Masters Thesis

Marketing 2013 - 2014

Masters 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

ContentsChapter 141. Abstract:41.2 Introduction:61.2.1 Cultural activities:71.2.2 Museum activities:71.2.3 Place marketing:71.3 Key variables:81.3.1 Intention to revisit:81.3.2 Consumer Satisfaction:91.3.3 Loyalty:101.3.4 Destination image:101.3.5 Segmentation:111.4 Academic Relevance:12Chapter 2142. Literature review:142.1 Conceptual model:152.2 Revisit intention:152.3 Consumer Satisfaction:162.4 Loyalty:202.4.1 Loyalty basis:202.4.3 Satisfaction link with loyalty:222.4.4 Loyalty hypothesis:222.5 Destination Image:232.6 Consumer segmentation:252.6.1 Segmentation basis:252.6.2 Segmentation method:262.7 Overview Hypothesis:28Chapter 3293. Methodology:293.1 Approach:293.1.1 Background:303.1.2 Respondents:303.2 Measurement development:313.3 Single item theory323.4 Survey design32Chapter 4364. Results and Analysis:364.1 Descriptive statistics:364.2 Factor Analysis:404.3 Factor Loadings:434.4 Main correlations:454.5 Statistical analysis:454.5.1 Statistical Analysis Results:454.6 Standardized Results:46Chapter 5495. Conclusion:495.1 Implications:505.2 Limitations and future research:52Appendix:54Descriptive Statistics:54Reference List64Chapter 141. Abstract:41.2 Introduction:61.2.1 Cultural activities:71.2.2 Museum activities:71.2.3 Place marketing:71.3 Key variables:81.3.1 Intention to revisit:81.3.2 Consumer Satisfaction:91.3.3 Loyalty:91.3.4 Destination image:101.3.5 Segmentation:101.4 Academic Relevance:11Chapter 2142. Literature review:142.1 Conceptual model:152.2 Revisit intention:152.3 Consumer Satisfaction:162.4 Loyalty:202.4.1 Loyalty basis:202.4.2 Brand resonance:212.4.3 Satisfaction link with loyalty:222.4.4 Loyalty hypothesis:222.5 Destination Image:232.6 Consumer segmentation:252.6.1 Segmentation basis:252.6.2 Segmentation process:262.6.2 Segmentation method:272.7 Overview Hypothesis:30Chapter 3313. Methodology:313.1 Approach:313.1.1 Background:323.1.2 Respondents:323.2 Measurement development:333.3 Single item theory343.4 Survey design34Chapter 4384. Results and Analysis:384.1 Descriptive statistics:384.2 Factor Analysis:424.3 Factor Loadings:454.4 Main correlations:474.5 Statistical analysis:474.5.1 Statistical Analysis Results:474.6 Standardized Results:48Chapter 5515. Conclusion:515.1 Implications:525.2 Limitations and future research:53Appendix:55Descriptive Statistics:55Reference List65

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 consumers 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 consumers 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 consumers 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 consumers 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 consumers 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 Janeiros 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: