Destination personality – Application of brand personality in tourism context

1.   Background of the papers

With increasing competition in global tourism markets, destination-marketing organisations (DMOs) around the world are currently competing with others to attract tourists and their expenditures to particular destinations. Due to common destination positioning practices that based on functional attributes (Ekinci et al., 2007), travel destinations are becoming highly substitutable, offering similar products with ubiquitous attributes. Consequently, many destination marketers are increasingly adopt branding strategies, which are traditionally associated with consumer goods, to travel destinations in an attempt to differentiate their destinations among the other alternative choices and emphasize on their uniqueness. According to renowned brand management scholars, a strong brand enables a product to differentiate itself from its competitors, reduce search costs (Lim & O’Cass, 2001), minimise perceived risks, improve perceived quality and strengthen consumer relationship (Berthon et al., 1999). Particularly, a well-established brand personality can create consumer preference and patronage (Sirgy, 1982; Mahotra, 1988), developing emotional ties, and thus build brand loyalty and enhance brand equity. Similarly, in tourism context, Ekinci and Hosamy (2006) suggest that destination personality can be used as a viable metaphor for building destination brands, understanding visitor’s perception of places and for crafting a unique destination identity. In other words, a distinctive destination personality can help to leverage the perceived image and positively influence traveller choice behaviour. However, despite their importance in the area of destination marketing, the application of brand personality to tourism destination has been sparse and many of its aspects have remained unexplored.

First, there is little empirical evidence of whether it is possible for visitors to associate brand personality characteristics with destinations and based on that perceived personality to differentiate destinations (Murphy et al., 2007). Second, there has been an ambiguity that exists between the concept of destination image and its relationship with destination personality (Hosamy et al., 2006). Two particular issues, namely definitional inconsistencies and the interchangeable use of two concepts, has been identified yet no study has been made so far in tourism literature, thus the paucity of l investigation of relationship between destination image and destination personality still persist. Also, although some researcher have provided some respective explanations of the effect of brand personality and destination image on consumer behaviour independently, no study has concurrently examined impact of both of them on tourist’s behavioural intentions (Ekinci & Hosamy, 2006), specifically with inclusion of host image in forming destination image (Ekinci et al., 2007). Furthermore, with regard to self-congruity theory, many researchers have proposed that consumers tends to select products or brands with personalities that are congruent with their own personality (Aaker, 1995). In the context of tourism destinations, it can be explained that visitors are more likely to have favourable attitude toward a destination and higher probability of behavioural intentions if there is a match between destination personality and the visitor’s self-concept (Sirgy & Su, 2000), lifestyle and value system (Ekinci, 2003). However, the congruity between destination personality and visitor’s self-concept has rarely been explored (Usakli and Baloglu, 2010).

Asia Pacific Business G 6427 – Mid- term exam

Write short answers to three (3) questions from six (6) on the test paper. Write a maximum of 150 words for each question

QUESTIONS
1. Briefly outline the Flying Geese model of development? Explain
the terms, ‘diversification’ and ‘rationalisation’ in the context of this
model.
2. Explain and discuss the role played by fixed exchange rate
regimes during the Asian Miracle growth period, and the Asian
Financial Crisis of 1997.
3. Why did the Japanese economy stagnation in the 1990’s? Have
the prospects for a comprehensive systematic recovery improved
since then?
4. The South Korean economy accepted IMF structural adjustment
policies as part of the Asian Financial Crisis bailout. Has this
improved the health of the South Korean Economy? Discuss.
5. Critically examine the reasons why government might wish to
implement technology policies? Which policies would be best for
countries of the Asia Pacific Region?
6. Evaluate the role of the state in achieving high levels of economic
growth during the period of the Asian Miracle. Has the role of state
changed since the 1997 Asian Financial Crisis?

