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1 Northumbria University Newcastle Newcastle Business School – Marketing Operations, and Systems Department MSc Business Analytics Business Analysis of Marketing Strategies and Brand Management: Research Study of Airbnb in the United Kingdom Done by: Laith Darweesh – w22034498 Supervised By: Dr. Mohammad Fattahi Dissertation submitted in partial fulfillment of the requirements of the Master’s Degree in Business Analytics and Data Management

2 September 2023 Declarations I declare the following: (1) that the material contained in this dissertation is the end result of my own work and that due acknowledgment has been given in the bibliography and references to ALL sources be they printed, electronic or personal. (1) the Word Count of this Dissertation is ................................. (2) that unless this dissertation has been confirmed as confidential, I agree to an entire electronic copy or sections of the dissertation to be placed on the e-Learning Portal, if deemed appropriate, to allow future students the opportunity to see examples of past dissertations. I understand that if displayed on the e-Learning Portal it would be made available for no longer than five years and those students would be able to print off copies or download. The authorship would remain anonymous. (3) I agree to my dissertation being submitted to a plagiarism detection service, where it will be stored in a database and compared against work submitted from this or any other School or from other institutions using the service. If the service detects a high degree of similarity between content within the service, this will be reported back to my supervisor and second marker, who may decide to undertake further investigation that may ultimately lead to disciplinary actions, should instances of plagiarism be detected. (4) I have read the Northumbria/Newcastle Business School Policy Statement on Ethics in Research and Consultancy as detailed in The Newcastle Business School Masters Dissertation Guidelines and I declare that ethical issues have been considered, evaluated and appropriately addressed in this research. SIGNED*: _________________________________________ DATE: ____________________________________________

4 Table of Contents Declarations ............................................................................................................................................... 2 Acknowledgments ...................................................................................................................................... 3 Abstract ...................................................................................................................................................... 5 CHAPTER 1: INTRODUCTION ............................................................................................................. 6 1.1. Opening Section ......................................................................................................................... 6 1.2. Research Background ................................................................................................................ 9 1.3. Research Objectives and Questions ........................................................................................ 11 1.4. Research Scope and Importance ............................................................................................. 12 1.5. Dissertation Structure ............................................................................................................. 14 1.6 Conceptual Framework ................................................................................................................. 15 1.7 Hypotheses ..................................................................................................................................... 18 CHAPTER 2: LITERATURE REVIEW ............................................................................................... 20 2.1 Airbnb and the increase of sharing economy ......................................................................... 20 2.2 Airbnb Business Model ........................................................................................................... 25 2.3 Airbnb Brand Management and Marketing Strategies ........................................................ 29 2.4 Research Gap ........................................................................................................................... 33 CHAPTER 3: METHODOLOGY .......................................................................................................... 35 3.1 Overview ......................................................................................................................................... 35 3.2 Research Design ............................................................................................................................. 36 3.3 Data collection ................................................................................................................................ 37 3.3.1 Survey Development ............................................................................................................... 37 3.3.2 Data Collection and Sampling ............................................................................................... 39 3.4 Data Preparation ........................................................................................................................... 40 3.4.1 Data Structure ......................................................................................................................... 40 3.4.2 Data Cleaning .......................................................................................................................... 40 3.4.3 Data Coding ............................................................................................................................. 41 3.5 Data Analysis .................................................................................................................................. 42 3.6 Ethical Considerations .................................................................................................................. 44

5 3.7 Limitations ..................................................................................................................................... 45 CHAPTER 4: FINDINGS AND RESULTS ........................................................................................... 46 4.1 Descriptive Analysis ....................................................................................................................... 46 4.2 Hypothesis Tests ............................................................................................................................. 49 4.3 Multiple Linear Regression ........................................................................................................... 50 4.4 Summary of Findings .................................................................................................................... 51 CHAPTER 5: DISCUSSIONS AND RECOMMENDATIONS ............................................................ 52 5.1 Discussions ..................................................................................................................................... 52 5.1.1 Demographics and Preferred Accommodation ..................................................................... 52 5.1.2 Hypothesis Tests: Influencing Factors on Accommodation Preferences ............................. 53 5.1.3 Regression Analysis: Impact of Marketing Strategies on Digital Marketing Success Ratings .............................................................................................................................................. 53 5.2 Recommendations .......................................................................................................................... 54 5.2.1 Targeted Marketing Strategies ............................................................................................... 54 5.2.2 Leveraging Digital Marketing Strategies .............................................................................. 54 5.2.4 Strengthening Airbnb Reputation ......................................................................................... 55 5.3 Implications and Future Research ................................................................................................ 55 CHAPTER 6: CONCLUSION ............................................................................................................... 57 6.1 Summary of Key Findings ............................................................................................................ 57 6.2 Implications and Significance ....................................................................................................... 58 6.3 Contribution to Knowledge and Future Research ...................................................................... 59 6.4 Limitations and Considerations .................................................................................................... 59 6.5 Conclusion ...................................................................................................................................... 60 References ................................................................................................................................................ 61

