Marketing Innovation for SMEs during

COVID-19 Pandemic
A case study of the hospitality industry in Norrbotten

Simon Larsson
Simon Gustavsson

Business and Economics, bachelor's level

2020

Luleå University of Technology

Department of Business Administration, Technology and Social Sciences
 Acknowledgement

This degree project was the last assignment in the process of completing our studies at Luleå
University of Technology. For Simon Larsson, this means the completion of the program
Economy Candidate, specialization in marketing. For Simon Gustavsson, this means the
completion of the program International Economy Candidate, specialization international
business administration. This study was conducted during the spring of 2020 (April - June) and
provided an insight on how small and medium sized enterprises (SMEs) in the hospitality
industry in Norrbotten was affected by the COVID-19 pandemic (coronavirus), along with how
the SMEs adapted a new way of marketing during the economic crisis derived from the COVID-
19 pandemic.

There are several people involved that have contributed to this degree project from the beginning
to the end of the study period. First of all, we would like to thank and show our gratitude to our
supervisor, Seyedeh Fatemeh Mostafavi Shirazi, who supported us with advice, expertise and
experience. We would also like to thank the interviewed participants for their contribution to this
degree project by providing their expertise. Furthermore, we would also like to thank our fellow
students that during the term has given advice on how to improve our degree project. At least but
not last, a big thank you to our families that has supported us during this study period.

We are proud to say that we after a period of time have completed our Degree Project.

Luleå, May 2020

Simon Larsson and Simon Gustavsson

 Abstract
As a global disaster, the COVID-19 pandemic (coronavirus) has an impact on the whole world
economy. The pandemic threatens the survival of small and medium sized enterprises (SMEs)
globally and nationally. It appears inevitable that this pandemic has created a difficult business
environment for small and medium sized enterprises to operate in. The COVID-19 pandemic has
caused a chain of events that have led to an economic crisis. The driving factor have been the
Swedish government’s recommendations to the population to stay at home and exercise social
distancing. This has led to a declining household consumption in Sweden and thus also reductions
in production in the country. Thus, the purpose of this degree project was to examine how three
small and medium sized enterprises businesses adapted their way of marketing in order to survive
the economic crisis that came with the COVID-19 pandemic. The research has been conducted
within the context of three small and medium sized enterprises (SMEs) in the hospitality industry
in Norrbotten.

To gain deeper knowledge on how SMEs in Norrbotten changed their way of marketing during
this economic crisis, a qualitative research approach was pursued. A multiple case study was
administered against three contrasting organizations in Norrbotten to collect data in order to delve
into the chosen subject more. The gathered data was collected through interviews.

The findings of this study prove that the three small and medium sized enterprises were affected
by the economic crisis that came with the coronavirus. Overall, the main findings show that the
three SMEs adapted and improved their marketing mix as a response to the crisis. The key factor
in why the three companies had to improve their marketing mix was the change of the consumer
buying behavior. The changed customer behavior was a result of the Swedish government and
the Public Health Agency measures to prevent the spread of the virus: social distancing, traveling
restrictions and closed borders.
 Sammanfattning
Som en global katastrof har COVID-19-pandemin (coronaviruset) en påverkan på hela
världsekonomin. Pandemin hotar små och medelstora företags överlevnad både globalt och
nationellt. Det verkar oundvikligt att denna pandemi skapar en besvärlig affärsmiljö för små och
medelstora företag (SMFs) att hantera. COVID-19 pandemin har orsakat en händelsekedja som
har lett till en ekonomisk kris. De drivande orsakerna har varit den svenska regeringens
rekommendationer till befolkningen att stanna hemma och utöva social distansering. Detta har
lett till minskning av hushållens konsumtion i Sverige och därmed också en minskning av
produktionen i landet. Därav har syftet med detta examensarbete varit att undersöka hur tre små
och medelstora företag har anpassat sin marknadsföringsstrategi för att överleva den ekonomiska
krisen som medföljt COVID-19 pandemin. Forskningen har bedrivits gentemot tre små och
medelstora företag inom besöksnäringens i Norrbotten.

För att få djupare förståelse och kunskap om hur små och medelstora företag i Norrbotten
förändrade sitt sätt att marknadsföra under denna ekonomiska kris (som kom från coronaviruset)
genomfördes en kvalitativ forskningsstudie. En multipel fallstudie upprättades med tre små och
medelstora företag i Norrbotten för att samla in data för att fördjupa sig inom det valda ämnet.
Den insamlade data kom från intervjuer från tre respondenter i tre små och medelstora företag
inom besöksnäringsindustrin i Norrbotten.

Resultaten av denna studie visar att de tre studerade små och medelstora företagen påverkas av
den ekonomiska krisen som kom från coronaviruset. Sammanfattningsvis visar resultaten att de
tre små och medelstora företagen anpassade sin marknadsföringsmix som ett svar på den
ekonomiska krisen. Den centrala orsaken till varför de tre företagen uppgraderade sin
marknadsföringsmix var konsumentens förändrade köpbeteende. Det förändrade köpbeteendet
var ett resultat av den svenska regeringens och folkhälsomyndighetens åtgärder att hindra
smittspridningen av coronaviruset: social distansering, reserekommendationer och stängda
gränser.
Table of Contents
1. Introduction 1
1.1 Background 1
1.2 Problem Discussion 3
1.3 Purpose and Research Questions 4
1.4 Delimitations 4
1.5 Outline of Entire Thesis 5
2. Literature Review 6
2.1 Economic crisis impact on businesses 6
2.1.1 SMEs and the economic impact 7
2.1.2 Understanding consumer behaviour in an economic crisis 7
2.1.3 Significance of marketing in an economic crisis 8
2.2 Marketing Innovation 8
2.2.1 Marketing Innovation in Times of Crisis 9
2.2.2 Marketing Innovation for SMEs in Times of Crisis 9
2.2.3 Marketing Innovation in Hospitality Industry 10
2.3 The Marketing Mix 11
2.3.1 Product 12
2.3.2 Price 13
2.3.3 Place 13
2.3.4 Promotion 14
2.4 Frame of reference 15
3. Methodology 18
3.1 Research Purpose 18
3.2 Research Approach 19
3.2.1 Deductive Approach 19
3.2.2 Qualitative or Quantitative Data Collection 19
3.3 Research Strategy 20
3.3.1 Case Study 20
3.4 Data Collection 20
3.4.1 Interviews 21
3.5 Sample Selection 22
3.5.1 Selected Companies 23
3.5.2 Interviewed respondents 24
3.6 Data Analysis 24
 3.7 Reliability and Validity 25
3.7.1 Reliability 27
3.7.2 Construct Validity 28
3.7.3 Internal Validity 28
3.7.4 External Validity 28
3.9 Summary of Methodology 29
4. Empirical Data 31
5. Data Analysis 39
5.1 The impact on SMEs 39
5.2 Measures taken by the SMEs 43
6. Findings and Conclusions 50
6.1 Findings and conclusions - the economic crisis impact on SMEs in Norrbotten 52
6.2 Findings and conclusions regarding changes in the marketing mix 53
6.3 Theoretical Implications 54
6.4 Practical implications 55
6.5 Implications for further research 56
6.6 Limitations of the research 57
7. References 59
List of Figures
Figure 1 - Economic crisis linked to the marketing mix 4
Figure 2 - Outline of thesis 5
Figure 3 - The Marketing Mix 12
Figure 4 - Summary of Methodology 30
Figure 5 - Overview of consequences and actions brought by the COVID-19 pandemic 51

List of Tables
Table 1: Frame of reference for research questions 17
Table 2: Interview types 21
Table 3: Interviewed respondents 24
Table 4: Types of Validity Tests 26
Table 5: Experience of decreased production due to supply chain disruptions 40
Table 6: Experience of reduced workforce among the companies 41
Table 7: Economic crisis financial impact on SMEs 42
Table 8: Changing consumer behavior affection on the companies 43
Table 9: The number of companies that have made improvements in the market mix 44
Table 10: Product innovation as a response to an economic crisis 45
Table 11: Pricing strategy in an economic crisis 46
Table 12: Changes in the distribution chain toward the customers 47
Table 13: Adaption of marketing during an economic crisis 48
Table 14: Comprehensive table of marketing mix adjustments 49
1. Introduction
The following background will give an overview on how SMEs in the hospitality sector have to
cope with the current COVID-19 pandemic - from a marketing perspective. Moreover, a problem
discussion is presented in this chapter which allows the purpose of the research to be given,
along with the stated research questions. At last, an overview and outline of the entire thesis will
be provided.

1.1 Background
Companies are today managing businesses in a highly interrelated international business world
(Alhawari et al., 2012). Companies are therefore more exposed to abnormal and unexpected
events such as a crisis, since it constitutes new risks and an unpredictable business surrounding.
For companies that are not adequate to adapt in time of crisis, it can be challenging to have a
sustainable profitability or even survive (Darbonnens & Zurawska, 2017). As this thesis is written
the world is in the midst of an economic crisis derived from the corona-pandemic outbreak
(COVID-19), which is affecting businesses all over the world.

The coronavirus outbreak was officially declared as a pandemic in March 2020 (WHO, 2020)
and in early February the first case was detected in Sweden (Statista, 2020). As this thesis is
written, the country has 20 300 confirmed cases where the region Norrbotten has 243 confirmed
COVID-19 cases (Statista, 2020). The COVID-19 pandemic has caused a chain of events that
have led to an economic crisis. The driving factor has been that governments all over the world
have advised their population to stay at home and practice social distancing, which has led to a
declining household consumption and thus also reductions in production (Statistics Sweden,
2020).

In a survey by Norrbottens Chamber of Commerce (2020) it shows that the corona crisis has
caused damage to the business sector in Norrbotten and that over 70 percent of the firms have
taken measures to reduce their costs. The survey also confirms the image that the hospitality
industry (i.e. hotel, restaurant, tourism, travel, cafes) and small and medium sized enterprises
(SMEs) have been hit hardest so far. A SME is according to EU’s definition a company that
employs less than 250 people, and has either a turnover that is not more than EUR 50 million or
an annual balance sheet that is not more than EUR 43 million (European Commission, 2003.).

1
Almost 80 percent of the SMEs in Norrbotten have already been affected directly or indirectly
by the coronavirus. Demand has decreased for two-thirds of the firms. Cashflow has already
negatively affected 60 percent of the firms and 68 percent of the firms see long-term negative
effects of the corona crisis (Norrbotten Chamber of Commerce, 2020).

99.9 percent of all companies in Sweden are small and medium sized companies. They create
employment for 70 percent of the total labour force and since 1990 they have created more than
4 out of 5 jobs every year (Yazdanfar et al. 2015; Yazdanfar & Öhman, 2018). SMEs are
considered to be an important factor in a market economy and a great source of national economic
growth (Haltiwanger et al 2013; Decker et al. 2014). However, SMEs are likely to be the ones
who are most negatively affected in times of crises. Since they are vulnerable with their, in
general, inferior financial- and human resources when it comes to responding to the
consequences compared to multinational corporations (Vargo & Seville, 2011; Cesaroni et al.
2020).

A suggested tool in order to deal with an economic crisis for firms with limited resources (many
times SMEs) is to adopt marketing innovation (Naidoo, 2010). Marketing innovation is defined
as the application of a new marketing strategy with changes in product design, pricing strategy,
packaging and product placement (Varadarajan, 2018). When a crisis hits the organizations, in
this case the hospitality industry, they might need to adjust and change their marketing strategies
(Karlsson & Tavassoli, 2016). In those cases, it is vital for firms to remember that the adaptation
of a new way of marketing should avoid cutting expenses of marketing (Köksal & Özgul, 2007).
A good first step to adapt the marketing strategy might be to reevaluate the marketing mix and
realign the value offered in order to please customers changed demand, due to the crisis (Karlsson
& Tavassoli, 2016; Falk, 2013). Empirical results also show that marketing innovation activities
positively influences the economic profitability for firms in the hospitality industry (Nieves &
Diaz-Meneses, 2016).

Although changes in the marketing mix (i.e. product, price, place, promotion) have been
proposed as a feasible strategy for companies that face a crisis, little research has been directed
at empirically proving this, at least in the context of SMEs (O'dwyer, Gilmore & Carson, 2009;
Naidoo, 2010).

2
1.2 Problem Discussion
When an economic crisis hits and the turnover rate declines, it might lead to bankruptcies
(Yazdanfar, Öhman & Homayoun 2019). The declining turnover also contributes to decreases in
innovative activities, mainly because new product innovation is expensive (Peric & Vitezic,
2016; Grewal & Tansuhaj, 2001). Nonetheless, the use of innovativeness in marketing could
present an attractive solution for cash-strapped firms in order to survive in an economic crisis
(Naidoo, 2010). However, there is not much previous research that has investigated or been able
to prove marketing innovations' impact on firm survival in an economic crisis (Naidoo, 2010).

As a consequence of the COVID-19 pandemic, governments all over the world have advised
their population to stay at home and practice social distancing, which has led to changed customer
preferences and firms have to adapt to that in order to stay profitable and competitive (Statistics
Sweden, 2020; Fernandes, 2020; Karlsson & Tavassoli, 2016). The changes in customer needs
is something that has affected every industry in the business sector (Statista Sweden, 2020). Since
marketing innovation is a tool for firms in order to adapt to consumer needs, and includes
innovations such as advertising innovation, distribution innovation, promotion innovation and
pricing innovation (Naidoo, 2010; Varadarajan, 2018). A successful implementation of that kind
of innovations will help firms to better match customer needs and in turn also help them to gain
a competitive advantage (Anning-Dorson et al. 2018; Karlsson & Tavassoli, 2016).

