Differentiated effect of advertising: Joint vs. separate consumption

Sangwon Park, Juan L. Nicolau

Research output: Journal article publicationJournal articleAcademic researchpeer-review

15 Citations (Scopus)

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 languageEnglish
Pages (from-to)107-114
Number of pages8
JournalTourism Management
Volume47
DOIs
Publication statusPublished - 1 Apr 2015
Externally publishedYes

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

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