Abstract
In a context of intense competition, cooperative advertising between firms is critical. Accordingly, the objective of this article is to analyze the potential differentiated effect of advertising on two basic consumption patterns: individual products (i.e. hotel, restaurant) vs. bundle (i.e. hotel + restaurant). This research adds to the extant literature in that, for the first time, this potential differentiated effect is examined through a hierarchical modelling framework that reflects the way people make their decisions: first, they decide whether to visit or not a region; second, whether to purchase an advertised product in that region; and third, whether to buy products together or separately at the region. The empirical analysis, applied to a sample of 11,288 individuals, shows that the influence of advertising is positive for the decisions to visit and to purchase; however, when it comes to the joint or separate consumption, advertising has a differentiated effect: its impact is much greater on the joint alternative ("hotel + restaurant") than the separate options ("hotel" and "restaurant"). Also, the variable distance moderates the advertising effect.
Original language | English |
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Pages (from-to) | 107-114 |
Number of pages | 8 |
Journal | Tourism Management |
Volume | 47 |
DOIs | |
Publication status | Published - 1 Apr 2015 |
Externally published | Yes |
Keywords
- Cooperative advertising
- Destination advertising
- Destination choice
- Hierarchical decision making
- Random coefficient logit model
ASJC Scopus subject areas
- Development
- Transportation
- Tourism, Leisure and Hospitality Management
- Strategy and Management