Does “green” matter? Exploring the effects of Green City Branding on the intention to visit a destination
Stavridaki Kalliopi 10602461
University of Amsterdam Graduate School of Communication
Supervised by Theo Araujo
Abstract
The present study examined the effect of green city branding on the intention to visit a destination. We argued that green city branding can be aligned with the practices followed by brands and organizations under the umbrella of the environmental dimension of corporate social responsibility (CSR). Organizations use CSR practices with the purpose of positively influencing the purchase decisions of customers. Similarly, cities use green city branding aiming to increase the visit intention of potential tourists. An online experiment study (N=175) was conducted to explore if green city branding positively influences a tourist’s intention to visit a city. Additional factors that are considered as important determinants of the intention to visit a destination were also evaluated: the image of a city, the price of a vacation package and the degree to which a tourist cares about the environment. It was revealed that green city branding campaigns create a more favorable city image and significantly increase the intention to visit a destination. However environmental consciousness was not found to play an important role when evaluating city branding campaigns. In addition, no interaction was found between city branding and the price of a vacation package. Tourist marketers are therefore encouraged to highlight the green dimensions of a city while branding the destinations in order to attract potential tourists and enhance the city image of the destination in general.
Keywords: city branding, corporate social responsibility, green city branding, city image, intention to visit, vacation package price, environmental consciousness
Does “green” matter? Exploring the effects of Green City Branding on the intention to visit a destination
Cities around the world continuously seek to expand in the area of tourism and to attract external investments (Bagaeen, 2007; Pryor & Grossbart, 2007), as travel and tourism are responsible for 9.5% of the global economy revenue (VanAuken, 2014). They have become powerful brands, competing with each other in multiple domains (Kavaratzis & Ashworth, 2005), using several advertising strategies to achieve competitiveness in the global arena. These activities, also known as city branding, have as main objective the transformation of a city from a location into a destination (Kavaratzis & Ashworth, 2005). In other words, city branding practices aim at turning a city into a popular area for global tourism (Kavaratzis, 2007).
Several studies reveal that consumersare more informed about products, companies and brands than ever before, expecting the companies and brands they choose to make a difference in society, in the environment and in the world in general (Balmer et al., 2012; Snider et al., 2003). Consumers are especially concerned with the impact that their actions have towards the
environment (Hartmann & Apaolaza Ibáñez, 2006; Krause, 1993; Robers & Dowling, 2002). They express strong feelings towards purchasing green and eco-friendly brands, that is, brands that are associated with environmental protection and sustainable business practices (Chen, 2010; Hartmann et al., 2005).
In response to this increasing demand for sustainable development, organizations and brands give great emphasis on sustainability, ethical and environmental matters and corporate social
responsibility (CSR) in general (Marin et al., 2009; Pinkston & Carroll, 1996). When a firm follows CSR norms, it can positively motivate consumers and influence their purchase decision
(Bhattacharya & Sen, 2001; David et al., 2005; Mohr et al., 2001; Sen et al., 2006). For this reason,
they are reinforcing the environmental aspect of CSR by paying attention to the outcome that their actions have towards the environment (Babiak & Trendafilova, 2011). In other words, they engage
in green branding practices by advertising the minimal impact of their actions and products towards the environment and fostering their green brand identity (Hartman et al., 2007). In an attempt to be recognized for their environmental performance and practices, cities undertake similar strategies, termed as green city branding (see Gulsrud, 2014).
Green city branding has received minimal attention in academic journals, as there has been little research on the topic. Existing studies investigateeitherthe relationship between green product branding and purchase intention of green products (e.g. Crouch, 1992; Dwyer et al., 2000; Prothero, 1990; Young et al., 2010), or city branding alone (e.g. Caldwell & Freire, 2004; Kavaratzis, 2004; Kavaratzis & Ashworth, 2005; Stigel & Frimann, 2006). Only a limited number of studies are approaching the topic of green city branding (see Anderberg & Clark, 2013; Gulsrud et al., 2013; Hall, 2010; Schilling & Logan, 2008), but do not empirically test the appeal of green city branding on the intention of tourists to visit a city and the image of a city. To bridge this research gap and advance earlier research, we aim to examine this relationship. We focus on Amsterdam, one of the most popular destinations for global tourism (Nijman, 1999; Van der Borg et al., 1996). We selected the city of Amsterdam as it combines fun, cultural (Dahles, 1998) as well as green dimensions such as green ways of transportation (e.g. cycling and petroleum free transportations), a considerate use of natural resources and recycling efforts (Gilderbloom et al., 2009).
Taking into consideration the present consumer attitude and the recent development of cities into brands, we argue that the intention to purchase green brands is also met when choosing to visit a travel destination. We will thus examine the relationship between green city branding and the intention to visit a city. We will also evaluate whether this relationship is influenced by some additional factors that have been found to be important determinants of the intention to visit a destination: (1) the image of a city as advertised through city branding (Bigne et al., 2001; Chon, 1990; Leisen, 2001; Pike, 2002), (2) the price level of a vacation package (Crouch, 1992; Dwyer et al., 2000) and (3) the level of environmental consciousness of a tourist (Schlegelmilch et al., 1996).
