Conceptualization and alternate operationalizations of the measurement of sponsorship effectiveness in sport

A model that integrates the communication and product adoption processes is developed and is used to evaluate the effectiveness of alternate measures of sponsorship. The further through the communication process an evaluation takes place, the stronger is the evidence of a sponsorship’s contribution to increasing sales. The most frequently used sponsorship measure is media equivalency values. These frequently inflate the real value of media coverage. Further, this approach is fundamentally conceptually flawed because it measures only the extent of media output and offers no insight as to whether people absorbed the message. Studies measuring changes in consumers’ awareness usually rely on people’s recall of a sponsor’s name being associated with an event, but recall is notoriously faulty. Image enhancement is a state closer to assessing impact on sales and is best measured by ‘strength of link’, reflecting the extent to which a brand has borrowed an event’s image. Intent‐to‐purchase studies are the stage immediately preceding sales and can be done by surveying audiences and identifying their brand and product desires and their purchase habits. The most desirable measure from a sponsor’s perspective is impact on sales, which may be expressed as: (i) increases in traffic at retail points of sale; (ii) number of new sales leads created; or (iii) actual increase in sales associated with a sponsorship.     

Online branding: Development of hotel branding through interactivity theory

The present study aims to develop and test a theory-based model of website interactivity as an online branding tool. It explores the relationships among website interactivity, the dimensions of brand knowledge, and brand value in the context of hotel booking websites. An online questionnaire was completed by four hundred forty two (n = 442) responses who booked a hotel room in the previous year. Leaning on the fundamentals of branding literature and the website interactivity theory, a model was designed and seven hypotheses were tested. A two-phase analysis was considered, first a Confirmatory factor analysis (CFA) and then a Structural Equation Modeling (SEM) were conducted to test hypotheses. The results of the study show that the dimensions of website interactivity, namely two-way communication and user control, positively impact the dimensions of brand knowledge, namely brand awareness and brand image, which in turn impact brand value. We offer both theoretical and managerial implications.     

Role of Social Network Services (SNS) Sales Promotions in Generating Brand Loyalty for Chain Steakhouses

This research aimed to explore the impact of social network services (SNS) sales promotions on the brand loyalty generation process by considering the role of brand attitude, awareness, service quality, experience, trust, and attachment in the chain steakhouse industry. A field survey was conducted to collect data in a metropolitan city of South Korea. According to our structural equation modeling results, SNS sales promotions significantly increased loyalty and its antecedents, and brand attachment had the greatest influence on brand loyalty. The mediating impact of study variables was also identified. The proposed model had a satisfactory level of prediction power for loyalty. Overall, our findings provided important insights into how steakhouse practitioners can deal with SNS as essential promotional tools and provided valuable insights into why using SNS sales promotions is critical in the fast-changing chain restaurant industry.     

Effect of Price Change Alert on Perceptions of Hotel Attribute-based Room Pricing (ABP) versus Traditional Room Pricing (TRP)

Aside from marketing information on traditional room rates, hotels and online travel agents (OTAs) are trying a new pricing technique based on the attributes of guestrooms. This research investigates how attribute-based room pricing (ABP) differs from traditional room pricing (TRP) in influencing consumer reactions when consumers receive a price change alert before (vs. after) sales. Through a series of experiments, we found that TRP and ABP result in similar alert attitude, brand attitude, and visit intention for presale price change alert. However, ABP leads to more favorable results for postsale price change alert. We examined the underlying mechanism and found that perceived fairness mediates the effect of pricing strategy on brand attitude, price alert attitude, and visit intention for postsale alert only. This research provides hotel managers and OTA marketers with guidance on when to send either type of price change message to consumers.     

