Literature Review Event Management

  A RT I C L E _{and Business Application Asia-Pacific Management 3 (2) 74 - 85 ©UB 2014} University of Brawijaya The Determinants of Visitor’s Revisit Intention: _{Malang, Indonesia} A Lesson from Ijen Car Free Day _{a* http://apmba.ub.ac.id}

  Cesya Rizkika Parahiyanti b Ananda Sabil Hussein _{a b} Faculty of Economics and Business, Gajah Mada University, Yogyakarta, Indonesia; Faculty of Economics and Business, University of Brawijaya, Malang, Indonesia

Abstract

  Event industry currently is considered as one of interesting business opportunity in contributing major positive economic impact. Event could be categorized into some activities conducted by an event management or event organizer in the case of achieving some specific outcomes. An event is also recognized as an essential marketing tool in branding of particular destination. It has a powerful function to make a differentiation between one destination and others. This study aims to establish a theoretical event brand equity for which the key components of the brand equity were evaluated from visitor perspective in the tourism context. Brand equity is constructed by four multidimensions which are event brand awareness (EBA), event brand image (EBI), event brand quality (EBQ), and event revisit intention (ERI). By using convenience sampling, 205 visitors of Ijen Car Free Day (ICFD) as the event object were used as respondents to obtain the data. This study uses Partial Least Square (PLS) to analyze the data both in outer model and inner model measurements. The finding of this study indicate that EBA has positive and significant influence to EBI, EBQ, and ERI. Then, EBI is also proven giving positive and significant influence to EBQ and ERI. In contrary, EBQ does not show significant influence to ERI. The significance movement of this study could be useful measurement in assessing event brand equity management in the future.

Keywords

  Event Brand Awareness (EBA), Event Brand Image (EBI), Event Brand Quality (EBQ), Event Revisit Intention (ERI)

  Received: 12 May 2014; Accepted: 5 November 2014; Published Online: 30 December 2014

Introduction

  society. Furthermore, event is an activity that could support increasing the branding The event industry is one of the world’s largest employers and contributes major of a location, such as a city, a province or positive economic impact (Theocharis, a country. Thus, an event is not only held 2008; Kose, et all, 2011). Basically, the and managed by an event organizer, but also managed by local government. The aim of conducting an event is gathering aim of government to take a concern in people in one moment to do a similar activity and creating the communities holding the event is to boost up a positive _{Corresponding author Email: cesyaim11@gmail.com} as the part of social interaction in one reputation toward the destination branding.

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  Some of reguler events are basically created because of decreasing open public space since there are a lot of buildings such as shopping centres, apartments, and residential. Regarding with the changing of lifestyle in medium-class society who pay more attention to the healthiness, the Government of Malang conducts Car Free Dat at Ijen Street. This event now is recognised as Ijen Car Free Day (ICFD).

  Ijen Car Free Day (ICFD) in Malang was started for the first time in December 2011. Historically, Car Free Day (CFD) was began by European around 1990’s. In Indonesia, CFD was firstly adapted in Jakarta around June 2007. Seeing the people’s enthusiasm to come in this event, many cities in Indonesia started to adapt the CFD as well. An event cannot be separated from branding strategy. According to Cai (2002) and Lin (2011), developing a destination brand is more difficult rather than developing brand of product or service since destination brand has more complex elements such as the tourist interaction, tourism policy and tourism industry. Measuring brand effectiveness is an important aspect as the determination of successful event in the future (Lin, 2011:15).

  In creating the effectiveness of destination brand, brand equity is an important intangible asset that can provide the event with a competitive advantage. Brand equity depends on the knowledge consumers have about a brand (Aaker, 1991; Keller and Moorthi, 2003; Essoussi, et all, 2010; Lin, 2011). There is still no research conducted about the relationship among the dimensions of brand equity such as brand awareness, brand quality, brand image and brand loyalty in the context of CFD as part of destination branding strategy. For that reason, this study would determine these relationships. Four research objectives were proposed by this study.