7 CHAPTER 1: INTRODUCTION 1.1. Opening Section The emergence and widespread adoption of digital platforms have brought about profound changes in various industries, fundamentally reshaping the operational strategies of businesses and greatly facilitating global travel. This has made it considerably easier for individuals to explore diverse cultures, as well as reconnect with friends or family residing in distant places. The opportunity to observe this technology has afforded us the ability to utilize a range of inventive resources that have transformed the concept of travel into one that appears contemporary, cost-effective, and attainable. Notably, this includes the availability of inexpensive air travel, which permits individuals to journey to foreign countries for a price equivalent to that of a meal consisting of a burger. Additionally, digital mapping applications have emerged as a solution to the difficulties encountered when navigating unfamiliar territories with diverse linguistic contexts, among other advantages. Amidst the many transformations, one notable development is the rise of the sharing economy, which has had a significant impact on several sectors. Airbnb, an innovative company in this domain, serves as evidence of this transformative phenomenon (Schor, 2016). Airbnb, a company founded in 2008 by Joe Gebbia, Nathan Blecharczyk, and Brian Chesky in San Francisco, California, has emerged as a very effective strategy within the hotel industry (Sherwood, 2018). Airbnb has emerged as a transformative platform that facilitates the connection between persons in search of accommodation and those who are prepared to provide their space for rent, resulting in a significant shift in people's housing choices. This innovative approach presented a new and distinct alternative to traditional hospitality services, marking a significant milestone in the hospitality sector. It reflects a growing trend among individuals who

8 are increasingly opting to rent accommodations that offer a sense of connection and proximity to local communities. This trend has disrupted the industry by facilitating peer-to-peer (C2C) interaction. This arrangement, which is mutually advantageous, enhances social connections and expands cultural comprehension via significant interactions with guests. Over the course of its existence, Airbnb has seen significant expansion, garnering global recognition and establishing a presence in more than 220 countries. Notably, the United Kingdom has emerged as a prominent market for Airbnb (Zervas et al., 2017). With a record- breaking number of over one billion stays (Airbnb, 2021) and a remarkable market value of $81.5 billion (Google Finance, 2023), the company has achieved unprecedented success. In addition, it is noteworthy that Airbnb achieved a substantial income of $8.4 billion in the year 2022, as reported by Statista Research Department in 2023. The notion of the sharing economy has garnered significant support and appeal among consumers due to its distinct emphasis on cooperation and sharing. The process of its development has been accelerated by developments in technology, the changing attitudes of consumers, and a transition towards sustainable consumption patterns (Hamari et al., 2016). The sharing economy, exemplified by platforms like as Airbnb, has had significant and fast uptake inside the United Kingdom, posing a formidable challenge to the conventional hotel business. The 2018 study on Airbnb in the United Kingdom provides significant insights into the substantial economic impact of Airbnb within the tourist industry in Britain. Based on the findings of the report, it has been observed that homeowners were able to generate a substantial amount of revenue, amounting to over 850 million pounds, through the rental of houses on Airbnb. Furthermore, the economic impact of guests and hosts combined reached a total of 3.5 billion pounds. It is noteworthy that a significant proportion, specifically 78% of Airbnb visitors,

10 competitive edge in an ever-changing environment, it is essential to maintain a sustained emphasis on brand management and use creative marketing strategies. 1.2. Research Background The implementation of a robust marketing plan is of paramount importance in facilitating the promotion of logical and organized expansion inside a firm. The use of this instrument proves to be advantageous in acquiring knowledge about rivals, identifying target audiences, comprehending the preferences and requirements of the company's clients, and formulating efficacious advertising plans. Furthermore, companies have the potential to optimize their return on investment (ROI) by strategically aligning their marketing endeavors with the preferences and needs of their target consumers (Banning, 2021). The proficiency in strategically promoting products or services to the appropriate target demographic at the optimal moment is of utmost importance for the sustained expansion and prosperity of any organization on a national and international scale. In contrast, brand management is a crucial element of marketing, functioning in conjunction with it to establish a meaningful relationship between a company and its clientele (Simplilearn, 2021). The objective of brand management is to cultivate a favorable brand image that cultivates trust and nurtures connections via the establishment of fundamental values and principles that differentiate the brand from its rivals. According to Grant (2023), it serves as the fundamental basis for cultivating customer loyalty and developing the brand's awareness and esteem. The interdependence of brand management and marketing can be likened to a symbiotic relationship, wherein brand management fosters trust, distinctiveness, and customer loyalty, while marketing devises strategies for efficient product or service promotion, ultimately leading to a favorable return on investment.