Weekend vs. midweek stays: Modelling hotel room rates in a small market

Using a hedonic model, we estimate the willingness to pay for different hotel characteristics for a small market environment. We uniquely collected a data set from a meta-booking engine including their detailed customer review ratings compiled from numerous individual hotel search engines. We argue that meta-search engines are well suited to gather prices to be used in hedonic models. In our estimation, we distinguish hedonic models for single room stays during the week potentially relevant for business travellers and double room stays during the weekend intended for leisure. Important determinants of hotel room prices are popularity ratings (derived from customer reviews), the hotel star rating, weeks of advance booking, and certain hotel characteristics such as express checkout, room service, or Internet access. A number of important characteristics such as wellness offers or wireless Internet in the rooms are insignificant pointing to the conclusion that these may be regarded as standard attributes and do not fetch additional economic value in terms of higher consumer willingness to pay.     

The managerial flash sales dash: Is there advantage or disadvantage at the finish line?

The central intent of this qualitative inquiry is to investigate the benefits, drawbacks, and performance measures of hotel room inventory distribution via flash sales websites. Key advantages and disadvantages of using such a distribution channel fall within the categories of inventory management, revenue management, brand marketing, customer relationships, and operational challenges. The significance of the study is in providing a comprehensive review of the flash sales phenomenon in the lodging industry that may assist hotel managers with the performance evaluation of this distribution channel. Using grounded theory methodology, a flash sales evaluation framework was developed based on 46 phone interviews with hotel managers from different segments of the American hotel industry.     

Hospitality Cobranding: An Experimental Investigation of Enhancement and Erosion in Consumer-Based Brand Equity

ABSTRACT

Cobranding is suggested as a competitive strategy for the hospitality industry due to its potential benefits. Although implied, the potential impact of cobranding on consumer-based brand equity of partner brands and the composite brand has not been empirically investigated in the hospitality industry context. Therefore, a quasi-experimental study design with a structured survey was applied to general tourist population in Hong Kong to identify the potential influence of cobranding on the brand equity of individual brands as well as the hotel–restaurant composite brand versus the hotel–retail composite brand. Surprisingly, results revealed brand equity erosion rather than brand equity enhancement for even the presumably fit hotel, restaurant, and retail brands. Theoretical and managerial implications and suggestions for future research are discussed.     

Exploring the Differences in Hotel Guests' Willingness-to-Pay for Hotel Rooms With Different Views

This study investigates differential hedonic pricing in relation to the choice of different hotel room views and floors and attempts to find out the determinants of respondents' willingness-to-pay (WTP) based on the their sociodemographics, psychological inclinations, and other travel-related variables. The findings reveal significant differences between WTP amounts among hotel rooms with five different views. More specifically, this study found significant differences between WTP amounts for rooms on the 1st floor compared to those on the highest floor (20th floor) in a hotel. The results supported the rationale for setting up specific hedonic pricing strategies by hotel managers. Importantly, some significant determinants were obtained in predicting WTP amounts, providing a better understanding of how differential pricing strategies may be applied in the hotel industry.     

THERE IS NO SUCH THING AS A FREE WINE TASTING: THE EFFECT OF A TASTING FEE ON OBLIGATION TO BUY

Building on reciprocity theory, the current study suggests that, at least to some extent, consumers purchase goods and services in response to sampling due to a perceived need to reciprocate for trying the products/services. In addition, the study explores the effect of charging for sampling (i.e., wine tasting) on tourist behavior. The sample (N = 357) was drawn from visitors to six wineries in an emerging wine region. Three of the sampled wineries charged a small fee for tasting, while the other three wineries offered complimentary wine tasting. The study examined whether differences exist in a perceived need to buy wine between visitors who paid a tasting fee and those who tasted wine for free. The results indicated that visitors who had complimentary wine tasting spent significantly more money at the wineries than visitors who paid a fee for tasting. Furthermore, visitors who tasted wine for free felt significantly more appreciative of the personnel than did visitors who paid a tasting fee. Also, visitors who had complimentary wine tasting reported significantly higher levels of obligation to make a purchase at the end of their visits to the wineries. Managerial implications are discussed.     

