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of being able to get away when it is no longer comforting but suffocating. Chesky said he
noticed people booking houses in the same neighborhood as their family members (Cohen,
2014). A host in New York’s Tribeca neighborhood told Chesky that most of her guests
were family members of other residents in her building (Cohen, 2014). Additionally, after
having a new baby, most parents often invite their own parents to help out with household
chores and taking care of the infant. When grandparents stay in the home, they can become
overbearing, so it is not surprising that new parents are using Airbnb to book their parents
a home during their stay. Through this, everyone is given more privacy (Cohen, 2014).
Last minute and spontaneous bookings make up Airbnb’s business but Chesky
indicated that extended stays are growing, as well (Cohen, 2014). According to Chesky, “ten
percent of our business is long-term stays, and it is growing...I could easily see that being
15 to 20%,” (Cohen, 2014). He believed this specific area is where Airbnb shines brightest.
Chesky encouraged people to think of how they may feel after staying at a friend’s for 30
days, or a hotel for 30 days. Using Airbnb for an extended stay certainly seems more
appropriate (Cohen, 2014).
In terms of age, the company has attracted a great amount of interest from
millennials as well. EMarketer found “a November 2012 survey by JWTIntelligence [stated]
more than half of millennials (those ages 18 to 34) said they would use a peer-to-peer
service like Airbnb—a far higher percentage than Generation X and baby boomers”
(eMarketer, 2014). However, studies do show that 10% of Airbnb hosts are over the age of
60 and 1 million Airbnb users are also over the age of 60 (Airbnb-Celebrating Airbnb’s 60+
Host Community, n.d.).
Surprisingly, Chesky disclosed that many people want unusual places to stay, “like](https://image.slidesharecdn.com/99274c3f-3853-4348-90f5-705e51f61a7d-160412225322/75/Airbnb-Campaign-Proposal-12-2048.jpg)
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boats, treehouses, handmade homes, and yurts.” He added “[Airbnb is] probably the largest
marketplace for boats,” and their most popular listings are treehouses (Cohen, 2014).
Airbnb’s app is known for finding such locations underneath their “Discovery” section,
“which features private islands, windmills, haunted houses, and even buses you can sleep
in” (Cohen, 2014). It is precisely listings like these that have allowed Airbnb to attract such
a unique and diverse group of travelers. These individuals look for adventure and
excitement. Travelers keep their end of the sharing-economy bargain as they find the new
ways to create long-lasting memories while helping their community.
Market Analysis
Airbnb have 2,368 employees (450 of which are in Europe) and is positioned as the
world’s 3rd most valuable privately held startup (Gamba, 2015; Byrne, 2015; Alba, 2015).
This notion was solidified by Airbnb’s finance round in June 2015. According to Davey Alba
in Wired, their $1.5 billion financing round was one of the largest private funding rounds
ever (Alba, 2015). They are currently behind Uber, who is positioned as the 1st most
valued privately held startup (valued at $62.5 billion) and then Xiaomi, a smartphone
manufacturer that sells high-end devices at low prices, positioned in 2nd place (valued at
$46 billion) (Alba, 2015; Seifert, 2013).
In New York City, Airbnb have made a great impression. Airbnb share on their
public blog that the median home-sharing income for an Airbnb host in New York City is
$5,110 (Popper, 2015). According to Airbnb’s website, “78% of Airbnb hosts in New York
earn low, moderate, or middle incomes” and “36% [(freelancers, part-time workers, or
students)] have unsteady incomes” (Airbnb, 2015). Further, there are “13,800 active
listings in Brooklyn, 13,400 active listings in Outer Manhattan, 5,300 active listings in](https://image.slidesharecdn.com/99274c3f-3853-4348-90f5-705e51f61a7d-160412225322/75/Airbnb-Campaign-Proposal-13-2048.jpg)
![19
Disabled individuals encounter issues when using the sharing service. Bruce Golding
shared “[handicapped] travelers who use the controversial room-rental service could be in
for a rude awakening when they arrive in the Big Apple, as a slew of New York City
apartments touted as ‘wheelchair accessible’ are really obstacle courses for the infirm”
(Golding, 2014). A listing in Astoria, Queens featured a narrow spiral staircase to the
second floor; a listing for a “cozy” apartment in East Village featured a steep wooden
staircase to its sleeping loft; and another listing had a metal ladder (Golding, 2014).
Individuals should be aware that falsely labeling a listing as “wheelchair accessible” puts
disabled persons in dire situations. In a letter sent to authorities from the Disabled In
Action of Metropolitan New York Group, advocates for disabled persons accused Airbnb of
violating the Americans With Disability Act, “along with city and state laws that ‘require all
private and public entities providing public accommodations to offer an equal opportunity
for persons with a disability’” (Golding, 2014). Airbnb continue to work on this growing
problem, making sure to help guests find appropriate listings to meet their needs.
Finally, the idea of Airbnb is largely susceptible to potential copycats. For example,
Xiaozhu.com in China are essentially the exact same concept, but targeted towards Chinese
consumers (Fung, 2015). This hurts Airbnb directly because they are choosing to expand
their company to China, a rapidly growing market that is full of travelers. With Xiaozhu
being right in the center of this, they act as direct competitor to Airbnb.](https://image.slidesharecdn.com/99274c3f-3853-4348-90f5-705e51f61a7d-160412225322/75/Airbnb-Campaign-Proposal-23-2048.jpg)
![21
Health Control Act. Yet, the Korean government is becoming aware of the benefits
associated with Airbnb (and the importance of keeping up with the rest of the world) and is
moving to devise policies in the rent lodging service (Leem, 2016).
One of the many reasons Airbnb are a growing commodity is because of their
affordability. Airbnb allow consumers who enjoy traveling to visit a new place and stay
with a host who has been
screened by the company.
According to Alan Henry’s
article about
Priceconomics, research
showed that, on average,
people could save “close to
50% over a hotel room by
renting a private room on Airbnb, and close to 22% by renting an apartment over a hotel
room” (Henry, 2013). Of course, savings will vary depending on the chosen city.
Additionally, there is great potential for Airbnb to collaborate with travel agencies.
In an article written by Mathilde Khlat, she claimed in September 2014 Airbnb were
“making [their] first steps in the world of Work Councils by signing a commercial
partnership with ProwebCE” (Khlat, 2014). Through this partnership, Airbnb hope to
gather a greater understanding of their business consumers in order to cater to their needs.
It should be noted that Airbnb have already dedicated a page to business travelers on their
website. The France Director of ProwebCE shared that “business travelers represent 10 to](https://image.slidesharecdn.com/99274c3f-3853-4348-90f5-705e51f61a7d-160412225322/75/Airbnb-Campaign-Proposal-25-2048.jpg)
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20% of [their] clientele. It is an axis that is developing, from major companies to smaller
enterprises” (Khlat, 2014).
Airbnb’s popularity continues to spill into the pop-culture realm through celebrities.
For the World Cup 2014 in Brazil, famous soccer player, Ronaldinho Gaúcho, put his home
on Airbnb for $15,000 a day (Lang, 2014). Singer Beyoncé rented a luxurious home in Los
Altos Hills, California for $10,000 a night to stay at before and after her Super Bowl 50
Halftime performance in February 2016 (Chan, 2016). Panther football player, Roman
Harper, placed his home on the site as well. Fans were able to rent out the extravagant suite
for $5,000. In spite of the high price, Harper shared that the proceeds were to go to charity
(Mandell, 2016). And while this may seem like the first time Airbnb have been involved
with charity, it is not. In 2014, Hurricane Sandy victims found themselves without a home;
without a place where they could lay their heads. On their website, Airbnb shares that
1,400 Airbnb hosts came to the rescue and offered aid to the victims, whether it was a
warm, home-cooked meal or listed their spaces for free (Airbnb- Airbnb Disaster Response,
n.d.). Since then, they have responded to various emergencies around the world: “San Diego
in response to major fires; Serbia, Bosnia, and Croatia for people affected by the Balkan
floods; and London, Sardinia, and Colorado after serious flooding hit these regions”
(Airbnb-Airbnb Disaster Response, n.d.).