  1. To determine the effect of event brand awareness on event revisit intention

  2. To determine the effect event brand awareness on event brand image and event brand quality

  3. To investigate the effect of event brand image on event brand quality

  4. To investigate the effects of event brand image and event brand quality on revisit intention

  Upon the completion of these research objectives, this study provides both thereotical and practical contributions. For theoretical perspective, this study fill some gaps in the destination brand literatures about the relationships among event brand awareness, band quality, brand image and event revisit intention especially in the context of CFD. In practical perspective, this study provides an evaluation for the event management in considering the importance of event brand awareness, event brand quality, and event brand image in creating revisit intention of an event, a source of information and considerations for companies in the effort to have managerial decision making, particularly on the dimensions of the promotional strategy in order to achieve organizational goals, and an information to event organizers and sponsors for both public and private sectors in branding and operating an event brand as well as a tourist destination

Literature Review Event Management

  The event is all about people-people coming together to create, operate, and participate in an experience (Silvers, 2004; Kose, et al., 2011). They enhance the quality of people’s life, provide significant economic benefit, and also provide revenue for special projects. The growth of event industry have made this business believed as one of the world’s largest employers and contributes major The Determinants of Visitor’s Revisit Intention: A Lesson from Ijen Car Free Day

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  positive economic impact (Theocharis, 2008; Kose, et al., 2011). The way in which an organization deals with events is known as event management. Key critical success of an event often is measured from its event marketing. Event marketing is fast emerging as a promotion catalyst as the traditional marketing communication tools. Event marketing allows a company to break through the advertising clutter, and target an audience by enhancing or creating an image through an association with a particular event, while reinforcing the product or service, and driving sales (Gupta, 2003: 87).

Event Brand Awareness

  In case of event and tourism, destination branding has developed considerably as a topic area in the last decade with numerous conceptualizations focusing on different aspects of the brand (Barnes, et al., 2014:121). Destination branding is a powerful marketing tool that could build a positive image and emotional links with visitors and underpinning destination branding are the perceived experiences that a visitor will have at a destination (Morgan, et al., 2004; Barnes, et al., 2014). Destination branding sometimes had been related with the object of the tourism place itself. Tourism is a consumption experience that designates those facts of consumer behavior that relate to the multisensory, fantasy, and emotive aspects of one’s experience of products (Hirschman & Holbrook, 1982; Govers, et al., 2007; Barnes, et al., 2014). The same as destination branding, tourism currently has been considered as one subject of destination that can support to increase the branding of a place where the tourism object is located in. This study enhances the elements of event brand equity to understand the effectiveness of event in boosting the destination branding. The dimensions of event brand equity are consructed by four variables which are event brand awareness, event brand image, event brand quality, and event revisit intention.

  Brand awareness can be defined as the consumer’s ability to identify the brand under different conditions, as reflected by their brand recognition or recall performance (Kotler and Keller, 2006: 286). In term of revisit intention, brand awareness had a considerable contribution in influencing tourist’s revisit intention (Lin, 2011). Other findings has been conducted by Zhou (2011). Quoted in the journal written by Silva (2013), it is found out that developing customer’s brand awareness or brand association contributed to the increase of the revisit intentions (Zhou, 2011). Meanwhile, the following research conducted by Silvia (2013) about the destination branding of Srilanka shows that brand awareness gave a medium correlation toward revisit intention. Lin (2011) states that event brand awareness builds a positive relationship with event brand image from the attendee of event will be affected to higher event brand image created. Positive influence between brand awareness and brand image in term of tourism destination also had been examined by Myagmarsuren and Chen (2011). Lin (2011) also show a positive influence between event brand awareness and event brand quality in case of Mazu Event. The following hypothesis are proposed: H1. Event Brand Awareness (EBA) has a positive influence on Event

Destination Branding

  Revisit Intention (ERI). H2. EBA has a positive influence on Event Brand Image (EBI).

  H3. EBA has a positive influence on Event Brand Quality (EBQ).