The research will further provide answers on whether green city branding should be
practically incorporated in the promotional campaigns of tourism marketers. As green branding is a response to a greater societal demand for environmentally sound products (Young et al., 2010), our research will provide practical answers on whether this is also met in the domain of travel and tourism and whether green city branding should be optimized.
The research question of our study can thus be formulated as follows:
RQ. How does green city branding influence the intention of a tourist to visit a city? How is this relationship affected by the price of a vacation package and the environmental consciousness of a tourist and how is it associated with the image of the city?
Literature Review City as a Brand and Corporate Social Responsibility
Cities are considered as some of the most powerful brands in the global scene (Kavaratzis, 2004). As Paddison (1993) describes, in the past years, there has been a continuous effort to promote the image of cities, especially in the western societies. The author explains that these activities are directly related with the economic restructuring of cities and industrial areas due to globalization. City branding (also known as place branding or destination branding) follows the pattern that is used in order to promote product brands. More specifically, it can be described as “the application of product branding to places” (Kavaratzis & Ashworth, 2005, p. 508).
City branding has received considerable attention in the academic literature. Most available literature on the topic focuses on illustrating the promotional activities of cities and the intercity competition (see Ashworth & Voogd, 1990; Beriatos & Gospodini, 2004; Burgess, 1982; Van den Berg et al., 1982) or the reasons for the development of city branding (see Paddison, 1993; Ward, 1998). Several authors provide guidelines on city branding management (see Ashworth &
branding and the creation of a city identity through marketing activities (Kavaratzis, 2004; Kavaratzis & Ashworth, 2005).
City branding allows a city to more dynamically position itself in the international market (Anholt, 2004; Papadopoulos, 2004) and communicate its qualities, image and identity (Kavaratzis & Ashworth, 2005). Beriatos and Gospodini (2004) argue that through city branding cities are able to respond to the demands of globalization and intercity competition. They also state that it has been proven to enhance economic development and upgrade the image and status of a city globally.
City branding mainly uses visual elements such as logos, slogans or advertising campaigns (Kavaratzis, 2007). The aim of city branding is to strategically construct a place where unique experiences can be sold, culture, architecture and history are combined and memories that stay forever are created (Morgan & Huertas, 2011; Pine & Gilmore, 1999; Stigel & Frimann, 2006). City branding treats cities as brands, aiming to attract tourists, new residents, investments, to advertise the labor marker of a particular city (Bagaeen, 2007; Pryor & Grossbart, 2007) and to increase the development prospects of a city in general (Beriatos & Gospodini, 2004).
As cities are treated as global brands, we argue that theories and strategies with regards to product branding can also be applied when branding a city. Kavaratzis (2004) claims that city brands have the same basis as the corporate brands when it comes to economic development. Therefore components of product brand management can also be practiced when marketing a destination.
When evaluating a product or a brand, consumers give great emphasis on the notion of corporate social responsibility (Becker-Olsen et al., 2006; First & Khetriwal, 2010; Klein & Dawar, 2004; Mohr & Webb, 2005). As a response, many organizations have incorporated CSR in their core strategies, in order to enhance their brand equity and corporate image (Mohr & Webb, 2005). CSR has been characterized as the managerial obligation to take responsibility, protect and promote the well being of the organization and to be committed towards society as a whole (Carroll, 1991; Doh
& Guay, 2006; Holme & Watts, 1999; Keith & Blomstrom, 1975; Maignan & Ferrell, 2003). It is therefore highly associated with the core values and needs of society, as well as with the support of the common good (Eells & Walton, 1969).
Despite the fact that there is still no universally accepted definition on the topic of CSR (Abimbola et al., 2012) , as Kaptein and Wempe (2002) explain, companies try to balance the “Triple Bottom Line” of People, Profit and the Planet. They thus attempt to take into consideration environmental, social and economic concerns, while conducting their business operations
(Amaladoss & Manohar, 2013).
The main topics of CSR can be classified into three main dimensions: (1) social dimension, (2) economic dimension and (3) environmental dimension of CSR (Amaladoss & Manohar, 2013). According to the social dimension of CSR, organizations are presented as being responsible towards the society, as they are considered to be an integral and very vital part of it (Van Marrewijk, 2003). The economic dimension of CSR is mainly linked with activities that are related to the operations of and the profitability of a company. When engaging in CSR actions, organizations make a
commitment to behave responsibly. As stakeholders value these social efforts of a company, its image is enhanced and profits can be maximized (Bagnoli & Watts, 2003; Baron, 2001; Paul & Siegel, 2006).
The environmental dimension has been proven to be the most significant concern of a company’s stakeholders, with regards to CSR activities (Kassinis & Vafeas, 2006; Welford et al., 2008) and an important ethical driver amongst consumers when purchasing brands (Conner, 2004; Kletzan et al., 2006; Vermeir & Verbeke, 2008; Wheale & Hinton, 2007). Customers tend to support more strongly companies that engage in environmentally friendly activities, than the companies whose main aim is to increase their profitability (D'Souza et al., 2007). In an effort to establish longstanding and profitable customer relationships, organizations direct their branding and
practices they follow with regards to it (Martin & Simintiras, 1995; Schuhwerk & Lefkoff-Hagius, 1995). More specifically, these strategies can be described as green branding (Hartman et al., 2007). Environmental CSR practices include-among others-the continuous effort of organizations to renew natural resources, reduce energy and pollution levels, be sensitive towards climate change,
encourage green building (constructions that use environmentally responsible practices) and recycling, volunteer in environmental restoration (Montiel, 2008; Shrivastava, 1995).
