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ADVERTISING EFFECTIVENESS ON INTERNATIONAL TOURISM DEMAND IN ÅRE – AN ECONOMETRIC ANALYSIS
Mid Sweden University, Faculty of Human Sciences, Department of Tourism Studies and Geography.
2013 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

The objective of this study is to estimate advertising effects on international tourismdemand for the leading Swedish winter destination, Åre. The increasing share of foreigninbound tourists in this destination region creates a strong interest by shareholders toidentify the factors responsible for this trend. According to traditional micro-economictheory, economic factors, such as income and price, are considered as main determinantsfor tourism demand (Song and Witt 2000). However, according to advertising theories(Comanor and Wilson, 1974) and previous tourism research (Bhagwat and Debruine, 2008;Divisekera and Kulendran, 2006), this study additionally focuses on the brand awarenessof Åre as perceived by international tourists. More concretely, advertising theoriesdistinguish between the brand and the information function of advertising (Nelson, 1974).The former function follows the idea that advertising increases the level of productdifferentiation to build up a base of loyal customers. By contrast, the information functionimplies that advertising primarily provides information about products in order to increasethe market transparency. Accordingly, in order to estimate the impact of advertisingexpenditures for off- and online channels as well as promotional activities, furtherexplanatory variables, e.g. mega events, are considered in this study (Salman, 2003; Songet al., 2010). By applying ordinary least square (OLS) methods, demand elasticitycoefficients are estimated for each of the sending countries Norway, Finland, Russia,Denmark and the UK. Results show that advertising is the main significant driver oftourism demand from the UK, Russia and Finland, while a comparably weak advertisingleverage can be shown for Denmark and Norway. Interestingly, in contrast to microeconomictheories tested in previous research, income and tourism price levels reveal asbeing less significant drivers for demand in all analysed tourism markets. In turn, theresults provide evidence that the increased usage of online channels most significantlyaffects consumers’ buying behaviour. Finally, with respect to brand image perception,results reveal that the destination of Åre is perceived as a brand by tourists from Denmark.Moreover, for customers from the countries Norway and Finland, Åre indicates a weakbrand perception, while tourists from Russia and the UK don’t perceive Åre as a brand atall. The results gained by this research conducted at the level of the tourism destinationprovide useful hints about the factors influencing travel behaviour of tourists from maininternational markets. The study supports destination managers to appropriately adjustmarketing campaigns according to the predominant level of brand perception in respectivesending countries.

Place, publisher, year, edition, pages
2013. , p. 135
Keywords [en]
Åre, SkiStar, advertising effectiveness, tourism demand, brand perception, econometric analysis, ordinary least square, OLS, price elasticity
National Category
Other Social Sciences
Identifiers
URN: urn:nbn:se:miun:diva-19249Local ID: TR-V13-A2-001Archive number: 001OAI: oai:DiVA.org:miun-19249DiVA, id: diva2:629078
External cooperation
Subject / course
Tourism studies TU1
Educational program
Master in Tourism STUAA 120 higher education credits
Supervisors
Examiners
Projects
KK-Foundation project ‘Engineering the Knowledge Destination’ (no. 20100260; Stockholm, Sweden).Available from: 2013-06-19 Created: 2013-06-16 Last updated: 2016-09-21Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
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  • Other style
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Language
  • de-DE
  • en-GB
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  • nn-NO
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  • Other locale
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Output format
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