The marketing mix (i.e. the 4P’s) is the mechanisms the organization can use to create customer
satisfaction and to stay competitive within the market (Karlsson & Tavassoli, 2016). It is
considered to be a dynamic model since it adapts to change in consumer preferences, market
condition and government policies (Singh, 2012). Hence, it is a vital tool for firms in the
hospitality industry in order to adapt to the changes within the marketing environment and find
a new way of marketing to stay competitive and profitable (Karlsson & Tavassoli, 2016).

The coronavirus pandemic has created an economic crisis that so far has required actions that the
world has not experienced before (Fernandes, 2020). Since every crisis is more or less unique, a
firm cannot learn how to cope with it in advance and therefore firms encounter them with little
experience (Grewal & Tansuhaj, 2001). With that in mind the authors want through this study to
contribute with additional knowledge regarding how SMEs in the hospitality sector in Norrbotten
can survive the current crisis and also contribute to research that facilitates the management of

3
future crises. To understand how SMEs can survive in the current crisis figure 1 was developed
below, which illustrates how SMEs can respond to an economic crisis by applying marketing
innovation activities (changes in the 4 P's in the marketing mix).

Marketing
Economic Crisis Changes 4P’s
Innovation

Figure 1 - Economic crisis linked to the marketing mix

1.3 Purpose and Research Questions

The purpose of this study is to examine how SMEs in the hospitality industry in Norrbotten have
been affected and how they are changing their way of marketing in order to survive in the
economic crisis that is derived from the COVID-19 pandemic.

RQ1: How have SMEs in the hospitality industry in Norrbotten been affected by the economic
crisis derived from the coronavirus outbreak?

RQ2: How can SMEs in the hospitality industry in Norrbotten adapt a new way of marketing in
times of crisis?

1.4 Delimitations
The conducted research in this thesis is delimited to small and medium sized enterprises in
Norrbotten, Sweden. The study is also delimited to a specific industry which is the hospitality
industry. Due to a limited timeframe for this degree project the approach for data collection will
be qualitative and the number of interviews conducted with companies will also be limited.

4
1.5 Outline of Entire Thesis
The main objective with this section is to give a comprehensive outline view of this study. The
gradation of this thesis is illustrated in figure 2 below. In the first chapter there is an introduction,
which contains a background, problem discussion along with the study’s overall purpose and it
will end with this study’s stated research questions. Delimitations of the study are also presented
in chapter one. Chapter two will discuss models, research and theories from previous research
within the field. Methodology is the third chapter. This chapter will present necessary
proceedings and course of actions on how the methodological choices that helped build this
thesis. Chapter four will present the empirical data with key citations from the interview with
the respondents. Chapter five presents an analysis of the gathered data from the interviews
towards theories from this study’s frame of reference, a so-called data analysis. At least but not
last, in chapter six, the main findings and conclusions will be presented and discussed.

Chapter 1 - Introduction

Chapter 2 - Literature Review

Chapter 3 - Methodology

Chapter 4 - Empirical Data

Chapter 5 - Data Analysis

Chapter 6 - Findings & Conclusions

Figure 2 - Outline of thesis

5
2. Literature Review
In this chapter, the study will review previous literature in the area of (1) economic crises and
(2) marketing innovation. The reviewed literature on economic crisis will assist the study to
highlight the challenges that businesses encounter in dealing with the outcomes of an economic
crisis. Further on in the chapter previous studies in the field of how innovation could be used in
order to deal with a crisis, within the context of: marketing innovation.

2.1 Economic crisis impact on businesses

Crises can come in various forms (natural disasters, technological disasters and economic crises)
and occur at the most surprising time, in a way one ever could imagine (Grewal & Tansuhaj,
2001). Pearson & Clair (1998) defines a crisis as a low probability, ambiguity, high consequence
decisions along with time pressure.

An economic crisis can affect companies in many different ways and if it is not managed correctly
it will be costly for the organization (Ghandour & Benwell, 2012). Some businesses are forced
to reduce the production (i.e. the supply) due to inadequate demand for products and services
combined with competition within the market environment. They could also be forced to lay off
personnel or lower the wages, and some companies are forced to shut down the business
completely (Köksal & Özgul, 2007). The financial suffering can also be in terms of disruption in
the supply chains (Ghandour & Benwell, 2012).

A supply disruption leads to decreased production and demand shortage which in turn causes
unemployment (Guerrieri, Lorenzoni, Straub & Werning, 2020). Thus, a disruption in supply
could damage the organization internally but also externally since the reputation and trust with
stakeholders is put to the test, since it affects the brand equity (Ghandour & Benwell, 2012; He
& Ran, 2015). In an article about the macroeconomic effects of COVID-19, Guerrieri et al.
(2020) mentions that supply disruptions could cause supply shocks in an industry. Supply shocks
that initially only affect a single industry can spread quickly into other industries during a
pandemic. This means that goods become less available, whereupon the price of the products in
the specific industry increases, making consumption more high-priced and thus also less
attractive (Guerrieri et al. 2020).

6
The economic impact derived from the COVID-19 pandemic is really something else for
businesses to handle. A valid comparison of the COVID-19 pandemic to previous crises, such as
the global finance crisis in 2008 and the SARS outbreak in 2003 simply cannot be made. This
time it is different: it is a global pandemic, it is not solely affecting poor income countries, interest
rates are down at record levels, and the whole world is going through a destruction of demand
and supply (Fernandes, 2020).

2.1.1 SMEs and the economic impact

Empirical results show that SMEs are the ones who suffer the most during financial turbulence
and are exposed to a higher risk of facing bankruptcy (Yazdanfar & Öhman, 2018; Vargo &
Seville, 2011; Quintiliani, 2017). Around 99 percent of all Swedish companies are SMEs and
SMEs creates jobs for about 70 percent of the whole labour force in Sweden (Yazdanfar, Öhman
& Homayoun 2019). The reason for why SMEs suffers to a larger extent compared to bigger
firms is because of their dependence on loaned money and overall limited financial resources
(Bourletidis & Triantafyllopoulos, 2014). The fact that SMEs many times have limited financial
resources leads to limited flexibility and therefore lack the ability to respond to environmental
changes, especially during an economic crisis (Yazdanfar, 2011).

2.1.2 Understanding consumer behaviour in an economic crisis

An economic crisis affects the purchasing behavior of consumers (Mogaji, 2020), in both
mentally and financial ways (Köksal & Özgul, 2007). Mentally, the negative impact on
businesses is that consumers become more eager to save money in fear of losing their job (Sharma
& Sonwalkar, 2013) and people that lost their jobs are the ones who are most financially
vulnerable (Mogaji, 2020). Financially, people reduce consumption due to a changed perception
of risk (Sharma & Sonwalkar, 2013; Mogaji, 2020). Most of all, during an economic crisis, the
household reduces its consumption which means that consumers prioritize necessary products
and switch to cheaper substitutes (Sharma & Sonwalkar, 2013). For a lot of businesses this means
that sales starts to drop (Srinivasan & Lilien, 2009). When the price elasticity curve changes the
organization needs to adapt to the customers redefined value in order to respond. In those cases,
it is common that leaders in charge think that cost rationalization and lowering prices are enough
measures to stimulate the organization again (Barwise & Styler, 2002; Piercy et al. 2010).

7
2.1.3 Significance of marketing in an economic crisis
However, one thing that should not be compromised in an economic crisis is the marketing
activities (Köksal & Özgul, 2007; Srinivasan & Lilien, 2009; Alananzeh et al. 2018).
Organizations that increased the spending on marketing during the economic crisis did not
increase the income in the economic downturn. However, the revenues increased quicker once
the recovery of the recession started in comparison to firms that solely focused on cost
rationalization (Köksal & Özgul, 2007; Srinivasan & Lilien, 2009). Empirical evidence shows
that firms who focused heavily or maintained the degree of marketing, the market stake increased
thrice faster when the economic downturn was over (Roberts, 2003). However, research shows
that it is more important to retain customers compared to chasing new customers. Thus, in an
economic crisis it is of great importance to retain the loyal customers, since they are the most
profitable and therefore marketing mainly should target the loyal customers (Grundey, 2009).

2.2 Marketing Innovation

Another marketing strategy that has proven to be successful in times of crisis is the adoption of
marketing innovation (Naidoo, 2010). Marketing innovation is a tool that assists the developing
and sustaining of competitive advantage (Anning-Dorson et al. 2018). Market innovation can be
described as the application of a new marketing strategy with changes in product, pricing
strategy, packaging style and product placement (Karlsson & Tavassoli, 2016; Hussain et al.
2020). It can also be described as the creation of value by using relevant information and
capabilities to implement an idea for a new marketing strategy or improvements in an existing
marketing strategy (Varadarajan, 2018). Marketing innovation includes innovations such as
distribution innovation, promotion innovation and pricing innovation (Varadarajan, 2018). The
objective with marketing innovation is to better meet customer needs, give the company’s
product a new position in the market or open up new markets (Karlsson & Tavassoli, 2016;
Medrano & Olarte-Pascual, 2016; Widjojo et al. 2020). Empirical studies have shown that
successful marketing innovation helps companies to gain or sustain a competitive edge (Line &
Runyan, 2012; Scaglione et al. 2009). An empirical study by Falk (2013) shows that firms that
focus on marketing innovation during a crisis have a higher chance of surviving.

8
2.2.1 Marketing Innovation in Times of Crisis
An economic crisis or recession will most definitely create changes in the business activity and
strategies for the organization (Gümüş, Geçti, F, & Yılmaz, 2019). Since product innovation
tends to be too expensive in the midst of an economic crisis the focus therefore shifts toward
market factors instead, such as demand management (Grewal & Tansuhaj, 2001). In an article
related to COVID-19 it is highlighted how companies need to figure out how the consumer’s
needs have changed (Bartik et al. 2020). People’s habits are changing, and millions of households
are capsized and therefore firms constantly need to work with marketing innovation to increase
customer satisfaction and to stay competitive (Medrano & Olarte-Pascual, 2016; Medrano et al.
2020). By employing a marketing innovation strategy, it is intended to shift the demand for a
firm's products or services from elastic to a more inelastic demand (i.e. less price sensitive
demand), by increasing the customer value and thus also the organization’s revenues (Naidoo,
2010; Hussein, et al. 2020).

2.2.2 Marketing Innovation for SMEs in Times of Crisis

Marketing innovation is ideally suited for SMEs who usually have limited resources and if SMEs
achieve competitive advantage it increases the likelihood of surviving a crisis (Naidoo, 2010;
Halpern, 2010). An explanation to why marketing innovation is well suited for SMEs is that an
economic crisis many times triggers a price war (i.e. a course of intense competition with price
reductions). Most of the time companies engaged in a price war take severe damage, especially
SMEs. The reason for that is the small margins for SMEs compared to big firms (Grundey, 2009).
However, an adoption of a marketing innovation strategy facilitates the firm's ability to
differentiate and to secure a cost leadership. Derived from the differentiation and cost leadership
comes competitive advantage, which in turn is a major contributing factor to SMEs firm’s
survival in a crisis (Naidoo, 2010).

In addition to that, SMEs have a vital role in every economy as companies of such character are
said to be the central driving forces of economic growth, employment and innovation (Kossyva
et al. 2015). Furthermore, because of the organizational size, SMEs are considered being more
adjustable and flexible than bigger companies when it comes to introducing new products or
services in an economic crisis (Kossyva et al. 2015; Naidoo, 2010). That is also the case for
companies that are not a part of a group of companies, since those companies do not have to
adjust to the parent company and therefore remain more flexible (Medrano et al., 2016).

9
2.2.3 Marketing Innovation in Hospitality Industry
In times of crisis empirical results from a previous study proves that new technologies, foremost
the rise of the internet have had a great impact on the tourist industry and hotel industry marketing
innovations (Campo et al. 2014; Nicolau & Santa-María, 2013). The rise of the internet has given
firms access, at a low cost, to an indefinite number of consumers (Consiglio et al. 2018; Campo
et al. 2014). Firms web pages and social media activity are key elements for promoting services
and products. In addition, the website use as sales channels reduces the use of intermediaries,
making it cheaper for the hotel company and easier for the customer to reach information about
the company or a product (Hjalager, 2010; Consiglio et al. 2018; Campo et al. 2014) These
marketing innovations derived from new technologies has proved to be an important element for
firms in the hospitality industry to stay competitive and to increase revenues (Scaglione et al.
2009). Marketing innovation activities positively influences the economic profitability for firms
in the hospitality industry (Nieves & Diaz-Meneses, 2016).

Also, empirical results from a study by Campo et al. (2014) proved that hotels' ability to innovate
during the financial crisis in 2008 allowed an increase in customer service quality, satisfaction
level and greater value offer. These three terms are key elements in order to sustain and gain
competitive advantage and financial profits (Medrano et al. 2016; Anning-Dorson et al. 2018).
Due to that, firms that on purpose limited the investments on marketing innovation activities
when facing a crisis, should have reviewed their decision and done so instead, implementing
marketing innovation activities such as new process bettering’s and new services (Campo et al.
2014). Results from an empirical study reveals that companies in the hospitality industry
primarily should focus on marketing innovation in order to survive in times of crisis. The results
proved that firms in the industry mainly focus on applying innovative marketing ideas, followed
by better pricing along with improvements in promotional activities (Pappas, 2015).

