Value Creation and Value Appropriation of a New Fly- and-Drive Concept to Lapland.

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and-Drive Concept to Lapland.

MScBA Master Thesis

By Wietse Dijkstra

Rijksuniversiteit Groningen

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Value Creation and Value Appropriation of a New

Fly-and-Drive Concept to Lapland.

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Preface

The mystic of Lapland overwhelmed me four years ago when I visited Lapland for the first time. The remarkable flora and fauna, the amazing northern light and the interesting lifestyle of the local population still attracts me enormously. In the specialization Strategy and Innovation in the master degree of Business Administration, I got the opportunity to study my favourite destination in a commercial context.

The fly and drive to Lapland in the summer has not been a huge commercial success up till this point for Voigt Travel, the Dutch tour operator with a focus on Northern-Europe. This triggered me to write my master thesis about this interesting problem case. Without the cooperation of Voigt Travel this research would never have reached this level. I want to thank in particular the following employees of Voigt Travel: Desiree Peters (marketing manager), Rene Nieuwmans (manager incentives) and Cees van den Bosch (managing director) for using their facilities and spreading their excellent knowledge. I also want to thank the other employees of Voigt Travel, whose passion for their jobs got my admiration.

A special gratitude to my supervisor, Dr. Thijs Broekhuizen. I found the meetings very enjoyable and, in particular, very interesting! Also, I would like to thank my second supervisor MSc. Ivan Orosa Paleo.

Hereby I invite you to read this master thesis. I hope this thesis increases your understanding of the complexities a relatively small tour operator faces in the current competitive landscape. I hope Voigt Travel will take the benefits of this research and keep on offering the tourism packages to Lapland in the summer. It simply is too beautiful to leave behind.

Wietse Dijkstra

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Abstract

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5.1.3

Expert interviews 42

5.2

Data collection 43

6. Results 44

6.1 Empirical data questionnaire customers 44

6.1.1 Item analysis 45

6.1.2 Regression 48

6.2 Value appropriation 52

6.2.1 Interview Voigt Travel 53

6.2.2 Interview BBI-Travel 54

6.3 Conclusion results 55

7. Discussion and recommendations 57

7.1 Discussion research questions 57

7.2 Managerial implications 63

7.2.1 Legitimacy 63

7.2.2 Value creation 64

7.2.3 Value appropriation 65

7.3 Research limitations and future research 67

Appendix A: Business model Voigt Travel 75

Appendix B: Questionnaire pre-consumption 78

Appendix C: Questionnaire post-consumption 83

Appendix D: Interview Mr. Van den Bosch 88

Appendix E: Interview Mr. Van der Kooi 93

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Introduction of research

1.1 Introduction

Frank is tired of work and feels ready to go on vacation this summer. Since he turned 55 years old this year, he is looking forward to have some weeks of relaxation, together with his wife. He is in the luxurious position to select from dozens of tour operators, who are all enthusiastically willing to embrace him with the best-customized or low-priced package they have. Although the array of possibilities seems to be endless, Frank prefers Lapland or Ireland, based on the recommendations of some friends. From the different tour operators he felt most attracted to Voigt Travel that seems to be a reliable and experienced partner to him. He ordered the brochure ‘Avontuurlijk Lapland en Veelzijdig Finland’. After the deliberation of the costs and benefits, he made the decision to book the fly and drive to Lapland.

In his search, Frank was looking how he could get the best value. The factors that influenced Frank’s intention to buy this package can be identified as customer values. Customer value is considered to be a key determinant for customer behaviour and purchase decision (Zeithaml, 1988; Sheth e.a. 1991b). To examine why people choose a certain package, these values should be defined in an attempt to unravel the complexity of purchase behaviour of Voigt Travel’s customer. What do people value the most? What makes people prefer o ne tour operator above the other? What attributes are the most important in the judgment? For Voigt Travel it is crucial to know these components in order to increase the attractiveness of their concept. Moreover, the fly and drive to Lapland in the summer involves direct flights, which is new for the summer tourism to Lapland. The direct flight (from Amsterdam to Rovaniemi) is a risk-product, since Voigt Travel is the only party responsible for the financial risks of an underutilized flight. The direct flight directly influences the profits. Therefore, Voigt Travel needs to understand how it can reap the benefits from this innovation.

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1.2.1 Voigt Travel

Before explaining the innovation of Voigt Travel, some background information will be described about the main characteristics of the business of Voigt Travel. First, a major line has to be drawn between tour operators and travel agencies. Tour operators are the contracting principles, also called ‘package organizers’. They take care of all the contents of the vacation, like flights, accommodation, car rental etc. The tour operator is responsible for the delivery of the services purchased by the customer. A travel agent is an intermediary between consumer and principal, like tour operators, airlines or another service provider and plays no contractual role in providing the services. Some tour operators just sell packages to travel agents (business-to-business). Other tour operators, such as Voigt Travel, also do direct selling to the final consumers or companies. Those organizations have two sales channels.

Voigt Travel is a producer of a tourism product, rather then ‘just’ a seller. The tourism package is a bundle of activities with many stakeholders involved. Networking and cooperation are keywords in the modern business model of a travel organization (Wang and Krakover, 2008). The same applies for the business model of Voigt Travel (see appendix A). Through the two sales channels (direct and indirect sales), Voigt Travel sells three products: tour operating, incentives and ferry passages. The production of those products is only possible through the co-operation with several stakeholders, like accommodation suppliers, airlines or tourist boards.

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Figure 1.1 Value System Voigt Travel

Figure 1.1 reflects the dominant role of suppliers in the production of a service concept for a tour operator and is thus considered to be an eminent link in the creation of competitive advantage. In addition, the distributors have a prominent role

Value chain tourism package Voigt Travel, for:

• individual tourists

• incentives

Design of inclusive tour

Pre-production activities • product decision

• contracts local suppliers • contracts distributors

Marketing activities

• brochure design & production • promotion campaign

• destination branding

Distribution:

• direct (www & telephone) • indirect (travel agents)

Production & consumption • flights • ferry • destination management Post-purchase • complaints • compensation management Stakeholders involved… Airlines Ferry companies Travel agents Mass media Local suppliers (Accommodation, safari companies, car rentals)

ANVR, SGR, Calamiteitenfonds Local suppliers

(Accommodation, safari companies, car rentals)

Tour operators Tourism boards (Icelandic and Finnish tourist board)

Airlines

Ferry companies

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in the production of a tourism package. Without the cooperation of an airline, Voigt Travel would not have been able to offer direct flights to Lapland. Furthermore, close contacts with a tourism board supports a tour operator to get in contact with local tourism organizations.