● Potential to reach foreign audiences, specifically in China and Korea
● China has a large supply of vacant homes
● Dissatisfaction with hotels due to high prices
● Could expand to travel guides and be used by travel agents in lieu of other sources](https://image.slidesharecdn.com/99274c3f-3853-4348-90f5-705e51f61a7d-160412225322/75/Airbnb-Campaign-Proposal-26-2048.jpg)
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market (Lee, 2013). Airbnb continue to make efforts to appeal to this market by providing
Korean-language service to increase the number of Korean tourists. This information is an
integral part in developing the campaign strategy.
Simmons OneView allows for an understanding of where the target audience can be
found and what their travel habits they are likely to be. According to Simmons OneView,
adults between the ages of 18-34 are more willing to book travel accommodations through
a site they are unfamiliar with [Table 1 in Appendix] (Simmons Research OneView). Being
that Airbnb is not well-known, this is a helpful concept. Of this age group, 59.4% have
traveled domestically in the last 12 months [Table 2 in Appendix] and 37.9% [Table 3 in
Appendix] have traveled to foreign countries in the last three years (Simmons Research
OneView, n.d.). This shows that the target audience is likely to travel and need hotel
accommodations, which provides Airbnb the opportunity to expand their business.
However, 65.7% of 18-34-year-olds reserve hotels and motels as their travel
accommodations [Table 4 in Appendix] (Simmons Research OneView, n.d.).
Implications for Campaign Strategy
With this information and knowledge, the strategy is guided in directions that would
be both effective and ethical. This knowledge will help to develop a strategy that orients
itself in a way that will help Airbnb reach their target audience. The target audience travels
often and with this in mind, the strategy will lean towards their habits and allow for
primitive targeting before they book their accommodations.
Finally, since the company is trying to establish themselves in the Asian market,
Overstep Communications suggest that the campaign should also take place in Korea. That](https://image.slidesharecdn.com/99274c3f-3853-4348-90f5-705e51f61a7d-160412225322/75/Airbnb-Campaign-Proposal-32-2048.jpg)
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In addition to the questionnaire, Overstep Communications developed a sampling
frame for the focus group in a similar manner. Eight Korean millennials and eight Chinese
millennials were chosen to participate, also equally divided into full-time students and full-
time working professionals. Staff of Overstep Communications used convenient sampling
to select the participants. There were four separate focus groups that were for each group:
four Chinese students, four Chinese full-time professionals, four Korean students, and four
Korean full-time professionals. Participants engaged in a Skype video call, and each were
performed in Chinese or Korean, and then translated into English. The Chinese focus
groups took place on February 26, 2016 and February 27, 2016 while the Korean focus
groups took place on February 27, 2016. Questions focused on consumers’ decision making
for hotel accommodations, product use, and future behavior intentions. After focus groups
were completed, Overstep Communications summarized all of the responses.
Results of Questionnaire and Implications for the Campaign Strategy
After performing a variety of different statistical testing, including t-tests, chi-
square, and correlations, our research will provide significant insight for Airbnb’s
campaign strategy. Overstep Communications’ research determined that there are not
many significant differences between students’ and professionals’ uses of Airbnb’s services.
Travel Habits
One of the first things participants indicated were their travel habits. Both groups,
students and professionals, travel for business, leisure, and to visit family and friends. Our
data indicate that there are not any significant differences between professionals and
students when traveling for business, leisure, and family or friends [Output 1 in appendix].](https://image.slidesharecdn.com/99274c3f-3853-4348-90f5-705e51f61a7d-160412225322/75/Airbnb-Campaign-Proposal-34-2048.jpg)
![31
However, as seen on the left, our data describe that on average, participants travel more to
visit family and friends [Output 2 in Appendix]. Yet, of all of the participants, as a whole,
travel for business less than they travel for leisure or to visit family and friends.
It was also discovered that participants have different expectations from each of the
travels. In order to determine what those gains were, Overstep Communications conducted a
content analysis on each of the open-ended responses. For business travels, three themes
were revealed from the responses: experience, connections, and other. Participants want to
gain even more experience abroad in another location, while networking from people in
different locations. For leisure travels, responses were categorized into relaxation,
experience, entertainment/fun, visitation, and other. One participant travels for leisure “to
explore a new city and sometimes countries and cultures, and to try different food, that is my
number one, and also meet different people.” Another participant stated that “traveling
makes you discover yourself.” There was a common trend among people who travel for
leisure: respondents hope to gain relaxation during the trip. Some described that leisure
travels helps them escape from the stress that comes from school or work.
Finally, for visiting family and friends, responses were categorized into four
categories: bonding, catching up, seeing them, and other. Participants described that by
visiting family and friends, they can build better relationships and remain in contact with
them. In terms of seasonality, participants discussed that they travel the most in summer
[Output 3 in Appendix]. Nevertheless, full-time professionals are more likely to travel alone
than students are [Output 4 in Appendix].
Implications](https://image.slidesharecdn.com/99274c3f-3853-4348-90f5-705e51f61a7d-160412225322/75/Airbnb-Campaign-Proposal-35-2048.jpg)
![32
Our data demonstrate that there are a variety of reasons why people travel and there
is benefits travelers want to gain from their trip. Since participants travel more per year to
visit friends and family, the campaign should focus on how Airbnb can be an easy and
inexpensive way to see others. Travelers do not have to book a hotel in order to visit family
and friends. In addition, since respondents expressed that they hope to gain memorable
experiences from traveling for leisure, it is important that Overstep Communications display
in the campaign that travelers have the opportunity to immerse themselves in the culture of
their chosen destination. However, many of the respondents do not travel for business as
often. Therefore, it is not imperative to include business travels in Airbnb’s campaign.
Further, our data indicate that participants travel more in the summer, and that can help
with the campaign timeline. Overstep Communications should develop a timeline in which
there are heavy amounts of advertising during February, March, and April, when travelers
book accommodations for summer getaways.
Concerns When Booking a Hotel Room
On the other hand, there are several differences among different groups with concerns
when booking a hotel room. It was found that females are more concerned with the security
of the room than males. However, both males and females scored almost similarly in all other
concern categories [Output 5 in Appendix]. Both genders are most concerned with the
cleanliness and security of the area while they are least concerned with the size of the room.
Despite having gender differences, there are not any significant differences between full-time](https://image.slidesharecdn.com/99274c3f-3853-4348-90f5-705e51f61a7d-160412225322/75/Airbnb-Campaign-Proposal-36-2048.jpg)
![33
professionals and students when booking a hotel room [Output 6 in Appendix]. Both
segments are most concerned with security of the area and cleanliness and are least
concerned with the size of the room.
Implications
Overstep Communications assumed cleanliness, security, and the size of the room
would be important to consumers. With that said, it is evident that cleanliness and security
are the more important factors for males and females, students and professionals alike.
Clearly, Overstep Communications must consider these factors when creating Airbnb’s
campaign in order to ensure that consumers view Airbnb in a favorable light. No matter the
size of the room or home an Airbnb user may rent, Overstep Communications want to
portray all of its listings as safe alternatives for traditional methods like hotels.