In a paper that investigated how marketers in the hotel business managed the SARS epidemic in
Toronto (where around 75 percent of the businesses in the hospitality sector experienced a
downturn), the most common strategy way to rely on government assistance (Jayawardena et al.,
2008). Among the strategies where the company actually took action the most common tactic
was to offer price reductions in order to attract customers. However, a few hotels offered their
rooms for other purposes than accommodation, like renting their available rooms as offices
instead (Jayawardena et al., 2008). Solutions like the one mentioned can be effective for

10
companies in a crisis instead of the common price reductions since price reductions do not
increase the profit in the same proportion. In order to stay profitable in the long-term companies
instead need to retain the spending on marketing (Köksal & Özgul, 2007). Since marketing
innovation suits the spending ability of SMEs and is defined as improvements and necessary
changes in the marketing mix. The tools available to create increased customer value are; place
promotion, product and price (Naidoo, 2010; Köksal & Özgul, 2007).

2.3 The Marketing Mix

The marketing mix can be described as the set of activities the organization applies to promote
its product or brand in the market. Another description could be as the mixture of different
marketing decisions that the organization uses to market its products or services. Which could be
used to innovate the organization out of the impacts of an economic crisis (Singh, 2012). It is a
dynamic and innovative model thus it changes according to the changes in preferences of the
consumer, market competition, market situation and government policies (Singh, 2012).
Managers in the organization need to evaluate the traditional marketing mix model when a crisis
strikes by reshaping it with tools in the marketing mix for marketing innovation (Naidoo, 2010).

It is essential to create and apply an appropriate marketing mix of the elements in it to gain
competitive advantage (Singh, 2012). To get the best profitable outcome from marketing
activities, the marketing mix should adapt according to the market condition and how the outside
world is changing (Singh, 2012). The four elements of the marketing mix: product, price, place
and promotion are presented in figure 3 down below.

11
 Product Price

The Marketing Mix

Place Promotion

Figure 3 - The Marketing Mix

Source: Adapted from Singh (2012)

2.3.1 Product
A product is what is actually exchanged. A product is a package of complex advantages that
please the customer. The customer gives money for the product or the service but what the
customer actually pays for is the experience the product brings and the level of satisfaction that
it has. Hence, the product or service needs to be accurate and suitable in order to match the need
of the customers (Salman et al. 2017).

That firms that focus on innovation are more likely to survive is commonly known (Falk, 2013).
However, new product innovation tends to be expensive and therefore it might not be a viable
tool for companies in order to survive a crisis, especially not SMEs (Grewal & Tansuhaj, 2001).
Instead it is suggested that innovation in a crisis focuses on the other components of the marketing
mix, i.e. price, place and promotion (Hamdani & Wirawan, 2012).

12
2.3.2 Price
What the customer must pay to receive the offered product is the price. The price of a product or
service relies on numerous factors and therefore the price is continuously changing. Due to that,
the price should be dynamic so that it can adapt to changes over periods of time (Singh, 2012).
The prices element in the marketing mix model is ruled by what is being debited for what it takes
to perform the service or buying the product. Pricing does not only influence the revenues for the
organization, it also influences the buyer perceptions regarding the quality of the product or
service. Therefore, pricing is vital to the organization’s daily business operations (Salman et al.
2017).

Hence, an economic crisis obligates companies to adjust the pricing, mostly downwards with
price reductions. The objective with price reductions is to increase sales volume in the short term.
It is a course of action that could damage the organization in the long run, primarily by receiving
lower revenues from reduced prices, but it could also damage the image of the brand and
consumers might not accept returning to the normal price when the crisis fades (Köksal & Özgul,
2007). Ang, Leong and Kotler (2000) proposes two pricing approaches when in an economic
crisis: Use the initial price for quality products and services or offer quality products to a reduced
price (Ang et al. 2000). Yet, if the organization does not adopt pricing strategies, such as premium
pricing or lower pricing and does not adapt to the consumers purchasing behavior during an
economic crisis, the organization will probably be deprived of customers and struggle to survive
(Raggio & Leone, 2009). However, the selection of price during a crisis should be combined
with other marketing operations involving the three other P’s in the marketing mix (Köksal &
Özgul, 2007).

2.3.3 Place
The place element in the marketing mix model is mainly about the distribution channel methods
that the organization uses in order to support the facilities to its market in a way that satisfies
customer expectations (Salman et al. 2017). It also includes warehouse buildings and mode of
transportation since the place element is a process in which products and services are transported
from the organization to the customer (Singh, 2012). Mode of transportation (i.e. distribution)
has a large impact on the organization’s profitability. Hence, the organization should have a solid
supply chain and logistics management when it comes to distribution (Singh, 2012).

13
In a study that examined how the hospitality sector dealt with an economic crisis the result was
the same as in most other industries, which is that companies put a lot of effort in trying to reduce
the costs (Pappas, 2015). In turn that is also in line with how the “place” element of the marketing
mix is typically dealt with. Since a suggested solution for how to deal with a crisis is to reallocate
resources and focus on improving the effectiveness in the distribution channel in order to reduce
costs (Kotler & Armstrong, 2006). The distribution has a vital role in every business model.
However, when a firm has to reallocate its resources it might not be prioritized, when firms
instead emphasize other parts of the business that are more directly connected to profitability
(Chesbrough, 2010; Kotler & Armstrong, 2006).

2.3.4 Promotion
Promotion involves all the elements that the organization can use to enlighten the customers
within the market with information on its product or service offering and includes advertising,
public relations, personal selling, direct marketing, publicity, sales promotional efforts and
interactive channels (Salman et al. 2017; Singh, 2012). These previously described features are
so-called promotion activities whose purpose is to communicate and persuade the selected
market to purchase the organization’s product or service (Singh, 2012). The promotion element
supports the organization when it comes to presenting the product or service to the customer in
an efficient way and encourages the customer to buy the company's products or services (Salman
et al. 2017).

The decisions the organization makes regarding promotion tactics during a crisis are vital. By
having the same degree of advertising or increasing the degree of advertising increases sales,
market share and revenue after and during an economic downturn (Köksal & Özgul, 2007). Also,
the customer buys more rationally with diminishing spending power during a crisis. Thus,
advertising should highlight the importance of safety, durability and reliability, rather than a
representable portrait of the brand (Köksal & Özgul, 2007).

14
2.4 Frame of reference
In the frame of reference, the most important theories from the literature review (collected from
previous research) will be summarized, in order to guide the collection of data. Since the
collected data will be compared to previous research in the field, the frame of reference also
works as a foundation to guide the analysis of the collected data, and in the end also guide the
fulfillment of the purpose of this thesis:

“to examine how SMEs in the hospitality industry in Norrbotten have been affected and how
they are changing their way of marketing in order to survive in the economic crisis that is
derived from the COVID-19 pandemic”

Hence, the reason why this frame of reference highlights previous research within the field of
economic crisis, marketing innovation and the marketing mix. The subjects that are emphasized
in the frame of reference will ultimately guide the data collection and data analysis into answering
the research questions of this thesis, which reads:

RQ1: How have SMEs in Norrbotten been affected by the economic crisis derived from the
coronavirus outbreak?
and
RQ2: How can SMEs in Norrbotten adapt a new way of marketing in times of crisis?

The purpose of the first research question is to examine how SMEs in the hospitality sector have
been affected by the COVID-19 pandemic and the following economic crisis. Since every crisis
is as Grewal and Tansuhaj (2001) mentioned; more or less unique. The purpose of this research
question is to examine how this crisis differs or what similarities it has in comparison to what
characterizes a crisis according to previous literature. According to Köksal and Özgul (2007) a
common consequence of an economic crisis is a reduction in demand, which in turn is a
consequence of customers' changed behavior during a crisis. The changed customer behavior is
according to Sharma and Sonwalkar (2013) a response to the fear of losing the job and therefore
customers have a tendency of prioritizing saving instead of spending money. Another reason for
a changed behavior during a crisis is found among those who actually lost their jobs and therefore
changed their way of consuming (Mogaji, 2020).

15
However, a reduced demand is not the only thing that causes financial suffering for firms in a
crisis, it could also be brought by disruptions in the supply chain (Ghandour & Benwell, 2012).
Both supply disruptions and a reduced demand leads to decreased production and demand
shortage which in turn causes unemployment or even forces companies to shut down completely
(Guerrieri et al., 2020; Köksal & Özgul, 2007). According to studies made by Yazdanfar and
Öhman (2018), Vargo and Seville (2011) and Quintiliani (2017) SMEs are among those who
suffer the most during a crisis. Bourletidis and Triantafyllopoulos (2014) mentions SMEs in
general, high dependence on loaned money and overall limited financial resources as the main
contributors to their vulnerability.

In order to survive a crisis Naidoo (2010) and Falk (2013) suggests that companies should use
marketing innovation as a marketing strategy. Hence the reason why the second research
questions main purpose is to see if SMEs in the hospitality sector in Norrbotten have adapted
their marketing according to what is suggested in previous research, i.e. marketing innovation.

Marketing innovation can be described as the improvements that can be made in the marketing
mix: product, price, place, promotion (Medrano & Olarte-Pascual; Karlsson & Tavassoli, 2016).
Empirical evidence from a research by Naidoo (2010) proved that marketing innovation is a
suitable solution for cash-strapped firms (mainly SMEs) when facing a crisis. In addition to
Naidoo’s (2010) research, Line and Runyan (2012) and Scaglione et al. (2009) research
suggested that successful marketing innovation helps firms to keep the competitiveness.

To maintain competitiveness in times of crisis, Hamadan and Wirawan (2012) suggested that
innovation activities mainly should focus on the dimensions, place, price and promotion, since
product innovation is relatively expensive (Grewal & Tansuhaj, 2001). For instance, Köksal and
Özgul (2007) mentioned that the most common pricing strategy when in an economic crisis is to
lower the prices. However, Köksal and Özgul (2007) also underline the danger with lowering the
prices too much, as it can damage the brand image. Hence, the pricing strategy should be
dynamic, which Singh (2012) suggested. Kotler and Armstrong (2006) suggested cost effective
distribution channels, which Salman et al. (2017) explained as fundamental since the company’s
facility usually does not change location. One more suggestion is mentioned by Srinivasan &
Lilien (2009) regarding promotion is the importance of marketing during an economic crisis.
Alananzeh et al. (2018) supports Srinivasan & Lilien (2009) statement, which Grundey (2009)
meant is aimed at the most frequent and loyal customers, not new customer segments. Based on

16
the knowledge and theories from previous studies mentioned above, a frame of reference was
developed, which can be seen in table 1 below.

Table 1: Frame of reference for research questions

Subject Factors References

Economic crisis Reduced production (Köksal & Özgül, 2007;

Ghandour & Benwell, 2012)

Supply disruptions (Guerrieri, Lorenzoni, Straub

& Werning, 2020)

Layoff and termination of (Köksal & Özgül, 2007;

personnel Guerrieri, Lorenzoni, Straub &
Werning, 2020)

Financial impact on SMEs (Yazdanfar & Öhman, 2018;

Vargo & Seville, 2011;
Quintiliani, 2017; Bourletidis
& Triantafyllopoulos, 2014)

Consumer behavior in an (Köksal & Özgül, 2007;

economic crisis Sharma & Sonwalkar, 2013;
Mogaji 2020)

Marketing Improvements in the (Naidoo, 2010; Falk, 2013;

innovation marketing mix Karlsson & Tavassoli, 2016;
Medrano & Olarte-Pascual,
2016; Widjojo et al. 2020;
Line & Runyan, 2012;
Scaglione et al. 2009)

Product (Grewal & Tansuhaj, 2001;

Hamadan & Wirawan 2012;
Kossyva et al. 2015; Naidoo,
2010)

Price (Singh, 2012; Köksal &

Özgul, 2007; Naidoo, 2010)

Place (Grundey, 2009; Naidoo,

2010; Kotler & Armstrong,
2006; Singh, 2012; Salman et
al. 2017)

Promotion (Köksal & Özgul, 2007;

Srinivasan & Lilien, 2009;
Alananzeh et al. 2018;
Grundey, 2009)

17
3. Methodology
In this chapter, research purpose, research strategy, research approach and methods used for
this research study are explained and discussed. All these method approaches down below are
chosen with the aim of receiving a deeper insight into the subject and to allow the reply of the
stated research questions.

3.1 Research Purpose

The research purpose depends on how the research questions are formulated which can be
formulated in either in a descriptive, explanatory or exploratory manner (David & Sutton, 2016).
A descriptive purpose is applied in case studies where the research problem is described in its
real-life context (Yin, 2014). A descriptive research purpose's main objective is to emphasize a
situation where, what, when and who. This is in the absence of an earlier or sufficient explanation
of what is going on (David & Sutton, 2016). An explanatory research purpose is about measuring
the examined situation but also to investigate how different elements are related to one another
and especially if one element impacts the outcome of another element (David & Sutton, 2016).
An exploratory research purpose is used in case studies when the situation that is being evaluated
has no perspicuous outcome (Yin, 2014).

This study focused on an exploratory research purpose because the objective and intent of this
study was to explore how SMEs in the hospitality industry in northern Sweden changed their
marketing activities in order to survive in the economic crisis that is derived from COVID-19.
Also, exploratory research is associated as an important element in qualitative research (David
& Sutton, 2016). Moreover, in an exploratory study the purpose is to explain what is going on in
a field of research where no previous or little exploration has been conducted (David & Sutton,
2016). Since a crisis is surrounded by uncertainty and the fact that every crisis is more or less
unique - an exploratory case study was best suited for this thesis.

18
3.2 Research Approach
There are two research approaches that can be used when conducting a research study: inductive
or deductive approach (David & Sutton, 2016). A deductive approach is used when a research
study is built on previous research theories and literature (Saunders et al. 2012). An inductive
approach is used when a research study is built upon observations (i.e. experiences) that have
been observed from the reality (Saunders et al. 2012).