Marketing activities are necessary to promote the destination, the tourism packages and the tour operator. This can be in cooperation with the tourist boards, which are interested in the destination branding. Moreover, Voigt Travel sells their product indirectly through colleague tour operators and travel agents. The more agencies are interested to sell the package of Voigt Travel, the more the destination will be generally known. Those actors take responsibility for their own marketing activities.

During the distribution stage, a tour operator can cooperate with travel agencies and other tour operators to increase the sales. In the case of Voigt Travel, the cooperation is important to increase the probability of high utilization of the charter flights. During the production and consumption stage, the tour operator has less influence on the value creation; the suppliers and distributors are performing their tasks. When problems occur, the tour operator and traveller will receive back up from the trade organizations. The same applies for the final stage, the post-consumption stage, when travellers might have suffered negative experiences during their vacation.

1.2.2 The innovation

The focus of this research is the innovation of Voigt Travel: the fly & drive to Lapland in summer with direct flights. Since two years, Voigt Travel is offering direct flights from Amsterdam to Rovaniemi (the capital of Finnish Lapland) in the summer. This new concept is labelled as an innovation. Within the tourism to Lapland Voigt Travel is the only tour operator producing an all inclusive fly and drive package including a direct flight. The direct flight is a new way of delivering the vacation experience to the customers. Although direct flights are not new in the tourism industry, it is new for tourists who want to experience the Lappish’ summer.

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content, the development of new concepts, services, experiences or the introduction of a new style of organization.” Contrary, technical innovations lead to new technical appliances. Furthermore, some other distinctions can be made in the field of innovation. Jacobs (2006) distinguishes between product / service innovation, process innovation and transaction innovation.

When the service innovation of Voigt Travel is placed in the distinctions of innovation, it can be concluded that the direct flights – within the fly and drive to Lapland in the summer – is in the perspective of the innovator a new way of transferring people to the destination, and, therefore, can be qualified as being a process innovation. However, for the customers it is a new way of experiencing Lapland. From this point of view, the new activity can be considered to be a service innovation.

The problem of Voigt Travel is the fact that arranging direct flights (charters) is relatively risky. Voigt Travel is the only party responsible for the threat of underutilization. In 2008, the utilization rate was 62%, where the break-even point is reached at 72%.

A potential reason for this underutilization can be the low awareness of the fly and drive to Lapland, among potential. 43% did not know Voigt Travel was the only tour operator offering direct flights to Lapland in the summer1_{. Additionally, 77% stated}

that the direct flight would have been a main reason to choose for Voigt Travel. The high rate of prospects that are not aware of the direct flight insists that the direct flight should be better highlighted in the marketing-communication. The public needs to know what the fly and drive of Voigt Travel stands for. It stands for Lapland, but also for direct flights. Another reason could be the low awareness among the public about the destination Lapland. Because, unfortunately, the tourist board of Finland does not have any statistical data regarding the reputation of Finland among the Dutch, Dutch tourists were asked using the enclosed questionnaire of 2nd_August

2008. The question was: “to what extent are you familiar with Lapland?” Respondents could answer on a five points scale: 1 = very unfamiliar; 5= very familiar. The mean answer was 2,15 (with std. deviation: 1,089) which implies the customers are unfamiliar with the destination Lapland.

1.3 The research questions

1_{Data conducted from research of Voigt Travel among prospects that ordered the}

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Lapland is a relatively unknown country. As Mr. Jyrki Oksanen, marketing representative of the tourist board of Finland says: “Dutch people still don’t know Finland and Lapland”. In other words, the public is not sure what to expect from the destination. Voigt Travel’s fly and drive to Lapland is, therefore, new to the majority of the market. People need to know and accept the new activity, in order to make it legitimate (Aldrich and Fiol, 1994). Legitimacy plays an important role in the establishment of the new activity of Voigt Travel. This leads to the following research question:

1. “How should Voigt Travel gain legitimacy for their fly and drive to Lapland in summer?”

Since the introduction in 2006, this fly and drive has not been a huge commercial success. Therefore, it is important to understand if Voigt Travel is delivering a sufficient level of value to the customers. The value of the fly and drive for a customer is a trade-off between the benefits received and the sacrifices made by the customer (Zeithaml 1988; Sanchez e.a. 2006). For instance, a satisfied customer may consider the product of poor value when the costs for obtaining it are perceived to be too high. Thus, in order to support Voigt Travel to anticipate on the perceived values of their customers, it is important to understand what components of the fly and drive make up whether customers get “value for money”. Zeithaml (1988) classifies these components together as the perceived value of a service or product.

This study assumes the fundament under a tourism package is the reputation of the destination. The quality of the package can be perfect, however, if the destination is for instance a dangerous destination it will definitely influence the perceived value of the trip. Since Lapland is a relatively unfamiliar destination, this study will increase our understanding in the role of the reputation of Lapland in the perceived value of the fly and drive. Moreover, the reputation of the tour operator (Voigt Travel) will also influence the perceived value. This variable is therefore also included in this study. All these components, which ensures to the customers whether the tourist product provides value for money or not, leads to the following research question:

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3. Value Creation _{Appropriation}4. Value Reputation

Lapland Voigt TravelReputation 2. Legitimacy

Additionally, the fly and drive involves direct flights, also called charter flights. The risks and responsibilities of the charters are with the tour operator. In other words, if the utilization rate of a flight is below the break-even point, the tour operator is responsible for the financial losses. This makes the fly and drive to Lapland a risky activity. Furthermore, a disadvantage of service concepts is the high imitability (Teece, 1986; Dolfsma, 2005). All these factors make it important for the innovator (Voigt Travel) to reap the benefits of this new activity; it needs to capture and protect the value of this service concept. Teece (1986) calls this the value appropriation of an innovation. Moreover, the role of the reputation will be discussed as a core element in protecting the value of a service in order to become competitive (Dolfsma, 2005). Because Voigt Travel wants to have a profitable fly and drive to Lapland in the summer, the following research question is:

3. “Which variables of value appropriation capture or protect the value of a service concept, and what is the role of the reputation of Voigt Travel to it?”

Figure 1.2 reflects the research model of this study and visualizes the relationships between the variables that frame this research. Reputation is an important variable in the legitimacy of a service concept (Aldrich and Fiol, 1994). Therefore, the focus is on this variable to investigate its role in the value creation and value appropriation of Voigt Travel’s fly and drive to Lapland in the summer. The thickness of the arrows shows the strength of influence. It is assumed that the reputation of Lapland and Voigt Travel is affecting the value creation. Contrary, particularly the reputation of Voigt Travel is affecting the value appropriation. Chapter two will elaborate this more extensively. The numbers refer to the chapters in this research.