First Words That Come to Mind
After indicating whether or not respondents have heard of Airbnb, they stated the first
words that came to mind when hearing the word “Airbnb.” Responses were categorized into
five sections: positive words, negative words, neutral words, words associated with travel,
and other. Some positive associations indicated that Airbnb are “cheap” and “convenient”
while others associated Airbnb with “sketchy” and “not for me.” However, 20 participants
associated Airbnb with travel with words such as “bed and breakfast” and “travel.” Others
connect Airbnb with “couch” and “new type of economy,” which does not fit in the other
categories.](https://image.slidesharecdn.com/99274c3f-3853-4348-90f5-705e51f61a7d-160412225322/75/Airbnb-Campaign-Proposal-37-2048.jpg)
![37
Appendix]. Nonetheless, there is not a significant difference between full-time professionals
and students when using Airbnb in the future [Output 8 in Appendix].
Implications
As mentioned above, Overstep Communications expected to see that men were more
likely to use Airbnb in the future than women, and students to use Airbnb more than
professionals. Because that was not the case, Overstep Communications would like to
understand what exactly prevents male consumers from using the service. In doing so,
Overstep Communications can generate more action from the male portion of the target
audience. Interestingly, students and professionals use the service pretty similarly,
supporting Airbnb’s claim to reach a diverse audience interested in exploring and using the
service.
Thoughts of Participants Who Have Never Heard of Airbnb
Of the 50 participants, only nine never heard of Airbnb. On an 11-point rating scale,
with zero being least likely and ten being most likely, that asked participants their future
intentions to use Airbnb, the average was 3.6 [Output 9 in Appendix]. This shows that those
who have not heard of Airbnb are most likely not going to use it. In addition, respondents
rated trustworthiness really low, and gave moderate scores to convenience and dependence
[Output 10 in Appendix].
Implications](https://image.slidesharecdn.com/99274c3f-3853-4348-90f5-705e51f61a7d-160412225322/75/Airbnb-Campaign-Proposal-41-2048.jpg)
![42
might prevent the target audience from wanting to try Airbnb, since they could be
presented with a risky situation while using them.
American Problem: Cleanliness
Based on our Primary Research, cleanliness is another thing most people are
concerned with. On Airbnb’s website, it said hosts need to “ensure that your listing’s
bedrooms and common areas are cleaned before each guest’s arrival. This is including
changing linens and cleaning surfaces in the bathroom and kitchen” (Airbnb-Hospitality
Standards, n.d.). There are still some guests who had bad cleanliness experiences (Mulligan,
2012). Unlike hotels, Airbnb do not have a standard of cleanliness. In this way, when people
choose to stay in an apartment, they are taking a gamble. Most of the time, the gamble
results in a more positive overall experience. However, there are still times when the risk is
not worth it (Mulligan, 2012).
While Airbnb offer the option for hosts to have professional photos taken of their
homes, there is still skepticism on the reliability of the photos. Because travelers cannot
upload their own pictures in reviews, people resort to posting on social media to expose
the reality of the conditions on the Airbnb listing [Photo 1 in Appendix] (Mulligan, 2012).
American Problem: Social Media and Racial Discrimination
Based on the Simmons data, Americans 18-34 use social media more than any other
age group. While it can be an opportunity, it is more of a challenge for Airbnb. A unique
characteristic of social media is that there is a wide spread of stories, news and opinions
easily accessible to anyone at any given time. There have been issues about mistreatment
and even racial discrimination involving Airbnb hosts and travelers (McPhate, 2015).
According to an article by Mike McPhate from The New York Times, a paper by three](https://image.slidesharecdn.com/99274c3f-3853-4348-90f5-705e51f61a7d-160412225322/75/Airbnb-Campaign-Proposal-46-2048.jpg)
![45
are still people in China and Korea that have never heard about Airbnb. It will also be hard
for people to accept this new service in the future because according to the results from the
focus groups, none of the Chinese professionals would like to use Airbnb.
Chinese Opportunity: Abundance of Travelers
There are nearly 1.4 billion people living in China. This number is equivalent to
18.72% of the entire world’s population (Worldometers, 2016). Evidently, China definitely
plays an important part in the global market, and Airbnb will have many opportunities
there. It was found that “the total number of trips abroad from China is estimated at 109
million in 2014. China is the world’s largest outbound travel market since 2012, with a total
expenditure of $129 billion in 2013” (UNWTO, 2015). In 2014, there were more than 259
million Chinese travelers who booked their trips online, and 80% of this number booked
their trips on their mobile devices (Xinhua, 2016). According to the Travel China Guide
there were “133.8 million inbound tourists, including foreigners and tourists from Hong
Kong, Macau, and Taiwan. 56.8857 million stayed overnight in China, an increase of 4.1%
and 2.3% compared with the same period in 2014” [Chart 1 in Appendix] (Travel China
Guide, 2015).
Korean Opportunity: Abundance of Travelers
Based on the Korean statistics, there is a constant increase of travelers who travel
overnight (Statistics Korea, 2015). Moreover, there is a constant increase of Koreans who
travel internationally. There is an abundance of Korean travelers; therefore, Airbnb can
take advantage of this opportunity and position itself as a preferred accommodation source
[Charts 2 and 3 in Appendix] (Statistics Korea, 2015).](https://image.slidesharecdn.com/99274c3f-3853-4348-90f5-705e51f61a7d-160412225322/75/Airbnb-Campaign-Proposal-49-2048.jpg)
![53
competitors to imitate or choose [a] more aggressive strategy” (Parente & Strausbaugh-
Hutchinson, 2015, p. 181).
After going through the Ostrow Model [Ostrow Model in Appendix] and analyzing
the marketing factors, copy factors, and media factors that affect creative frequency,
Overstep Communications decided that a frequency of 4.1 needs to be established. Airbnb
have many competitors and a low market share. Additionally, this is going to be a new
campaign that is going to utilize image type copy in order to portray feelings of trust and
safety. Further, there is going to be high ad clutter throughout the internet, and the
attentiveness for these ads will most likely be low. Therefore, the frequency for this
campaign is relatively high.
Media Strategy
American
Overstep Communications recommend using nontraditional media. Nontraditional
media include online advertisements and social media. According to our research, the
target audience was asked where they were most likely to hear about Airbnb. Based on our
findings for the likelihood of hearing about Airbnb, the average rating, on a five-point scale,
with one being least likely and five being most likely, for seeing an online advertisement is
3.68. This is the highest average for all sources asked about. In addition, the target audience
is well-versed in the world of technology being that the majority of them grew up in the
technology age. Adults ages 18-34 are slightly more likely than the average person to be
online throughout the day [Table 5 in Appendix] (Simmons Research OneView, n.d.). The
target audience is 88% more likely to use a banner ad as a lead to purchase very often
[Table 6 in Appendix] (Simmons Research OneView, n.d.). Similarly, the target audience is](https://image.slidesharecdn.com/99274c3f-3853-4348-90f5-705e51f61a7d-160412225322/75/Airbnb-Campaign-Proposal-57-2048.jpg)
![54
108% more likely [Table 7 in Appendix] to use a full-motion video ad to guide them
towards a purchase (Simmons Research OneView, n.d.). Therefore, online advertisements
will be the primary focus of this campaign. Online marketing will be the easiest way to
track the target audience. Overstep Communications can move consumers through a funnel
by having a high, online presence (Parente & Strausbaugh-Hutchinson, 2015, p. 226).
One media outlet that is very prevalent in the world is social media, since it is
“today’s lifeline” (Parente & Strausbaugh-Hutchinson, 2015, p. 228). Of adults between 18-
34, they are 29% more likely be a social media user [Table 8 in Appendix], while also being
97% more likely to visit their accounts three or more times a day [Table 9 in Appendix]
(Simmons Research OneView, n.d.). Their prominence on social media leads them to be
86% more likely to purchase a product advertised on a social sharing or social networking
site [Table 10 in Appendix] (Simmons Research OneView, n.d.). Utilizing social media will
enable Airbnb to develop a brand preference and promote storytelling among members of
the target audience (Parente & Strausbaugh-Hutchinson, 2015, p. 228). With this, tying
aspects of social media into the campaign will provide a great opportunity to reach the
target audience and make an impact on them.
