Factors Influencing the Perception of Destination Brand Luxuriousness

  • Zoran Krupka
  • Andreja Dobra
  • Goran Vlašić
Keywords: brand management, luxury, destination, building factors, luxury branding

Abstract

The main purpose of this paper is to identify and investigate the factors that influence the building and managing of luxury destination brands. Based on a review of existing literature, the authors identified eight crucial factors: accommodation quality, quality of gastronomy offers, premium price, service quality, luxury shopping, unique experience, transportation infrastructure, and celebrity. The research was conducted on a sample of 619 respondents from 16 countries. Factor and regression analyses were used. The results indicate that the availability of celebrity and luxury shopping has the strongest significant influence on luxury destination brand building, while the impact of accommodation quality and a premium price is non-significant, and, interestingly, transportation infrastructure has a negative and significant impact. A convenience sample and the possibility of omitting certain factors (e.g. safety) from the research represent the main research limitations. This research contributes to marketing and brand management literature by identifying and investigating the factors that help in building and managing a luxury destination brand, which to date has been neglected in literature.

Downloads

Download data is not yet available.

Author Biographies

Zoran Krupka

University of Zagreb, Faculty of Economics and Business, Croatia
E-mail: zkrupka@efzg.hrzkrupka@efzg.hr

Andreja Dobra

Zagreb, Croatia
E-mail: andreja.dobra@A1.hr

Goran Vlašić

University of Zagreb, Faculty of Economics and Business, Croatia
E-mail: gvlasic@efzg.hr

References

Abodeeb, J., Wilson, E., Moyle, B. (2015). Shaping destination image and identity: insights for Arab tourism at the Gold Coast, Australia. International Journal of Culture, Tourism and Hospitality Research, 9(1), 6-21. https://doi.org/10.1108/IJCTHR-06-2014-0051

Baker, M. J., & Cameron, E. (2008). Critical Success Factors in Destination Marketing. Tourism and Hospitality Research, 8(2), 79-97. Balakrishnan, M. S. (2009). Strategic branding of destinations: a framework. European Journal of Marketing, 43(5/6), 611-629.

Balakrishnan, M. S., Nekhili, R., & Lewis C. (2011). Destination brand components. International Journal of Culture, Tourism and Hospitality Research, 5(1), 4-25 https://doi.org/10.1108/17506181111111726

Batat, W. (2021). The role of luxury gastronomy in culinary tourism: An ethnographic study of Michelin-Starred restaurants in France. International Journal of Tourism Research, 23(2), 150-163. https://doi.org/10.1002/jtr.2372

Belyakova, N., (2018). Luxury Hotel Brand as the Contributor to the Place Marketing. Handel Wewnętrzny, 4, 283-295.

Beverland, M. (2006). The 'real thing': Branding authenticity in the luxury wine trade. Journal of Business Research, 59(2), 251-258. https://doi.org/10.1016/j.jbusres.2005.04.007

Brun, A., & Castelli, C. (2013). The nature of luxury: a consumer perspective. International Journal of Retail & Distribution Management, 41(11/12), 823-847. https://doi.org/10.1108/IJRDM-01-2013-0006

Chen, A., Peng, N., & Hung, K-P. (2015). The effects of luxury restaurant environments on diners’ emotions and loyalty. International Journal of Contemporary Hospitality Management, 27, 236-260. https://doi.org/10.1108/IJCHM-07-2013-0280

Choi, C., & Cho, Y. C. (2016). Exploring factors that affect destination brand in the tourism industry. Journal of Marketing Thought, 3(3), 1-10.

Correia, A., Kozak, M., & Del Chiappa, G. (2020). Examining the meaning of luxury in tourism: a mixed-method approach. Current Issues in Tourism, 23(8), 952-970. https://doi.org/10.1080/13683500.2019.1574290

Correia, A., Moital, M., Ferreira da Costa, C., & Peres, R. (2008). The determinants of gastronomic tourists’ satisfaction: a second-order factor analysis. Journal of food service, 19, 164-176. https://doi.org/10.1111/j.1745-4506.2008.00097.x

Cronin, J., & Taylor, S. (1992). Measuring service quality: A re-examination and extension. Journal of Marketing, 53(3), 125-131.

