Original scientific paper
Chinese propensity to purchase a vacation: The role of financial behavior and confidence in economy
Tarik Dogru
; Boston University, School of Hospitality Administration, Boston, USA
Abstract
Behavioral finance and economic theories suggest that households' financial behavior and confidence in the economy have significant influence on households' consumption behavior. While these effects are well documented in economics, finance and marketing literature, they received little attention in tourism and hospitality studies. Therefore, the purpose of this study is to analyze the effects of perceived economic conditions, confidence in economy, and financial behavior on Chinese households' propensity to purchase a vacation travel. Specifically, the effects of subjective confidence in the overall Chinese economy, the stock market, the subjective expectation on China job market, perceived household economic conditions, and household's saving behavior on propensity to purchase a vacation travel in the next six months are examined. The results show that confidence in the economy and a household's financial behavior are significant factors determining vacation travel purchase. Tourism companies should target households, who are budget conscious, are saving part of their income, and that invests in the Chinese stock market.
Keywords
financial behavior; economic confidence; vacation travel; China
Hrčak ID:
160518
URI
Publication date:
28.6.2016.
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