Surprisingly, this age group is not likely to watch television. At one point, there was
a high presence of television viewers; however, streaming services like Netflix and Hulu are
now being used more than live programming (Spangler, 2015). With the growing
prominence of technology, television is fading away and would not be a good outlet to focus
on. The target audience is less likely than the average American to watch TV [Table 11 in
Appendix] (Simmons Research OneView, n.d.).
Korean](https://image.slidesharecdn.com/99274c3f-3853-4348-90f5-705e51f61a7d-160412225322/75/Airbnb-Campaign-Proposal-58-2048.jpg)
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Questionnaire
Informed Consent Statement:
Hello, my name is _____________ and I am an advertising student at Penn State University
conducting research for a class project. We are looking at travel habits and preferred
accommodations when you are away from home.
This questionnaire will take about five to seven minutes.
Your name will not be written on the questionnaire and all responses you provide for this
study will remain confidential within my class.
Are you 18 years or older? Yes[ ] No[ ]](https://image.slidesharecdn.com/99274c3f-3853-4348-90f5-705e51f61a7d-160412225322/75/Airbnb-Campaign-Proposal-80-2048.jpg)
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a. Trustworthy 1 2 3 4 5
b. Convenient 1 2 3 4 5
c. Dependable 1 2 3 4 5
_____________________________________________________________________________________________________
3. What are the first words that come to mind when you think of Airbnb? (Open-
Ended)
4. When you hear Airbnb, how does that make you feel? (Open-Ended)
5. It is possible that Airbnb hosts are present during your stay. For example, if John
rents his home to you, he can stay in his home during the duration of your travel.
Are you comfortable with the host being present? (Open-Ended)
_____________________________________________________________________________________________________
After answering these questions, respondents will be directed to the demographic part of the
survey.
1. On a scale from 1-5, with 1 being least likely and 5 being most likely, how likely are
you to hear about Airbnb from:
Least Likely Most Likely
a. Word of Mouth: 1 2 3 4 5
b. Magazine: 1 2 3 4 5
c. News Article: 1 2 3 4 5
d. Commercial: 1 2 3 4 5
e. Online Advertisement: 1 2 3 4 5
2. Have you ever used Airbnb? (Nominal)
a. Yes
b. No
3. Have you booked Airbnb in the following places: (Nominal)
a. United States: yes [ ] no[ ]
b. North America—excluding US: yes [ ] no[ ]
c. South America: yes [ ] no[ ]
d. Africa: yes [ ] no[ ]](https://image.slidesharecdn.com/99274c3f-3853-4348-90f5-705e51f61a7d-160412225322/75/Airbnb-Campaign-Proposal-84-2048.jpg)
![81
e. Australia: yes [ ] no[ ]
f. Europe: yes [ ] no[ ]
g. Asia: yes [ ] no[ ]
4. On a scale from 0-10, how likely are you going to use Airbnb in the future? (Ratio)
0 1 2 3 4 5 6 7 8 9 10
_____________________________________________________________________________________________________
TRANSITION: Now that I asked you about Airbnb, I am going to ask you a few questions
about yourself in order develop a greater understanding between traveling habits and its
consumers.
1. What’s your gender? (Nominal)
a. Male
b. Female
2. What’s your age? (Ratio)
a. _________________
3. Are you a full-time student or a full-time employee? (Nominal)
a. Full-Time employee
b. Student
4. Do you have children? (Nominal)
a. Yes
b. No
ENDING: Thank you for participating in my study. I appreciate your time and effort. If you
have any questions or are interested in my study, please feel free to contact my instructor:
Dr. Susan Strohm
Email: sms14@psu.edu
Office Phone: 814-863-0535](https://image.slidesharecdn.com/99274c3f-3853-4348-90f5-705e51f61a7d-160412225322/75/Airbnb-Campaign-Proposal-85-2048.jpg)
![82
Focus Group
Informed Consent Statement:
Hello, my name is _____________ and I am an advertising student at Penn State University
conducting research for a class project. We are looking at travel habits and preferred
accommodations when you are away from home.
All responses you provide for this study will remain confidential within my class.
Are you 18 years or older? Yes[ ] No[ ]
1. What makes you choose a vacation destination?
2. What do you look for in a hotel room?
3. What do you think are the most important factors of a hotel room?
4. Have you ever used any sharing services before (i.e. Uber, Lyft, SnapGoods,
Poshmark, etc.)?
5. Have you ever used Airbnb before?
a. If yes, tell us about your experience
b. If no, we will tell you about it
i. Airbnb is a community marketplace that allows people to find
accommodations for their travels around the world in more than
34,000 cities and 190 countries. Airbnb hosts, which can be your
average homeowner, open up their homes. Whether it’s an apartment,
private home, or even a single room within a home, travelers are able
to use this service as an alternative to booking a hotel room.
ii. Would you be interested in using Airbnb now?
6. It is possible that Airbnb hosts are present during your stay. For example, if John
rents his home to you, he can stay in his home during the duration of your travel.
Are you comfortable with the host being present?
7. Do you trust Airbnb’s services?](https://image.slidesharecdn.com/99274c3f-3853-4348-90f5-705e51f61a7d-160412225322/75/Airbnb-Campaign-Proposal-86-2048.jpg)
Airbnb Campaign Proposal
- 1. Airbnb’s Campaign Proposal 2016 Overstep Communications Nicolette Ambrosio Kaylee Naden Janelle Kelly Wonjae Choi Liuming Guo
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- 3. Table of Contents Executive Summary .............................................................................................................................................. 1 Introduction .............................................................................................................................................................. 2 Marketing Problem ............................................................................................................................................... 3 Situation Analysis .................................................................................................................................................. 4 Company Analysis ........................................................................................................................................... 4 Consumer Analysis .......................................................................................................................................... 6 Market Analysis ................................................................................................................................................ 9 Product Analysis ........................................................................................................................................... 10 Competitive Analysis ................................................................................................................................... 11 SWOT .......................................................................................................................................................................... 16 Strengths .......................................................................................................................................................... 16 Weaknesses ..................................................................................................................................................... 17 Opportunities ................................................................................................................................................. 20 Threats .............................................................................................................................................................. 23 Target Audience ................................................................................................................................................... 27 Secondary Research .................................................................................................................................... 27 Primary Research ......................................................................................................................................... 29 Methodology .............................................................................................................................................. 29 Results and Implications ....................................................................................................................... 30 Synthesis of Primary and Secondary Research ............................................................................... 40 Target Recommendations ........................................................................................................................ 41 Problems and Opportunities Associated with Target Audience .............................................. 42 Campaign Goals .................................................................................................................................................... 46 Marketing Goals ............................................................................................................................................ 46 Communication Goals ................................................................................................................................ 47 Recommended Creative, Media, and Promotional Strategies ................................................... 51 Creative Approach ...................................................................................................................................... 51 Media Strategy .............................................................................................................................................. 52 Promotional Strategy ................................................................................................................................. 54 Summary .................................................................................................................................................................. 56
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- 5. 1 Executive Summary Airbnb was founded in 2008 by two friends and allows travelers to rent spaces from hosts, or people who have vacant space in their homes. While relatively new, Airbnb’s current worth is $25.5 billion (Carson, 2015). Over the few years Airbnb have been operating, the service has generated much attention. More than 60 billion individuals have used Airbnb in 34,000 cities and 190 countries. Further, there have been 2 million listings worldwide (Airbnb—Recapping Day 1 of Airbnb Open, n.d.). In spite of their success, Airbnb struggles to communicate a positive brand image to potential new users. This disconnect is largely based on mistrust of the company and is affecting the number of people who decide to become members. Overstep Communications recommended to focus on students and professionals, 18 to 34-years-old, because our research showed that these two groups use travel sites to book travel accommodations. Expanding into the Chinese and Korean markets provides multiple opportunities for Airbnb because of a growing number of international and domestic tourists in these areas (Travel China Guide, 2015; Statistics Korea, 2015). Our research showed that there are not any significant differences seen between students and professionals among the different markets, except for China. Thus, the proposed campaign Overstep Communications constructed focuses on targeting millennials in America, China, and Korea. Additionally, the Chinese and Korean markets will push Airbnb to develop a more trusting personality, as these two are most concerned with the trustworthiness of the service. Lastly, the proposed campaign will revolve around increasing the number of people who sign up to become members. The advertisements will include informative and emotional appeals and be placed online through banner advertisements and social media.