Daries, N., Cristobal-Fransi, E., Ferrer-Rosell, B., & Marine-Roig, E. (2018). Behaviour of culinary tourists: A segmentation study of diners at top-level restaurants. Intangible Capital, 14(2), 332-355. https://doi.org/10.3926/ic.1090

Diesbach, P. B. (2012). Touristic destination ambassadors, case analysis and conceptualization. How to better understand and use brand ambassadors in cognitive, affective and experiential approaches. Tourism and Hospitality Management, 18(2), 229-258. https://doi.org/10.20867/thm.18.2.5

Dubois, B., & Duquesne, P. (1993). The market for luxury goods: Income versus culture. European Journal of Marketing, 27, 35-44. https://doi.org/10.1108/03090569310024530

Dwivedi, M., Yadav, A., & Patel, V. (2009). The online destination image of Goa. Worldwide Hospitality and Tourism Themes, 1(1), 25-39. https://doi.org/10.1108/17554210910949869

Fionda, A. M., & Moore, C. M. (2009). The anatomy of the luxury fashion brand. Brand Management, 16(5/6), 347-363. https://doi.org/10.1057/bm.2008.45

Giglio, S., Pantano, E., Bilotta, E., & Melewar, T. C. (2020). Branding luxury hotels: Evidence from the analysis of consumers’ “big” visual data on TripAdvisor. Journal of Business Research, 119, 495-501. https://doi.org/10.1016/j.jbusres.2019.10.053

Hair, J., Babin, B., Anderson, R., & Black (w. (2018). Multivariate Data Analysis, 8th Ed. London: Cengage.

Hankinson, G. (2009). Managing destination brands: establishing a theoretical foundation. Journal of Marketing Management, 25(1/2), 97-115. https://doi.org/10.1362/026725709X410052

Hanna, S., Rowley, J., & Keegan, B. (2021). Place and Destination Branding: A Review and Conceptual Mapping of the Domain. Journal of the European Academy of Management, 18(2), 105-117. https://doi.org/10.1111/emre.12433

Hanžek, M., & Sušić, G. (2020). Gastronomy tourism and destination branding: the study of Michelin-starred restaurants in Croatia. 5th International Thematic Monograph: Modern Management Tools and Economy of Tourism Sector in Present Era, Belgrade, 211-225. https://doi.org/10.31410/tmt.2020.211

Henderson, J. (2009). Transport and tourism destination development: An Indonesian perspective. Tourism and Hospitality Research, 9, 199-208.

Henderson, J. C., Chee, L., Mun, C. N., & Lee, C. (2011). Shopping, tourism and retailing in Singapore. Managing Leisure, 16, 36-48. https://doi.org/10.1080/13606719.2011.532599

Huang, H-H., & Chiu, C-K. (2006). Exploring Customer Satisfaction, Trust and Destination Loyalty in Tourism. The Journal of American Academy of Business, 10(1), 156-159.

Hudson, S., & Ritchie, J. R. B. (2009). Branding a memorable destination experience. The case of ‘Brand Canada’. International Journal of Tourism Research, 11, 217-228. https://doi.org/10.1002/jtr.720

Hwang, J., & Heesup, H. (2014). Examining strategies for maximizing and utilizing brand prestige in the luxury cruise industry. Tourism Management, 40, 244-259. https://doi.org/10.1016/j.tourman.2013.06.007

Iloranta, R. (2019). Luxury Tourism Service Provision - Lessons from the Industry. Tourism Management Perspectives, 32. https://doi.org/10.1016/j.tmp.2019.100568

Kani, Y., Aziz, Y. A., Sambasivan, M., & Bojei, J. (2017). Antecedents and outcomes of destination image of Malaysia. Journal of Hospitality and Tourism Management, 32, 89-98. https://doi.org/10.1016/j.jhtm.2017.05.001

Kim, S-H., Holland, S., & Han, H-S. (2013). A structural model for examining how destination image, perceived value, and service quality affect destination loyalty: A case study of Orlando. International Journal of Tourism Research, 15, 313-328. https://doi.org/10.1002/jtr.1877

