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Differentiated effect of advertising: Joint vs. separate consumption

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  • Park, Sangwon
  • Nicolau, Juan L.

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.

Suggested Citation

  • Park, Sangwon & Nicolau, Juan L., 2015. "Differentiated effect of advertising: Joint vs. separate consumption," Tourism Management, Elsevier, vol. 47(C), pages 107-114.
    • Handle: RePEc:eee:touman:v:47:y:2015:i:c:p:107-114
    DOI: 10.1016/j.tourman.2014.09.018
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    1. Jiang, Kai & Luk, Sherriff Ting-kwong & Cardinali, Silvio, 2018. "The role of pre-consumption experience in perceived value of retailer brands: Consumers' experience from emerging markets," Journal of Business Research, Elsevier, vol. 86(C), pages 374-385.
    2. Jackson de Souza & Luiz Mendes-Filho & Dimitrios Buhalis, 2020. "Evaluating the effectiveness of tourist advertising to improve the competitiveness of destinations," Tourism Economics, , vol. 26(6), pages 1001-1020, September.
    3. Veronica Digiorgio, 2016. "Impact of promotional tools on reservation channels management: a descriptive model of Italian accommodation facilities," Information Technology & Tourism, Springer, vol. 16(4), pages 347-373, December.

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