A Logistic Regression Analysis of Discount Receiving Behavior in the Cruise Industry

Abstract

This exploratory study analyzed the relationships between a number of selected demographic and trip-related variables and cruise vacationers' discount receiving behavior. Cruise vacationers' discount usage was measured as a dichotomous variable (i.e., discount received-discount not received), and hence logistic regression was employed to test the hypothesized relationships. Among the ten independent variables, three variables, namely age, prior experience with cruise vacations, and gender were significant predictors of discount usage. Our study results indicate that younger female vacationers are more likely to use discounts compared to older male vacationers. Furthermore, experienced cruise vacationers seem more prone to taking advantage of discount prices than novice cruise vacationers. Findings of this study suggest that cruise marketers might want to focus on younger, experienced female cruise vacationers in their promotional efforts.