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1.4 Research limitations & contributions

This research focuses on the service innovation of Voigt Travel, namely direct flights to Lapland during the summer. This implies that in this research the value creation and value appropriation of only one destination is elaborated. Lapland is an exclusive destination, which insists the outcomes of this research are probably not completely relevant for mass-tourism destinations. Moreover, Voigt Travel is a relatively small tour operator. Therefore, the outcomes of this study are probably more suitable for the smaller tour operators.

This study provides a deeper inside in the way a small tour operator is able to appropriate the value of its innovation, which is an important research contribution to the existent literature since value appropriation in the tourism industry has not been much researched yet. Moreover, this study draws a strong linkage between reputation and legitimacy. Without doubt the linkage already existed in the literature, but not as detailed as in this research.

1.5 Research outline

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2. Legitimacy and reputation of a new activity

As already introduced in the introduction, in this paper the value creation and value appropriation is closely related to the theory of legitimacy of innovation. This chapter explains how firms can achieve legitimacy for their innovations. Reputation is an important factor within the theory of legitimacy, and will therefore be highlighted.

2.1 Legitimacy of the fly and drive to Lapland

In many cases, customers often lack a frame of reference in understanding the new service and its benefits (Shepherd & Zacharakis, 2003). For people who have not been in Lapland yet, it is hard to assess whether the destination Lapland can meet their needs and, in particular, what the benefits and costs are compared to existing alternatives.

Suchman (1995) defined legitimacy as: “a generalized perception or assumption that the actions of an entity are desirable, proper, or appropriate within some socially constructed system of norms, values, beliefs, and definitions.” In the theory of legitimacy, Aldrich and Fiol (1994) distinguish between cognitive legitimacy and socio-political legitimacy:

•

Cognitive legitimacy: consumers have sufficient knowledge of the new venture.

•

Socio-political legitimacy: consumers perceive the new venture to be according to the general accepted rules and standards.

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stakeholder from another industry. On one hand their main aim is to support consumers in travelling, however, the focus of airlines is not entirely on tourism. Voigt Travel could legitimate their concept through the publicly commitment with an established stakeholder from a different industry. Finally, on the institutional level the innovator can create public legitimacy through collaborating with educational unions. In the case of the tourism industry, those are for instance the ANVR, SGR or governmental tourism boards.

Rao et al. (2008) identified two broad means through which new concepts gain acceptance from their stakeholders:

•

External legitimacy: co-operations with (established) entities influence the legitimacy of a new activity. In the light of Voigt Travel, those entities are for instance local stakeholders – like accommodation providers or safari companies – or other tour operators.

• Internal legitimacy: four different actions make a contribution: history of the firm, the commitment with scientific entities or persons, having a reputation of being the ‘market winner’ and finally locational actions (networking).

The model of Rao et al. (2008) mainly focuses at the innovator, whereas the theory of Aldrich and Fiol (1994) mainly focuses at the new venture.

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2.2 Reputation

According to Bateson (1988), three elements are essential in increasing familiarity and evidence: trust, reliability and reputation. When there is a lack of information, the customer or business partner needs to trust in the new activity. When information accumulates and evidence mounts, they can more rely on reliability and reputation (Aldrich and Fiol, 1994). Building reputation is a result of spreading knowledge and reliability and trust (Dolfsma, 2005). This is closely related to the theory of gaining legitimacy, where Aldrich and Fiol (1994) discuss that those factors constitute the legitimacy of a service or product. Reputation engenders trust; trust is what constitutes legitimacy.

The reputation of Lapland has an eminent influence on the familiarity of the destination to the public. Additionally, the reputation of Voigt Travel will influence the awareness of the public about the fly and drive of Voigt Travel. Because reputation is such an important aspect to obtain legitimacy, the role of this variable will be investigated in the value creation and, subsequently, in the protection and capturing of this created value.

Reputation is defined as the prestige or status of a product or service, as perceived by the purchaser, based on the image of the supplier (Dodds, Monroe, and Grewal 1991). Grönroos (2000) included the reputation of a supplier in his list of seven criteria of good perceived service quality. He defined reputation / credibility as: “customers believe that the service provider’s business can be trusted and gives adequate value for money, and that it stands for good performance and values which can be shared by customers and the service provider.” Furthermore, the destination reputation influences the tourist behaviours (Goeldner et al., 2000; Baloglu et al., 1999; Chen and Tsai, 2007).

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the innovator is a major component within the protection and capturing of the value of a service concept (Dolfsma, 2005; De Brentani, 1989). To recapitulate, a clear reputation leads to more acceptances, due to socio-political and cognitive legitimacy. A clear reputation is also a differentiator, in the sense that a strong brand image protects the value vis-à-vis competitors. In the perspective of value capturing, a strong reputation is able to strengthen the position of the innovator in the value system.

2.3 Conclusion

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3. Creation of value

As the tourism industry offers a wide variety of products with ranging quality and price levels, the consumers are more careful in spending their Euros on high value products (Duman e.a., 2003). To improve the quality of a product or service, the firm has to know what the customer values in a tourism package and what the specific attributes are, that makes the customers prefer Voigt Travel above other providers. The value created can be linked with the socio-political legitimacy of an innovation. A socio-political legitimate innovation means that the value of the tourism package is created according to the rules and standards of the public, in order to create ‘value for money’ (Aldrich & Fiol, 1994). When the created value is according to the demands of the public, the reputation of the tour operator will generally increase. Consumers who have experienced a satisfactorily trip may engage in positive word-of-mouth stimulating both cognitive and socio-political legitimacy.

“What do customers value in a tourist package, and what is the role of the reputation of the destination and tour operator to it?”

First, the literature will clarify the perceived value of a tourism package. Subsequently, this chapter will discuss the components that constitute the perceived value, where after the role of the reputation of Lapland or Voigt Travel in the value of the tourism package will be elaborated on.

3.1 Theoretical background of customer value

Cronin et al. (2000) have shown that customers’ value perceptions drive their future purchase behaviours and word-of-mouth referrals. The theory of perceived value of Zeithaml (1988) is chosen to frame the desired value of the customer of Voigt Travel. Zeithaml (1988) grouped value into four consumer definitions of value:

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value is low price: consumers equate value with a low price

•

value is whatever I want in a product: benefits of the product / service are

the most important components of value

•

value is the quality for the price I pay: value is a trade-off between quality

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•

value is what I get for what I give: value is a trade-off between all benefits

and sacrifices of a customer in order to obtain the service / product.