Kinley, T. R., Forney, J. A., & Kim, Y-K. (2012). Travel motivation as a determinant of shopping venue. International Journal of Culture, Tourism and Hospitality Research, 6(3), 266-278. https://doi.org/10.1108/17506181211246429

Kirant Yozcu, O. (2017). Competitiveness of Istanbul as A Tourism Destination for Luxury Market. Journal of Tourismology, 3(2), 2-13. Konecnik, M., & Go, F. (2008). Tourism destination brand identity: The case of Slovenia. Brand Management, 15(3), 177-189. https://doi.org/10.1057/palgrave.bm.2550114

Krupka, Z., Ozretic-Dosen, D., & Previsic, J. (2014). Impact of Perceived Brand Name Origin on Fashion Brand’s Perceived Luxury. Acta Polytechnica Hungarica, 11(3), 153-166. https://doi.org/10.12700/APH.11.03.2014.03.10

Lee, H-M., Hsu, Y-H., Chen, T., & Wu, Y-C. (2018). Factors that affect the perception of luxury brands after M&A. International Journal of Research in Commerce & Management, 9(1), 1-11.

Leisen, B. (2001). Image segmentation: the case of a tourism destination. Journal of Services Marketing, 15(1), 49-66. https://doi.org/10.1108/08876040110381517

Lichrou, M., O’Malley, L., & Patterson, M. (2008). Place-product or place-narrative(s)? Perspectives in the marketing of tourism destina- tions. Journal of Strategic Marketing, 16(1), 27-39. https://doi.org/10.1080/09652540701794429

Lim,Y., & Weaver, P. A. (2014). Customer-based brand equity for a destination: the effect of destination image on preference for products associated with a destination brand. International Journal of Tourism Research, 16, 223-231. https://doi.org/10.1002/jtr.1920

Lu, C., Berchoux, C., Marek, M. W., & Chen, B. (2015). Service quality and customer satisfaction: qualitative research implications for luxury hotels. International Journal of Culture, Tourism and Hospitality Research, 9(2), 168-182. https://doi.org/10.1108/IJCTHR-10-2014-0087

Maden, D., Göztaş, A., & Topsümer F. (2015). Effects of brand origin, fashion consciousness and price-quality perception on luxury consumption motivations: an empirical analysis directed to Turkish consumers. Advances in Business-Related Scientific Research Journal, 6, 15-29

Mandel, N., Petrova, P. K., & Cialdini, R.B. (2006). Images of Success and the Preference for Luxury Brands. Journal of Consumer Psychology, 16(1), 57-69. https://doi.org/10.1207/s15327663jcp1601_8

Marine-Roig, E., & Anton Clave, S. (2016). Perceived image specification in multiscalar tourism destinations. Journal of Destination Marketing & Management, 5(3), 202-213. https://doi.org/10.1016/j.jdmm.2015.12.007

Mishra, A. S. (2010). Destination Branding: A Case Study of Hong Kong. Journal of Brand Management, 7(3), 49-60.

Mostafavi Shirazi, S. F., & Puad Mat Som, A. (2011). Destination management and relationship marketing: Two major factors to achieve competitive advantages. Journal of Relationship Management, 10, 76-87. https://doi.org/10.1080/15332667.2011.577731

Nueno, J. L., & Quelch, J. A. (1998). The mass marketing of luxury. Business Horizons, November/December, 61-68. https://doi.org/10.1016/S0007-6813(98)90023-4

Ozretic-Dosen, D., Skare, V., & Krupka, Z. (2011). Celebrity Endorsement in Brand Management in Croatia. In: M. Marinov & S. Marinova (eds.). The Changing Nature of Doing Business in Transitional Economies (pp.214-224). London: Palgrave Macmillan. https://doi.org/10.1057/9780230337015_11

Park, K-S., Reisinger, Y., & Noh, E-H. (2010). Luxury Shopping in Tourism. International Journal of Tourism Research, 12, 164-178. https://doi.org/10.1002/jtr.744

Peng, N., & Huiling Chen, A. (2015). Diners’ loyalty toward luxury restaurants: the moderating role of product knowledge. Marketing Intelligence & Planning, 33(2), 179-196. https://doi.org/10.1108/MIP-03-2014-0049

Petrick, J. F., & Backamnd, S. J. (2002). An examination of the construct of perceived value for the prediction of golf travellers: Intention to revisit. Journal of Travel Research, 41, 38-45. https://doi.org/10.1177/004728750204100106

Pike, S. (2004). Destination Marketing Organizations. Oxford: Elsevier.