The “Green” in City Branding
The term “green” is used to describe environmentally sound brands which incorporate environmentally friendly features such as energy saving or recycling(Hartman et al., 2007;
Hartmann & Apaolaza Ibáñez, 2006). Green brands combine consumer and environmental benefits such as efficiency (e.g. lower costs or less energy use), better performance, health and safety benefits and higher convenience (Ottman et al., 2006). Green branding has been proven to increase the purchase attitude of consumers (Tanner & Kast, 2003). Like many brands, cities increasingly use green city branding strategies to communicate their high levels of environmental performance, their attempts for a better quality of life and sustainable development and to increase their
competitive advantage in the global economy (Gulsrud, 2014).
In line with this triple bottom line of CSR strategies followed by brands and organizations, cities aim to simultaneously balance three aspects: (1) the equity, (2) the economy and (3) the environment (Campbell, 1996). That is, cities are seen as social spaces that try to balance
sustainable development and the process of producing, consuming and distributing goods. These efforts are also communicated though city branding (Kavaratzis, 2004).
The main focus of traditional city branding activities has so far been the communication of a city’s urban design, architecture, art, public spaces, events, cultural and tourism facilities
(Kavaratzis, 2004) to attract more capital and investments. However, like all brands, cities are sensitive to change and constantly have to redefine their objectives, target groups and resources. In
view of the high consumer demand for green and environmentally friendly brands, cities have also started to promote their green dimensions (Beatley, 2012; Campbell, 1996; Haughton, 1997). Denmark and Sweden are prominent examples of countries that use sustainable development strategies and green city branding promotional activities, to communicate the sustainable character of urban development that they follow and foster their green identity (Kahn, 2006).
Green city branding advertises activities that aligned with the environmental dimensions of CSR. In parallel with the environmental CSR dimensions, green city branding gives great emphasis on sustainable environmental practices and on the high quality of life and sustainable lifestyle that is promoted by the city (Anderberg & Clark, 2013). Examples of the green approaches being
promoted are the reduction of energy consumption and use of renewable energy resources, the water conservation, the protection against pollution, the green ways of transportation (such as cycling and petroleum free cars) and recycling (Beatley, 2012; Kahn, 2006; McKibben, 2000). The goal of green city branding is not only to reinforce the image of the target destination, but also to stimulate the development of the region, to increase its competitiveness and make it attractive to investors and visitors (Gulsrud, 2014; Mihalič, 2000). When a city advertises its green identity and high quality of urban environment, it reveals a human-oriented development strategy of the city that respects not only its residents but also potential tourists that plan to visit the destination. Moreover, it highlights additional dimensions of a city, such as accessibility and safety (Gulsrud et al., 2013).
Given the preference of consumers to purchase green products, it is expected that green city branding will also raise the willingness of tourists to visit a destination. We therefore propose that:
H1: The intention of a tourist to visit a destination will be higher when exposed to a green city branding campaign than when exposed to a non-green city branding campaign.
Additional factors influencing the intention to visit a city
Several factors influence the decision of a tourist to visit a city. Among those, the price of a vacation package (Crouch, 1992; Dwyer et al., 2000) and city image (Bigne et al., 2001; Chon,
1990; Leisen, 2001; Pike, 2002) have been shown to be the most important. In addition, in accordance with literature on green product branding (Bang et al., 2000; Chen, 2010; Mihalič, 2000; Schlegelmilch et al., 1996), we assume that environmental consciousness will be an important criterion when choosing a vacation destination.
Environmental Consciousness. Research has shown that the purchasing behavior of many
consumers is highly associated with their environmental attitudes and beliefs (Chen & Chain, 2010; Schwepker Jr & Cornwell, 1991). More specifically, the environmental consciousness of a
consumer can increase the intention to purchase a green product (Schlegelmilch et al., 1996). Consumers believe that by purchasing environmental friendly products, they can actively contribute to the improvement of the quality of the environment (Chen & Chain, 2010). Environmentally conscious customers are also more likely to spend more in order to purchase green products, which are usually considered as products of higher quality (Bang et al., 2000; Mihalič, 2000;
Schlegelmilch et al., 1996). It is thus assumed that this behavior can be translated in the domain of travel and tourism. Environmental consciousness can act as a significant predictor of the intention of a tourist to visit a destination, when exposed to a city branding campaign. We argue as follows: H2: Tourists with higher levels of environmental consciousness will have a higher intention to visit a destination when exposed to a green city branding campaign than when exposed to a campaign that does not contain green city branding aspects.
