The effectiveness of tryvertising in hotels

Abstract

Advertising has been a common practice to promote products and services in the tourism and hospitality industry. Although ample research has investigated customers’ perceptions of and reactions to advertising visuals, direct experience advertising strategies, such as tryvertising have been ignored. As an emerging direct experience approach, tryvertising has been increasingly used in tourism and hospitality businesses especially in hotels. This study explores the effectiveness of tryvertising practices on customer purchase behaviors in hotel settings. Two real data sets that combine 6858 records of customers’ hotel stays and guestroom products purchase transactions were obtained from a hotel management company that uses tryvertising strategies in China. The results from a Heckit model analysis determine the potential factors that affect hotel guests’ likelihood to buy and the amount of money spent on products promoted through tryvertising. This study fills this void in the current literature that focuses on traditional mass advertisements and behavioral intentions rather than actual purchase behaviors. It contributes to the literature with empirical evidence of the impact of tryvertising strategies on consumer behaviors in a hotel context. Managerial implications are suggested for practitioners to customize their tryvertising strategies.