11 This research endeavor aims to investigate the effects of prior research, scholarly publications, articles, and interviews on the efficacy of marketing tactics and brand management within the context of Airbnb in the United Kingdom. By using data from accessible sources, the study seeks to identify deficiencies in current methodologies and provide remedies to address them. Furthermore, the collection and analysis of quantitative data will be conducted among clients of Airbnb in the United Kingdom. The examination of this data will provide valuable insights into the demographics of Airbnb users in the kingdom, as well as their attitudes and knowledge of the brand. Furthermore, this research aims to assess the efficacy of Airbnb's marketing strategies, shedding light on essential attributes such as customer loyalty, trust, security, affordability, and other pertinent factors. By doing so, we want to gain insights into consumer behavior patterns within the context of Airbnb and differentiate the firm from its rivals. The primary objective of this study is to provide actionable suggestions that may be effectively adopted by decision-makers at Airbnb. 1.3. Research Objectives and Questions Given the increasing competition within the sharing economy sector and the ongoing evolution of consumer behaviors, it is crucial to have a comprehensive comprehension of efficient marketing tactics and brand management methodologies. This comprehension is especially critical for a prominent site such as Airbnb. Against the aforementioned contextual framework, the primary objective of this research is to comprehensively examine the marketing techniques and brand management practices used by Airbnb within the United Kingdom market. The aim of this study is to get a deeper understanding of the existing procedures used by Airbnb, assess their efficacy, and identify new opportunities for improvement. The primary research question that guides this work is:

13 1.4. Research Scope and Importance This research project has considerable significance owing to its ability to make large contributions to the theoretical comprehension and practical implementation of marketing strategies and brand management used by Airbnb in the United Kingdom. The significance of this relevance is especially evident within the framework of the sharing economy and the hotel business, both of which are experiencing fast digital development. The present study has the potential to significantly contribute to the academic discourse around the sharing economy by addressing current gaps in the literature. Despite the increasing significance it has gained, the sharing economy, exemplified by disruptive platforms such as Airbnb, continues to be a subject of little scholarly investigation (Mody, Suess, & Dogru, 2019). Academic studies have not yet properly investigated the distinct environment and issues that such organizations bring for marketing and brand management (Farmaki & Kaniadakis, 2020). By directing attention on these specific components, this study has the potential to provide new perspectives into these domains, so enhancing the scholarly body of knowledge on the topic. The report provides a comprehensive analysis of Airbnb's marketing methods and brand management procedures, with a particular focus on this specific organization. Airbnb has significantly impacted the worldwide hospitality industry via its innovative and disruptive business model (Zervas, Proserpio, & Byers, 2017). Nevertheless, there is a lack of comprehensive scholarly understanding about how Airbnb has effectively used marketing strategies and brand management to have a significant influence, particularly in specific regions such as the United Kingdom (Dolnicar, 2019).

14 The primary objective of this study is to address the existing research gap and provide significant contributions to the field. From a practical standpoint, the study findings have the potential to provide significant and useful insights that may be effectively used by Airbnb and similar organizations operating within the sharing economy. The findings have the potential to provide valuable insights for Airbnb, enabling the company to refine its marketing efforts and enhance its brand management processes. This, in turn, might strengthen its competitive advantage within the highly competitive UK market. Furthermore, it is worth noting that other platforms within the sharing economy sector have the opportunity to learn from Airbnb's experiences and apply these valuable insights to their own distinct business environments. Furthermore, the findings has significant significance for policymakers and regulators. The rise of the sharing economy has brought forth new issues in the realm of regulation and policy development (Cohen & Sundararajan, 2015). A deeper comprehension of the methods and methodologies used by Airbnb may provide these stakeholders with essential knowledge as they navigate the intricate endeavor of cultivating an equitable and competitive market environment. In brief, this study has the capacity to impact several domains, including academics, enterprises operating inside the sharing economy, and policymakers. This statement highlights the significance and pertinence of comprehending marketing tactics and brand management techniques within the swiftly changing realm of the sharing economy. This study offers a diverse and comprehensive contribution, augmenting the existing theoretical framework, providing insights for corporate strategies, and impacting policy development, thereby solidifying its significance within the area. 1.5. Dissertation Structure 1 st Chapter o Background on Airbnb, the sharing economy, and the UK market

