Master’s Thesis
Marketing 2013 - 2014
Master’s Thesis Marketing
1. A study of factors which drive consumer intentions to revisit Rotterdam Museumnacht.
Author: Naysan Tofighian
361311
Institution: Erasmus University Rotterdam (EUR)
Department: Erasmus School of Economics (ESE)
Marketing
Supervisor: Dr. Martijn De Jong
Co-reader: Dr. Erik Braun
February, 2015
Contents
Chapter 1 4
1. Abstract: 4
1.2 Introduction: 6
1.2.1 Cultural activities: 7
1.2.2 Museum activities: 7
1.2.3 Place marketing: 7
1.3 Key variables: 8
1.3.1 Intention to revisit: 8
1.3.2 Consumer Satisfaction: 9
1.3.3 Loyalty: 10
1.3.4 Destination image: 10
1.3.5 Segmentation: 11
1.4 Academic Relevance: 12
Chapter 2 14
2. Literature review: 14
2.1 Conceptual model: 15
2.2 Revisit intention: 15
2.3 Consumer Satisfaction: 16
2.4 Loyalty: 20
2.4.1 Loyalty basis: 20
2.4.3 Satisfaction link with loyalty: 22
2.4.4 Loyalty hypothesis: 22
2.5 Destination Image: 23
2.6 Consumer segmentation: 25
2.6.1 Segmentation basis: 25
2.6.2 Segmentation method: 26
2.7 Overview Hypothesis: 28
Chapter 3 29
3. Methodology: 29
3.1 Approach: 29
3.1.1 Background: 30
3.1.2 Respondents: 30
3.2 Measurement development: 31
3.3 Single item theory 32
3.4 Survey design 32
Chapter 4 36
4. Results and Analysis: 36
4.1 Descriptive statistics: 36
4.2 Factor Analysis: 40
4.3 Factor Loadings: 43
4.4 Main correlations: 45
4.5 Statistical analysis: 45
4.5.1 Statistical Analysis Results: 45
4.6 Standardized Results: 46
Chapter 5 49
5. Conclusion: 49
5.1 Implications: 50
5.2 Limitations and future research: 52
Appendix: 54
Descriptive Statistics: 54
Reference List 64
Chapter 1 4
1. Abstract: 4
1.2 Introduction: 6
1.2.1 Cultural activities: 7
1.2.2 Museum activities: 7
1.2.3 Place marketing: 7
1.3 Key variables: 8
1.3.1 Intention to revisit: 8
1.3.2 Consumer Satisfaction: 9
1.3.3 Loyalty: 9
1.3.4 Destination image: 10
1.3.5 Segmentation: 10
1.4 Academic Relevance: 11
Chapter 2 14
2. Literature review: 14
2.1 Conceptual model: 15
2.2 Revisit intention: 15
2.3 Consumer Satisfaction: 16
2.4 Loyalty: 20
2.4.1 Loyalty basis: 20
2.4.2 Brand resonance: 21
2.4.3 Satisfaction link with loyalty: 22
2.4.4 Loyalty hypothesis: 22
2.5 Destination Image: 23
2.6 Consumer segmentation: 25
2.6.1 Segmentation basis: 25
2.6.2 Segmentation process: 26
2.6.2 Segmentation method: 27
2.7 Overview Hypothesis: 30
Chapter 3 31
3. Methodology: 31
3.1 Approach: 31
3.1.1 Background: 32
3.1.2 Respondents: 32
3.2 Measurement development: 33
3.3 Single item theory 34
3.4 Survey design 34
Chapter 4 38
4. Results and Analysis: 38
4.1 Descriptive statistics: 38
4.2 Factor Analysis: 42
4.3 Factor Loadings: 45
4.4 Main correlations: 47
4.5 Statistical analysis: 47
4.5.1 Statistical Analysis Results: 47
4.6 Standardized Results: 48
Chapter 5 51
5. Conclusion: 51
5.1 Implications: 52
5.2 Limitations and future research: 53
Appendix: 55
Descriptive Statistics: 55
Reference List 65
Chapter 1
1. Abstract:
This thesis explores revisit intention for a cultural activity in Rotterdam, Netherlands. My study will analyse a cultural event which helps to promote museums, by focusing on key variables influencing consumers’ intention to revisit the museums. This event will be used as the basis for addressing my research question. This empirical study will help to build on research into the benefits of cultural activities on consumer activities.
The research question will be answered using data collected from visitors to Rotterdamse Museumnacht. Place marketing theory and segmentation will be used to derive factors that influence overall revisit intention. SPSS will be utilised to test the conceptual model that explains this relationship.