- 6. 2 Introduction When booking travel accommodations, there are many sources used. As found in our research, people tend to look for accommodations that have good security in the area and that are clean, such as the multitude of online sources available, and this service is an up and coming form of one of these services. Airbnb provide different alternatives to hotel accommodations during travels. Hosts of Airbnb rent out rooms or their entire homes to people looking for a different accommodation when traveling to a new destination. Founded in 2008, Airbnb has grown significantly (About Us, n.d.). They began in San Francisco and destinations can now be found all around the world (Airbnb, n.d.). Currently, there are Airbnb listings in 34,000 cities and 190 countries (About Us, n.d.). The service is becoming more popular; however, there are still a few challenges. Since Airbnb were founded in 2008, the company is still relatively new and this is apparent in the knowledge, or lack thereof, the service (Harris, 2015). Airbnb is a service that, while convenient, also draws some skepticism from consumers. The goal is to reduce the skepticism; to get more people to sign up to become members. That way, members will be able to search for a wide variety of different options and increase traffic to Airbnb’s website.
- 7. 3 Marketing Problem Airbnb continue to grow and rise in popularity. Last year, they valued at $25.5 billion (Winkler, 2015). Yet, Airbnb faces many problems that prevent the valuation from increasing. The biggest challenge Airbnb encounters is lack of awareness. Morgan Stanley conducted a survey and of those respondents who have not used Airbnb before, 59% said that they have not heard of Airbnb (Harris, 2015). Therefore, the problem needs to be addressed in this campaign so more people sign up to become a member and the valuation of the company can increase. Additionally, Airbnb users and non-users have security concerns (Harris, 2015). In the same study by Morgan Stanley, 32% of respondents have privacy concerns while 27% have safety concerns with Airbnb (Harris, 2015). Security issues present a huge challenge for Airbnb, especially for non-users who are most likely not going to try the service. Consequently, Airbnb needs to assure consumers that they can be just as safe when staying in an Airbnb listing as when staying in a hotel. All in all, Airbnb’s future campaign needs to address these concerns in order to accomplish their marketing goal, which is to get the target audience to sign up to become active members.
- 8. 4 Situation Analysis Company Analysis History As mentioned previously, Airbnb was founded in 2008 when 27-year-old roommates, Joe Gebbia and Brian Chesky, were struggling to pay their rent. According to an interview featured in The Telegraph by Jessica Salter: They had met five years earlier at Rhode Island School of Design. When they heard about hotels running out of rooms due to a design conference in San Francisco, Gebbia and Chesky jumped on the opportunity. They rented out three airbeds on their living-room floor and cooked their guests breakfast the following morning. After the stay proved to be successful, Gebbia and Chesky created AirBedandBreakfast.com, receiving renters just six days after: “a 30-year-old Indian man, a 35-year-old woman from Boston, and a 45-year-old father of four from Utah sleeping on their floor for $80 a night.” The two young men realized this website could grow into something amazing (Salter, 2012). Both Gebbia and Chesky wanted to be entrepreneurs, but neither had a desire to create more “stuff that ends up in landfill,” so creating a website that would allow people to rent something that already existed was a great idea (Salter, 2012). After enlisting former roommate, Nathan Blecharczyk, they began to officially develop the website. In summer 2008, President Obama was due to speak in Denver at the Democratic National Convention and 80,000 people were expected to attend (Salter, 2012). With another shortage of hotel rooms, Gebbia, Chesky, and Blecharczyk finished and launched the website two weeks
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- 10. 6 and Washington D.C. (Carson, 2015). The success of Airbnb is evident since Airbnb started as a one-room listing and has expanded into hundreds of thousands of listings. Unfortunately, the current marketing problem prevents Airbnb’s consumer base from expanding. Exisiting Consumer Analysis Airbnb’s current consumers are segmented into two specific groups: hosts and travelers (Deep, 2015). This particular mix allows the company to successfully function as a sharing economy-based system; a system built upon an in-depth method of connecting individuals around the world. As of February 2016, Airbnb has attracted 60 million users and 640,000 hosts (Airbnb-Recapping Day 1 of Airbnb Open, n.d.). Hosts provide travelers with a cozy accommodation, and sometimes food to eat. Simultaneously, travelers use Airbnb as a service to find a “homey” place to stay in, sometimes, a new foreign setting. Of the 640,000 hosts, 54% are female and 46% are male (Buhr, 2015). A study conducted by former White House National Economic Advisor, Gene Sperling, found that “the majority of hosts are working-class families who rent out their primary residence for about 66 days a year,” increasing their annual income by 14% (Buhr, 2015). Interestingly enough, Airbnb’s Head of Global Policy and Public Affairs, Chris Lehane, shared in an article from The New York Times by Mike Isaac that “99 percent of people on Airbnb in New York City are using it as an economic lifeline" (Isaac, 2015). Seventy-two percent of Airbnb hosts in New York City use the money they earn from renting out their space to stay in their own home (Heath, 2015). Ben Popper from The Verge interviewed described how an Airbnb host rented five units, but only had one under his name and estimated an income of $500,000 (Popper, 2015). On average, Airbnb hosts annually earn $7,350 (or a 14% raise in
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- 15. 11 While Airbnb is still growing, the problem of booked hotels or high prices can be alleviated by booking an Airbnb room or home. The wants and needs of people are changing and they are looking for different experiences when they travel and it is important for providers to be aware of these changes (Parente & Strausbaugh-Hutchinson, 2015, p. 102). Airbnb provides these types of experiences and allows the satisfaction of the wants and needs to occur. Travelers want to be able to enjoy themselves while they are away and not worry about how much money they are spending overall. By booking an Airbnb, these consumers are able to save some of their funds for other experiences. Airbnb’s brand essence is built up by many aspects. The brand’s personality can be described as young, adventurous, innovative, bold and visionary (Parente & Strausbaugh- Hutchinson, 2015, p. 168). They also offer many attributes and benefits to their consumers that help position themselves better (Parente & Strausbaugh-Hutchinson, 2015, p. 168). Some attributes include affordability and variety of options, in which cases consumers can select the accommodations most relevant to their wants and needs. The benefits gained include the satisfaction of saving money and of having choices when booking accommodations for travels. The essence of the brand Airbnb builds allows consumers to create mental connections to the brand that will provide an opportunity to create top of mind awareness. In addition, loyal customers will continue to use the service (Parente & Strausbaugh- Hutchinson, 2015, p. 103). These mental connections will bring consumers back to Airbnb and encourage others to use the service. With a good brand essence, Airbnb will be able to grow their consumer base and increase membership on their site. Competitive Analysis
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- 20. 16 SWOT Analysis Strengths: First and foremost, Airbnb are part of a growing economic movement: the sharing economy. The sharing economy is “a socio-economic ecosystem built around the sharing of human and physical resources,” (Matofska, n.d.). What makes Airbnb so special is that they encompass some of the many aspects that are crucial to creating a successful sharing economy, one of those being people. Airbnb allow for people all over the world to communicate in ways that we never thought possible. Through this, Airbnb create an authentic experience (at a relatively reasonable price) people cannot receive when booking a hotel. Additionally, the founders’ simple idea of purchasing and renting out three air mattresses in their apartment not only helped them with their rent dilemma, but encouraged them to expand on that concept and create a company that is flourishing today. Because they are a new company, Airbnb have been able to build and create new ways to out-do the hotel industry. One of these ways includes providing 24/7 customer service. According to GetHuman, this service is strictly for Airbnb users and allows hosts or travelers to call any time to report an issue; ask a question about billing, sales, or more; or share a comment (Airbnb Support Channels Compared, n.d.). With an average wait time of approximately 15 minutes, Airbnb do their best to try and be there for their customers in a timely manner. Further, they now offer host protection insurance (now covering $1 billion per booking) (Airbnb-Host Protection Insurance, n.d.). In addition to their newness, Airbnb are sleek and modern, radiating a trendy image for the typical young consumer. The effortless, minimal style of the website, easy
