TY - JOUR
T1 - Does Advertising Spending Improve Sales Performance?
AU - Assaf, A. George
AU - Josiassen, Alexander
AU - Mattila, Anna S.
AU - Cvelbar, Ljubica Knezevic
PY - 2015/7
Y1 - 2015/7
N2 - Hotel managers and investors commonly analyze the impact of advertising spending on firm performance. This paper investigates such an impact using a comprehensive framework incorporating the moderating effects of hotel size and star ratings. We estimated sales performance via dynamic, stochastic frontier modelling. Using longitudinal data from a sample of Slovenian and Croatian hotels, we demonstrate that advertising spending has a positive impact on hotel sales performance, and that the relationship strengthens for larger hotels and hotels with higher star ratings. Theoretical and managerial implications along with directions for future research are also discussed.
AB - Hotel managers and investors commonly analyze the impact of advertising spending on firm performance. This paper investigates such an impact using a comprehensive framework incorporating the moderating effects of hotel size and star ratings. We estimated sales performance via dynamic, stochastic frontier modelling. Using longitudinal data from a sample of Slovenian and Croatian hotels, we demonstrate that advertising spending has a positive impact on hotel sales performance, and that the relationship strengthens for larger hotels and hotels with higher star ratings. Theoretical and managerial implications along with directions for future research are also discussed.
KW - Advertising spending
KW - Sales performance
KW - Size
KW - Star rating
KW - Dynamic frontier modelling
U2 - 10.1016/j.ijhm.2015.04.014
DO - 10.1016/j.ijhm.2015.04.014
M3 - Journal article
SN - 0278-4319
VL - 48
SP - 161
EP - 166
JO - International Journal of Hospitality Management
JF - International Journal of Hospitality Management
IS - Jul.
ER -