The city image. The image of a city is a component that can be unquestionably related to
the competitiveness of a city in the tourism industry (Gartner, 1989; Um & Crompton, 1990). Empirical research has shown a positive relationship between city image and intention to visit a city (Bigne et al., 2001; Chon, 1990; Leisen, 2001; Pike, 2002). The image of a city refers to the mental picture that people have of a destination (Gilboa et al., 2015). According to Kavaratzis (2004), a mental image of a city remains forever in the collective memory of an individual. As a consequence, city image has always been the central object of city branding practices. These explanations can be
further related to the concept of projected image, which refers to the image of a destination as transmitted through communication channels (Ashworth et al., 1991; Baloglu & Uysal, 1996). This process aims on creating a mental image and motivating potential tourists to choose the city as a holiday destination (Andreu et al., 2000; Baloglu & Uysal, 1996; Lubbe, 1998). When positive images are created, the intention to visit a destination becomes higher (Goodrich, 1978).
When examining consumer behavior, it has been suggested that purchase actions of consumers are based on the image they hold on specific products or brands (MacInnis & Price, 1987; Runyon & Stewart, 1987). Runyon and Stewart (1987) specifically report that the image of the travel product is highly associated with the branding images introduced to the potential travelers while branding the destination. As the consumption of green products has met a tremendous rise (Dennis et al., 2005; Prothero, 1990; Straughan & Roberts, 1999; Vandermerwe & Oliff, 1990) and a large number of consumers are willing to pay in order to purchase products with green brand image (Chen, 2008; 2010), we expect this behavior to also be translated in the tourism domain. We assume that a green city branding campaigns will cause the overall image of a city to be projected as more positive by travelers. This positive image expected to increase the willingness of travelers to visit a city. We can thus hypothesize that:
H3: The image of a city will be more positive when a tourist is exposed to a green city branding campaign than when exposed to a non-green city branding campaign.
H4: The image that a tourist has of a city mediates the relationship between a city branding campaign, and their intention to visit a city.
The impact of price. An equally important factor that every tourist takes into account when
choosing a vacation package is price competitiveness (Crouch, 1992; Dwyer et al., 2000). Price is one of the most critical determinants of purchase behavior (Boulstridge & Carrigan, 2000; Carrigan & Attalla, 2001; Roberts, 1996). Crouch (1992) argues that consumer income determines the demand of a particular product. He explains that people will either purchase normal products at a
greater quantity, or less of a particular product of higher quality. However, customers have always considered low priced products as more attractive (Rothschild & Stiglitz, 1992), something that we expect to find also with regards to choosing a vacation package:
H5: Tourists have a preference towards low priced vacation packages.
Green products are usually associated with higher prices (Castaldo et al., 2009; De Pelsmacker et al., 2005). Griskevicius et al. (2010) and Bang et al. (2000) found that consumers seem willing to spend more on green products than on non-green products, even if the latter are advertised as more luxurious. Tourists are expected to follow the same logic when choosing a travel destination. We thus expect an interaction effect between price and city branding with regards to the intention to visit a destination. We hypothesize:
H6: The association in intention to visit between city branding campaigns differs between high and low price vacation packages. More specifically, while we expect price to influence people exposed to a non-green campaign, we expect to find no differences when people are exposed to a green campaign.
Our hypotheses can be conceptualized through the model below:
Figure 1: Conceptual Model
Green City Branding Environmental consciousness City Image Intention to visit Price + + + + +
-Methodology Design and Procedure
The study involved a 2 (green city branding campaign vs. control/non-green city branding campaign) x 2 (high price vs. low price) between subjects web-based experimental design, as depicted in Table 1. City branding dimensions and price of destination were simultaneously manipulated. The non-green city campaign served as control conditions of the design. All
participants were randomly assigned to one out of the four conditions in the experimental design. Table 1
2 (green city branding campaign vs. control/non-green city branding campaign) x 2 (high price vs. low price) experimental design
Green City Branding Non-green city branding
High Price Condition 1
N = 28
Condition 3 N = 43
Low Price Condition 2
N = 53
Condition 4 N = 51
Stimuli
To eliminate the risk of participants being already familiar with the campaigns, four new city branding campaigns were specifically developed for the needs of the study (see Appendix A). Each campaign package consisted of a campaign poster and a list of proposed activities1 (see Appendix B). The green packages included green activities in the city such as biking, consumption reductions, environmental care, respect towards the ecosystem and the natural resources. The control packages had as a basis the promotion of the fun aspect of Amsterdam, such as nightclubs, coffee shops, tours in the Red Light District and food tasting experiences. To examine price, the
1
All the proposed activities were retrieved from tripadvisor.com, which is the largest and most known online network for travelers (O’Connor, 2008). The attractions illustrated the actual prices, as suggested by the website.
abovementioned campaigns included high and low price packages to research whether the price factor influences tourists’ intention to visit the city.
Pretest. To test the effectiveness of the stimuli, a pre-test was conducted. Nine (N=9)
students from the University of Amsterdam were asked to rate the price of the proposed activities on a multi item 7-point Likert scale (“low price” to “high price”). A repeated measures analysis of variance (ANOVA) indicated that the low price activities and high price activities in the both the green and control campaigns were correctly perceived, F (3,6) = 13.76, p = 004. Descriptive statistics for each condition can be found in Appendix E.