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  Brand image is defined as the perceptions and beliefs held by consumer, as reflected in the associations held in consumer memory (Kotler and Keller, 2006:286). Adding brand image for a research of brand equity in the event should determine well about the destination image. Destination image is defined as an individual’s mental representation of knowledge, feelings, and overall perception of a particular destination (Fakeye& Crompton, 1991; Assaker., et al, 2011). Myagmarsuren and Chen (2011) in their study about destination brand equity, satisfaction, and destination with a case study of Mongolia found that destination image gives a positive influence on perceived quality in term of destination with case study of Mongolia. This positive influence between event brand image and brand quality is also found by Lin (2011) in the study of Mazu Event. There was a study showing that destination image has the most important effect on behavioral intentions (intention to revisit and willingness to recommend) (Chen and Tsai, 2007; Silva, 2013).That statement has been followed by the other study conducted by Qu, et al., (2010) that a favorable experiences will create a positive image and recommend the place to others in turn helping potential tourists develop a favorable image that affects the destination choice. The following hypothesis are proposed: H4. EBI has a positive influence on EBQ.

  H5. EBI has a positive influence on ERI.

  Brand quality has been certified as a main dimension of customer-based-brand- equity when it is applied to a destination. A strong perceived quality position is an advantage, which is not easily replaced by competitors (Konecnik&Gartner,

  2007; Boo, et al., 2010; Pike, et al., 2010; Ruizzer, 2010; Lin, 2011). In several studies, it is found out that event brand quality has an important role in influencing revisit intention. Ramadlani (2013) find that perceived quality is the most dominant variable affecting revisit intention through satisfaction followed by perceived value, perceived attractiveness, and perceived risk. Additional research has been showed by Zhou (2011) as quoted in a study conducted by Silva (2013) which finds that perceived quality is the most significant predictor for perceived value, which has a significant impact on hotel revisit intention. This previous research had been followed by Silva (2013) who conducts a research about destination branding in Srilanka. The following hypothesis is proposed: H6. EBQ has a positive influence on ERI.

Event Brand Image

Revisit Intention

  Revisit intention has been highlighted as an important research topic in competitive market of tourism destinations. Despite the considerable number of research on repeat visitors, it remains unclear why people undertake repeat visits and what kind of characteristics hold repeat visitors (Som, et al., 2012). Tourism scholars have concentrated on repeat visitation as an antecedent of destination loyalty. Attracting previous customers is more cost-effective than gaining new ones (Shoemaker & Lewis, 1999; Som, et al., 2012). Chen and Tsai (2007) assert that by understanding the relationships between future behavioral and its determinants, destination tourism managers would know better on how to build up an attractive image and improve their marketing efforts to maximize their use of resources (p.1116).

Event Brand Quality

  As the literatures show previously, there has been a relationship between each The Determinants of Visitor’s Revisit Intention: A Lesson from Ijen Car Free Day ⁷⁸

  dimensions of brand equity in term of destination branding. The main purpose of this study is to apply these developed constructs toward event brand as well as to build a theoretical model with suitable dimensions in the tourism event brand setting. Four dimensions of event brand equity – EBA, EBI, EBQ, and ERI – were established to approach the rigid goal of this study. The research conceptual model with hypotheses is illustrated in Figure 1.

  

Figure 1. Conceptual Framework

Research Method

  Sample

  The samples of this study are the visitors of Ijen Car Free Day (ICFD). A total of 205 questionnaires were distributed by using convenience sampling to the potential respondents, where all of respondents completed all questions which yielded 100% response rate. The demographic data show that the most respondents are females (67%) with high school as the latest education (70,73%). This data mean that the visitors of ICFD were dominated by youth. In addition, the demographic data indicate that the age of respondents mostly in the range between 20 and 29 years old (59,02%).

  Measurement

  The measurements used in this study are taken from some theories in the area of destination branding. To measure the constructs proposed, a 5-point Likert scale ranging from 1 (strongly disagree) to 5 (strongly agree) was employed in this study. For this study, event brand awareness (EBA) was measured by seven items adapted from Boo, et all. (2010), Fayrene and Lee (2011) and Lin (2011). The construct of event brand quality (EBQ) was measured by six items adapted from Boo et al.(2010), Konecnik and Gartner (2007) and Lin (2011). Similar to EBA, event brand image (EBI) and event revisit intention (ERI) were measured by seven items adapted from Boo et al. (2011), Lin (2011) , Sirgy et al. (2000), and Woisetschalager (2007).