- 21. 17 accessibility of the Airbnb app, and the popularity of the company themselves attract the younger crowd. There is no need for students to pay an exorbitantly high amount of money to travel to their desired destination if people are willing to rent out a space in their home, or their entire home, for a decent low price. ● 24/7 Customer service ●Offers unique traveling experience (direct relationship between travelers and locals) ● Offers host protection insurance (according to Airbnb, their insurance now covers $1 billion per booking) ● Modern, trendy image for younger consumers ● Significantly growing number of consumers ● Generally lower prices when compared to standard hotel rates ● Part of sharing service so host and renter benefit ● Company is a great investment for potential investors (increased valuation of company) Weaknesses: Yet, in spite of the many strengths Airbnb have, they suffer from many weaknesses. Airbnb have struggled with the law more than once. In 2015, Airbnb were accused of breaking Proposition F (casually known as the Airbnb Initiative) in San Francisco, which would have essentially toughened regulation on short-term rental of residential apartments and homes, (Lien, 2015). Tougher regulations would mean instead of the
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- 24. 20 ● Proposition F→ San Francisco law that allows Airbnb to have hosts in this area ● Safety of self and possessions is not guaranteed for travelers ●Original idea but susceptible to potential copycats (Xiaozhu.com, for example) ● Airbnb is direct middleman between a host and the traveler ● Relies heavily on quality of the host; bad reviews directly affect the progression of the company ● Not easily accessible for disabled individuals ● Newness means skepticism from many ● Does not include all services some hotels may include like parking, breakfast, travel accommodations, etc. Opportunities: Still, Airbnb can tackle opportunities like expanding their market to Chinese and Korean audiences before Xiaozhu. Blecharczyk shared that Airbnb’s newfound focus on China is due to an increase in demand in the country (Horwitz, 2015). Because much of the Chinese target audiece is unbiased towards hotels and Airbnb, they will approach Airbnb with a fresh perspective. Also, China has a large supply of vacant homes-- more than 50 million in urban China--which have become hotspots for vacation use (Jim, 2015). In Korea, Airbnb have been met with resistance. Introduced in the country in January 2013, Airbnb were deemed an “illegal activity” (Leem, 2016). In Will Airbnb Be Feasible in Korea?, Yoon-Kyung Leem mentioned a Korean surnamed Jung was fined 700,000 won, Korean currency, (100,000 won per traveler a day) for violating the Public
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- 27. 23 ● Celebrities are using Airbnb (Beyonce, NFL player from the 50th Super Bowl, and Ronaldinho) ● Charity opportunities Threats: Unfortunately, Airbnb still face many issues today. As mentioned before, their idea, while interesting, is easily replicated. However, Airbnb’s unique selling proposition (USP) is that travelers can experience another culture, lifestyle, or a new city by booking an Airbnb listing. Airbnb provide travelers with an experience they will never forget. HomeAway and Xiaozhu are just a couple of the growing amount of competitors for Airbnb. HomeAway provide the traveler with the entire home and Xiaozhu are slowly but surely gaining momentum in China, ruining Airbnb’s plans to capture the increasing amount of Chinese travelers. Xiaozhu’s strength largely comes from their in-depth understanding of the Chinese market. With a business model based solely on communication between renters and hosts, and Airbnb acting as the middlemen, complications are bound to emerge. Their first major problem was in 2011 when a host named EJ wrote a blog post explaining how her apartment was ransacked by a renter: They smashed a hole through a locked closet door, and found the passport, cash, credit card and grandmother’s jewelry I had hidden inside. They took my camera, my iPod, an old laptop, and my external backup drive filled with photos, journals… my entire life… The death-like smell emanating from the
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- 30. 26 and our shared values. It’s a symbol that, like us, can belong wherever it happens to be” (Chesky, 2014). All intentions aside, Airbnb’s logo issue proves that branding is a great challenge in the digital age, with the internet easily accessible to many. ● Because idea is easily replicated, there are a growing amount of competitors ● Some people have negative experiences with hosts and or renters ●Lawsuits and fines for not following the rules and regulations for certain areas ● Controversial logo and branding
- 31. 27 Target Audience Secondary Research To choose a target audience, there were many sources used to determine what the best options were. Sarbjit Nahal, Head of Thematic Investing of Bank of America Corp. in London discussed that millennials are using experiences to help shape their identities and creating memories that they can share with their friends, which includes sporting events, the sharing economy, and travel to name a few. In addition, a survey by Harris Poll and Eventbrite Inc. found that “78% of millennials would rather pay for an experience rather than a good” (Costa, 2016). The chosen target audience, adults ages 18-34, includes 67.6 million people (Simmons Research OneView, n.d.). In this target audience the focus was millennials of both professional and student standing because they are known to travel frequently. In July 2014, Airbnb launched Business Travel on Airbnb, which is a “service that helps business travelers’ search and book accommodations” (Fuscaldo, 2015). Considering this, it is important to investigate whether there is a difference in product use between the two target segments. In addition to American millennials, Korean and Chinese millennials were chosen as well. Airbnb are a global service, who are really trying to break into the Asian market. It is a large population and has an increased number of travelers. It should be noted that while Airbnb are starting to establish themselves in China, they have yet to become an established source in Korea. According to Lee Woo-young, Gebbia shared “Korea was growing faster than any other Asian market in its accommodation information sharing service” (Lee, 2013). There has been a 758% growth in the sharing economy in the Korean
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- 51. 47 Campaign Goals Marketing Goal Airbnb provide services that need to be more established. Overstep Communications believe that Airbnb need to have more members from around the globe. The intent of the Marketing Goal is to increase the number of members on Airbnb’s website. When people visit Airbnb.com, they have the option of signing up to become a member. In doing so, they will be able to create a profile and gain the opportunity to search for listings. Searching through listings may lead to bookings. Through an increased purchase rate, repeat purchases are more likely to occur. The sign up rate should be increased by 10% by the end of the calendar year, December 31, 2017. By accumulating more members, along with maintaining those who already use the service, Airbnb will position themselves as the go-to service and establish place in the market. Campaign Timeline American Campaign Based on our Primary Research, which states that most Americans travel during the summer, Overstep Communications should mainly put the advertisements on the media outlets from January 2017 to August 2017 because these are the times when people book summer vacations. Overstep Communications would like for the advertisements to be exposed all other months of the year, creating a pulsing media model. In doing so, Overstep Communications will be able to establish awareness of Airbnb when the target audience begins planning their summer trips. Further, beginning in January gives the target audience
- 52. 48 ample time to get a clear understanding of the services Airbnb provide and become a member. Korean Campaign According to the Traveltimes, based on the research done by Criteo Korea, most Koreans travel between mid-January and early September. In addition, people tend to spend most of their budget during spring for travel accommodations (Son, 2016). Therefore, Overstep Communications should focus on putting advertisements on the media outlets heavily during the spring season, which is March through May. Overstep Communications would like to create a pulsing media model in order to reduce the budget for quality while still being an effective way to reach the target audience. Chinese Campaign In China, it was found that the first week of October is the week that the Chinese population travels most (China Highlights, 2015). Almost half of the country’s inhabitants travel during these days (Lu, 2015). Unlike the American campaign, Overstep Communications decided the advertisements should run throughout the year, increasing from March to October, mimicking the pulsing media model. Communication Goals American Market After further deliberation, Overstep Communications concluded that, currently, affordability and convenience are common phrases used by the target audience when describing Airbnb. However, the main challenge with targeting the American audience is reducing skepticism and indifference towards Airbnb. Overstep Communications decided to base our methods on a traditional learning model.