Prayag, G. (2010). Brand image assessment: international visitors' perceptions of Cape Town, Marketing Intelligence & Planning, 28(4), 462-485. https://doi.org/10.1108/02634501011053577

Presbury, R., Fitzgerald A., & Chapman, R. (2005). Impediments to improvements in service quality in luxury hotels. Managing Service Quality: An International Journal, 15(4), 357-373. https://doi.org/10.1108/09604520510606835

Qu, H., Kim, L. H., & Im, H. H. (2011). A model of destination branding: Integrating the concepts of the branding and destination image. Tourism Management, 32(3), 465-476. https://doi.org/10.1016/j.tourman.2010.03.014

Reif, N. (2020). Azerbaijan as an International Luxury Destination. In D. Pietzcker & C. Vaih-Baur (eds), Ökonomische und soziologische Tourismustrends (pp. 145-153). Wiesbaden: Springer Gabler. https://doi.org/10.1007/978-3-658-29640-7_9

Rossidis, I., Belias, D., Varsanis, K., Papailias, S., Tsiotas, D., Vasiliadis, L., & Sdrolias, L. (2019). Tourism and Destination Branding: The Case of Greek Islands. Strategic Innovative Marketing and Tourism, 15, 93-100. https://doi.org/10.1007/978-3-030-12453-3_11

Seo, Y., & Buchanan-Oliver, M. (2015). Luxury branding: the industry, trends, and future conceptualisations. Asia Pacific Journal of Marketing and Logistics, 27(1), 82-98. https://doi.org/10.1108/APJML-10-2014-0148

Sung, Y., Choi, S. M., Ahn, H., & Song, Y-A. (2015). Dimensions of luxury brand personality: Scale development and validation. Psychology and Marketing, 32(1), 121-132. https://doi.org/10.1002/mar.20767

Tak, P., & Pareek, A. (2016). Consumer attitude toward luxury brands: An empirical study. Journal of Brand Management, 8(1), 7-19.

Tasci, A. D. A., Gartner, W. C., & Cavusgil, S. T. (2007). Measurement of destination brand bias using a quasi-experimental design. Tourism Management, 28, 1,529-1,540. https://doi.org/10.1016/j.tourman.2007.02.009

Tkaczynski, A., & Rundle-Thiele, S. (2011). Segmenting destinations: in the eyes of the stakeholders. International Journal of Culture,Tourism and Hospitality Research, 5, 255-268. https://doi.org/10.1108/17506181111156952

Tóth, G., Dávid, L. D., & Vasa, L. (2014). The role of transport in European tourism flows. Acta geographica Slovenica, 54(2), 311-320. https://doi.org/10.3986/AGS54205

Um, N-H. (2013). The Role of Culture in Creative Execution in Celebrity Endorsement: The Cross-Cultural Study. Journal of Global Marketing, 26, 155-172. https://doi.org/10.1080/08911762.2013.804613

Walley, K., Custance, P., Copley, P., & Perry, S. (2013). The key dimensions of luxury from a UK consumers’ perspective. Marketing Intelli- gence & Planning, 31(7), 823-837. https://doi.org/10.1108/MIP-09-2012-0092

Wong, J-Y., & Lai, T-C. (2015). Celebrity attachment and behavioural intentions: The mediating role of place attachment. International Journal of Tourism Research, 17, 161-170. https://doi.org/10.1002/jtr.1974

World Tourism Organization (2019). 2018 International Tourism Results. Available at: www2.unwta.org (Last accessed: June 10th, 2019).

Published
2021-12-01
How to Cite
Krupka Z., Dobra A., & Vlašić G. (2021). Factors Influencing the Perception of Destination Brand Luxuriousness. Naše gospodarstvo/Our Economy, 67(4), 74-85. Retrieved from https://journals.um.si/index.php/oe/article/view/2085