The Relationship between Price Promotion and Customer-Based Brand Equity )Case Study: Travel Agencies of Tehran(

In tourism marketing, pricing and advancement tools are very important and have a direct impact on customer satisfaction, customer loyalty, and brand equity of travel agencies. Each marketing activity affects brand equity, and knowing how marketing activities contribute to or hurt brand equity, allows marketing managers to develop effective marketing plans. In this study, in order to investigate the relationship between the price promotion and the brand equity of travel agencies, at first, by examining the literature, tools for promoting price and brand equity dimensions were identified. Also, based on existing theories, a conceptual model was developed in the form of five main hypotheses and four sub-hypotheses. In order to achieve the research goals, a sample of 461 passengers of travel agencies was selected to answer the questionnaire using convenience sampling. The validity of the questionnaire was confirmed by using a confirmatory factor analysis. Also, the validity or reliability of the questionnaire was confirmed using the Cronbach's alpha coefficient. Data then were analyzed by multivariate analysis of variance (MANOVA) and one-way analysis of variance (ANOVA). Based on the analysis of the collected data, the price promotion and its tools, including cash discounts, volume discounts, price warranties, free services, frequent purchasing discounts and promotional gifts are positively related with brand equity as well as its four dimension that includes brand loyalty, perceived quality, brand awareness and brand association. The results of the study indicate that of the 6 price promotion tools in the research, free services and frequent purchasing discounts, are the most important and special gifts have the least priority in promoting the brand equity of travel agencies. Further; executive suggestions and subsequent studies were explained.