Effects of price promotions on potential consumers of high-speed rail

Abstract

Effects of price promotions for high-speed rail (HSR) on the choice behaviours of potential consumers are analysed for public transit marketing purposes. A questionnaire survey, with 300 valid samples collected from private vehicle drivers with long-distance trips through freeways, is conducted. Factor analysis is employed to determine the constructs of service quality, while a discrete choice model considering individual heterogeneity, namely a mixed logit model, with stated preference is utilised to explore the diversion of passengers from private vehicle drivers due to price promotions. Analytical results reveal that service qualities, socio-economic characteristics and price promotions significantly affect choice behaviours. Finally, some strategies are developed from these analytical results to help a HSR operator increase its market share.