumers.[2 marks][2 marks][4 marks][5 marks][7 marks]

Leave a Reply