What residents of potential Olympic cities want: using conjoint analysis to deal with dominant and heterogeneous preferences

Abstract

Understanding residents’ preferences for mega-sports events is a hot topic in tourism and event research. Thus far, most studies have assumed homogeneous preferences, and linear utility additivity of all event attributes when measuring residents’ support. This study uses an adaptive choice-based conjoint analysis combined with hierarchical Bayesian estimation. In contrast to previous research, the method considers the entire spectrum of residents’ preferences at the individual level and identifies non-substitutable dominant preferences (must-haves and unacceptables). A survey with 687 residents was conducted in Tyrol, an Austrian state with a remarkable Olympic tradition. The findings of this study extend the current literature by showing that the usually applied assumptions (homogeneous and linear additive substitutable preferences) are violated with substantial consequences. A simulation allows transforming the survey results into hypothetical referendum support rates for different feasible concepts of the Olympic Games.