Adoption and impact of marketing performance assessment systems among travel agencies

Abstract

Purpose The purpose of this paper is to assess whether travel agencies that implement comprehensive marketing performance assessment systems (MPASs) enjoy superior overall performance. Drawing on the knowledge-based view, the authors propose and test a model demonstrating that the relationship between MPASs and overall performance is fully mediated by the depth of market-related knowledge absorbed by the travel agency. Design/methodology/approach A survey was administered to a sample of Italian travel agencies; 171 complete questionnaires were received. The suggested relationships were assessed using a covariance-based structural equation modeling approach, including the estimation of both the measurement model and the structural model. Findings The findings indicate that the implementation of sophisticated MPASs has a significant and positive effect on performance and that this relationship is fully mediated by the depth of market-related knowledge absorbed by the travel agency. In addition, the results highlight that the number of marketing metrics monitored by the travel agency has no effect on its performance. Research limitations/implications The specific features of the travel agency sector in Italy include a remarkable level of fragmentation. The cross-sectional design does not permit an assessment of the medium-term effects of the adoption of an MPAS. Practical implications Travel agencies selecting proactive marketing strategies can particularly benefit from the adoption of sophisticated MPASs. Suggestions are provided to assist managers in designing their MPAS. Originality/value This study enriches the field’s knowledge about marketing performance measurement and proactive marketing strategies, and indicates that the implementation of well-designed MPASs improves a firm’s overall performance. It also explains the knowledge-related processes that produce this positive effect.