Participants were also asked to evaluate the green aspect of the two campaign posters. One poster was focused on the promotion of the green and the second on the recreational aspect of Amsterdam. The evaluation was done by means of a multi item 7-point Likert scale (“strongly agree” to “strongly disagree”), based on a city image research by Gilboa et al., (2015). One example of the items is “The city looks clean”. The complete set of scales can be found in Appendix C.
Four out of five items conceptualizing environmental care in the original scale were used in a PCA to verify whether they represent the latent concept. The item “the city looks well lighted at night was excluded” as it was not considered relevant with our campaign. From the analysis a single factor was extracted (E = 3.39) explaining 84.86% of the variance with good reliability (α = .94). The scale was used to create a new variable representing the green aspect of the stimuli (M = 4.44, SD = 2.22).
An ANOVA between the two conditions revealed that the green aspect was significantly higher in the green poster (M = 6.22, SD = 1.10) that in the non green poster (M = 2.47, SD = 1.20), F (1,17) = 50.72, p <. 001, indicating that the campaigns were correctly perceived. A detailed analysis for price and the green conditions can be found in Appendix E.
Participants
Participants were invited to answer an online questionnaire via Qualtrics. A convenient sampling method was initially used, as the experiment was promoted by the researcher through social media pages and email. Participants were also asked to recruit other potential respondents; therefore part of the sample was acquired using the snowball sampling technique.
A total of N=400 individuals participated in the experiment. Before the analysis, N=164 respondents who had previously visited the city of Amsterdam were excluded from the research. This was done as several previous studies (see Ahmed, 1991; Baloglu & McCleary, 1999; Hu & Ritchie, 1993; Milman & Pizam, 1995) suggested that familiarity with the destination has an impact on the city image held by participants and on the intention to visit it. An additional 23.6% (N = 61) of the respondents were filtered out, as they failed in the attention check question. The question asked respondents to identify out of four activities, which one was included in the previously shown city branding package.
Results indicated that 89.1% of participants were from Greece. The remaining 10.9% of the sample originated from Albania, Argentina, Cyprus, Czech Republic, France, Italy, Mexico,
Ukraine, UK and the US. The age of participants raged from 16 to 66 years old (M = 29.61, SD = 7.80). In addition, 62.3% of the participants were female, while 32% of participants had obtained a bachelor and 37.1% a master diploma. With regards to the household income, 37.1% reported to receive less than 10.000 € annually, and 26.3% up to 19.999 € per year.
Measures
Independent Variables and Stimuli. To evaluate city branding condition, participants were
exposed to green and control city branding campaign packages. The package included activities with either a green or a recreational character. To examine price, the abovementioned campaigns included activities with a high or low price, depending on the condition.
Environmental consciousness was measured by means of four different items on a 7-point Likert scale (“strongly agree” to “strongly disagree”), based on a research by Schuhwerk and Lefkoff-Hagius (1995). Principal component analysis indicated that the four items loaded on one factor (E = 2.40), explaining 60.11% of the variance. The reliability of the scale was good (α = .76). Mean scores were used to create a variable for later analysis.
Dependent Variables. Intention to visit was measured by means of a single item 7-point
Likert scale (“strongly agree” to “strongly disagree”). Previous studies examining the tourists’ intention to visit a city have also used single item Likert point scales (Cole & Chancellor, 2009; Ng et al., 2007; Sparks, 2007; Um et al., 2006) as single item scales are considered as more
representative when measuring this variable.
City image was measured by means of single 7-point Likert scale (“highly unfavourable” to “highly favorable”), aligned with recommendations from earlier research (Bigne et al., 2001).
Control Variables. Four potentially confounding variables were included in the study as
important determinants of preference towards a specific destination: (1) gender, (2) age, (3)
education and (4) household income. Education was measured by means of an 8-point Likert scale (“no schooling completed” to “doctorate diploma”). In addition, income could potentially influence the perception of destination package as being expensive or affordable. Annual income was
measured by means of a 12-point single scale (“Less that 10.000 €” to “150,000 € or more”). An overview of the descriptive statistics for all variables can be found in Table 2.
Table 2
Descriptive statistics of variables used in the analysis
Variable M SD N Env. Consciousness 5.83 .91 175 Intention to Visit 4.25 1.44 175 Image 4.92 1.45 175 Age 29.61 7.80 175 Education 6.07 1.11 175 Household Income 2.58 2.07 175
Manipulation Check
To determine if the manipulation of the independent variables was successful, a manipulation check was conducted. To check if price manipulation was perceived correctly,
respondents were asked to rate the price of the vacation package by means of a 7-point Likert scale (“very low” to “very high”). A one-way analysis of covariance (ANCOVA) with the four control variables as covariates, indicated that the low and the high price activities were perceived correctly among all conditions, F (1,169) = 13.29, p = .002, η2 = .073.