The majority of the research in the field of tourism emphasizes the fourth definition (Petrick and Backman, 2002).

Perceived value (also known as customer value) and satisfaction needs to be distinguished, although there is a strong correlation. The overall satisfaction entails the feelings of the customer in response to evaluations of one or more use experiences with a product (Woodruff, 1997). Satisfaction is considered a post-purchase construct, whereas the perceived value results from a variety of perceptions and experiences with the service over a period. Furthermore, Woodruff (1997) states that the measurement of satisfaction must be in conjunction with the measurement of perceived value. Zeithaml (1988) considers perceived value as the benefits received from the price paid, which makes it distinctive from quality and satisfaction.

Definitions perceived value According to Zeithaml (1988, p. 14):

The perceived value is a consumer’s overall assessment of the utility of a product based on perceptions of what is received and what is given.

Woodall (2003, p. 21) defined consumer value as:

Value for the customer (VC) is any demand-side, personal perception of advantage arising out of a customer’s association with an organization’s offering, and can occur as reduction in sacrifice; presence of benefit (perceived as either attributes or outcomes); the resultant of any weighed combination of sacrifice and benefit (determined and expressed either rationally or intuitively); or an aggregation, over time, of any or all of these.

This study makes use of Zeithaml’s (1988) definition of perceived value.

3.2 Multi-dimensional approach to perceived value

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alternative's capacity for functional, utilitarian or physical performance,” (Sheth e.a., 1991a, p.160). Emotional value is the ability of the product or service to arouse feelings or affective states. Pine and Gilmore (1999) address that customers’ affective needs are increasingly important in the emergent competitive environment. The social value is defined as “the perceived utility acquired from an alternative’s association with one or more specific social groups” (Sheth e.a., 1991a, p.161). Especially services or products that involve the interaction with other people involve high social value, like group trips. The tourism packages offer the opportunity to get to know other people. Epistemic value is defined as “the perceived utility acquired when the product arouses curiosity, provides novelty and/or satisfies a desire for knowledge” (Sheth e.a., 1991a, p.162). The literature acknowledges the importance of novelty in purchasing behaviour and it is particularly likely in the case of experiential services such as holidays, adventures or shopping trips (Sheth e.a., 1991a; Babin e.a., 1994) and is possibly less important when considering the purchase of a durable good (Sweeney e.a., 2001). As Crompton (1979) states, novelty is a basic motivation for tourists in their purchase decision. According to Williams and Soutar (2000), this value has a strong impact on people’s choice of the product and the satisfaction they derive from it. They conclude that ‘tour operators need to change and adapt their products to create new and novel experiences for all participants’. Conditional value is “the perceived utility acquired by an alternative as the result of the specific situation or set of circumstances facing the choice maker” (Sheth e.a., 1991a, p.162). Some products or services have seasonal value (winter sports), or emergency value (ambulance service) etc. The value depends on the situation. In case of Lapland, this destination creates much value for a large number of people during the period of Christmas, due to Rovaniemi, the hometown of Santa Claus.

3.3

Classification of benefits and sacrifices

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service / product. Where some authors addressed value as a trade-off between quality and price, the perceived value of a tourism product should be studied in a wider context. For a service product it is not just the product that creates value, it is the entire process.

From the literature the following five main variables are defined, which influence the perceived value of a tourism package: the reputation of the destination and the tour operator (Petrick, 2004; Dodds e.a., 1991; Chen & Tsai, 2004), the monetary costs (Sweeney e.a., 1998; Williams & Soutar, 2000; Zeithaml, 1988; Petrick, 2004), the

non-monetary costs (Sweeney e.a., 1998; Williams & Soutar, 2000; Zeithaml, 1988;

Petrick, 2004), quality of service (Otto & Ritchie, 1996; Petrick, 2004; Babin e.a., 1994) and the quality of service experience (Otto & Ritchie, 1996; Petrick, 2004; Sweeney e.a., 1998). Table 3.1 offers an overview of the paradigm of benefits and sacrifices, as well as the role of reputation.

Table 3.1 Variables constituting the perceived value

Author Reputation Destination / tour operator Sacrifices Benefits Monetary costs Non-monetary costs Quality of Service (cognitive) Quality of Service Experience (affective) Holbrook & Hirschman (1982) Uniqueness, symbolic meaning, emotional arousal Sweeney, Soutar & Johnson (1998)

Price Perceived risk Functional value

Emotional response

Sheth, Newman & Gross (1991a)

Functional value Curiosity, novelty, education, interactive Williams and Soutar (2000)

Price Risk Functional

value

Happy, feeling good, peace Otto & Ritchie

(1995) Functional / utilitarian benefits Objective measurement Experiential / affective benefits Subjective measurement Zeithaml (1988) Extrinsic attributes

Price Time and effort

Service Quality Intrinsic attributes Petrick (2004) Reputation Price Time and

effort used to search and purchase, brand image,

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convenience, purchase risk Babin, Darden,

Griffin (1994)

Perceived risk Service quality Increased arousal, heightened involvement, perceived freedom, fantasy fulfilment, escapism

Duman & Mattila (2005) Affective factors Baloglu (1999) Cognitive items Socio-psychological travel motivations 3.3.1 Benefits

Otto and Ritchie (1996) developed a distinction that framed the benefits as the quality of service and the quality of service experience. A distinction is made between cognitive and affective values. Inner- or self-directed values contain predominantly emotional / affective drives, while outer-directed values are mainly cognitive in nature (Gnoth, 1997). Cognitive evaluations lead to knowledge of meanings or beliefs of the object that the consumer has developed from his/her own experiences. Cognitive value can be related to the utilitarian dimension of a consumption experience, which relates to the product or services fulfilling the functional goals and can, therefore, be defined as the quality of service. The service quality is in the literature classified as an antecedent of perceived value (Zeithaml 1988; Petrick 2002) and reflects the functional value of the tourism package (Sheth 1991a; Williams e.a. 2000). The perceived service quality is the difference between the guest’s expectations and the actual service delivered (Komppula, 2006). Utilitarian benefits for the tourist are for example, reliable employees, safe transportation, nicely located accommodation etc. They are supposed to be the basics of a service or product.