Asia Pacific Business Essay

Korean government and institutions have proved more adaptable and resilient than those of Japan ever since the 1980s

Introduction

In East Asian model of capitalism, the states play an important role in achieving high levels of economic growth by providing macroeconomic stability for economic activities, deliberately allocating resources on some strategic industries, and closely collaborate with private sectors and actively guide. As witnessed, since the post-World War II, the countries in the region, particularly, Japan and Korea, have experienced a high investment-led growth rate – Japan in 1960s and South Korea in 1970s – thanks to the guide of government and national institutions. Japan have transformed itself from a defeated country to an world economic superpower while South Korea also have successfully raised their economies from a relatively poor country devastated by civil war to the ranks of the world’s upper-middle income countries. However, although South Korea has clearly followed Japan in terms of economic structure and industrial policies, they diverged moderately in terms of government actions and effectiveness in overcoming market failure, and consequent economic outcomes. According to Kong (2000) who based his research on institutionalist approach, some East Asian models have been more adaptable and resilient than others because of the differences in the patterns of state-business alliance. Because the Japanese economy has been stagnant since the early 1990s while Korean economy has experienced a fast recovery from the Asia Financial Crisis in 1997 and rebounded quickly from the recent Global Financial Crisis in 2008-2009, it provides an interesting case for examination whether or not Korean government and institutions outperformed their Japanese counterparts in dealing with internal and external shocks as well as the factors underpinned for their flexibility and responsiveness.

The paper is, therefore, composed of three parts corresponding to three challenging times for both countries, namely the second oil crisis in 1979, the financial liberalisation in Korea/ Bubble Economy in mid-1980s to early 1990s, the Asian Financial Crisis in 1997/lost decades.

Situation analysis for beer market

Strategic Management PG 6277: Ebay Case Study (Final)_SWOT

6.0 SWOT analysis
6.1 Strengths

6.1.1 World’s largest online auction marketplace

eBay enables commerce through its three reportable segments: Marketplaces, Payments and GSI Commerce.

• Marketplaces

Marketplaces bring buyers and sellers together through online websites and mobile applications, which are available globally at any time, including through localised eBay.com sites. Marketplaces segment includes its core e-commerce platform eBay.com, its vertical shopping experiences such as StubHub, Fashion, Motors and Half.com, its classifieds websites such as Marktplaats.nl and mobile.de, and advertising services. Marketplaces also include RedLaser to facilitate mobile commerce, Milo to enable search for goods at local retailers, and Hunch for merchandising based on customers’ needs and tastes. eBay’s Marketplaces platforms are accessible from computers with Internet access and mobile devices. It offers mobile applications for the iPhone, the iPad and Android devices for eBay.com and some of its other Websites and vertical shopping experiences, including StubHub, Fashion, Motors and Half.com. It also maintains a mobile version of its eBay.com Website for use with other Internet-enabled phones and devices. (Reuters US, 2013)

International Business G – 6241 : Final Report Example – Part 3

2.4       CHALLENGES OF LOW COST LEADERSHIP STRATEGY IN GLOBAL MARKET

Wal-Mart’s success formula has been based on the retail concept of ‘everyday low prices’, which are achieved by economic of scale, purchasing power over suppliers coupled with highly efficient inventory system, state-of the-art supply chain system and personnel policy (Susan 2006) in order to keep profits high and prices low. However, there are several factors that make the adaption of this low cost model into a variety of international market situation troublesome. In the scope of this report, we will address the issues arising from the nature of retail industry and local responsiveness

2.4.1      Nature Of Multi-domestic Industry

2.4.1.1     Multi-domestic industry

Multi-domestic industry is defined as an industry in which competition takes place on a country-by-country basis. Firms that specialise in such industries usually concern about adapting its offerings to suit specific characteristics and particular needs of customers in each country where they do business (Cavusgil 2008, p. 340). Unlike other industries where high-cost activities e.g. R&D can be globally centralised, in the case of multi-domestic industry such as discounting retailing, most key operations must be performed locally. Therefore, it is argued that this feature of the industry may obstruct Wal-Mart’s ability to transplant its low cost DNA worldwide in two ways:

First, as global operations play very limited role in supporting in local operations in retail industry (Gupta et al. 2008, p.70), when entering into a new foreign market, multinational retailers like Wal-Mart are unable to capitalise on their global scale to their local advantages and therefore unable to successfully compete against its local competitors

Second, having local presence in several markets, Wal-Mart exposures itself to adverse effects on its operations and profitability caused by differences in market and legal environments. The company struggles with using the strategy that has worked perfectly in its home country, such as predatory pricing and transferring it to a different regulated and operated economy (Susan 2006).