16 References and Appendices o References section will list all sources cited in the dissertation and appendices will provide any supplementary material related to the research. 1.6 Conceptual Framework Conceptual Framework The conceptual framework behind this research is based on the convergence of marketing strategies, brand management, and the sharing economy, specifically within the operational framework of Airbnb in the United Kingdom. The framework incorporates essential theoretical ideas and constructs in order to provide a full comprehension of how Airbnb's marketing tactics and brand management practices contribute to its success and competitiveness within the hospitality industry of the United Kingdom. 1. Marketing Strategies in the Sharing Economy : This segment of the framework delves into the underlying concepts of marketing tactics, with a specific emphasis on their significance within the context of the sharing economy. The analysis explores many principles like market segmentation, targeting, positioning, and the marketing mix, which have been tailored to suit the distinctive attributes of the sharing economy and Airbnb's specific business model. 2. Brand Management in the Sharing Economy : This factor underscores the importance of brand management in molding customer perceptions and cultivating brand loyalty within the sharing economy. The subject matter encompasses several notions pertaining to brand identification, brand equity, brand distinctiveness, and the establishment of an emotional connection between consumers and businesses. 3. Impact of Marketing Strategies on Brand Image : This segment investigates how Airbnb's marketing strategies influence its brand image and reputation in the UK market.

17 It examines how the marketing efforts, including advertising, social media engagement, and customer interactions, contribute to building a strong and distinct brand identity for Airbnb. 4. Consumer Behavior and Preferences : Within the sharing economy context, this aspect delves into consumer behavior and preferences in the UK when it comes to choosing accommodations through platforms like Airbnb. It considers factors such as the desire for unique experiences, cost-effectiveness, cultural immersion, and the role of online reviews and recommendations. 5. Regulatory Environment and Competitive Landscape : Recognizing the evolving regulatory landscape and increasing competition, this component explores the impact of regulations on Airbnb's marketing strategies and brand management practices in the UK. It also assesses how Airbnb positions itself amidst competitors and adapts its strategies to maintain a competitive edge. 6. Innovation and Adaptation : This dimension highlights the importance of innovation and adaptability in Airbnb's marketing strategies and brand management. It examines how Airbnb continuously evolves its offerings, services, and communication approaches to align with changing consumer expectations and market dynamics. 7. Value Proposition and Customer Experience : Central to this framework is the exploration of how Airbnb's marketing strategies and brand management contribute to creating a unique value proposition and enhancing the overall customer experience. It assesses the ways in which Airbnb satisfies customer needs and differentiates itself from traditional hospitality options.

19 CHAPTER 2: LITERATURE REVIEW 2.1 Airbnb and the increase of sharing economy The sharing economy has undergone significant adaptation and incorporation into individuals' daily existence, predominantly because of the growing use of internet technology and big data. This transformation has resulted in significant changes in consumer behavior, allowing for improved access to products and services and optimizing extant resources across a variety of industries. Amazon, Uber, and JustEat, among others, have ardently embraced the dynamic socioeconomic ecosystem of the sharing economy. Utilizing digital platforms, these businesses offer consumers a vast array of goods and services, such as transportation and dining Table 1: Dissertation Structure

20 options, with simplicity and adaptability to meet their customers' needs, thereby positively affecting the economic, environmental, and social aspects of the community. The interconnected nature of the Sharing Community and the implications of the sharing economy have established a complementary relationship that significantly influences consumer behavior patterns. This influence has made it easier to implement e-commerce and lifestyle trends, making them more accessible and efficient. In light of this paradigm shift, both businesses and consumers must have a thorough comprehension of the fundamental mechanisms and consequences of the sharing economy. This comprehension not only facilitates the creation of logical marketing analyses, but also aides in the effective planning of marketing campaigns. This comprehensive comprehension should include essential elements such as trust, privacy, collaboration, and accessibility. In contrast, by effectively implementing these elements, businesses can increase consumer loyalty on sharing economy platforms. In addition, acquiring insights into the efficient provision of shared economic services that are of high quality and reasonably priced for multiple consumers can create a distinct, recognizable brand image that resonates with consumers. Originally conceived as a utopian concept, sharing and cooperation have evolved into a flourishing multibillion-dollar industry, as evidenced by the phenomenal growth of companies such as Uber and Airbnb. This sector has experienced an extraordinary increase from $14 billion in 2014 to an estimated $335 billion by 2025, demonstrating its robust growth and transformative potential across a variety of industries. In a recent interview, Christopher Nassetta, the president and CEO of Hilton, acknowledged the profound impact of the sharing economy on the travel industry, democratizing access to diverse demographics. This is illustrative of this transformation. He emphasized that while Airbnb may be perceived as a competitor to some degree, a closer look