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Affective evaluations refer to the feelings the consumer has towards the object (Beerli e.a., 2004), which implies emotions as love, hate, joy, boredom, anxiety, pride, anger, disgust, stupidity, sympathy, lust, greed, guilt, shame and awe (Holbrook e.a., 1982). Affective values are important in the consumption process of hedonic services (Kempf, 1999; Otto e.a., 1999; Sanchez e.a., 2004). Therefore, attention must be paid to the emotional component of tourist behaviour. Leisure activities, such as tourism, need to resort to fantasies, feelings and emotions to explain purchasing behaviour (Sanchez e.a., 2006). According to Kempf (1999), affective gratification is the main consumption goal for hedonic services, like tourism. It is clear that the quality of an experience is based on affective values and hedonic benefits, which are a critical part of the evaluation process (Otto e.a., 1996). According to Holbrook and Hirschman (1982), the hedonic dimension of a consumption experience can be derived from a product’s uniqueness, symbolic meaning, or the emotional arousal and imagery it evokes. Sweeney et al. (1998) defined the experiential benefits as an emotional response, which is a descriptive judgment regarding the pleasure that a product or service gives the purchaser. In the value dimensions of Sheth et al. (1991a), three dimensions relate to the experiential perspective of benefits. The epistemic values occur when the service or product arouses curiosity, provides novelty and/or satisfies a desire for knowledge. These benefits are consistent with experiential benefits as excitement, enjoyment, memorability, novelty and stimulation (Holbrook e.a. 1982; Otto e.a. 1995). It also refers to the emotional dimension of De Ruyter et al. (1997) and Sheth et al. (1991), which reflects the feelings of the consumer in relation to the stage in the service delivery process. Williams and Soutar (2000), use terms as ‘being happy’ and ‘feeling good’. The social value is a benefit in the sense that interaction with others makes you feel good. Arnould & Price (1993) and Otto & Ritchie (1995) have also mentioned the benefit of interactive. It can be concluded that the quality of service experience is the general term for the hedonic benefits, novelty and stimulation.

3.3.2 Sacrifices

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intangibility and variability of a service may induce higher level of risks as a consequence of the dependability on subjective evaluations (Williams e.a., 2000). People who have never visited Lapland yet, do not know exactly what value for money they will obtain in Lapland. Based on the theory of Reinders & Baker (1998), Voigt Travel should provide extensive decision support and provide sufficient information in order to inform the customer sufficiently.

3.4 Reputation

3.4.1 Reputation of the tour operator

A factor that cannot be easily classified in the classification of sacrifices and benefits, but influences the purchase behaviour of a tourist is the reputation of the travel agency / tour operator. Reputation is defined as the prestige or status of a product or service, as perceived by the purchaser, based on the image of the supplier (Dodds et al. 1991). Grönroos (2000) defined reputation / credibility as: customers believe that the service provider’s business can be trusted and gives adequate value for money, and that it stands for good performance and values, which can be shared by customers and the service provider. In his study of the antecedents of the perceived value of first-timers and repeat-visitors of a cruise-line, Petrick (2004) included the variable reputation in his scale of perceived value. He concluded that the reputation of the cruise-line was not related to either segment’s perceived value, but did have the highest overall loading as antecedent of service quality. This implies that “cruise management wishing to position themselves with the use of quality should pay considerable attention to their reputation” (Petrick, 2004).

3.4.2 Reputation of the destination

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Figure 3.1 draws the variables constituting the branding of the destination schematically. An important aspect within the establishment of a positive reputation is the history of that particular destination (Goeldner et al., 2000). This dimension stimulates the creation of a unique tourist experience through the historic sites, stories and legends. Goeldner et al. (2000) also state that history is the factor, which differentiates and unites nations. Although Voigt Travel does not communicate it explicitly in their marketing-communication, Lapland has a rich history. Lapland is the home of the last nomads of Europe: the Saami. We could also think about their liberation from the Russian and Swedish empire and the way the Finns mastered the Russian and German troops. Moreover, Finnish Lapland is one of the biggest suppliers of lumber in the world. Additionally, the cultural dimension is an eminent factor in establishing reputation of a destination (Goeldner et al., 2000). There is a prominent contribution of the Saami-culture and the old lumberjack culture, which was the starting point of the modern civilization. Finally, the natural dimension is important for the reputation. Lapland is absolutely outshining in natural characteristics within Europe: the midnight sun, northern light, remoteness, seasons etc.

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3.5 Context-dependent nature of perceived value

As already explained, the perceived value differs between individuals (repeat visitors vs. first-timers) or circumstances (moment of consumption). Petrick (2004) made a distinction between first-timers and repeat visitors. He concludes that repeat visitors are more likely to base their perceptions of quality on how the service makes them feel, whereas first-timers are more likely to base their perception on the price. In other words, first-timers mainly base their perceived value on the things they know, like the price. First-timers do not know exactly what value for money they will obtain in Lapland. First-timers are relatively more influenced by perceived service quality compared with repeat-visitors. Since Petrick (2004) accepted the reputation of the provider a decisive predictor of the service quality, the reputation of the supplier is a more decisive factor for first-timers

Reputation Finnish Lapland Cultural dimensions: Saami, lumberjacks Nature dimensions:

Coldness, ice, snow, Polar Circle, Midnight Sun, Northern

Light, silence, emptiness, remoteness, reindeers, salmon,

forest…

Historical dimensions:

Fishermen & Saami, lumberjacks, WWII,

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Consumers’ perceived value differs between the pre-consumption stage and the post-consumption stage (Petrick and Backman, 2002; Williams and Soutar, 2000; Broekhuizen, 2006; Woodall, 2006). Williams and Soutar (2000) state that the cognitive benefits – such as tour guides, vehicles, accommodation etc. – are important factors in consumers’ pre-tour perceptions of value, whereas the affective benefits form the key dimension for consumers’ post-consumption value perception of the service concept.

The different contexts of perceived value are important to keep in mind, since it affects the communication between tour operator and customer.

3.6 Conclusion value creation

In particular the theory of Zeithaml (1988) and Petrick’s (2002) exploration of Zeithaml’s theory make a contribution in a framework in order to understand whether the value of the fly and drive to Lapland is of sufficient level. The variables monetary costs, nonmonetary costs, quality of service and quality of service experience constitute the trade-off between benefits and sacrifices. Additionally, the reputation of the destination and the tour operator can have an influence on the perceived value through altering the service quality levels. Via questionnaires, the perceived value of the fly and drive will be examined. The research methodology and results are discussed in, respectively, chapter 5 and 6.