3.2.1 Deductive Approach

This study used a deductive approach. A deductive approach is suitable when a study is based
on previous models, theories and literature (Saunders et al. 2012). Previous literature (theories
and models) within the field of study was discussed and analyzed in order to compose the
research questions of the study. The research questions were later on tested against previously
collected literature. (Saunders et al. 2012). From the collected models and theories, the frame of
reference was developed that was used when the empirical data was analyzed.

3.2.2 Qualitative or Quantitative Data Collection

During this study, the researchers made a decision if the gathering of data would be performed
in a qualitative or quantitative way. For the purpose and configuration of this study it was decided
that a qualitative data collection was most appropriate. In the qualitative research process,
emphasis is placed on the collection of data of the non-numeric nature, that is to say close
descriptions of events, in-depth interviews, documents and other artifacts (David & Sutton,
2016).

The method that was applied in this research was qualitative interviews, so called in-depth
interviews. The outcome of qualitative interviews is a deeper understanding of certain factors
(Saunders et al. 2012). Since the purpose of this study was to get a better understanding of how
SMEs in the hospitality sector can survive an economic crisis, the qualitative approach was well
suited.

19
3.3 Research Strategy
The research strategy is the plan for how the study is going to achieve its objectives (David &
Sutton, 2016). This study used a case study because it allowed the researchers to investigate the
selected organizations when going through a series of complex happenings (Baxter & Jack,
2008). Case study as a research strategy was the most appropriate strategy that could be used
since it allowed the researchers to investigate the complex measures the interviewed
organizations had to implement, in order to cope with the economic crisis derived from the
COVID-19 pandemic.

3.3.1 Case Study

When a study contains of more than one single case, a multiple case study is needed (Yin, 2014)
Since this study investigated and selected three SMEs in the hospitality industry in Norrbotten,
a multiple case study was used. A single case study is used to observe only one case (Yin, 2014)
and was therefore not suitable for this study due to the selected sample of this study. Since this
study implemented a multiple case study, comparisons between similarities and differences could
be made in between the three cases (Baxter & Jack, 2008). Another advantage of the selected
multiple case study is that it investigates two or more cases which gives more convincing and
reliable empirical data (Eisenhardt & Graebner, 2007).

It is also important to decide if the case study is holistic or if it contains embedded units. If a case
study examines numerous units (e.g. subgroups in a firm) of analysis it is embedded (Yin, 2014).
On the contrary, when a case study looks at only one unit of analysis, the case study is holistic
(Yin, 2014). This study looked at one unit of analysis, since the study focused on one individual
within several cases and that individual's opinions on how the case is believed to be (Yin, 2014).
Hence the reason this study was a holistic multiple case study.

3.4 Data Collection

When the research strategy had been established, the next part of the process was to gather
empirical data. There exist two kinds of empirical data: primary or secondary. Primary data is
data used in research that is originally obtained from the researchers via surveys, interviews or
observations (David & Sutton, 2016). This study collected primary data collected from
interviews with SMEs in Norrbotten with the purpose to answer the stated research questions, to
receive an in-depth understanding about the subject of interest and to better comprehend existing

20
theory and models. Secondary data is research that has previously been collected before for other
purposes and is data that can be accessed by receptors (David & Sutton, 2016). This research
applied secondary data from statistics firms and several authorities in Sweden.

3.4.1 Interviews
Interviewing can be described as the process of asking people questions. However, interviewing
is just as much about listening cautiously to the answers that are given. There exist several
interview techniques. Either an interview is structured or unstructured. An interview can also be
semi structured, which corresponds to a mix of a structured and unstructured interviews method.
A structured interview tries to highlight the significance of a respondent’s exclusive response by
applying surveys with prearranged questions. A structured interview is normally applied and seen
in quantitative research. When it comes to qualitative research, an unstructured or semi structured
interviews method is more appropriate. Thus, the qualitative interview is a more unstructured
and unstandardized interview technique. In that way, the interviewer lets the respondent state
their version of what is being asked as more flexible answers are desired (David & Sutton, 2016).
The three mentioned interview methods are described in table 2 below.

Table 2: Interview types

Semi Structured Unstructured Structured

● Used in qualitative ● Non-standardized ● Used in quantitative

research ● Open answers are research
● Central questions sought ● Questionnaires with
made in advance ● Questions not advanced formulated
● Gives room for predetermined questions
additional questions ● Used in qualitative ● Standardized
research questions
● More open and
flexible answers from
interviews

Source: Adapted from David and Sutton (2016, pp. 114-115)

21
This study used a semi-structured interview approach to the respondents. One of the central
strengths that the semi structured interview has is the interview technique’s flexibility. The
interview technique allowed this study to ask certain questions in a different way for every
interview, which gave a deeper insight into the thesis investigated area. The method also gave
this study the opportunity to ask to follow up questions about interesting subjects that arose when
the interview was conducted. Additional knowledge that the study might not have anticipated in
the first place and that is for sure a key strength of this qualitative interview method (Saunders
et al. 2012).

Furthermore, the study accomplished the interviews with the respondents from the small and
medium sized enterprises Nordic Lapland and Varvet Luleå face to face (i.e. personal meetings
in real life context). Meeting in a personal meeting and being engaged personally with the
respondents leads to a better response rate rather than performing quantitative research in sending
out a questionnaire. Also, participants are less likely to fully commit their time in answering a
questionnaire (David & Sutton, 2016). The interview with the respondent from Treehotel was
conducted through a telephone interview. Due to prevailing circumstances (coronavirus), the
respondent expressed the desire to conduct the interview by telephone. Since it is important that
the respondent feels safe and secure during an interview in order to get reliable answers (David
& Sutton, 2016), the researchers accepted the request.

As mentioned earlier in this chapter, an interview means more than just asking questions since it
is just as much about listening cautiously to the response that is given. For that reason, the
interviews were recorded and transcribed which contributed to a solid collection of data to
analyze (David & Sutton, 2016). Something that will be further discussed in section 3.6, data
analysis.

3.5 Sample Selection

To gather samples, researchers usually use one of these two sample methods: probability
sampling or non-probability sampling. Probability sampling is built on the principle that
everyone in the population has the same opportunity to participate, while non-probability
sampling is characterized by the opposite, there is no certainty of an individual to be a part of the
selected sample (David & Sutton, 2016). However, probability sampling is more used when
performing quantitative research. A non-probability sampling can be used when time or cost

22
restrictions make it impractical to investigate a widely dispersed population (David & Sutton,
2016). Since this study applied a qualitative research and was time restricted a non-probability
sampling method was applied.

Within non-probability sampling there exist more underlying sampling methods to choose from.
One of those methods is purposive sampling. In a purposive sampling the sampling selection is
made in line with the researcher's own ability and perception of which individuals might be
appropriate for the research. It places demand on the researcher’s since they are using their own
diligently in order to select the most appropriate sample (David & Sutton, 2016). In this study,
the researchers chose three individuals in Norrbotten, with positions such as CEO, part-owner
and media and press responsible. The researchers assessed that the selected respondents had
specific knowledge that could answer this study's research questions. The selection was based on
the researchers' perception of who is the most suitable research person to choose (David &
Sutton, 2016). Therefore, this study used a purposive sampling.

3.5.1 Selected Companies

The selected organizations were Nordic Lapland Resort, Varvet Luleå and Treehotel. Nordic
Lapland Resort is a tourism company located in Axelsvik, outside Kalix. Varvet Luleå is a
restaurant located in Luleå. Treehotel is a hotel company located in Harads, outside Boden. The
small and medium sized enterprises were selected since all represented the hospitality industry
in Norrbotten. The hospitality industry is the most affected business industry in Norrbotten (due
to the coronavirus) which was another reason why companies in that industry were selected. The
firms offered a clear view on how small and medium sized enterprises in the hospitality industry
were affected financially by the economic crisis derived from the coronavirus. The selected
companies also offered a clear view of how SMEs in the hospitality industry in Norrbotten
adapted their way of marketing as a response to the economic crisis coming out of the
coronavirus.

23
3.5.2 Interviewed respondents
The study set requirements for the choice of respondent for the interviews. To fulfill these
requirements the candidate had to have a position related to marketing activities in a small and
medium sized enterprise in the hospitality industry in Norrbotten. This was a necessary
requirement in order to gather empirical data that was able to answer the study's research
questions.

Based on the requirements above, the study interviewed three employees from small and medium
sized enterprises in the hospitality industry in Norrbotten. Table 3 down below summarizes key
facts of the interviewed respondents.

Table 3: Interviewed respondents

Company Position Experience Interview Interview Date Interview type

Length

Nordic CEO 4 ½ years 40 min 2020-05-11 Face to face

Lapland interview

Varvet Part- 1 year 40 min 2020-05-15 Face to face

Luleå owner interview

TreeHotel Media 10 years 45 min 2020-05-18 Telephone

and press interview
officer

3.6 Data Analysis

In order to analyze the empirical data, collected via the interviews, the first step this study took
was to transcribe the data. Transcribing the data was the process when the recorded sound files
from the interviews were turned into writing. Since qualitative data is not quantified or numerical
it had to be coded in order to be understandable and useful (Saunders et al. 2012). Codes can be
words, themes or expressions, and by coding the transcribed data it facilitates the reduction of
the data (David & Sutton, 2016; Saunders et al. 2012).

The data reduction is the first out of three suggested steps in the process of analyzing data, a
three-step guide that this study applied. The reduction of data constituted the work of

24
concentrating and simplifying the data, which the study did in order to highlight the most
important parts of the interviews. The second step of the data analyzing process in this study was
the data display. In that step, this study had already reduced the data in an organized way with
the purpose of creating a clear outline for the empirical data. The last step consists of the drawing
and verifying of the data, which in other words means that this study made conclusions that were
translated into something more substantial (Saunders et al. 2012).

To get to the stage where a conclusion could be drawn, this study applied pattern matching as
a method to proceed with the data analysis. Understanding the basics of pattern matching
significantly helps conducting qualitative research studies (Sinkovics, 2018). Furthermore, when
analyzing qualitative data with a deductive research approach as this study used, pattern matching
is the most suitable data analysis method (Yin, 2014). The pattern matching involved the
comparison of empirical data and the theoretical framework of this study (Sinkovics, 2018). It
made it possible for this study to compare the chosen theories with the collected data, with the
purpose to receive an in-depth understanding of the subject.

3.7 Reliability and Validity

To provide quality and trustworthiness to the study, Riege (2003) names two key terms as
essential: reliability and validity. Reliability is defined as the degree to which the test is a
consistent measure over time and validity is referred to as the appropriateness of the data,
processes and tools (Leung, 2015). Having a high level of reliability and validity increases the
sincerity of the data (Leung, 2015). To provide a high-quality level of the data Riege (2003)
names four design tests to perform in order to ensure a good level of quality to the research:
external validity, internal validity, construct validity and reliability. Table 4 below illustrates
these tests and in which phase of a study the four tests were applied in this study.

25
 Table 4: Types of Validity Tests

Types Case Study Tactic Research Phase

Reliability ● Develop case study ● Data Collection

information base
● Usage of case study ● Data Collection
protocol

Construct Validity
● Usage of multiple ● Data Collection
sources as evidence
● Key respondents’
reviews draft of case ● Composition
study

Internal Validity ● Used in explanatory ● Data Collection

study
● Addresses explanation ● Data Collection
of rivals
● Data Collection
● Applies explanation
building

External Validity ● Application of theories ● Research Strategy

in Single Case Studies
● Usage of replication ● Research Strategy
logic in Multiple Case
Studies

Source: Adapted from Riege (2003)

Based on the information in table 4 above, four tests have been applied in this study to ensure
that the reliability and validity is high, in order to avoid methodological issues regarding the
conducted case study. This will be described in detail in the upcoming section of the study where
reliability is first to be discussed.

26
3.7.1 Reliability

Reliability can be described as the degree to which the research study is consistent over time, if
repeated several times (Riege, 2003). In other words, if the study will give the same result at
another time or conducted by another researcher (Leung, 2015).

As mentioned earlier, the study used qualitative interviews, i.e. semi-structured interviews. It is
difficult to repeat the semi-structured interview and get the same replies and it is difficult to
repeat the social interaction between the interviewers and the respondents, which could have
impacted the credibility of the study (David & Sutton, 2016). Something that increased the
credibility of the study was the selection of respondents and organizations (i.e. the sample
selection). The interviewed persons held managerial positions at the company and some of the
interviewed persons worked as marketers. The interviewed persons were therefore considered to
have good expertise in their field of work, therefore the reliability of the result increased.

Some of the respondents wanted access to the questions before the interview took place, as this
was a requirement to join the interview. According to Bryman and Bell (2018), there is a risk
that respondents only answered the questions that were on the interview sheet that was omitted
and that could have decreased the room for more open answers from the respondents. In an
attempt to address Bryman & Bell's criticism of the chosen approach, the researchers have been
extra careful during the interview to ask follow-up questions that take more spontaneous and
open answers.

The study administered two of the interviews in a quiet environment at a lobby in a central hotel
in Kalix and Luleå, all in order to control the interview conditions so that the study received the
most reliable answers possible. The fact that the study chose a quieter place to conduct the
interviews was because such a place brings a harmonious feeling and security to the respondent.
The quiet location also opened up the possibility of follow-up questions and discussion. Due to
the current circumstances the respondent from Treehotel had a different perception of what was
a safe environment for the interview. Hence the reason why the interview with the respondent
was conducted as a telephone interview. The researchers accepted the request and believe that it
was a sound decision in order to get reliable answers and data.