Furthermore, another scale was computed out of the image scale of Gilboa et al. (2015) to examine if the green aspect of the campaign was perceived correcty. The same items as the pretest were used for a PCA analysis. The PCA indicated that the four items representing environmental care loaded one one factor (E = 2.64) explaining 66% of the variance with good reliability (α = .83). Mean scores of the scales were used to create the “green aspect” variable (M = 5.34, SD = 1.27). A one way ANCOVA with the four control variables as covariates indicated that the green condition group scored significantly higher in the green aspect (M = 6.14, SD = .72) than the control group (M = 4.65, SD = 1.24), F( 1,169) = 96.80, p <. 001, η2 = .364. Analytical post hoc results can be found in Appendix F.
Randomization
Chi-square and ANOVA tests were performed to check if the distribution of four control variables was equal across the four conditions of the experimental design. No significant results were reported between the control items age, gender, education and household income and the independent variables green city branding and price. Thus, randomization was successfully achieved in all four conditions. An additional ANOVA test revealed that environmental
consciousness was also equal across conditions. Detailed results of the randomization analysis can be found in Appendix D.
Results
Within this research we hypothesized that the intention of a tourist to visit a destination will be higher when exposed to a green, than to a control city branding campaign (Hypothesis 1). We hypothesized that intention to visit will also be affected by the price of a vacation package (Hypothesis 5). Furthermore, Hypothesis 6 stated that the difference in intention to visit between city branding campaigns differs between high and low price conditions. The three hypotheses were tested by means of a two-way ANCOVA (Between Subjects-factors: “city branding condition” and “price”, dependent variable: “intention to visit”, covariates: “gender”, “age”, “education” and “household income”). Results revealed that the main effect of the “city branding condition” on the dependent variable “intention to visit” is significant, F (1,167) = 7.27, p = .008, η2 = .042. That is, there is a significantly higher intention to visit a destination when exposed to a green (M = 4.21, SD = 1.62), than when exposed to a control city branding campaign (M = 3.56, SD = 1.59), confirming hypothesis 1. The main effect of “price” on the “intention to visit” is also significant, F (1,167) = 9.34, p = .003, η2 = .053. To elaborate, there is a significantly higher intention to visit a destination when exposed to a low priced vacation package (M = 4.54, SD = 1.53) than when exposed to a high priced vacation package (M = 3.82, SD = 1.51), confirming hypothesis 5. Additionally, the results do not show a significant interaction between the “city branding condition” and “price”, F (1,167) = .06, p= .813, η2 = .000. More specifically, any difference in intention to visit between the type of campaigns is not dependent on the price and any difference in intention to visit between high and low price campaigns is not dependent on the campaign type (see Figure 2 for a graph of the interaction). Hypothesis 6 is therefore not accepted. It should be noted that Levene’s test was not significant, therefore equal variances in the population are assumed, F (1,173) = .42, p = .520. The
Figure 2. Interaction effect between "price" and "city branding condition"
It was also proposed through hypothesis 2 that the environmental consciousness of a tourist moderates the relationship between the city branding campaign they are exposed to and their intention to visit a city. In order to test that, we created a regression between (1) the independent variables “city branding condition” (zA), the “environmental consciousness” (zM)
and the interaction term of the two variables (zA*zM), and (2) the dependent variable “intention to visit” (zB). Prior to analysis, all continuous variables in the regression model were standardized. The regression was significant, F (7, 167) = 2.89, p = . 007, but the model is poor, explaining only
11%of the variation according to R-squared, and only “city branding condition” is a significant predictor. The results of the regression are presented and compared in Table 3.These suggest that the environmental consciousness of a tourist does not play an important role in the their intention to visit a destination when exposed to a city branding campaign. Hypothesis 2 is therefore rejected.
0 1 2 3 4 5 6 Low High Int ent ion t o vi si t Green Campaign Control Campaign
Table 3
Standardized Regression coefficients predicting intention to visit
Intention to visit Model 1 Model 2 b* b* Constant 4.88*** 5.03*** Gender .06 .05 Age -.05 -.06 Education -.10 -.11 Household Income -.02 -.02
City Branding Condition .24* .23*
Environmental Consciousness -.03
City Branding Condition*Environmental Consciousness .18
R2 .08 .11 F 3.01* 2.89** ΔR2 .03 ΔF 1.24 Note. * p <.05. ** p <.01. *** p <. 001.
According to Hypothesis 3, the overall image of a destination as perceived by a tourist will be more favorable when the tourist is exposed to a green city branding campaign. An ANCOVA test (Between Subjects-factors: “city branding condition”, dependent variable: “perceived image”) revealed that tourists have a significantly more favorable image of a city, F (1,169) = 33.26, p <. 001,
η2
= .164, when exposed to a green city branding campaign (M = 5.57, SD = 1.14) than when exposed to the control campaign (M = 4.36, SD=1.47), confirming Hypothesis 3. It must also be noted that a significant effect was found between the age of participants and the perceived image of a destination, F (1,169) =7.25,p = 008, η2 = .141. The Levene’s test for this analysis was significant, therefore the assumption of equal variances in the population has been violated, F (1,173) = 4.41, p= .037.