4. Value appropriation

4.1 Introduction

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concentrates on the competition with colleague tour operators and suppliers. Value appropriation depends on each of the players involved in the production of a particular good or service (Brandenburger and Nalebuff, 1996). For a firm, which creates value, it is not evident that it captures all part of the value of the concept. Teece (1986) argues that the innovator captures only around 20% of the value created, see figure 4.1. Moreover, as Noboa (2002) states, “while certain conditions external to the firm may improve the ability to create value, it can also threaten the firms’ ability to appropriate it.” For example, the internet triggers innovative ways of doing business in the tourism industry and may create value in the sense of, for instance, transactions with buyers. However, the overload of information on the internet and the reducement of difficulty of purchasing may also threaten the extraction of price premiums of buyers.

Figure 4.1 Capturing of value (adapted from Teece, 1986).

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Figure 4.2 The vertical and horizontal dimension of value appropriation.

The actions of suppliers that participate in the distribution system of the tourist package all contribute to the success of the service concept. This network has a dominant influence in the value appropriation. The variables that constitute the perceived value of the tourism packages are all a result of the cooperation among different actors. Koza and Lewin (1998) discuss the theory of coopetition, the paradigm of competition and cooperation simultaneously (Brandenburger and Nalebuffe, 1996). They claim that tour operators cooperate in activities far away from the customer and compete in activities close to its customers. To reflect this to the case of Voigt Travel, Voigt Travel cooperates with suppliers of accommodation or airlines. Voigt Travel also offers seats in their direct flights to a competitor as VrijUit, in order to make the activity more efficient, but in the same time competes with the same actor for the transaction with the same client. According to Wang and Krakover (2008) the two traditional perspectives of competition and cooperation are evolved in different research streams. Value appropriation is focusing on competition, whereas value creation is focusing on collective (cooperative) strategies. However, value capturing does involve the cooperation with local stakeholders in order to appropriate the value, which suggests it can have cooperative characteristics. Therefore, the tour operator is facing the paradigm of coopetition; the tour operator should create and capture at the same time.

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A dominance of the design of the innovation is an indication in which stage the innovator is and which strategy it should follow in order to appropriate the value. It is commonly recognized that there are two stages in the development of a design of a product or service: the pre-paradigmatic stage, when there is no generally accepted standard for the new product or service yet. In this stage it is all about growth. In the paradigmatic stage the concept is scientifically accepted. Voigt Travel’s fly and drive to Lapland in the summer is situated in the pre-paradigmatic stage. Teece (1986) states that once a dominant design emerges, the competition shifts to price and away from design. Lowering the unit costs through exploiting economies of scale and learning becomes the main goal of the business strategy. Once the design matures, there is likely to be a search for process innovation in order to lower the costs.

There appears to be a strong linkage between the value appropriation and seller diffusion. Seller diffusion is the adaptation of the innovation by competitors (Gemser, 2007). In the perspective of Voigt Travel, the fly and drive can be initiated and stimulated (dissemination), or deterred and prevented by the innovator (imitation). For Voigt Travel this is an important strategic choice, since on the one hand Voigt Travel wants to be unique in being the only tour operator offering direct flights to Lapland (prevention of imitation), but on the other hand Voigt Travel needs other tour operators in order to fill the airplanes and disseminate the concept of the fly and drive to Lapland. It can be concluded that in this pre-paradigmatic stage the value capturing is more important than the value protection; the pie is just not big enough to eat from it.

4.2 The elements of value appropriation

Several elements influence firms in reaping the fruits from an innovation. The literature distinguishes between formal and informal means in the value appropriation. Teece (1986) classified the legal environment as the only formal variable.

Table 4.1 Formal elements of value appropriation

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The legal environment Teece (1986) IPR, labour rights, appro-priability regime, trademark

The protection of an innovation through Intellectual Property Rights (IPRs) depends on the appropriability regime. When the appropriability regime is tight, then technology or knowledge is easy to protect. Intangibility makes the appropriation weak (Teece, 1986). When the appropriability regime is weak, technology or knowledge is difficult to protect in formal terms. In the United States a firm is able to protect a business model with IPR, but this cannot be done in Europe (Dolfsma, 2005). Dolfsma agrees with Teece that the appropriability regime of a service innovation is relatively weak. This implies that formal instruments to protect a non-technical concept are less relevant in comparison with a non-technical concept; then informal means are getting more important.

Table 4.2 Informal elements of value appropriation

Informal Variables Author Keywords

Nature of technology or knowledge

Teece (1986) Type of innovation, tacit or codified knowledge

Complementary assets Teece (1986) (co)specialized assets, network Reputation of organization Dolfsma (2005); De

Brentani (1989)

Reliable, trustworthy, reputable,

Market lead time Levin et al. (1987); Gemser & Wijnberg (2001); Harabi (1995)

Continuous development, learning curve, superior sales

Exclusivity suppliers Gemser & Wijnberg (2001)

Network, equilibrium

Table 4.2 presents the informal variables which are, according to the literature, constituting variables in the value appropriation. Regarding the nature of technology

or knowledge, the degree to which knowledge is tacit or codified affects the ease of

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every tour operator has the tight relationships and volume as Voigt Travel to obtain the same contracts with stakeholders. Therefore, this is an interesting constituting factor of appropriating the value of a tourism concept.

The complementary assets can be seen as the assets beyond the technical fundament of an innovation, which helps the innovation to become a commercial success. For example, in order to become successful, a service needs good marketing, distribution and after sales support. The innovator or follower usually needs this specialized expertise. For instance, the fly and drive to Lapland with the best value for money will not become a huge commercial success when the marketing is insufficient. When legal protection is weak and the industry is beginning to mature, integration into specific co-specialized assets will occur (Teece, 1986). Having a (co) specialized asset means it is very difficult for others to imitate; you depend on the success of others. Those parties are mostly difficult to acquire. The direct flight of Voigt travel can be considered to be a co-specialized asset. However, for success Voigt Travel depends on the airline companies.

The market lead time is a very important informal variable affecting the value appropriation (Levin et al., 1987; Gemser 2007; Harabi, 1995). Gemser and Wijnberg (2001) call this variable the continuous development of a product or service. When the lead time is short, it is for followers easy to adapt on the innovating concept. According to Harabi (1995), lead time can be used to achieve learning curve advantages and to build up superior sales and service efforts. Furthermore, lead time can also be used to hinder or delay the imitators. When Voigt Travel continuously develop its existing innovative concept, it is hard for followers to adapt their service concept on Voigt Travel’s fly and drive to Lapland.

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instance Voigt Travel, it can have interesting benefits in order to protect the service concept (Hultkrantz, 2002). Regarding exclusive suppliers it could also be thought of colleague organizations (e.g. tour operator Vrijuit) that, through the indirect sales activities, bring in extra volume.