27
3.7.2 Construct Validity
Construct validity is the degree or level to which this research study measured what it claimed
(Riege, 2003). To ensure that this research measured what it claimed, the researchers allowed
respondents from the interviews to go through the composition of the study. This was a process
that was made in order to ensure that correct analysis of the gathered empirical data was made.
By doing so, this study avoided misjudgments. This measure was taken as a response order to
the criticism made by Yin (2014) who in its study mentions that the case study is usually
criticized for its validity, since the researchers often fail to produce a sufficient set of
measurements.

Furthermore, a frame of reference was created on existing theories in the field of research was
created in this study. The reference frame was created in an attempt to increase the validity of
the study since it was used when building and structuring the interview guide, which later on was
used as a base when collecting empirical data from the semi-structured interviews.

3.7.3 Internal Validity

Internal validity relates to the validity of measures within a research study (Riege, 2003).
Internal validity is not a methodological issue when performing an exploratory study. Since
internal validity seeks to set up and organize causal relationships and is only addressed when
conducting research with an explanatory research purpose (Yin, 2014). Since this study applied
an exploratory research purpose, no measures to increase the internal validity was made.

3.7.4 External Validity

External validity refers to how well the main empirical findings of this research study can be
generalized to other populations and settings outside this study (Riege, 2003). Since this study
interviewed a small-scale sample (three SMEs) in the hospitality industry in Norrbotten, it could
have become a weakness regarding the external validity of this study (David & Sutton, 2016).
Conducting research in a bigger sample, increases the external validity (David & Sutton, 2016).
However, in an attempt to address David and Sutton’s (2016) criticism of the chosen approach,
the researchers of this study were extra careful when selecting the sample. Since increasing
external validity is not only about gathering the largest sample as possible (David & Sutton,
2016).

28
A comprehensive study of every small and medium sized enterprise in the hospitality industry in
Norrbotten might have been the best way to conduct this research. However, due to a pressured
time limit (10 weeks) a comprehensive study of such character was not doable. Since analyzing
data is a time-consuming task (David & Sutton, 2016) the idea was considered less feasible and
unappropriated by the researchers in the study. Therefore, the study opted for a sample selected
with care. A cautiously selected sample is more useful than a big sample with weak character
(David & Sutton, 2016).

Another methodological problem with case studies is about the outcome of the case study. More
specifically if results can be generalized beyond the studied case study. This is often a problem
when researchers conduct a single case study. The single case study receives criticism because it
offers a weak generalization because the results only come from a single study (Yin, 2014). In
an attempt to avoid that, the researchers applied a multiple case study in order to increase the
external validity of the study (David & Sutton, 2016).

3.9 Summary of Methodology

To sum up the methodological choices that were made during this research study, figure 4 was
made to ease the understanding and can be seen down below.

29
Research Purpose Exploratory

Research Approach Qualitative

Research Strategy Case Study

Multiple Case
Holistic
Study

Data Collection Primary Data Secondary Data

Interviews Semi-structured

Sample Selection Non-probability Purposive sampling

Data Analysis Pattern Matching

Figure 4 - Summary of Methodology

30
4. Empirical Data
In this study, the primary data was collected by semi-structured interviews with managers in
small and medium sized enterprises in the hospitality industry in Norrbotten. This chapter
presents the questions that were asked during the interviews along with a summarization and
citations of the respondent’s answers. The questions asked were based on the theoretical
framework (i.e. theories that are mentioned in the frame of reference). The information that is
provided in this chapter will later on in chapter 5 serve as the foundation for the data analysis,
which in turn will guide the answering of the research question.

Q1: Please, tell us how the Coronavirus is impacting your business?

All respondents report that the measures to reduce the spread of the coronavirus (closed borders,
travel recommendations, social distancing) have had a negative impact on business activities in
one way or another, but the business impact still differs for each company. This can be clearly
seen in quotations from the study's qualitative interviews.

The respondent from Varvet Luleå stated that they:

“[...] cut down heavily in opening hours” (Varvet Luleå).

In addition to the decrease in opening hours, a restructuring of the restaurant had to be made as
a direct consequence of the coronavirus. Another important change is that distribution to the
customer has become the main objective for Varvet Luleå. Since fear of the virus and government
restrictions has reduced the number of visitors to the restaurant.

The respondent from Nordic Lapland mentioned:

“[...] investments in more opening hours for locals, since the coronavirus knocked out our
international bookings completely” (Nordic Lapland).

The respondent also emphasizes that the winter season is the company's peak season and with
the outbreak coming at the end of the winter season, with only 20 days left, the winter season has

31
been less affected. However, demand for the company's products has continued to decrease
significantly according to the respondent who stated that:

“[...] conference bookings have decreased 100 percent and overall, a reduction around 70
percent of the demand for the entire business” (Nordic Lapland).

The respondent from Treehotel mentioned:

“[...] a reduction in opening hours and the amount of days that the restaurant is open”
(Treehotel).

The reason is that they are forced to economize with personnel since they have been forced to
lay off the majority of the staff, which in turn is a direct consequence of the coronavirus. As for
Nordic Lapland, Treehotel’s international bookings were knocked out in March by the
coronavirus and the measures to stop the contagion by governments (traveling recommendations,
closed borders, social distancing). In response, the hotel put more focus on reaching out to the
local area. Since 70 percent of their customers were international, they have been hit hard by the
coronavirus.

“[...] we had an occupancy rate of 45 percent in April last year and that is our low season, the
occupancy rate in April this year was 15 percent” (Treehotel).

Q2: What do you think about the long-term impacts of this crisis in your business?

All the respondents agree that the coronavirus has impacted demand for products and services.
Despite the pressured situation, the respondents are positively set when discussing the future and
survival of their companies.

The respondents from Nordic Lapland believe that a long-term effect that will benefit them is
that Norrbotten is a less populated tourist area compared to larger international tourist resorts.
Hence, the respondent from Nordic Lapland believed that their firm:

“[...] would be an attractive alternative for international tourists, given the current pandemic”
(Nordic Lapland).

32
The respondent from Treehotel also emphasized the sparsely populated area of Norrbotten as
something that would:

“[...] benefit the long-term, since it would attract tourists to choose them over largely
populated tourist areas” (Treehotel).

Another thing that the respondent believed would benefit the company is the fixed assets:

“We have not had to change the facilities according to the restrictions. We have no narrow
hotel corridors and we already have separate dining rooms. Our facility is already adapted.
So, when people start traveling again, we think it is easier to choose us because of it”
(Treehotel).

However, what worries the respondents in the companies (especially those in the hotel and
tourism sector) is whether these restrictions would not cease within a year and thus affect their
next peak season.

Q3: How does the coronavirus impact your marketing strategy?

All the respondents agree on the fact that the virus outbreak has forced them to reevaluate their
strategies. Mainly because of the government restriction on travelling, large gatherings and self-
isolation. This has led to a shift into a more long-term focus, which is a common theme among
all three companies, but especially for the two companies that are active in the hotel and tourism
industry. Since those customers with reservations at the end of the winter season (mostly tourists
from abroad) had to cancel because of restrictions on travel, the work started on connecting these
customers for the coming season.

As a result of the virus and restrictions, companies' revenues also decreased, which in turn forced
companies to revise their budgets and customer segments. The respondents from Nordic Lapland
stated that they had to:

“[...] redirect a lot of our marketing efforts, from international customers towards local
customers” (Nordic Lapland).

33
The respondent from Treehotel gave a similar answer, i.e. that they shifted the focus to local
customers instead of international customers. While the respondent from Varvet Luleå claimed
that the coronavirus impact had forced them to revise their budgets:

“[...] and due to budget changes, we have reduced our marketing expenses” (Varvet Luleå).

Q4: What is your plan for staying competitive and thus also keep selling your product or service?

The main method for all the interviewed companies in order to keep selling their products and
services, was to reduce their prices.

The respondents from Varvet Luleå and Nordic Lapland mentioned pricing according to the
market as a vital activity in order to remain competitive. The respondent from Treehotel says that
prices have been lowered but that they are still at a higher level than the market average. This is
because Treehotel believes that the product and the experience they offer are of high quality and
very unique. The respondent stated that:

“[...] we would rather sell less at a higher price than sell more at a low price, since we are
unique in the industry” (Treehotel).

In addition to that, the companies have also taken other measures in order to continue to be
competitive and thus also keep selling their products and services. However, there is a difference
between implemented measures to stay competitive:

Varvet Luleå made ready-made food boxes, in a new brand, called FuelBreak.

“Fuelbreak was a plan for the future, but with the coronavirus we had to speed up the plans a
bit [...] the focus has been to distribute FuelBreak boxes to the customer and less on attracting
customers to the restaurant” (Varvet Luleå).

Thus, the ready-made food boxes are a result and response to the government's measures to
prevent the virus from spreading, and the customers internalization of the social distancing
concept.

34
The respondents from Nordic Lapland and Treehotel mention easier cancellation terms as an
opportunity to maintain competitiveness. Which is a measure that will make customers more
likely to make reservations, since it bypasses the customers fear of losing money. The respondent
from Treehotel underlined that the firm have ‘corona adapted’ their activity range:

“We have adapted some of the range activities as a consequence of the coronavirus, for
instance the moose safari” (Treehotel).

Easier and digital payment methods are mentioned by the Nordic Lapland respondent as another
way of keeping the competitive edge and enhancing a sense of security to the customer. However,
Treehotel keeps the same payment method as before the outbreak. Customers pay when they
make a reservation on the webpage and therefore a change was not necessary.

Q5: Do you pay extra attention to frequent customers during this crisis?

The respondents were not in consensus regarding this question. The respondent from Nordic
Lapland mentions that there is more focus on frequent customers. This involves the seasonal sites
for caravans, where every current holder has expressed desire to extend the contract. He also
pointed out that:

“[...] efforts are being made to try to increase that customer segment in these times of crisis”
(Nordic Lapland).

The respondent from Varvet Luleå mentioned that they do not pay extra attention to frequent
customers.

“The restaurant has temporarily removed the buffet, therefore we no longer have a unique offer
to our frequent customers” (Varvet Luleå).

The respondent from Treehotel mentioned that most of the frequent customers that visit the hotel
are customers from abroad since 70 percent of the customers are international customers. Hence
the reason why the focus is on maintaining international relationships. The respondent said:

35
 “We try to create dreams that tourists can come and fulfill here after the coronavirus settles”
(Treehotel).

Q6: Do you believe that price reductions will attract more customers in these times of
economic crisis?

The answer to this question was unanimous. All of the interviewed companies had reduced their
prices. The main reason for their decision was simply because they had to, since most of their
competition was lowering their prices. Thus, the deciding factor in this case is the market forces.

Q7: Do you use the initial price for quality products, or do you offer quality products to a reduced
price?

All companies have lowered their prices. However, Treehotel decided not to lower their prices
to the same extent as their competitors, in order to emphasize the quality and uniqueness of their
products and services.

“We keep track of what other competitors are doing but not to the extent that we lower the
price with 50 percent if a competitor does” (Treehotel).

Treehotel and Nordic Lapland have also made an exception for the price reduction when it comes
to products and services outside their core offerings (i.e. rooms, cottages, activities). Thus, the
price for food, products in the gift shop etc. has remained unchanged.

Q8: Can you please tell us about your new plan for promotion and advertising?

The answer to this question differs between the respondents. The main difference is found
between the companies in the hotel and tourism sector, and the restaurant. The companies in the
hotel and tourism sectors main focus is on redirecting its marketing toward the domestic
customers. In contrast, the new way of marketing for the restaurant has mainly been focused on
reducing the cost but at the same time retaining the amount of marketing.

36
The respondent from Treehotel mentioned:

“We are realistic and aware that this summer the international market will not restart. If the
restrictions are eased, we have a marketing plan that includes targeting more customers from
all over Sweden” (Treehotel).

The main difference between the companies in the hotel and tourism and the restaurant
becomes clear when comparing the statement made by Treehotel and what the respondent from
Varvet Luleå mentioned:

“We have not redirected to whom the marketing is directed to [...] instead we are trying to
reduce the cost of advertising by utilizing low cost advertising, like e.g. social media” (Varvet
Luleå).

Q9: Are you promoting more or less than before the economic crisis (derived from COVID-19)?

The answers from the respondents were inconclusive, meaning that the question received
different answers.

According to the respondent in the restaurant company, the promotion has not been increased.
Since the focus for the restaurant has been to reduce costs.

“Since we have cut the budget significantly, the amount of marketing is the same but adapted to
the smaller budget” (Varvet Luleå).

The respondent from Nordic Lapland mentioned that their promotion activities in the long run
regarding international customers are more or less unchanged compared to before the crisis.
However, the objective of the marketing efforts after the crisis struck differs, since it is mainly
about maintaining existing customer relationships. Regarding the short-term marketing efforts,
the respondent from Nordic Lapland mentioned that:

“The promotion plans have changed as the current focus is on more promotion activities that
attract locals” (Nordic Lapland).

37
Treehotel has also increased marketing efforts towards the local area. An underlying cause,
according to the respondent, is that the hotel understands that there will be a summer with less
international customers. The little marketing that is done towards the international customers is
primarily about the message that:

"We are still going to be here after the pandemic [...] and that these customers should cherish
and prioritize their own safety first and foremost” (Treehotel).

Q10: Do you consider any new ways of the distribution for your products and services?

In order to continue to operate, Nordic Lapland and Varvet Luleå had to adapt their way of
distributing their products and services. The main task has been to come up with solutions in
order to circumvent the problem with the government restrictions and social distancing. The
objective is the same, but the approach differs between the respondents. The respondent from
Varvet Luleå mentioned:

“[...] the problem is getting customers to move around town. Now everyone is at home. The
offices are closed and so on. That is where the problem lies” (Varvet Luleå).