This study will also research consumer satisfaction in a museum context and whether satisfaction has a positive effect on consumer’s intention to revisit a cultural event the following year. The hypothesis is that intention to revisit is affected by the level of consumer satisfaction for the program. This thesis also assesses whether segments based on consumer preference segments exist. The data collection and analysis will analyse whether consumer segments have various tendencies towards their intention to revisit.
The first hypothesis (H1) studies consumer satisfaction from Rotterdamse Museumnacht significantly influences intention to revisit the event. The second hypothesis (H2) studies previous Rotterdamse Museumnacht visitors are significantly more willing to revisit Rotterdamse Museumnacht . The third hypothesis (H3) predicts the city of Rotterdam has a significant influence on the consumer’s intention to revisit. A segmentation analysis based on consumer interests will find whether sub-groups attend the Rotterdamse Museumnacht program. This will be conducted according to a process that is based on the consumer’s interests of the program.
This thesis will aim to provide an empirical support to enhance the management performance of Rotterdamse Museumnacht. This will be done by determining factors influencing consumer’s intention to revisit their program. In addition, this empirical research is theoretically interesting as this paper can serve as an academic relevance for marketers expressing interest in promoting Rotterdamse Museumnacht.
1.2 Introduction:
This thesis will begin with an overview of cultural museum offerings. This section gives the reader an understanding of the research context. The research questions will revolve around the consumer’s intention to revisit, and relate to perceived value, satisfaction and the return benefits for cities investing in cultural activities. These constructs form the foundation of the conceptual model that will be discussed later.
The literature review culminates in a system of relationships appropriate for empirical estimation. Finally method and data, analysis and discussion of findings and implications for both practice and further research are offered.
The problem statement covered in this thesis will be: Which factors drive consumer intention to revisit Rotterdamse Museumnacht?
The research questions underlying the problem statement are as follows:
1. What is cultural event marketing?2. What is the Rotterdamse Museumnacht?
3. Which psychographic factors influence satisfaction and intention to revisit Rotterdam Museumnacht?
4. What is the link between Rotterdamse Museumnacht satisfaction and Rotterdamse Museumnacht revisit intention?
5. How does destination image and loyalty influence Rotterdamse Museumnacht revisit intention?
1.2.1 Cultural activities:
According to cultural marketers (Richards & Wilson, 2006) cultural activities are an essential element of tourist marketing or cultural tourism. Consumer visits to cultural activities have been influential in major cities. (Brida, Meleddu and Pulina, 2011)
Research on consumer visits to cultural museums suggest program organisers are required to take a consumer-centric view to better understand their consumers and to further grow the future of the program. (Rust, Moorman, Bhalla, 2010; Hume, 2011)
1.2.2 Museum activities:
Previous marketing literature applied to cultural services, such as museum services, suggest that an increase in customer satisfaction positively contributes to organisations’ financial strengths and competitiveness through customer retention. (Ariely, 2007; Brady 2000; Deighton & Kornfeld, 2001; Kotler, 1992; Lehn, 2006; Meyer & Schwager, 2007) Marketers who research museum services acknowledge that customer retention is more effective then constantly seeking new customers. Therefore, efforts should be more focused on trying to create a satisfied consumer experience in order to increase revisit intention, instead solely on consumer acquisition. These retention strategies must include strategies that manage service quality and customer satisfaction. (Cronin & Taylor, 1992; Fornell, 1992)
1.2.3 Place marketing:
From a tourism marketing perspective, events can be divided into two types; the first type is the repeat event, which is hosted in the same place many times in succession; examples of such events are International Film Festival Rotterdam (IFFR), Rio de Janeiro’s Carnival, or Rotterdamse Museumnacht which has been used for this thesis. Based on the results of this thesis it is paramount for the ministry of culture, public institutions and their stakeholders to focus on repeat events, as they encourage consumer revisit.
The second type of event is the non-repeat or one-time event that often occurs in a major developed city. These events are often hosted only once in a city. These non-repeat events are large scale and heavily invested events, such examples are the Olympic Games and FIFA World Cup. (Balduck, Maes, Buelens, 2011)
Brida, Meleddu and Pulina (2011) provide evidence from their research which supports the relevance of culture and cultural events for cities. For example, the cultural tourism sector in 2007 accounted for 40% of all international tourism, up from 37% in 1995. Museums are known to be a part of aiding cultural diversity, education, social cohesion, personal development, which help to promote an integrated approach to cultural heritage, and enable the preservation of community identity. Research into cultural events have shown that it provides a stimulus in a number of areas, including the local economy, enhance employment and income. (Brida, Meleddu and Pulina, 2011)
As a basis for this thesis, Rotterdamse Museumnact is used to analyse consumer the intention to revisit. The agenda of the program is to be held once annually in Rotterdam. The program main objective is to encourage residents and tourists to engage in cultural activities via offering a variety of cultural programs. The main value of purchasing a ticket is the ability to access museums which on other days charge patrons an entry fee.