In addition, hypothesis 4 stated that the perceived image that a tourist has of a city, mediates the relationship between a city branding campaign, and their intention to visit a city. Three
regression analyses were conducted: (1) between the “city branding condition” as an independent and the mediator “city image” as dependent variable, (2) between “city image” as the independent
variable, and “intention to visit” as a dependent variable and (3) between “city branding condition” as the independent and “intention to visit” as the dependent variable. All the analyses had
significant outcomes. To elaborate, city image can be predicted by city branding condition, intention to visit can be predicted by city image and intention to visit can be also predicted by city branding condition. An overview of the results and variation predicted by the models (R2) can be found in Table 4.
An additional regression analysis revealed that, when controlling for “ city image”, “city branding condition” is not a significant predictor of the intention of a tourist to visit a destination. Therefore controlling for “city image” removes all the effect of “city branding condition” (full mediation). A Sobel test was used to verify statistically the mediation effect, which revealed that city image mediates the effect of city branding to the intention of a tourist to visit a destination, b = .57, p < .001, b' = .02, ns; Sobel's Z = 4.69, p <. 001. The results were in accordance with
hypothesis 4. Table 4
Regression coefficients of mediation model predicting intention to visit Regression Models A B B’ C C’ b 1.17 .68 .56 .57 .02 b* .40 .24 .57 .57 .01 t 5.77 3.13 8.03 8.85 .10 p .000 .002 .000 .000 .921 R2 .21 .03 .34 .19 .34 LLCI .77 .25 .43 .44 -.38 UCLI 1.57 1.11 .70 .69 .42
Note. A: Regression analysis with “city branding condition” predicting “city image”
B: Regression analysis with “city image” predicting “intention to visit”
B’: Regression analysis with “city image” predicting “intention to visit”, controlling for “city branding condition”
C: Regression analysis with “city branding condition” predicting “intention to visit”
C’: Regression analysis with “city branding condition” predicting “intention to visit”, controlling for “city image”
Discussion
The present paper explored whether green city branding increases visit intention similarly to the way green product branding increases purchase intention, a topic that has not previously been approached in the existing academic literature. The subject of city green city branding itself has also received minimal attention in academic journals. Within our study, we examined the relationship between green city branding and the intention of tourists to visit a city. We investigated if the demand for green, and environmentally friendly products can be translated in the domain of travel and tourism and whether price and the environmental consciousness of a tourist are determining factors for the choice of a destination. We empirically tested whether a more favorable image of a city is created by giving green dimensions to a city branding campaign, and whether city image mediates the relationship between city branding and the intention to visit a city.
Green city branding, intention to visit and city image
Through our study we found that that a Green city branding campaign appears to attract more tourists to a destination. We based our arguments on theories related with green product branding. To elaborate, the findings of Tanner and Kast (2003), Cramer (1991) and D'Souza et al. (2007) with regards to green product branding reveal that consumers express the value of protecting the environment through the products they buy. When evaluating a brand, the environmental
dimension associated with CSR was the most significant criterion for consumers (Kassinis & Vafeas, 2006; Welford et al., 2008). Our results suggest that this behavior can also be extended in the domain of travel and tourism. Green city branding advertises a better quality of life and a more green and environmentally friendly lifestyle (Gulsrud et al., 2013) that were also found by our study to be significantly important for tourists. We could also argue that a possible explanation for our findings can be found in the claims of Anderberg and Clark (2013). According to them, visiting destinations that appear to score high in environmental performance indicates a higher preference
towards destinations that contribute to a sustainable environment and promote values such as wellbeing, sustainability and accessibility.
Furthermore, through their research, Chen (2008) and Chen and Chai (2010) concluded that a green brand image increases the purchase intention of consumers. Our study supports that these findings can be translated in the domain of travel and tourism, by demonstrating that green city branding creates a more favorable perceived image of a destination. Incorporating environmental attributes on city branding can enhance the perceived image of a destination and strengthen its competitive position. As predicted, there is a positive relationship between the image of a city and the intention to visit. This result has been confirmed by various studies (Bigne et al., 2001; Chon, 1990; Goodrich, 1978; Leisen, 2001; Pike, 2002). Our study however provides additional findings with regards to city image. It demonstrates that city image mediates the relationship between green city branding and intention to visit. That is, green city branding and perceived image are both important concepts when examining intention to visit. Our results extend previous findings, which claim that city image can undeniably be considered as a crucial motivator when a tourist chooses a vacation destination (Andreu et al., 2000; Baloglu & Uysal, 1996; Lubbe, 1998). More specifically, based on the present study, the green aspect of a city’s image has been proven to motivate potential tourists to visit a city more than other traditional elements used in city branding.
Environmental consciousness and “green”
The studies of Chen (2010), Schwepker Jr and Cornwell (1991), Schlegelmilch et al. (1996), Bang et al. (2000) and Mihalič (2000) suggest that environmentally conscious buyers tend to prefer products that are positioned in the market as “green” and sustainable. However, the results of our study do not provide evidence that this can also be translated in the domain of city branding. People show a preference towards green city branding regardless of their environmental consciousness. Although environmental consciousness is an important component in the context of purchasing products, it is not defining when it comes to city branding. Products labeled as “green” or “fair
trade” might be to a great extent addressed to highly environmentally conscious consumers,
however green city branding seems to have an appeal on a wider audience. We could possibly argue that despite the fact that green city branding is a relatively new concept, it seems to have a great impact on potential tourists and can potentially surpass their level of environmental consciousness. Since tourism is a broad concept with a complex nature, future research should attempt a qualitative assessment of the subject in order to acquire more concise explanations with regards the
relationship between green city branding and environmental consciousness.