For example, Varvet Luleå did not only started selling food boxes instead of offering the usual
buffet, but also started distributing food to be sold at, e.g. local gyms. Thus, they have basically
changed their entire business idea, as they have gone from selling to end customer to be a
distributor.

Another example of how the distribution has been changed, but with a different approach, in
order to cope with the social distancing is how Nordic Lapland started to:

“[...] offer payment via applications in the mobile phone, both in terms of payment for their
stay but also in the purchase of food from the restaurant or shop” (Nordic Lapland).

In addition, they also offer delivery of the goods, from the restaurant and the shop to the cottages,
RVs and caravans. In the interview with Treehotel the respondent stated that their distribution
has not been affected by the coronavirus.

38
5. Data Analysis
In this chapter, an analysis and interpretation of the empirical findings is made. The analysis
and interpretation are based on the frame of reference of this study, meaning that the empirical
evidence of this study will be analyzed and compared with theories from the literature review of
the study. The chapter begins with part 5.1 which analyzes the empirical evidence with theories
from the frame of reference regarding economic crisis. Section 5.2 analyzes the empirical
evidence with theories from the frame of reference that is about marketing innovation and the
marketing mix.

5.1 The impact on SMEs

The first research question in this study is:

How have SMEs in Norrbotten been affected by the economic crisis derived from the
coronavirus outbreak?

In order to analyze the first research question, the collected empirical evidence from the
interviews has been analyzed towards theories regarding how an economic crisis impacts the
business along with how consumers purchasing behavior is changing when facing an economic
crisis.

Reduced production and supply disruption

A common phenomenon in an economic crisis is reduced production or reduced offerings of
services. The decrease is mainly caused by either one or both of; reduced demand and/or supply
disruptions (Ghandour & Benwell, 2012; Köksal & Özgul, 2007). The inadequate demand can
be linked to consumer behavior, which is dealt with in more depth in the next section. A supply
disruption could lead to a decreased production and demand shortage which in turn causes
unemployment (Guerrieri, Lorenzoni, Straub & Werning, 2020).

When it comes to disruptions in the purchasing part of the supply chain, the companies have not
been affected to a great extent. The main reason is, as one of the respondents replied: “we do not
have many suppliers, only on consumables and therefore we have not seen any impact”. Which
is in line with secondary sources on the subject, which states that the delivery of consumables

39
will not be affected by the restrictions in travelling across national borders (Swedish Customs,
2020).

However, the respondent from Treehotel mentioned issues with supply disruptions. From the
empirical evidence, it is explained that Treehotel have several subcontractors in their range of
activities, who are affected by the coronavirus. Due to changed marketing focus to the local area
the respondent says that: “the locals are much more self-sufficient” and that is a central reason
why Treehotel are not able to deliver any customers to the subcontractors of activities. The
respondent means that if that pattern continues, the subcontractors will not survive, and this will
affect the range of activities. The way that companies are affected by supply disruptions is shown
in table 5 below.

Table 5: Experience of decreased production due to supply chain disruptions

Experience of decreased production due to supply chain disruptions

3 out of 3 companies are affected

2 out of 3 companies are affected

1 out of 3 companies are affected X

0 out of 3 companies are affected

Layoff and termination of personnel

A supply disruption can in turn also lead to unemployment (Guerrieri et al., 2020). Which are
another common phenomenon in an economic crisis. The termination of staff is mainly caused
by reduced production due to an inadequate demand for products and services or supply
disruptions (Köksal & Özgul, 2007).

When it comes to layoffs and termination of personnel, 2 out of three companies are affected,
which is illustrated in table 6 below. The main reason is, as one of the respondents replied “the
coronavirus”. This is in line with secondary sources, which shows that 875 people in the
hospitality industry in Norrbotten have been terminated, which corresponds to the second largest
number in Sweden after Stockholm (Swedish Employment Service, 2020). Which also is
confirmed by the respondent from TreeHotel who replied that “all personnel are laid off”. In

40
contrast to the other respondents and theories regarding the economic crisis impact on businesses,
the respondent from Varvet Luleå mentioned that their personnel strength was intact.

Table 6: Experience of reduced workforce among the companies

Experience of reduced workforce

3 out of 3 companies is affected

2 out of 3 companies is affected X

1 out of 3 companies is affected

0 out of 3 companies is affected

Economic crisis - financial impact on SMEs

According to theory, SMEs are the ones with the least favorable prerequisites to survive an
economic crisis (Yazdanfar & Öhman, 2018; Vargo & Seville, 2011; Quintiliani, 2017). The
main reasons are that SMEs many times have limited financial resources and that they heavily
depend on loaned money. The limited financial resources inhibit the flexibility and the ability to
invest, and thus also limits the growth, development and companies’ opportunities of survival
(Vargo & Seville, 2011).

The theory is in line with the actual numbers for how SMEs in Norrbotten are affected by the
economic crisis derived from the COVID-19 outbreak. 50 percent of the small and medium sized
companies in Norrbotten are experiencing a decrease in production and sales, compared to 6
months before the outbreak. Among the industries that are hit hardest by the economic crisis are
both the hotel- and restaurant sector (The Confederation of Swedish Enterprises, 2020). Sales in
the hotel industry have decreased by 78 percent compared to the same period last year and the
sales in the restaurant industry has decreased by 29 percent (Statistics Sweden, 2020). The
empirical data collected from the interviews confirms the reported revenue reductions, which is
shown in table 7 below. Nordic Lapland estimates that the crisis has caused a 70 percent reduction
of the demand and Treehotel estimates a 30 percent reduction of the occupied spaces in the hotel
this April compared to the same month the year before. Another indication that confirms the
theories regarding SMEs vulnerability during an economic crisis is one of the respondents answer
to the question regarding if the company has increased or decreased their marketing in the midst
of the crisis. The answer was; “no, since we have been forced to tighten our budget, there is no

41
room for an extended or maintained spending”, which supports the theory regarding SMEs
limited financial resources during an economic crisis.

Table 7: Economic crisis financial impact on SMEs

Economic crisis financial impact on SMEs

3 out of 3 companies is affected X

2 out of 3 companies is affected

1 out of 3 companies is affected

0 out of 3 companies is affected

Consumer behavior in an economic crisis

According to the theory regarding changes in consumer behavior due to an economic crisis,
people are affected both mentally and economically (Köksal & Özgul, 2007). Mentally, the
consumer changes the willingness to spend due to fear of losing the job. Economically, the
consumer adapts and lower the degree of consumption where the underlying cause is the changed
view of risk propensity (Sharma & Sonwalkar, 2013; Mogaji 2020).

The effects of this crisis are the same as what is mentioned by Sharma and Sonwalkar (2013),
but the origin of the corona crisis differs since the changed consumer behavior mainly is caused
by government restrictions (Statistics Sweden, 2020). The empirical evidence from the
interviews confirms that the consumer purchasing behavior has changed as a result of the ongoing
crisis since 3 out of 3 companies reported it, which is illustrated in table 8. But it is not solely the
mentally and financial factors mentioned in the previous literature that affects the behavior, it is
also due to what is mentioned above, about the government restrictions and the general fear of
the virus. Which is a factor that all the respondents emphasize. The restaurant Varvet highlights
the fact that people are working at home and that people are not visiting the city center to the
same extent as before the outbreak, as the major contributing factor. Empirical data provided by
Nordic Lapland, TreeHotel and Varvet Luleå also confirms that the changed behavior not solely
depends on what is emphasized in antecedent research, but also the factors that are unique in this
crisis (i.e. social distancing, government restrictions). This becomes clear to the company when
it comes to those business customers who usually have conferences at the facility, and no longer
are able to book new visits at the facility.

42
 Table 8: Changing consumer behavior affection on the companies

Has changes in customer behavior affected the companies

3 out of 3 companies is affected X

2 out of 3 companies is affected

1 out of 3 companies is affected

0 out of 3 companies is affected

5.2 Measures taken by the SMEs

The second research question of this study is:

How can SMEs in Norrbotten adapt a new way of marketing in times of crisis?

In order to analyze the second research question, empirical evidence from the study has been
compared to previous research regarding suggested measures for SMEs that are facing an
economic crisis. According to theory marketing innovation is suggested as an appropriate
solution for cash-strapped companies (many times SMEs). Nordic Lapland, Varvet Luleå and
TreeHotel have all recognized that an adaptation of a new way of marketing is needed to be made
during this time of crisis. Since marketing innovation is defined as improvements in the
marketing mix, 3 out of 3 companies have come up with different solutions on how to improve
their marketing mix.

MARKETING INNOVATION - Improvements in the marketing mix

The adoption of an innovative way of marketing has been suggested to be successful for SMEs
in times of crisis. The main reason why marketing innovation is a viable tool for SMEs with
limited resources is because of the relatively affordable cost of implementing that kind of strategy
(Naidoo, 2010). The objective of marketing innovation is to better satisfy customers’ needs and
thus also gain or sustain a competitive edge (Karlsson & Tavassoli, 2016; Medrano & Olarte-
Pascual, 2016; Widjojo et al. 2020; Line & Runyan, 2012; Scaglione et al. 2009). By successfully
implementing a marketing innovation strategy firms will have a higher chance of surviving an
economic crisis (Falk, 2013).

43
Empirical data in this study proves that three out of three of the companies have chosen to make
at least some improvements in the marketing mix, as a response to the crisis, in order to stay
competitive and to be in consensus with the consumer’s changing buying behavior. The
improvements by every company during this crisis is in line with previous research in the field
by Pappas (2015) who proved that companies in the hospitality industry primarily should focus
on marketing innovation in order to survive in times of crisis, followed by adapted pricing and
focus on promotional activities (Pappas, 2015). The previous description can be seen in table 9
below.

Table 9: The number of companies that have made improvements in the market mix

Improvements in the marketing mix

3 out of 3 companies is affected X

2 out of 3 companies is affected

1 out of 3 companies is affected

0 out of 3 companies is affected

Product
Product innovation tends to be expensive and therefore it might not be something that companies
invest in when trying to survive a crisis. This especially characterizes SMEs (Grewal & Tansuhaj,
2001). Therefore, previous studies suggested that innovation in a crisis should focus on the
remaining components in the marketing mix: price, place and promotion (Hamadan & Wirawan
2012).

The empirical evidence collected in this study from Nordic Lapland and Treehotel shows that the
two companies mainly focused on adapting pricing, place and promotion in the marketing mix,
which is in line with what Hamadan and Wirawan (2012) mentioned in their research about
innovations in time of crisis. However, Varvet Luleå product innovated and created a new
product as a response to the crisis. Thus, the empirical data from Varvet Luleå contradicts the
theory regarding that product innovation should be avoided in times of crisis. The results can be
seen in table 10 below.

44
The launch of the new concept and product was already planned by Varvet, but the launch was
accelerated since it was a perfect fit for the new circumstances and customer needs. The fact that
Varvet Luleå quickly could reschedule its plans is in line with previous research within the field.
That suggests that SMEs are more flexible and adjustable than larger firms when introducing
new products in times of crisis (Kossyva et al. 2015; Naidoo, 2010).

Table 10: Product innovation as a response to an economic crisis

Product innovation as a response to an economic crisis

3 out of 3 companies is affected

2 out of 3 companies is affected

1 out of 3 companies is affected X

0 out of 3 companies is affected

Price
According to Singh (2012) the price for a product or service should not remain static but instead
it has to be dynamic, in order to adapt to changes in the environment. The most common course
of action in an economic crisis is to lower the prices (Köksal & Özgul, 2007). Thus, the lowering
of prices might be necessary to survive in the short run but might harm the long-term profitability
(Köksal & Özgul, 2007).

In contrast to what is suggested in the literature to be the optimal long-term solution, all the
respondents stated that their company had reduced their price since the outbreak of the
coronavirus, which is illustrated in table 11. The reason for why they had chosen to lower their
prices was also the same for Nordic Lapland and Varvet Luleå, which are the market forces. They
simply cannot afford to not lower their prices since all their competitors are lowering their prices.
However, Treehotel has chosen not to lower its prices to the same extent as their competitors, in
order to emphasize the quality and uniqueness of their products and services. Which corresponds
to the theory that suggests that price reductions should be conducted with caution, due to the fact
that it might harm the brand's image.

In addition, Treehotel and Nordic Lapland have also made an exception for the price reduction
when it comes to products and services outside their core offerings (i.e. rooms, cottages,

45
activities). Thus, the price for food, products in the gift shop etc. has remained unchanged. That
the companies in the hotel and tourism industry kept the prices for products that are not a part of
the core offerings illustrates what Naidoo (2010) means is the main objective of marketing
innovation. Which is to shift the customers demand from elastic to inelastic. Thus, when
customers that have been attracted by the low prices for core offerings appear for their stay at the
hotel, the supply for consumer goods is limited in the surrounding area. In that case the guests
are willing to pay the additional price and in other words the demand for the consumer goods are
inelastic.

Table 11: Pricing strategy in an economic crisis

Price reductions as a response to an economic crisis

3 out of 3 companies is affected X

2 out of 3 companies is affected

1 out of 3 companies is affected

0 out of 3 companies is affected

Place
Since an economic crisis triggers price wars, which in turn tends to eradicate those companies
with the lowest margins, it is important to adapt a marketing innovation strategy that facilitates
the creation of differentiation or cost leadership (Grundey, 2009; Naidoo, 2010). One viable
method to raise the margin and develop a cost leadership is to restructure and streamline the
firm's distribution channels (Kotler & Armstrong, 2006). Which includes the process where the
product or service is delivered from the company to the customer or from a supplier to the
company (Singh, 2012; Salman et al. 2017). The company's location is also something that does
not change during times of crisis (Salman et al. 2017). What becomes extra important then is the
mode of transportation of products (i.e. distribution).

