Airbnb: Online targeted advertising, sense of power, and consumer decisions

Abstract

Social media such as Facebook are a rich source of consumer information; however, how to effectively use such big data remains a question. To that end, marketers need to develop personalized messages to enhance click-through rates and online purchases. This study explores online advertising strategies for an emerging lodging concept—Airbnb. Airbnb distinguishes itself from traditional hotels by offering guests a “feeling at home” (e.g., belongingness) and an “atypical place to stay” (e.g., uniqueness). In this research, we examine the interaction effect of advertising appeal (belongingness vs. uniqueness) and an individual’s sense of power (low vs. high) on click-through intention and purchase intention. The findings suggest that powerless individuals respond more favorably to the belongingness appeal, whereas powerful individuals react more positively to the uniqueness appeal. Furthermore, results from a mediation analysis reveal that self-brand connection is the underlying mechanism that explains these effects. Managerial implications for hospitality marketers are discussed.