A room with a view—A valuation of the Mediterranean Sea view

Aesthetic view is one of the ecosystem services of the Mediterranean Sea which can be estimated using price differences in the hotel market. Hotels situated on the Mediterranean Sea charge higher prices for a room with a sea view than for a room without it. The value of this view in 10 major Mediterranean regions was estimated in this paper using a hedonic price method. Data on 2819 hotel rooms in high season and 2406 rooms in the low season were collected from Booking.com and fixed effects regression was used to estimate the model coefficients. Hotel room prices were found to be higher by about 10% for a room with a view than for one with no view specification. No significant difference was found between regions or season. These findings lend support to the fact that the view of the Mediterranean is equally valued in all regions.     

Travel Package Modeling: Optimal Bidding Strategy of Tour Operator to Cooperative Hotels

In the travel package industry, in order to obtain stable and sufficient source of hotel rooms for package products, the tour operators would like to cooperate with hotels located at the tourism destination. Meanwhile, the hotels also appreciate the cooperation as a way to improve occupancy rate and then revenue. This paper develops models of travel package in several scenarios to analyze the relationship between the tour operator and the hotel. Through theoretical analysis and numerical studies, this paper finds that the tour operator will bid a low wholesale room rate to the hotel with high capacity or/and a small number of individual tourists. On the other hand, the hotel with large capacity or/and less individual tourists will reserve more rooms for the travel packages, while the one with high room rate and stable source of individual tourists is not likely to remain so many rooms for the tour operator.     

Consumer-based chain restaurant brand equity,brand reputation,and brand trust

This study develops and tests a consumer-based chain restaurant brand equity(CBCRBE) model and investigates the mediating effects of brand reputation on the relationship between CBCRBE and brand trust. Using a structural equation modeling (SEM) analysis, the four dimensions of CBCRBE- food & service quality, brand affect, brand awareness, and brand association- are found to have positive effects on brand reputation. Moreover, it is demonstrated that brand reputation has a positive effect on brand trust. The results of study confirm that brand reputation partially mediates the effects of food & service quality, brand affect, and brand awareness on brand trust. In addition, the effect of brand association on brand trust is fully mediated via brand reputation. The study of CBCRBE offers insights into the efficient strategies that can be used to enhance brand reputation and secure brand trust in the restaurant industry. Finally, based on the result of the relationship between CBCRBE, brand reputation, and brand trust, the study compares the differences among the groups according to the consumer visit purposes in relation to the CBCRBE dimensions. The results of the study contribute to improve understanding of the complex psychological processes involved in consumer selection criteria for a chain restaurant or relevant service industry.     

Enhancing customer-based brand equity through CSR in the hospitality sector

ABSTRACT

Corporate social responsibility is considered an important element in the development of brand equity. Extant research in this context is mainly focused on the relationship between this corporate philosophy and financial performance, overlooking its potential to develop competitive advantages through brand equity dimensions. The aim of this research is to explore the impact of socially responsible aspects on hotel brand equity. To test the proposed model personal surveys of hotel customers were conducted. A structural equation model was developed to test the research hypotheses. The findings show that corporate social responsibility has positive effects on brand image, perceived quality, brand awareness, and brand loyalty.     

World Heritage as a placebo brand: a comparative analysis of three sites and marketing implications

The UNESCO World Heritage (WH) List is often regarded as a successful tourism brand that motivates site nominations. However, there is relatively little research dealing specifically with WH brand attraction effects, and what does exist shows conflicting results. There is a significant research gap in terms of awareness of the WH brand and its potential impact on visitation, which this study seeks to fill through a comparative analysis of three diverse case studies: Independence Hall, USA; Studenica Monastery, Serbia; and the Archaeological Site of Volubilis, Morocco. Survey data (n = 771) from these three sites were collected and analyzed resulting in three distinct clusters of visitors. One of the clusters does exhibit higher levels of awareness of the WH brand, but members of this group were not motivated by this knowledge when planning their site visit. It is concluded that the WH brand may function as a placebo, and that its importance may be tied more to political interests than economic advancement. Thus, dependency on the WH List for tourism development may potentially be detrimental for locations in the long term. The WH brand's placebo effect could result in long-term problems for both the site and those whose livelihoods depend on tourism.     