As mentioned in the section regarding supply disruptions, the delivery of consumables to the
companies will not be affected by the restricted travelling across borders and thus will neither
affect the way purchases are conducted. Nor have any of the companies tried to streamline and
reduce the cost of their purchases. However, as seen in table 12, two out of three respondents
report that the distribution of products and services has been adapted to meet the current needs
of the customer. This is in line with secondary sources on the subject, which states that the

46
changes are a consequence of social distancing, fear of being infected and government
recommendations (Statistics Sweden, 2020).

The respondent from Varvet Luleå mentions that they deliver food (food boxes) to the customers
instead of the customers coming in and eating the buffet, as a direct consequence of the
coronavirus. The representative from Nordic Lapland also mentions that they have adjusted the
distribution as a direct consequence of the coronavirus, as they now deliver food to their camping
guests. Moreover, the respondent from Nordic Lapland states that check in and check out terms
have been adapted. Easier and digital payment methods are mentioned by the Nordic Lapland
respondent as a way of keeping the competitive edge and enhancing a sense of security to the
customer.

Table 12: Changes in the distribution chain toward the customers

How many of the companies have made changes in the distribution

chain toward the customers

3 out of 3 companies is affected

2 out of 3 companies is affected X

1 out of 3 companies is affected

0 out of 3 companies is affected

Promotion
Theories regarding how businesses should react in order to cope with an economic crisis stresses
the importance of increasing or at least maintaining the spending’s on marketing (Köksal &
Özgul, 2007; Srinivasan & Lilien, 2009; Alananzeh et al. 2018). Antecedent studies also call
attention toward the need for companies to concentrate on the markets in which they are a strong
competitor (Köksal & Özgul, 2007). And in order to get the most out of the amount spent on
marketing during an economic crisis, Grundey (2009) means that the company should focus on
the frequent customers. Since loyal customers are the most profitable (Grundey, 2009).

The approach of the interviewed companies differs when it comes to how they have conducted
their marketing during the crisis, which is illustrated in the table 13 below. The respondent from
Varvet Luleå described that its company had reduced the spending on marketing and
discontinued offers to repeat customers. In turn, Nordic Lapland retained the amount of

47
international marketing and stated that they had increased the marketing directed towards the
frequent local customers. The respondent further explained that the aim was not solely to retain
the loyal customers but also expand that local customer segment. TreeHotel has chosen the same
route with the exception that it has reduced international marketing due to government and
authority’s advice. The marketing aimed at the international customer group, the little that is
done, is primarily about the message that "we are still going to be here after the pandemic" and
that international tourists should be aware of their own safety first and foremost. This also
corresponds to theory that advertising messages should emphasize safety announcements rather
than to idealize the brand in times of crisis (Köksal & Özgul, 2007).

Table 13: Adaption of marketing during an economic crisis

Measures that are in line with the presented theories regarding

promotion

3 out of 3 companies is affected

2 out of 3 companies is affected X

1 out of 3 companies is affected

0 out of 3 companies is affected

48
To gain a comprehensive picture on the adjustments that were made in the marketing mix by the
companies, table 14 down below was established.

Table 14: Comprehensive table of marketing mix adjustments

Marketing Product Price Place Promotion

Mix

SMEs

Nordic More focus on Pricing according Distributes More

Lapland offering other to competitors on restaurant orders investments in
parts of the accommodation to the customer’s local marketing
product range and retains prices accommodation and maintains
(restaurant) on restaurant and focus on self- same level of
service (check in international
and check outs) marketing

Varvet Created a new Pricing according Distributes food Cut down on

Luleå product in new to competitors in boxes to the marketing
brand that gets market customer budget
more focus

Treehotel Offers the same Reduced prices on No change, More

product range rooms, but still facility already investments in
and have higher than ‘corona adapted’ local marketing
developed competitors due to its location and less
‘corona adapted international
activities’ marketing

49
6. Findings and Conclusions
The objective with this chapter is to summarize the most vital results and present the conclusions
and findings of the study. The overall purpose of this study was to examine how SMEs in the
hospitality sector in Norrbotten are changing their marketing activities in times of economic
crisis. To answer the purpose, two research questions were outlined and in this chapter, they are
more deeply discussed. Theoretical and practical implications are introduced and at last, the
study’s limitations and suggestions for further research within the subject is presented.

However, before entering the content in this chapter, figure 5 below was developed. The main
objective with the figure is to give an overview of the connections in this study. It also illustrates
an overview of the economic crisis derived from the COVID-19 pandemic and the identified
factors surrounding the pandemic that might affect SMEs.

50
 COVID-19 Pandemic

Government Restrictions Fear of the virus

Economic Crisis

Reduced Demand

Revised Budgets

Alternatives for firm survival:

Financial Resources Government Support Marketing Innovation

Product Pricing Distribution Promotion

Innovation innovation innovation Innovation

Figure 5 - Overview of consequences and actions brought by the COVID-19 pandemic

51
6.1 Findings and conclusions - the economic crisis impact on
SMEs in Norrbotten
When it comes to how the interviewed companies have been affected by the economic crisis
derived from the COVID-19 outbreak, it is mostly consistent with how previous research within
the field predicts an outcome of an economic crisis. However, since the economic crisis is
characterized by unique circumstances, it differs in some respects. By answering the first research
question; “How have SMEs in Norrbotten been affected by the economic crisis derived from the
coronavirus outbreak”, this study contributes to later research within the field of economic
crises.

One aspect where the empirical data differs from the theory is when it comes to disruptions in
the supply chains. According to theory it is one of the most common characteristics of an
economic crisis. However, none of the interviewed companies have been affected to a large
extent by disruptions in the supply chain, even if a lot of national borders have been closed. The
reason why it has not been affected to the same extent as many other sectors is because the most
important occupations and product deliveries (such as necessary consumer goods, food etc.) have
been excluded from government restrictions (European Commission, 2020).

Thus, companies in the hospitality sector have been spared from the problems with supply
disruptions. Instead the main problem for the hospitality sector is the disruptions in the demand,
which is a direct consequence of the government restrictions and the population's general fear of
the virus. 50 percent of the SMEs in Norrbotten have reported that they suffered a reduction in
production and sales, and among the worst affected sectors are the hotel and restaurant industry
(The Confederation of Swedish Enterprises, 2020). In many ways, the government restrictions
have made it impossible for at least the hotels to conduct their business. This has forced
companies to terminate and lay off staff, change parts of their plans and adapt their marketing
strategies to the changed circumstances.

Two out of three companies had to lay off large parts of their staff pretty soon after the effects of
the corona virus struck. The measure illustrates SMEs financial vulnerability. However, both of
the companies have received assistance by the government support packages, which have enabled
the companies to temporarily lay off personnel instead of permanent terminations. The
government support confirms SMEs' important function in the society as an employer to large

52
parts of the population. It also confirms the government support as a measure for firm survival.
However, in order to remain profitable in the future, it is necessary that companies work
diligently with marketing in order to maintain their reputation and thus also their customer base.

The conclusion is that this crisis has affected SMEs in Norrbotten in some ways different from
previous crises. In order to have a chance of surviving and prosper in the long-term as an SME,
one must take innovative solutions to circumvent the obstacles.

6.2 Findings and conclusions regarding changes in the marketing

mix
The first research question focused on findings on how small and medium sized enterprises in
the hospitality industry in Norrbotten have been affected by the economic crisis derived from the
coronavirus. The main objective with research question two was to find out what innovative
solutions SMEs took to circumvent the obstacles from the coronavirus. Hence, the second
research question reads as follows: How can SMEs in Norrbotten adapt a new way of marketing
in times of crisis?

No business sector has gone through the corona crisis without being affected, that includes SMEs
in the hospitality sector in Norrbotten. The empirical evidence from this study confirms that
SMEs in Norrbotten have been affected by the current economic crisis derived from the
coronavirus. What has been made clear in the study is that companies have three options in order
to survive, they can: rely on financial capital, government contributions and/or finding a new
way to utilize its competences. Since one characteristic of SMEs is that they many times have
limited resources, the result is that they cannot rely on financial reserves to survive an economic
crisis as revenues decrease. Instead, many SMEs must rely on government subsidies, but it is not
an optimal solution for long-term profitability. The most interesting solution is therefore to
combine subsidies with a reallocation and employment of new ways of utilizing the company’s
competences.

In general, the result from the research in this thesis shows in many aspects a conformity with
the suggested measures in previous studies, for companies that face a crisis. However, it also
illustrates some differences. An example of how companies' approaches differ in comparison to
theory is that none of the interviewed companies have tried to reduce their distribution costs.

53
Everyone had made changes in their distribution chain toward the customer, but it was not with
cost reductions in mind, instead the focus of the changes was to circumvent the problem with the
government restrictions.

In previous research, it is suggested that firms focus their marketing efforts towards the area
where they are a strong competitor. For the businesses in the hotel and tourism industry it is the
international customers. However, this crisis has completely erased the possibility of reaching
these customers. This confirms the uniqueness of this crisis - which also requires some unique
measures. In turn, the unique measures can be offered by an implementation of a marketing
innovation strategy. Thus, measures like the facilitating of reservations, payment and refunds,
along with redirected marketing efforts and long-term focus will be key tools in order to survive
this crisis.

6.3 Theoretical Implications

Since the economic crisis derived from the COVID-19 outbreak in many ways differs from
previous crises, the findings in this study contribute with some unique results. The government
restrictions are the most prominent contributor to the uniqueness and have made it almost
impossible for some sectors to conduct their business. Which has forced companies to adopt
unique and innovative solutions to circumvent problems from the restrictions. Thus, this study
has contributed with new information that possibly could guide later research within the subject
of economic crisis and/or marketing innovation.

In addition to the results that have to do with the fact that the current crisis in many ways is unlike
other crises, the study also has confirmed much of the antecedent studies. One of the most
prominent results in this study that also confirms the previous research is SMEs vulnerability in
an economic crisis. This becomes evident in how the interviewed companies have been forced to
revise their budgets and lay-off personnel. In many of the cases where the empirical data does
not match the theory, this can most probably be explained by the impact of what makes this crisis
unique.

However, it becomes clear that no matter what causes an economic crisis, marketing innovation
presents an effective way for SMEs to survive a crisis. Since empirical data confirms the theory
of marketing innovations' positive impact on SMEs in times of crisis, it helps to satisfy the

54
demand for more empirical data regarding the positive impact. Thus, the results in this study have
not only contributed to a broader theoretical foundation but also contributed with more depth
within the field of research.

6.4 Practical implications

This thesis contributes with some interesting findings. The researchers of this study hope to be
able to help managers and marketers in small and medium sized enterprises (SMEs) in the
hospitality sector in Norrbotten. The SMEs currently have to deal with the economic crisis that
is present (derived from the coronavirus) at the same time as this thesis is written. The researchers
of this study hope that the findings of this study will be of help for SMEs in the hospitality
industry if a similar crisis happens and strikes the landscape Norrbotten in the future.

The main reason why this thesis is useful for practitioners is that every crisis is more or less
unique and therefore more knowledge within the field will contribute to an increased
understanding. Which in turn will enhance companies’ ability to prepare for future crises. The
most unique about the COVID-19 pandemic and the economic crisis that followed, is the
government restrictions in order to stop the spread of the virus, which almost made it impossible
for companies in some industries to conduct business as usual. What the managers and marketers,
especially those working for SMEs, can learn from the knowledge provided in this thesis is that
it might be necessary to use innovative solutions in order to survive. Mainly because of the
relatively low cost of implementing.

Since government restrictions have made it difficult for companies to conduct their business in
the present, survival is not the only thing the companies need to keep in mind, but also the future
for the company when it is possible to conduct business as usual. Companies have therefore been
forced to shift their focus from short term to long term. What this study contributes to managers
and marketers, is a confirmation of previous knowledge that states the importance of keeping the
amount of marketing in bad times in order to retain customers when the situation has changed
for the better.

55
6.5 Implications for further research

There are several suggestions for further research within this field of research that could be of
interest for future studies.

First of all, since the COVID-19 pandemic is still present and ongoing, the amount of research
within this field of research is highly limited. Therefore, this study can be a ground for future
studies in this field of research. This could specifically be the case for SMEs in the hospitality
industry in Norrbotten, but also for remaining landscapes in Sweden. Since they all also can use
this study as a ground in their future research. This study can also be of help for SMEs in different
industries than the hospitality industry, in order to receive knowledge on how to adapt the way
of marketing in times of crisis. In addition, regional or local comparisons can be made in Sweden
when the corona crisis is over, to examine if the economic impact on the SMEs and the way they
adapt their marketing strategy has a geographic difference. Another suggestion for further
research in this field, is to examine the coronavirus impact on SMEs in different countries. Since
every country has different solutions to prohibit the spread of the coronavirus, it would be of
interest to conduct further research on how SMEs in other countries adapted their way of
marketing, in order to circumvent the problems brought by the government restrictions.

Another suggestion for further research is to collect empirical evidence from questionnaires
rather than through interviews. In other words, perform a quantitative study instead of a
qualitative study. Additionally, since COVID-19 is a pandemic that the world has no prior
experience of, a suggestion for further research could be to compare the COVID-19 pandemic
impact on businesses to previous crises and examine the differences between the other crises
impact on SMEs.