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- 56. 52 Recommended Creative, Media and Promotional Strategies Creative Approach For the creative strategy, there are a few ideas that would be beneficial to Airbnb. The target audience is exposed to high ad clutter. It has been said that people are exposed to 3,000 advertisements per day (Myszewski, 2015). With this in mind, in order to capture the target audience in a way that makes a large impression, the ad must be eye-catching and unique. The chosen media will allow for greater impact and resonation with the target audience. The ads will be unobtrusive to their lives. Overstep Communications understand that people do not like being bothered by advertisements, such as pop-up adverstisements, so by creating unobtrusive, yet creative and attention-grabbing versions, there will be no harm done to the target audience. The appeals will be both emotional and informative since the TAs in all markets have some degree of a lack of trust, lack of awareness, and safety concerns with Airbnb. According to the FCB Grid, which is a resource that helps develop an ad campaign creative strategy, Airbnb provide a high involvement service (Parente & Strausbaugh- Hutchinson, 2015, p. 178). Because of this, Airbnb fall into both the informational and affective quadrants. The target audience needs a clear understanding on what Airbnb have to offer, and establish a connection to Airbnb (Parente & Strausbaugh-Hutchinson, 2015, p. 179). In addition, this campaign needs to address Airbnb’s unique selling proposition (USP), which is that after booking with Airbnb, users can temporarily experience what living is like in another life. Whether that is experiencing another culture, lifestyle, or simply a new city, Airbnb provide an experience travelers will never forget. By featuring the USP in the campaign, it will allow for a “persuasive advantage” and will “force
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- 59. 55 Overstep Communications recommend using social media to reach the Korean target audience. According to the Allaboutads’ column “2016 Social Media Trend and Core Strategy” by Jay Cho, DMC reported in 2015 that research showed consumers gain information about services or products from social media” (Cho, 2016, slide 15-17). There was an increase of 6 to 8% compared to 2013 (Cho, 2016, slide 15-17). Moreover, social media plays an important role in a purchase decisions and in being an ideal media platform for viral marketing (Cho, 2016, slide 15-17). In 2014, Korea’s social media landscape increased from a reported 23.5% in 2012 to 39.9% (Edelman, 2015). The average age of social media users has increased significantly between people ages 10 to 40, with 74.4% of people in their 20s using social media and 61% of people in their 30s using social media (Edelman, 2015). Furthermore, Korea has the highest digital video viewer penetration in the world: “95.9% of Korean internet users watch videos at least once a week” (Edelman, 2015). Chinese Overstep Communications plan to use social media and online advertising. There are 70% of people using social media between the ages of 19-35 and 38% of social media users make their product purchase decisions based on recommendations they read on social media (Jamie, 2015). The internet is also a very important way to reach the target audience in the campaign. In 2016, there are 721 million internet users in China, and 58% of them are millennials (Internet Live Stats, n.d; Russell, 2016). Promotional Strategy For promotions, Overstep Communications suggest doing a referral program. In this situation, recommending five friends to sign up for an Airbnb membership will result
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- 61. 57 Summary Overall, Overstep Communications understand what the problems and opportunities associated with Airbnb are when it comes to the TA’s mind. That being said, the implications that this has can be fixed through the campaign as aforementioned. It will help to alleviate these complications and create a better awareness and usage of Airbnb. The strategy suggested by Overstep Communications is simple yet well-rounded in reaching the intended target audience. By running this campaign, Airbnb will welcome more people to sign up for membership. The online and social media components will pull potential users in and spark their interests in what Airbnb have to offer. In the future, Airbnb will become more prominent in consumers’ minds and be more likely to make them loyal customers. With the combination of the recommended campaign and Promotional Strategies, both the Communications and Marketing Goals will be achieved and Airbnb will become more established in the marketplace. With their establishment, more people will book travel accommodations through Airbnb and they will become more prevalent than the typical hotel or motel options the target audience currently utilizes.
- 62. 58 References 180LA. (2014, September). Expedia - “Safari.” Retrieved from AdForum database. About Us. (n.d.). Retrieved from https://www.airbnb.com/about/about-us About Wechat. (n.d.). Wechat. Retrieved from http://www.wechat.com/en/careers.html Airbnb. (n.d.). Celebrating Airbnb’s 60+ host community. Retrieved from http://blog.airbnb.com/celebrating-airbnbs-60-host-community/ Airbnb. (2015, December 1). Data on the Airbnb community in NYC. Retrieved from https://www.airbnbaction.com/data-on-the-airbnb-community-in-nyc/ Airbnb. (n.d.). Airbnb disaster response. Retrieved from https://www.airbnb.com/disaster-response Airbnb. (n.d.). Hospitality standard. Retrieved from https://www.airbnb.com/hospitality Airbnb. (n.d.). Host protection insurance. Retrieved from https://www.airbnb.com/host-protection-insurance Airbnb. (n.d.). Recapping day 1 of Airbnb open. Retrieved from http://blog.airbnb.com/recapping-day-1-airbnb-open/ Airbnb. (n.d.). Setting guest expectations. Retrieved from http://blog.airbnb.com/setting-guest-expectations/ AirBnB Support Channels Compared. (n.d.). GetHuman. Retrieved from https://gethuman.com/contact/AirBnB Alba, D. (2015, December 7). Airbnb confirms $1.5 billion funding round, now valued at $25.5 billion. Wired. Retrieved from
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- 74. 70 Appendix Simmons OneView Tables Table 1: Adults, Ages 18-34 and Their Willingness to Make Travel Arrangements Through a Company They Have Never Heard of Table 2: Adults, Ages 18-34 and Whether They Travel Domestically in the Last 12 Months
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- 81. 77 TRANSITION: First, I would like to ask you a few questions regarding your travel habits and preferred accommodations. 1. What is your one favorite source to use to book your travel accommodations? (Open-Ended) 2. What do you like about the source you selected in the previous question? (Open- Ended) 3.What do you dislike about the source you selected? (Open-Ended) 4. When do you travel most? (Nominal) a. Summer b. Spring c. Winter d. Fall 5. Do you travel for business? a. Yes b. No 6. How often do you travel for business? a. _____________ 7. What do you hope to gain from your business travels? (Open-Ended) 8. Do you travel for leisure? a. Yes b. No 9. How often do you travel for leisure? a. _____________ 10. What do you hope to gain from your leisure travels?
