Dos and Don’ts in Cyberspace

Research Objective

Online retail is exploding in Asia Pacific. In the next four years, the region is expected to become one of the fastest-growing travel-spending markets, according to forecasts by the World Trade and Tourism Council (WTTC).

Since consumers rely on advertisements for information about the products and services they want, it is important for online travel agencies to know what the consumers need and what advertising strategies work to get messages across. Royal Intel therefore proposes a four-tier analysis of the online travel market.

- Firstly, we will find out the state of online travel advertising in Asia Pacific. In order to achieve this, statistics of internet usage are called for, along with an overview of trade policies and strategies.

- The second tier will explore the characteristics of online consumers. In this phase, we will carry out an online survey among 500 internet users across Asia Pacific to uncover what motivates them to purchase products online. For an in-depth picture of the internet users, 30 focus group interviews will also be conducted.

- The third part will discuss how consumers view online advertisements and the factors that affect their perception.

- In the fourth tier, we will present recommendations to online travel businesses based on the findings derived from the surveys and focus group interviews.

Research Framework

This paper will contain the following sections:

Section One: State of Online Advertising
This section will explore the power of the internet as an advertising medium. Data on the following will be presented:
- Socio-economic state of Asia Pacific
- Number of people who have computers
- Number of people who use the internet and engage in online retail
- Most popular online travel products/services
- Strategies used by online travel advertisers to attract consumers

Section Two: Online Consumers
In order for online retailers to know how they should present their products, it is essential for them to know who their consumers are. At this stage, we will conduct a survey of 500 online consumers in selected markets to find out the following:
- Socio-demographic profile
- Needs and expectations

Section Three: Views towards Online Advertisements
Advertisers and consumers have different concerns and motives when it comes to the online retail trade. It would therefore be helpful for advertisers to know how their messages get across to their consumers. This section will discuss:
- Top online products/services consumers can recall
- Online purchases made
- Factors that affect consumers’ attitude towards products
- Consumers’ assessment of online retail (quality, ease of use, ethics, value for money, advantages and disadvantages, ethics)

Section Four: Recommendations
Based on the focus interviews conducted, we will devise guidelines for online travel advertisers. This section will cover the following:
- Needs of consumers vis-à-vis needs of advertisers
- Citation of successful online advertising cases and the strategies used
- Recommendations to advertisers

Research Methodology

Royal Intel has produced numerous white papers on different markets in Asia Pacific and has had its work published in reputable travel websites. This study will be spearheaded by the Research Manager together with two Research Analysts. Our team shall:
- Utilize information from secondary references such as news articles, online journals and published researches.
- Analyze first-hand data derived from focus group interviews among online consumers, online advertisers and e-commerce experts.

Focus Group Interview Parameters

Royal Intel will seek insight into online consumer/travel behavior by arranging focus group interviews with 12 travelers in Japan, China, Korea, Australia, and India for a total of 10 focus groups and 60 interviewees (plus possibly additional countries if requested by the project members). Members are encouraged to provide inputs that may shape the course of the interviews. Questions posed will involve the following topics:
- Socio-demographic characteristics of respondents
- Recall of advertisements
- Perception and attitude towards online ads
- Purchases made online
- Motivation for making purchases
- Assessment of online retail
The team will also interview key informants coming from the fields of advertising and online retail.

Time of Completion

The project will be finished six months after initiation. The research will be presented in PDF format.

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