Intention to visit: the “price” factor
Based the arguments of Bang et al. (2000) and Griskevicius et al. (2010), we were expecting an interaction between the city branding campaign that a tourist is exposed to, and the price of a campaign. Although within our research it was revealed that people are more attracted to green city branding campaigns, but also tend to prefer lower prices, the effect of city branding does not differ depending on the level of the price of the campaign. To elaborate, although consumers are more willing to pay premium prices for green products (Bang et al., 2000; Griskevicius et al., 2010), this cannot be translated in the domain of travel and tourism. It is a fact that green products are very often associated with premium prices (Castaldo et al., 2009; De Pelsmacker et al., 2005). For example, biological and fair trade products are mostly found to have higher price tags than regular products in the same category. Although green is more attractive (Chen & Chai, 2010; Chen, 2008), our findings suggest that tourists show a preference towards reasonable prices, as they are not willing to spend more to visit a destination that appears to have a green identity. This can be possibly explained by the fact that paying a premium price for retail products such as fair trade labeled coffee or clothing is not as big an expense as the purchase of a vacation package. When it comes to greater investments, consumers may be more skeptical.
Managerial Implications
We can derive several practical and managerial implications from the present paper. Many organizations have already adjusted their corporate strategies in order to be able to meet the demands of their stakeholders for green and environmentally friendly products (Vandermerwe & Oliff, 1990). This study revealed that tourism marketers should also recognize that consumer expectations are different from what they used to be in the past. Kavaratzis (2004) argues that tourists are driven by traditional city branding approaches. However, our study revealed that the green dimension should nowadays be an integral part of city branding as it has been proven to create a more attractive image and increase the intention to visit. Furthermore, marketers should see green city branding as a long-term investment opportunity when branding a city. To elaborate, city image has been proven to have a long-term effect on the memory of tourists (Kavaratzis, 2004). As city image and intention to visit are interrelated, marketers should focus on designing long-term campaigns that optimize green dimensions. Fostering the environmental performance of a city is an important step, which may positively alter the image that tourists have of a destination, give the city a long-term strategic benefit in the market and bring international attention. This will attract more visitors to a city and increase its revenue from the tourism industry. Green city branding can thus be used strategically be used a marketing tool for the economic development of a city.
Furthermore, as tourists were not found willing to pay premium prices to travel in
destinations with green identity, the focus of green city branding should be to establish a balance from a financial perspective. That is, even though the focus of green city branding must to be to foster the environmental values of a city, it should not be exclusively associated with highly priced vacation packages, as in the case of most green or fair trade goods. That way, the city becomes more accessible to a mass-market audience and does not appear as entirely addressed to niche markets that are financially capable to visit the projected city.
Limitations and Future Research
Although the current study makes a great contribution to the literature on the topic of green city branding, some limitations need to be considered. Within our study, we used the city of
Amsterdam. The city of Amsterdam is a very popular destination and it is possible that participants have already formed a preexisting mental image (either positive or negative) of the city, despite the fact that they have not visited it. In addition, many participants may have wanted to visit
Amsterdam regardless the type of city branding campaign they were exposed to. Future research should thus repeat the experiment using multiple destinations, to avoid potential bias when
introducing only one destination to the respondents. This will further improve the generalizability of the findings as comparing several cities may provide more representative results on the topic. In addition, 89.4% of the respondents originated from Greece due to the origin of the researcher and the sampling method. It is thus possible that our findings are more valid and relevant for the Greek population. It would therefore be reasonable to approach a more diverse sample that is more representative of the general population, as this is important for research with reference to travel and tourism. The quantitative method of our study cannot shed light on the reasons behind the choices of each participant. Therefore, a combination of both qualitative (e.g. interviews) and quantitative methodological approach could create the opportunity for a more in-depth analysis and provide more practical implications for tourism marketers. The present study included a limited
range of factors that may influence the intention to visit a destination. Future research can examine alternative factors that may relate to the topic such as cultural, historical and recreational
dimensions of a destination. In addition, tourists can be affected by other personal and situational factors when choosing to visit a city. To further elaborate, intention to visit may be affected by preexisting knowledge and motivation to visit a specific destination, or be influenced by
supplementary factors such as the attractiveness of a vacation package or not being able to afford it. Future studies thus could attempt to take these factors into consideration while examining intention
to visit. Future research could investigate more in depth the interaction between price and the green factor, using alternative types of city branding campaigns. We also propose additional research that would reinvestigate the relationship between environmental consciousness and green city branding, by also taking into consideration demographic and individual characteristics of participants. This may produce more accurate results on the subject in question. Finally, further research could
investigate the current availability of green city branding campaigns and test the effectiveness of the actual material on intention to visit.
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