Another element is very relevant in the case of the appropriability of the benefits of a service innovation: reputation of the service provider. Several authors like De Brentani (1989), Ford and Bowen (2002) and Dolfsma (2005) all underline the importance of a strong reputation as a core element for value appropriation. Ford and Bowen (2002) state that new services must rely on trust to convince the customer, and additionally, according to De Brentani (1989) buyers rely on company’s reputation when evaluating new services. Dolfsma (2005) states that a firm’s reputation persuades the customers of the value of the new service, and, subsequently, the competitors are less likely to persuade the market of the strength of their service. When the innovator is more reputable is has more power.

4.3 The role of reputation in appropriating the value

Reputation is a core element to protect the value of a service in order to become competitive (Dolfsma, 2005). Again, as discussed in chapter two, we approach reputation through the theory of legitimacy. Rao et al. (2008) states, legitimacy can be gained in different means, namely internally and externally. This framework shows how to capture and protect the value of innovation. Through their eyes, the role of reputation will be elaborated in the vertical and horizontal perspective of value appropriation.

4.3.1 The role of reputation in the vertical perspective

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Rao et al. (2008) divided the source of legitimacy in an external and internal perspective. In the external context, the innovator can gain legitimacy from the co-operation with other stakeholders. According to Rao: the co-co-operation confers two benefits: the alliance with an established player suggests that the innovation has an extensive pool of resources and capabilities to make the new activity a success. Secondly, the fact that the innovator was able to attract another important stakeholder in the first place suggests that the new activity has high potential.

Figure 4.3 Dimensions of legitimacy (adapted from Rao et al., 2008).

A firm gains internal legitimacy if the factors scientific, market, localization and historic are more positive. Concerning historical legitimacy, if the firm has experiences in prior successful product launch, then it is more likely that the success of a different product launch in the future is high. To other stakeholders it is a sign of reliability. It can be assumed that stakeholders give more respect and are more willing to co-operate with a tour operator that has much experience in the industry. Therefore, historical legitimacy is important in strengthening the position of the innovator in the value system.

Another factor is the localization of the firm. A way to secure the position of the firm is through a strategic position in a network. According to Rao et al. (2008), the presence of a firm within in a network has three benefits in the establishment of legitimacy. First, the presence in the network indicates to stakeholders that the firm has access to specialized inputs and skilled labour. Second, it indicates to stakeholders that the firm has the latest market and product intelligence. Third, it shows that the venture can gain from complementarities that result from the cooperation with related firms. Voigt Travel could position themselves in a network

Legitimacy

External

(alliances) Internal

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with local stakeholders and tourist boards, with distributors or other tour operators and travel agencies. To suppliers it is a sign that Voigt Travel is a reputable actor. To customers it is a sign Voigt Travel is providing quality. This might have influence on customers’ willingness to pay.

Moreover, the factor market legitimacy suggests that the presence of experienced professionals from related fields show to other stakeholders that the firm is market oriented in its approach. Furthermore, the chance of successful commercialization of the new venture is higher and the executives are able to pick the market winners (Rao et al., 2008). Voigt Travel can stimulate their position by having executives who are reputable in their field, in order to legitimate the new activity to the market. However, it is very unlikely that consumers would use this information, whereas it might be important in b-to-b relationships with airlines or local stakeholders.

Finally, scientific legitimacy suggests that new ventures convey the stakeholders that the innovator understands the latest science in the field. A way to achieve this is through cooperating with scientific institutions. Another way is through assigning leadership roles to scientists and academics. According to Rao et al. (2008), “their presence suggests that the innovator is able to develop new products by itself, it has access to knowledge outside the firm and the stakeholders have some assurance that the firm has the capacity to absorb new knowledge from outside entities.” Since the tourism package is a service concept without scientific technical attributes, the scientific legitimacy of a tourism package is more related to the knowledge of the destination and the performed activities. It is questionable if scientific legitimacy has influence on the position of Voigt Travel in the value system.

4.3.2 The role of reputation in the horizontal perspective

In the horizontal / competitive perspective, the reputation is a strong factor in protecting the value of the concept. According to Dolfsma (2005) the reputation support the firm that “competing firms are less likely to persuade the market that its services are to be considered.” A clear and dominant reputation differentiates the firm from the competition.

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Travel could pinpoint the brand name of the distributor Finnair or Transavia. This creates another barricade for rivals.

When the innovator has a better locational legitimacy then competitors, like in a network with tourist boards, the firm can differentiate from their competitors and protect the service concept. The reputation of the innovator will also have beneficial influence on the relationships with local stakeholders. When the stakeholders know that Voigt Travel is a reliable and reputable party, providing a sufficient volume all year round, Voigt Travel might obtain exclusivity in a specific region. The result is a strong network where the individual parties jointly develop the quality of the tourism package. For other tour operators it will be tough to create the same kind of network or break-in into a network of the innovator. Voigt Travel depends on the quality of the other suppliers and distributors. Concerning the fly and drive concept, it derives all its value from the existence of a network with suppliers of accommodation, car rental or a distributor. A well positioning within a network stimulates the value creation, but it also creates barricades for rivals.

In the case of Voigt Travel it is important to have a reputation of being ‘the specialist of Lapland’. Being the specialist insists that Voigt Travel has – compared to its competitors – more historical legitimacy in offering tourism packages to Lapland.

It is questionable if assigning scientific leaders bring added value in the protection of the concept. The concept is intangible, difficult to protect with IPRs and information is disseminated and, thus, easy to copy by competitors. Therefore, the role of scientific institutions can considered to play a marginal role. The same counts for market legitimacy. Having a market-oriented executive does not secure protection on the long term.

4.4 Conclusion value appropriation

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5. Research methodology

This section presents an overview of the framework of the research methodologies used to gather the empirical data. Two research techniques have been used:

•

two empirical surveys among customers

•

two interviews with industry experts 5.1 Sample

The empirical data is gathered through questioning different groups, based on their relevance with the specific research questions. In order to answer the research question

“What do customers value in a tourist package, and what is the role of the reputation

of Voigt Travel and Lapland to it?”

the next two groups are questioned

•

Customers that still need to go to Lapland

•

Customers that have just experienced their visit to Lapland

The benefit of questioning the two stages is the opportunity to determine the difference between the pre-consumption stage and the post-consumption stage. According to Williams & Soutar (2000), the emotional value is a key dimension for consumers’ post-consumption value perceptions of adventure tourism experiences. Moreover, the literature suggests cognitive factors (service quality) are more decisive in the pre-consumption stage. This questionnaire will evaluate these findings

.