- 82. 78 11. Do you travel to visit family/friends? a. Yes b.No 12. How often do you travel to visit family/friends? a. _____________ 13. What do you hope to gain from visiting family/friends? 14. On a scale from 1-5, with 1 being least likely and 5 being most likely, how likely are you to travel: (Interval) Least Likely Most Likely a. Alone: 1 2 3 4 5 b. With Family: 1 2 3 4 5 c. With Friends: 1 2 3 4 5 d. With Co-workers: 1 2 3 4 5 15. How much are you willing to spend a night for a hotel? (Interval) a. $1-50 b. $51-100 c. $101-150 d. $151-200 e. $200+ 16. When booking a hotel room, I am most concerned with: (Interval) Low High a. Security (Room) 1 2 3 4 5 b. Security (Area) 1 2 3 4 5 c. Cleanliness 1 2 3 4 5 d. Location 1 2 3 4 5 e. Price 1 2 3 4 5 f. Size of Room 1 2 3 4 5 g. Comfort 1 2 3 4 5 17. Are there any other concerns that you may have when booking a hotel room that I have not mentioned? (Open-Ended)
- 83. 79 18. In regards to your previous mentions, on a scale of 1 to 5, with 1 being the least concerned and 5 being the most concerned, how concerned are you with ____? Low High ___________________ 1 2 3 4 5 ___________________ 1 2 3 4 5 ___________________ 1 2 3 4 5 ___________________ 1 2 3 4 5 _____________________________________________________________________________________________ TRANSITION: Now, I would like to ask you about a specific travel accommodation. 1. Have you ever used any sharing services before, for example Uber, Lyft, Poshmark, Snapgood?(Nominal) a. Yes b. No 2. Have you ever heard of Airbnb? (Nominal) a. Yes b. No If respondents respond “No” to number one, they will answer the following question. If they answer “Yes,” they will continue with the survey with number three. Airbnb is a community marketplace that allows people to find accommodations for their travels around the world in more than 34,000 cities and 190 countries. Airbnb hosts, which can be your average homeowner, open up their homes. Whether it’s an apartment, private home, or even a single room within a home, travelers are able to use this service as an alternative to booking a hotel room. 1. Now that you are aware of Airbnb, on a scale of 0-10, how likely are you to use this service in the future? (Ratio) 0 1 2 3 4 5 6 7 8 9 10 2. After reviewing this description, on a scale of 1-5, where do you rate Airbnb on the following qualities? (Ordinal)
- 84. 80 a. Trustworthy 1 2 3 4 5 b. Convenient 1 2 3 4 5 c. Dependable 1 2 3 4 5 _____________________________________________________________________________________________________ 3. What are the first words that come to mind when you think of Airbnb? (Open- Ended) 4. When you hear Airbnb, how does that make you feel? (Open-Ended) 5. It is possible that Airbnb hosts are present during your stay. For example, if John rents his home to you, he can stay in his home during the duration of your travel. Are you comfortable with the host being present? (Open-Ended) _____________________________________________________________________________________________________ After answering these questions, respondents will be directed to the demographic part of the survey. 1. On a scale from 1-5, with 1 being least likely and 5 being most likely, how likely are you to hear about Airbnb from: Least Likely Most Likely a. Word of Mouth: 1 2 3 4 5 b. Magazine: 1 2 3 4 5 c. News Article: 1 2 3 4 5 d. Commercial: 1 2 3 4 5 e. Online Advertisement: 1 2 3 4 5 2. Have you ever used Airbnb? (Nominal) a. Yes b. No 3. Have you booked Airbnb in the following places: (Nominal) a. United States: yes [ ] no[ ] b. North America—excluding US: yes [ ] no[ ] c. South America: yes [ ] no[ ] d. Africa: yes [ ] no[ ]
- 85. 81 e. Australia: yes [ ] no[ ] f. Europe: yes [ ] no[ ] g.Asia: yes [ ] no[ ] 4. On a scale from 0-10, how likely are you going to use Airbnb in the future? (Ratio) 0 1 2 3 4 5 6 7 8 9 10 _____________________________________________________________________________________________________ TRANSITION: Now that I asked you about Airbnb, I am going to ask you a few questions about yourself in order develop a greater understanding between traveling habits and its consumers. 1. What’s your gender? (Nominal) a. Male b. Female 2. What’s your age? (Ratio) a. _________________ 3. Are you a full-time student or a full-time employee? (Nominal) a. Full-Time employee b. Student 4. Do you have children? (Nominal) a. Yes b. No ENDING: Thank you for participating in my study. I appreciate your time and effort. If you have any questions or are interested in my study, please feel free to contact my instructor: Dr. Susan Strohm Email: [email protected] Office Phone: 814-863-0535
- 86. 82 Focus Group Informed Consent Statement: Hello, my name is _____________ and I am an advertising student at Penn State University conducting research for a class project. We are looking at travel habits and preferred accommodations when you are away from home. All responses you provide for this study will remain confidential within my class. Are you 18 years or older? Yes[ ] No[ ] 1. What makes you choose a vacation destination? 2. What do you look for in a hotel room? 3.What do you think are the most important factors of a hotel room? 4. Have you ever used any sharing services before (i.e. Uber, Lyft, SnapGoods, Poshmark, etc.)? 5. Have you ever used Airbnb before? a. If yes, tell us about your experience b. If no, we will tell you about it i. Airbnb is a community marketplace that allows people to find accommodations for their travels around the world in more than 34,000 cities and 190 countries. Airbnb hosts, which can be your average homeowner, open up their homes. Whether it’s an apartment, private home, or even a single room within a home, travelers are able to use this service as an alternative to booking a hotel room. ii. Would you be interested in using Airbnb now? 6. It is possible that Airbnb hosts are present during your stay. For example, if John rents his home to you, he can stay in his home during the duration of your travel. Are you comfortable with the host being present? 7. Do you trust Airbnb’s services?
- 87. 83 a. Explain why or why not 8. Would you prefer to pick a hotel or an Airbnb listing for your vacation stay? a.What do you think are the advantages and disadvantages of each? 9. Would you be willing to sacrifice the benefits that come with a hotel for a more inexpensive option like Airbnb? ENDING: Thank you for participating in my study. I appreciate your time and effort. If you have any questions or are interested in my study, please feel free to contact our instructor: Dr. Susan Strohm Email: [email protected] Office Phone: 814-863-0535
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- 97. 93 Ostrow Model Marketing Factors That Affect Effective Frequency Established Brands -.2 -.1 +.1 +.2 New Brands High Market Share -.2 -.1 +.1 +.2 Low Market Share Dominant Brand in Market -.2 -.1 +.1 +.2 Smaller, Less Well-Known Brands High Brand Loyalty -.2 -.1 +.1 +.2 Low Brand Loyalty Long Purchase Cycle -.2 -.1 +.1 .2 Short Purchase Cycle Product used Occasionally -.2 -.1 +.1 +.2 Product Used Daily +.1 +.2 Needed to Beat Competition +.1 +.2 Advertising to Older Consumers or Children TOTAL: +.5 Copy Factors That Affect Effective Frequency Simply Copy -.2 -.1 +.1 +.2 Complex Copy Copy More Unusual Than Competition -.2 -.1 +.1 +.2 Copy Less Unusual Than Competition Continuing Campaign -.2 -.1 +.1 +.2 New Copy Campaign Product Sell Copy -.2 -.1 +.1 +.2 Image Type Copy Single Kind of Message -.2 -.1 +.1 +.2 More Different Kinds of Message To Avoid Wearout: New Messages -.2 -.1 +.1 +.2 Older Messages Larger Ad Units -.2 -.1 +.1 +.2 Small Ad Units TOTAL: +.6 Media Factors That Affect Effective Frequency Low Ad Clutter -.2 -.1 +.1 +.2 High Ad Clutter Compatible Editorial Environment -.2 -.1 +.1 +.2 Incompatible Environment Attentiveness High -.2 -.1 +.1 +.2 Attentiveness Low Continuous Advertising -.2 -.1 +.1 +.2 Pulsed or Flight Advertising Few Media Used -.2 -.1 +.1 +.2 Many Media Used Opportunities for Media Repetition -.2 -.1 +.1 +.2 Fewer Opportunities TOTAL: + 0 3 + 1.1 = 4.1