  Data Analysis

  This study uses Structural Equation Model (SEM) with Partial Least Square (PLS) approach to process the data in both inner model and outer model measurement. In evaluation of reflective inner model, it uses R-Square for dependent construct, t test, and also the significance of the path coefficients of structural parameters. In the outer model, the data would be analyzed based on its validity test and

  Cesya Rizkika P, et.al ⁷⁹ Asia-Pacific Management and Business Application, 3, 2 (2014):74-85

  reliability test. The validity test consists of convergent validity and discriminant validity, meanwhile reliability test would be measured based on its internal consistency reliability. 205 visitors of

  ICFD with convenience sampling are used to obtain the data.

Results

  Evaluation of Outer Model (Measurement Model)

  The evaluation of outer model in this study is used to test the validity and reliability of the indicators (manifest variables) and latent variables. In this study, validity test is measured by using two indicators namely convergent validity and discriminant validity. Convergent validity is measured by employing outer loadings from each indicators (manifest variables) which the cut-off valueis higher than 0,6. Furthermore convergent validity can also be measured by using the value of Average Variance Extracted (AVE). The value of AVE for each latent variables should be higher than 0,5.

  While convergent validity can be checked by using outer loading and the score of AVE, discriminant validityis indicated by the value of cross loading for each latent variables that should not be higher than any other latent variables. To have a robust measurement, PLS technique also requires a model to have an internal consistency among items used. For this study, internal consistency is measured by composite reliability which the cut-off value is higher than 0,7.

  

Table 1. Results Summary for Validity and Reliability Test The Determinants of Visitor’s Revisit Intention: A Lesson from Ijen Car Free Day

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  Based on the estimation of outer model evaluation, it can be concluded that there is no convergent validity, discriminant validity and internal consistency problems found in this study. The score of outer loadings indicate in the range of 0,616 to 0,867 which means no items below the cut-off value (0,6). With respect to the score of AVE, this study also did not find any convergent validity problems since the score of AVE for all constructs are above 0,5. By having composite reliability values above 0,7 for all constructs, it can be said that there is no internal consistency found in this study. Table 1 summaries the estimation of convergent validity and internal consistency. Similar to the calculation of convergent validity and reliability test, this study also found that there is no discriminant validity problems faced by this study. Table 2 shows that the cross loading for each items are higher than the score of its correlation with other constructs.

  

Table 2. Cross Loadings

Evaluation of Inner Model (Structural Model)

  For this study, the evaluation of inner model is indicated by the value of R-square (R2). The higher the value of R2the more robust the model proposed. In this research model, the value of R2 is in the range between 0,215 and 0,536. Hence, it can be concluded that the proposed model is robust and Hypotheses can be tested.

  Hypotheses Testing

  In hypotheses testing, the latent variables are measured to be evaluated whether there is any significant relationship or

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  not. The hypotheses testing using PLS could be measured from the result of path coefficient and significance of model based on the T-statistic value. In path coefficient, therelationship between two variables could be categorised as significant if the value of path coefficient is higher than 0,1 and the value of T-statistic is larger than 1,96. The effect of event brand awareness (EBA) on even revisit intention (ERI) was proposed by Hypothesis 1. The statistical estimation indicates that there is a significant effect of EBA on ERI (t = 2,556; b = 1,181). It means Hypothesis 1 is supported. This finding can be interpreted that the higher higher EBA the higher the intention of visitor to revisit ICFD.

  Hypothesis 2 proposed that EBA has a significant effect on event brand image (EBI). The PLS calculation shows that the value of t-statistic is 7,338 (b = 0,463). This finding means there is a significant effect of EBA on EBI (Hypothesis 2 is supported). The higher the awareness of visitors about the ICFD, the more positive the image perceived by them. Hypothesis 3 proposed that EBA had a significant effect on event brand quality (EBQ). Similar to the effect of EBA on EBI and ERI, this study found the significant effect of EBA on EBQ (t = 4,301; b = 0,327). It means Hypothesis 3 is supported. By supporting Hypothesis 3, it can be said that the higher visitor awareness about the particular event, the higher their perception about the quality of event.