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In order to answer the research question:

“Which variables of value appropriation capture or protect the value of a service concept, and what is the role of the reputation of Voigt Travel to it?”

the next two persons have been interviewed:

• Mr. Cees van den Bosch: managing director Voigt Travel

•

Mr. Henk van der Kooi: managing director BBI-Travel (competitor) Figure 5.1 Framework of empirical research data

5.1.1 Customers’ evaluation criteria before their tourism experience

This sample gives an indication of their perceived value of the fly and drive to Lapland in the summer, just before the flight trip to Lapland. The questions are related to the variables of chapter 3, which constitute the expected perceived value of the customer: monetary costs, non-monetary costs, reputation, quality of service and quality of service experience.

A self-administrated questionnaire has been used to collect the empirical data. The first four questions create an understanding of the background of the respondent. The other questions were asked on five-point scale level in order to understand their perceived value and their perception of the destination and the tour operator. Please see appendix B for the questionnaire.

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Right after the consumption of the fly & drive to Lapland a similar group has been interviewed. The results increases Voigt Travel’s understanding of what the most attractive variables are for the customers. Marketing-technically this is important for Voigt Travel in the sense that they know which factors to emphasize in their marketing-communication, like brochures, in order to improve their conversion rate next year. See appendix C for the detailed overview of this questionnaire.

Table 5.1 Scale items questionnaire customers Scale Item num-ber Questions Pre- consump tion Post-consump tion Gate-keepers GK1 GK2 GK3 GK4 GK5 GK6 GK7

In the booking-stage of this trip I was influenced by: relatives family/friends internet magazines television employees travel organization trade associations X X X X X X X Reputation Lapland

RepL1 To which degree are you familiar with Lapland? X

RepL2 Lapland is well known for its cultural attractions X X RepL3 Lapland is well known for its historical attractions X X RepL4 Lapland is well known for its unique flora & fauna X X RepL5 Lapland is well known for its Saami-culture X X RepL6 Lapland is well known for its attractive

price/quality

X X

RepL7 To which degree are you attracted to Lapland X X RepL8 To which degree does the reputation of Lapland

determine the value of this trip

X X

Reputation Voigt Travel

RepV1 Voigt Travel is a reliable organization X X RepV2 Voigt Travel is the specialist of Lapland X X RepV3 The reputation of my travel organization is an

important motivation in booking this trip

X X

RepV4 To which degree does the reputation of travel organization determine the value of the trip

X X

Monetary costs

Mon1 To me the price of the fly and drive is a huge sacrifice / no big sacrifice

X X

Mon2 To which degree does the price determine the value of this trip

X X

Non- monetary Costs

Nmo1 The time and energy spent in booking the flight was a huge sacrifice / no big sacrifice

X

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Nmo4 I am scared for bad weather X Nmo5 To which degree is the elimination of insecurities

a decisive factor in booking this trip

X

Nmo6 In my opinion the fly and drive to Lapland is a huge sacrifice / no big sacrifice in terms of time, money and insecurity

X X

Nmo7 The time spent on travelling was a big / not a big sacrifice

X

Nmo8 To which degree does the elimination of insecurities determine the value of this trip

X

Quality of service

SQ1 The employees of my travel org. are very competent / not competent

X X

SQ2 The employees of my travel org. are easy to approach / difficult to approach

X X

SQ3 The employees of my travel org. are very friendly / very unfriendly

X X

SQ4 The services delivered by my travel org. possess high quality

X X

SQ5 My travel org. delivers enough information to make a well thought-out decision

X X

SQ6 To which degree is the service quality a decisive factor in booking this trip

X X

SQ7 To which degree is the direct flight a decisive factor in booking this trip

X X

SQ8 Quality of the accommodations (location / comfortability)

X

SQ9 The quality of the route (attractive / unattractive) X Quality of

service experience

Qex1 To relieve from stress X X

Qex2 To relax physically and mentally X X

Qex3 To enjoy the space and serenity X X

Qex4 To escape from daily routine X X

Qex5 To be adventurous X X

Qex6 To do exciting things X X

Qex7 To let me entertain X X

Qex8 To learn new things X X

Qex9 To learn new cultures X X

Qex10 To discover new places X X

Qex11 To let me surprise X X

Qex12 To meat new people X X

Qex13 To build-up new friendships X X

Qex14 To visit places my friends/family have been X X Qex15 To visit places my friends/family haven’t been yet X X Qex16 To which degree are the personal experiences at

destination a decisive factor in booking this trip

X X

Value for Money

VM My travel organization gave me value for money X X

Word of Mouth

WOM How positive / negative do you share your experiences in Lapland with family or friends?

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5.1.3 Expert interviews

To get a good indication of how Voigt Travel and a competitor are appropriating the value of the service concepts, the managing director of Voigt Travel and the managing director of BBI-Travel are interviewed.

Mr. Cees van den Bosch is the managing director of Voigt Travel and possesses the best overview of the stakeholders involved in the production of the fly and drive to Lapland in the summer. He is questioned how Voigt Travel is capturing and protecting the value of this service concept. Please see appendix D.

Mr. Henk van der Kooi is the managing director of BBI-Travel, a firm relatively similar to Voigt Travel. Both are semi-specialist tour operators and both compete on the destination Lapland. It is interesting to understand how this firm is doing the business in terms of value appropriation. Please see appendix E for the details of this interview.

The interviews are framed with support of the theory of Lewin et al. (1987) and Teece (1986). Moreover, through using the theory of Rao et al. (2008), the value capturing and protection is discussed in the perspective of gaining internal and external legitimacy.

5.2 Data collection

In order to understand how the customers value the components, which constitute the perceived value of the fly and drive to Lapland in the summer, two survey studies are held.

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The method of research is a structured questionnaire, including numeric questions (about the background of the respondent), questions on scale (five points scale) and open questions.

I selected the respondents subjectively, trying to avoid the probabilities that several persons within a family filled-in the questionnaire. It is obvious that the tourism experience is subjective and therefore individual, however, related people influence each other. Nevertheless, there is a considerable chance a small number of questionnaires are filled-in by people belonging to the same group (sample bias).

Value Creation and Value Appropriation of a New Fly- and-Drive Concept to Lapland.

and-Drive Concept to Lapland.

MScBA Master Thesis

By Wietse Dijkstra

Rijksuniversiteit Groningen

Value Creation and Value Appropriation of a New

Fly-and-Drive Concept to Lapland.

Preface

Abstract

Table of contents

5.1.3

5.2

Introduction of research

2.

Legitimacy and reputation of a new activity

•

•

•

3.

Creation of value

•

•

•

•

3.3

4.

Value appropriation

5.

Research methodology

•

•

•

•

•