1.3 Key variables:
1.3.1 Intention to revisit:
It is important to highlight that this thesis will only focus on the revisit intention of the consumer to Rotterdamse Museumnacht. Satisfaction is a key variable that influences the development of long-term relationships with customers. (Hume, 2011, Ariely, 2007; Brady 2000; Deighton & Kornfeld, 2001; Kotler, 1992)
Hume (2011) offers support for the relevance of similar research as he has advanced our understanding of factors influencing consumer revisit, but proclaims there is little research done on revisit intention. For the interest of academics and marketing managers, the problem statement will address satisfaction on customer’s intention to revisit. (Klaus & Maklan, 2012)
This thesis will define customer satisfaction as the independent variable and intention to revisit as the dependent variable. Along with customer satisfaction, I will investigate loyalty and destination image as independent variables affecting intention to revisit Rotterdamse Museumnacht. These variables will be introduced and discussed in depth in the literature review.
1.3.2 Consumer Satisfaction:
A study into consumer satisfaction provides a better understanding of consumers’ intentions to revisit a business or service. Service and product quality are seen as important determinants for consumers’ to revisit. (Thiele & Bennett, 2014) For this reason Rotterdamse Museumnacht marketers are eager to understand what drives perceived quality in order to enhance customer satisfaction. Understanding this will allow their marketers to predict and affect consumer’s motivation to revisit the same event the following year. As a result, the marketers should be able to enhance the quality and image of their programs. The benefits will also reduce factors which discourage their customers, as unsatisfied customers would ultimately harm the brand image of the organization.
1.3.3 Loyalty:
Loyalty is the result of both consumer satisfaction level and consumer re-purchase behaviour. (Oliver, 1999) Loyalty in this thesis is determined by the number of times the consumer has previously visited Rotterdamse Museumnacht. This variable tests whether this has a positive effect on revisit intention. Loyalty in this thesis will act as a control variable.
1.3.4 Destination image:
Place marketing theory predicts that cities hold events to attract more tourists in order to profit from the event. This is because events can be considered as products that add to the attractiveness of a destination. (Dimanche, 2003). Events can build destination image through enhancement of infrastructure, media exposure and establish tourist attraction, so as to attract tourists to visit the city. For this thesis the location of the event can alter both consumer satisfaction and revisit intention. In this thesis the image of Rotterdam is used as a variable called destination image. The relevance of destination image serves an academic relevance for place marketers expressing interest in promoting Rotterdamse Museumnacht in Rotterdam. Understanding the relevance of place marketing will help Rotterdamse Museumnacht marketers to investigate the effect of its marketing and its spill-over effect towards the host location. This spill-over effect is bidirectional, as the host location can also have a positive effect towards the marketing of an event.
Florek & Insch (2011) present a framework for the term ‘interaction effect’. This framework is described as the relationship between destination and event image and their positive leverage associations for both types of images. Based on the empirical context I will investigate if the image of Rotterdam influences consumer’s intention to revisit.
1.3.5 Segmentation:
This research project will also discuss the fundamental usage of the method of consumer segmentation. The usage will help to identify relevant customers of the event. (Wind, 1978; Baloglu and McCleary, 1999; Grover & Srinivasan, 1987) This thesis will not profile consumers, however its purpose is to investigate whether segments exist and whether these segments have different levels of intentions to revisit Rotterdamse Museumnacht. Further research in consumer profiling will help provide a thorough segmentation for marketers when using a cluster analysis. This method will allow the event marketers to examine their attitudes, interests and opinions. (Gonzales & Bellow, 1999)
Gonzales and Bellow (1999) discuss and apply consumer profiling techniques which allow the authors to segment tourist consumers based on their lifestyle preferences. Baloglu and McCleary (1999) contribute to the importance of creating consumer segments. The authors add relevance by arguing that consumers have different motives, due to their different needs and wants. The discussed segments are clustered according to distinguishing consumer decisions which are based on the consumers’ attitudes, interests and opinions (AIO). Therefore, it is beneficial to provide Rotterdamse Museumnacht marketers with the knowledge and understanding of whether or not segments exist. Further research will enable a deeper understanding of consumer behaviour and the relationship between the formed segments and consumers’ intentions to revisit.
1.4 Academic Relevance:
The evidence compiled from this thesis will provide support to Rotterdamse Museumnacht and the department of culture by providing an empirical analysis for both public and private stakeholders of the organisation. This research will communicate to the public sector of Rotterdam by addressing the importance of investing in cultural activities like Rotterdamse Museumnacht. This can be done via promoting the benefits of the event to affiliated stakeholders. Benefits in cultural activities have previously been proven to attract tourism and have become a source of education. (Richards & Wilson, 2006)