  The effect of EBI on EBQ was proposed by Hypothesis 4. This study found there is a significant effect of EBI on EBQ (t = 4,812; b = 0,348) which means Hypothesis 4 is supported. This finding indicates that the more positive image of the event perceived by the visitors, the higher the quality perceived. Similar to its effect on EBQ, this study indicates that EBQ has a positive significant effect on event revisit intention (ERI). The statistical estimation shows that the the value of t-statistics is above the cut off value (t = 9,107) and the slope is positive (b =0,624). It declares that Hypothesis 5 is supported. While EBI has been found to be the robust predictor of ERI, this study did not find the significant effect of EBQ on ERI as proposed by Hypothesis 6 (t = 0,168; b = 0,010). Therefore, Hypothesis 6 is not supported.

  The summary of Hypotheses testing is showed by table 3.

  

Table 3. Summary of Hypotheses Testing The Determinants of Visitor’s Revisit Intention: A Lesson from Ijen Car Free Day ⁸²

Discussion and Conclusion

  Based on the result obtaining in the hypotheses testing, EBA has a positive influence and significant impact to ERI. The finding shows that those variables have a significance, but the significance is in low level. Although it could be revealed that the significance relationship between EBA and ERI is low, those variables still have a positive relationship. A positive relationship between EBA and ERI is supported by the finding on the previous research. One research which obtained the relationship between EBA and ERI was a research conducted by Silva (2013) about destination branding of Srilanka. It means when visitors of ICFD have a higher awareness, they will have an intention to revisit the event although the intention might not be that high.

  The following hypotheses testing had shown that EBA also has a positive influence and significant impact to EBI. This finding was in accord with some important previous research conducted by Lin (2011) and Myagmarsuren and Chen (2011). Lin (2011) with a case of religious event in Taiwan had found a positive and significant relationship between EBA and EBI. This finding reveals that higher awareness toward the event will create a higher perception for the image of the event which is ICFD. EBA has a positive influence and significant impact to EBQ based on the result obtained in the hypotheses testing. EBA gives positive influence and significant impact in a medium level because those values do not show a high value of significance. It means higher awareness of visitors about ICFD, the quality perceived might be higher but it does not give much influences between both variables. This finding was in accord with some important previous researches about religious event conducted by Lin (2011).

  The other following result is that EBI has a positive influence and significant impact to EBQ. The finding shows that those variables have significance in medium level. The positive relationships between those variables was in accord with some previous researches conducted by Lin (2011) and Myagmarsuren and Chen (2011). It is concluded that a positive image of ICFD from the visitor’s perspective would lead them to perceived higher quality experience during their time in that event. The hypotheses testing also had shown that EBI has a positive influence and significant impact to ERI. This finding is really interesting because EBI surprisingly shows the highest significant level in influencing ERI. This finding has strengthen some previous researches conducted by Chen and Tsai (2007), Qu, et al., (2010) and Silva (2013). All of those previous researches showed in the competitive tourism market, tourist destinations must establish a positive and strong brand image, derived from cognitive, unique, and affective image associations to increase repeat visitors. A favorable experiences will create a positive image and recommend the place to others in turn potential tourists develop a favorable image that affects the destination choice (Qu, et al., 2010). It reveals the fact that no matter how popular ICFD is, as far as the visitor feels that ICFD fits with their personality, they would have an intention to revisit thie event. In the quality comparison, visitors do not pay much attention with this factors. It is indicated by a phenomena showng that ICFD cannot provide a high quality service and experience; however, visitors still have an intention to revisit ICFD.

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  The last finding points out that EBQ does

Notes on Contributors

  not significantly affect ERI. This finding

Cesya Rizkika Parahiyanti is a Student of

  against the previous research conducted International Management, International by Silva (2013) about the destination Undergraduate Program, Faculty of branding of Srilanka. That research Economics and Business, University of had showed that there was a significant Brawijaya Malang, Indonesia. relationship between EBQ and ERI in case of Srilanka. When implementing

Ananda Sabil Hussein (PhD) is a Senior

  the same hypotheses in ICFD, the result Lecturer in Management Department at shows that EBQ does not give significant the Faculty of Economics and Business, influence to ERI. It indicates the quality University of Brawijaya, Indonesia. that is perceived by the visitors does not

  He got his doctorate degree in Lincoln become the consideration of visitors to University Canterbury, New Zealand. revisit ICFD. This finding also against His research interests are in marketing the research finding by Ramadlani (2013) strategy, consumer behavior and marketing about the significant impact of EBQ to services. ERI in case of visitors in Batu.

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