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Tourists' spending and adherence to shopping plans: The case of the christmas market in Merano, Italy

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  • Brida, Juan Gabriel
  • Tokarchuk, Oksana

Abstract

The present paper investigates the determinants of tourists' expenditure by categorizing tourists based on their mental budgets. Individuals can be divided into three categories based on the difference between their mental budget and actual expenditure: underspenders, on-budget spenders, and overspenders. Estimation of the empirical model is performed based on data collected through a survey of visitors to the Christmas Market in Merano, Italy during Advent in 2011. The estimation is performed with the Heckman estimator, ordered probit selection rule, and linear regression. We find that the spending patterns of visitors belonging to the three identified categories differ significantly. Analyzing visitors’ expenditure based on the proposed categorization allows us to identify category-specific factors and develop management strategies for each category. The managerial and theoretical implications of the results are discussed.

Suggested Citation

  • Brida, Juan Gabriel & Tokarchuk, Oksana, 2017. "Tourists' spending and adherence to shopping plans: The case of the christmas market in Merano, Italy," Tourism Management, Elsevier, vol. 61(C), pages 55-62.
    • Handle: RePEc:eee:touman:v:61:y:2017:i:c:p:55-62
    DOI: 10.1016/j.tourman.2017.01.016
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    More about this item

    Keywords

    Tourists' expenditure; Mental budget; Shopping plans; Christmas market; Heckman estimator with ordered-Probit selection rule;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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