Case Study: Optus- The Challenger

International Business G – 6241 : Final Report Example – Part 2

2.3       INTERNATIONALISATION IN RETAIL INDUSTRY

2.3.1      Motives For Going Overseas

The New Trade Theory provides incentives for successful domestic retailers such as Wal-Mart to engage in global marketplace. The theory implies that in order to achieve economics of scale, which is an important factor of superior international performance, firms has to gain access to larger global marketplace (Cavusgil et al. 2008).

Taking Wal-Mart for an example, prior to its internationalisation in 1991, the company have already saturated most of the U.S domestic markets, global expansion in its core business of discount retail or diversification into other kind of retailing business are the only potential options which could lead to significant growth (Vijay & Anil, 2002). Despite the fact that the company has moved forward to both areas equally, it has continued to confront with steady decrease in growth rate (See Figure 1). During the period 2001-2006 sale revenues and earning per share rose at an annual rate of only 10.3 per cent and 13.7 per cent respectively compared with that of 23.5 per cent and 15.7 per cent in the period right after its internationalisation (1991-1996) (Gupta et al. 2008). Given the relatively higher revenue growth during 2004-2014 in international market (See Figure 2), it is completely clear that pursuing global expansion offers a brighter prospect for continued growth.

International Business G – 6241 : Final Report Example – Part 1

1    INTRODUCTION

Wal-Mart permanent dedication to keeping cost low for its customers has been a ritualistic and well-articulated belief that ‘a dollar saved is a dollar passed on to the customer. Its low cost business model has become a success story captivating consumers with its ‘Every Day Low Prices’ slogan, especially in these economically challenging times. However, despite the fact that Wal-Mart has been generally quite successful overseas in a number of very important overseas markets such as Mexico, Canada and U.K where more than 80 per cent of its international revenue comes from (Wal-Mart 2014), its global expansion has come with a few stumbles such as the failures in Germany and South Korea. Furthermore, it has faced formidably tough competition from other major international rivals such as Carrefour, Metro, Tesco, Costco, etc. and from local players as well. As international markets are where Wal-Mart is seeking opportunities for future growth, its long-term performances in those markets has drawn attention from many stakeholders of the company such as potential investors, shareholders, employees, and other competitors. In this paper, we argue that regardless of its past success, Wal-Mart’s low cost model is unable to help it to retain sustainable competitive advantages and successfully compete with its competitor in global marketplace. In determining factors that may undermine the strength of this business model, this paper provides findings which can be applied by Wal-Mart and other international retailers as lessons for change in future internationalization.

The paper is structured into two three main parts. The first part offers an overview of Wal-Mart’s background, its current position in world trade and some reasons why Wal-Mart can gain competitive advantage over its competitor to dominate the domestic market. The second part reviews the globalisation imperative, current level of internationalisation in retail industry and Wal-Mart. The third part reveals several challenges in transplanting the company’s low-cost model to foreign markets, followed by recommendations how Wal-Mart could revise its internationalisation strategies to be more competitive.

2        BODY

2.1       WAL-MART’S BACKGROUND

2.1.1      Early Years

Since it was first established as a self-service discounting store by Sam Walton in Rogers, Arkansas in 1962 (Brent 2014). Wal-Mart has quickly grown up and has attained phenomenal success in United States. From the beginning days, Wal-Mart realized that the success of its discount retail model required a more rapid expansion in order to strengthen its purchasing power with suppliers. Throughout the 1960s, the company opened new stores, focusing initially expansion effort on rural towns in which a new Wal-Mart would often become a community’s central retail outlet. However, unlike urban retailers such as K-Mart or Target who could subcontract warehouse and distribution services, given its volume of purchase in early days, no distributors or trucking company was willing to service Wal-Mart’s isolated small-town network of stores (William 2006). In 1970, the company, now incorporated as Wal-Mart Stores, Inc., was therefore forced to build its own distribution facilities, fleet of trucks, and communication network to maximise supplier discount required by its business model.