Do brands matter? A comparison of branded and independent hotels’ performance during a full economic cycle

By analyzing longitudinal data of more than 51,000 hotels operating in the United States during the previous economic cycle, it is possible to draw conclusions regarding the performance of branded hotels compared to independent operations under various economic conditions. The results of the study indicate that while branded properties experience significantly higher occupancy rate during the different phases of the economic cycle, independent hotels experience significantly higher average daily rate (ADR) and rooms revenues per available room (RevPAR) during the same time period. While branded hotels are faced with various payments attributable to the brand, such as royalty payments and other franchise fees, those fees do not have a deleterious effect on net operating income (NOI) compared to NOI for independent hotels, suggesting that independent hotels are unable to bring their ADR and RevPAR premiums to the bottom line despite their savings in franchise expenses. Instead, the results indicate similar NOI for branded hotels and independent hotels during economic expansion, but significantly higher NOI for branded hotels during economic recession. The results of this study suggest that the intangible asset value of hotel brands may not be a static construct, but may vary by time. Sources of such intangible value of brands may include shared resources, guest loyalty programs, and yield management systems. These results contribute insight into the complex hotel owner decision of choosing between a brand affiliation and independent operation.     

Pricing determinants in the hotel industry: Quantile regression analysis

Due to the skewed distribution of hotel prices, quantile regression provides a more flexible and complete characterization of the determinants of the hotel prices at the higher and lower tail of the distribution. This study applies quantile regression approach to investigate the major determinants of hotel room pricing strategies. The ordinary least square regression is also used for comparative purposes. The data are drawn from 58 international tourist hotels in Taiwan and average room rate (ARR) is used as the proxy of hotel room price. The results of OLS and quantile regression share common characteristics but also have differences in some aspects. The OLS results reveal that number of rooms, hotel age, market conditions and number of housekeeping staff per room are the main attributes of hotel room rate. The quantile regression results further demonstrate that room number and the number of housekeeping staff per guest room do not significantly influence hotel price at the low price quantile. Hotel age and market conditions are only significant determinants in high-price category. Additionally, for the high-priced quantile hotels, the proportion of foreign individual travellers positively and significantly influences room price. The empirical results can help hoteliers in shaping investment and pricing strategies.     

The impact of online user reviews on hotel room sales

Despite hospitality and tourism researchers’ recent attempts on examining different aspects of online word-of-mouth [WOM], its impact on hotel sales remains largely unknown in the existing literature. To fill this void, we conduct a study to empirically investigate the impact of online consumer-generated reviews on hotel room sales. Utilizing data collected from the largest travel website in China, we develop a fixed effect log-linear regression model to assess the influence of online reviews on the number of hotel room bookings. Our results indicate a significant relationship between online consumer reviews and business performance of hotels.     

The Relationships Among Brand Equity,Culinary Attraction,and Foreign Tourist Satisfaction

This study links the concepts of brand equity, culinary attraction, and tourist satisfaction from the perspective of foreign tourists at the night market. Specifically, this study posits that culinary attraction mediates the relationship between brand equity and tourist satisfaction and that the sub dimension of brand image mediates the relationship between brand awareness and utilitarian value. A survey of 456 foreign tourists who have experience with Taiwanese night market tourism is analyzed to test the hypotheses. Mediation tests procedure provides support for the hypotheses, and an extension of structural equation modeling is used to confirm the results of this study.     

Availability management of hotel rooms under cooperation with online travel agencies

Hotels are required to pay high commission fees when cooperating with online travel agencies (OTAs) to manage online marketing channels. Thus, to maximize their revenues, hotels protect their income through their own (traditional) marketing channels and save on considerable commissions by optimizing room availability for their cooperative OTAs. The present paper proposes a method to manage such availability in the context of a hotel cooperating with an OTA on room booking service. Customers can make reservations directly through the distribution channel of the hotel or indirectly through the OTA, if applicable, during the selling period. The hotel then forecasts room demand base on distribution information after receiving enough room bookings and optimizes room availability with respect to its maximum revenue by determining whether on-hand rooms are available for the OTA. Results indicate when hotel rooms become unavailable for the cooperative OTA. Numerical studies reveal that this method is conducive to the improvement of hotel revenue.