One more suggestion for future research could be to examine the diversity of the consumer
purchasing behavior derived from the coronavirus. Since the COVID-19 pandemic is something
that the consumer has never experienced before, more and deeper research on how the consumer
behaves when purchasing in a rapidly changing and uncertain marketing environment should be
considered to conduct in the future.

56
In addition, since this study only analyzed the four dimensions, out of seven, in the marketing
mix (product, place, price and promotion) towards the collected empirical evidence, a suggestion
for future research is to conduct a similar research study but with the additional 3 P's (physical
evidence, people and processes) included in the marketing mix also. Furthermore, future research
(with similar purpose) should consider the examination of other ways of adapting the marketing
in times of crisis (other marketing strategies), besides the marketing mix.

6.6 Limitations of the research

There exist limitations regarding this thesis. First of all, the empirical evidence was collected
from a sample consisting of only three SMEs in Norrbotten. The empirical data was therefore
based on a small sample of organizations and respondents, which in turn might have an effect on
the reliability and validity. One thing that has contributed to a large extent to the limited data
collection is the fact that COVID-19 not only affected SMEs financially, but also their
availability for an interview. That companies want to take responsibility and comply with the
restrictions, that many have laid off large parts of their staff and that they simply do not feel safe
with the risk of infection are contributing factors to the difficulty of obtaining a larger sample
selection. Another thing that contributed to the limited data collection was the limited amount of
time that is provided for a bachelor’s degree project. If the study would have had more time and
being able to select more samples and respondents, there is a chance that new opinions and
thoughts would have occurred and thereby the findings could have been something else.
However, in an attempt to solve this issue, the researcher selected organizations and respondents
with care. For instance, the study interviewed SMEs with different geographical locations in
Norrbotten, in order to not get empirical evidence from one city in Norrbotten.

It can be argued that the study is a bit premature when it comes to analyzing the economic effects
of the coronavirus on SMEs in the hospitality industry located in Norrbotten. Since the annual
reports that show the true effects of the coronavirus comes next year (according to accounting
practice) more information and changes could have been recognized and identified if the research
was made when the annual reports of 2020 (when the corona crisis occurred) are in place and
retrievable. The same applies when it comes to data from the statistics authorities. More data and
knowledge regarding statistics from statistics authorities about the COVID-19 pandemic impact
on Sweden and Norrbotten is expected to be published in the foreseeable future. It means that

57
the retrievable information that exists about the COVID-19 pandemic and its economic impact
on the hospitality industry is only the tip of an iceberg.

It is also a risk when interviewing respondents about the financial wealth position. Since the
respondent can see the interview as an opportunity to make the company look better than what
is actually the case. In addition to this, there is also a risk that the interviewed companies are
restrained with the information they share. Since some information could be used by competing
companies in order to become more competitive.

There is also a risk that the researcher or researchers in a study make subjective judgments, which
is another form of limitation when conducting research which decreases the trustworthiness of
the research. In an attempt to manage this, the researchers reconnected with the selected
respondents to see if the analysis of the empirical evidence from the interviews was interpreted
in a way that was in line and in consensus with the respondents.

58
7. References
Ang, S. H., Leong, S. M., & Kotler, P. (2000). The Asian apocalypse: crisis marketing for
consumers and businesses. Long Range Planning, 33(1), 97-119.
https://doi.org/10.1016/S0024-6301(99)00100-4

Anning-Dorson, T., Hinson, R. E., & Amidu, M. (2018). Managing market innovation for
competitive advantage: how external dynamics hold sway for financial services. International
Journal of Financial Services Management, 9(1), 70-87.
https://doi.org/10.1504/IJFSM.2018.089932

Alananzeh, O., Tarhini, A., & Algudah, O. (2018). The effect of promotional mix on hotel
performance during the political crisis in the Middle East. Journal of Hospitality and Tourism
Technology, 9(1), 33-49. https://doi.org/10.1108/JHTT-02-2017-0010

Alhawari, S., Karadsheh, L., Talet, A. N., & Mansour, E. (2012). Knowledge-based risk
management framework for information technology project. International Journal of
Information Management, 32(1), 50-65. https://doi.org/10.1016/j.ijinfomgt.2011.07.002

Bartik, A. W., Bertrand, M., Cullen, Z. B., Glaeser, E. L., Luca, M., & Stanton, C. T. (2020).
How are small businesses adjusting to COVID-19? Early evidence from a survey (No.
w26989). National Bureau of Economic Research. https://doi.org/10.3386/w26989

Barwise, P., & Styler, A. (2002). Marketing expenditure trends. London Business School
Marketing Report, London UK.
http://cws.cengage.co.uk/evans/students/cases_book/01cases/lbs_havas_report.pdf

Baxter, P., & Jack, S. (2008). Qualitative case study methodology: Study design and
implementation for novice researchers. The qualitative report, 13(4), 544-559.
https://nsuworks.nova.edu/tqr/vol13/iss4/2/

Bourletidis, K., & Triantafyllopoulos, Y. (2014). SMEs survival in time of crisis: strategies,
tactics and commercial success stories. Procedia-Social and Behavioral Sciences, 148, 639-
644. https://doi.org/10.1016/j.sbspro.2014.07.092

59
Bell, E., Bryman, A., & Harley, B. (2018). Business research methods. Oxford university press.

Campo, S., Díaz, A. M., & Yagüe, M. J. (2014). Hotel innovation and performance in times of
crisis. International Journal of Contemporary Hospitality Management, 26(8), 1292-1311.
https://doi.org/10.1108/IJCHM-08-2013-0373

Chesbrough, H. (2010). Business model innovation: opportunities and barriers. Long range
planning, 43(2-3), 354-363. https://doi.org/10.1016/j.lrp.2009.07.010

Cesaroni, F. M., Sentuti, A., & Cubico, S. (2020). Small family firms and strategies coping the
economic crisis: The influence of socio-emotional wealth. In Entrepreneurship and Family
Business Vitality (pp. 27-48). Springer, Cham. https://doi.org/10.1007/978-3-030-15526-1_3

Consiglio, I., De Angelis, M., & Costabile, M. (2018). The effect of social density on word of
mouth. Journal of Consumer Research, 45(3), 511-528. https://doi.org/10.1093/jcr/ucy009

Darbonnens, C. A., & Zurawska, M. (2017). Effective crisis and emergency responses in the
multinational corporations. The Responsive Global Organization: New Insights from Global
Strategy and International Business, 169-204. https://doi.org/10.1108/978-1-78714-831-
420171007

Decker, R., Haltiwanger, J., Jarmin, R., & Miranda, J. (2014). The role of entrepreneurship in
US job creation and economic dynamism. Journal of Economic Perspectives, 28(3), 3-24.
https://doi.org/10.1257/jep.28.3.3

Eisenhardt, K. M., & Graebner, M. E. (2007). Theory building from cases: Opportunities and
challenges. Academy of management journal, 50(1), 25-32.
https://doi.org/10.5465/amj.2007.24160888

European Commission. (2020). Travel and transportation during the coronavirus pandemic.
Retrieved 2020-05-18 from https://ec.europa.eu/info/live-work-travel-eu/health/coronavirus-
response/travel-and-transportation-during-coronavirus-pandemic_sv

60
European Commission. (2003). Internal Market, Industry, Entrepreneurship and SMEs.
Retrieved 2020-06-08 from https://ec.europa.eu/growth/smes/business-friendly-
environment/sme-definition_en

Falk, M. (2013). A survival analysis of ski lift companies. Tourism Management, 36, 377-390.
https://doi.org/10.1016/j.tourman.2012.10.005

Fernandes, N. (2020). Economic effects of coronavirus outbreak (COVID-19) on the world

economy. Available at SSR: https://ssrn.com/abstract=3557504

Ghandour, A., & Benwell, G. (2012). A framework of business recovery in the aftermath of a
disaster. International Journal of Business Continuity and Risk Management, 3(3), 263-274.
https://doi.org/10.1504/IJBCRM.2012.050490

Grewal, R., & Tansuhaj, P. (2001). Building organizational capabilities for managing economic
crisis: The role of market orientation and strategic flexibility. Journal of Marketing. Vol.65, pp.
67-80. https://doi.org/10.1509/jmkg.65.2.67.18259

Grundey, D. (2009). Branding strategies during economic crisis: avoiding the erosion.
Economics & Sociology, 2(2), 9-22. https://www.economics-
sociology.eu/files/E&S_2_2_guest.pdf

Guerrieri, V., Lorenzoni, G., Straub, L., & Werning, I. (2020). Macroeconomic implications of
COVID-19: Can negative supply shocks cause demand shortages? (No. w26918). National
Bureau of Economic Research. https://doi.org/10.2139/ssrn.3570096

Gümüş, N., Geçti, F., & Yılmaz, A. (2020). Marketing strategies with private labels during
economic recession. In improving marketing strategies for private label products (pp. 110-134).
IGI Global. https://doi.org/10.4018/978-1-7998-0257-0.ch006

Halpern, N. (2010). Marketing innovation: Sources, capabilities and consequences at airports in

Europe's peripheral areas. Journal of Air Transport Management, 16(2), 52-58.
https://doi.org/10.1016/j.jairtraman.2009.10.002

61
Haltiwanger, J., Jarmin, R. S., & Miranda, J. (2013). Who creates jobs? Small versus large
versus young. Review of Economics and Statistics, 95(2), 347-361.
https://doi.org/10.1162/REST_a_00288

Hamdani, J., & Wirawan, C. (2012). Open innovation implementation to sustain Indonesian
SMEs. Procedia Economics and Finance, 4(1), 223-233. https://10.1016/S2212-
5671(12)00337-1

He, L., & Ran, Y. (2015). The correlation of brand equity and crisis: A review and directions
for future research. Modern Economy, 6(03), 392-397. https://doi.org/10.4236/me.2015.63036

Hjalager, A. M. (2010). A review of innovation research in tourism. Tourism management,

31(1), 1-12. https://doi.org/10.1016/j.tourman.2009.08.012

Hussain, I., Mu, S., Mohiuddin, M., Danish, R. Q., & Sair, S. A. (2020). Effects of sustainable
brand equity and marketing innovation on market performance in hospitality industry:
mediating effects of sustainable competitive advantage. Sustainability, 12(7), 2939.
https://doi.org/10.3390/su12072939

Jayawardena, C., Tew, P. J., Lu, Z., Tolomiczenko, G., & Gellatly, J. (2008). SARS: lessons in
strategic planning for hoteliers and destination marketers. International Journal of
Contemporary Hospitality Management. 20(3), 332-346.
http://doi.org/10.1108/09596110810866145

Karlsson, C., & Tavassoli, S. (2016). Innovation strategies of firms: What strategies and why?.
The Journal of Technology Transfer, 41(6), 1483-1506. https://doi.org/10.1007/s10961-015-
9453-4

Kossyva, D., Sarri, K., & Georgolpoulos, N. (2015). Co-opetition: A business strategy for
SMEs in times of economic crisis. South-Eastern Europe Journal of Economics, 12(1), 89-106.
http://www.asecu.gr/Seeje/issue22/issue22-kossyva.pdf

Kotler, P. & Armstrong, G. (2006), Principles of marketing, 11th ed., Pearson- Prentice Hall,
Englewood Cliffs, NJ.

62
Köksal, M-H., & Özgul, E. (2007). The relationship between marketing strategies and
performance in an economic crisis. Marketing Intelligence & Planning, 25(4), 326-342.
https://doi.org/10.1108/02634500710754574

Leung, L. (2015). Validity, reliability, and generalizability in qualitative research. Journal of

family medicine and primary care, 4(3), 324-327. https://doi.org/10.4103/2249-4863-161306

Line, N. D., & Runyan, R. C. (2012). Hospitality marketing research: Recent trends and future
directions. International Journal of Hospitality Management, 31(2), 477-488.
https://doi.org/10.1016/j.ijhm.2011.07.006

Medrano, N., Cornejo Canamres, M., & Olarte-Pascual, C (2020). The impact of marketing
innovation on companies environmental orientation. Journal of Business & Industrial
Marketing, 35(1), 1-12. https://doi.org/10.1108/JBIM-10-2018-0319

Medrano, N & Olarte-Pascual, C. (2016). The effect of the crisis on marketing innovation: an
application for Spain. Journal of Business & Industrial Marketing, 31(3), 404-417.
https://doi.org/10.1108/JBIM-02-2013-0048

Mogaji, E. (2020). Financial vulnerability during a pandemic: insights for coronavirus disease
(COVID-19). Research Agenda Working Papers, 2020 (5), 57-63.
https://dx.doi.org/10.2139/ssrn.3564702

Naidoo, V. (2010). Firm survival through a crisis: The influence of market orientation,
marketing innovation and business strategy. Industrial Marketing Management,.39(8), 1311-
1320. https://doi.org/10.1016/j.indmarman.2010.02.005

Nicolau, J. L., & Santa-María, M. J. (2013). The effect of innovation on hotel market value.
International Journal of Hospitality Management, 32, 71-79.
https://doi.org/10.1016/j.ijhm.2012.04.005

63
Nieves, J., & Diaz-Meneses, G. (2016). Antecedents and outcomes of marketing innovation.
International Journal of Contemporary Hospitality Management, 28(3), 1554-1576.
https://doi.org/10.1108/IJCHM-11-2014-0589

Norrbotten Chamber of Commerce. (2020). Eight out of ten companies in Norrbotten are
negatively affected by Covid-19. Retrieved 2020-05-06 from
https://norrbottenshandelskammare.se/atta-av-tio-foretag-i-norrbotten-paverkas-negativt-av-
covid-19/

O'dwyer, M., Gilmore, A., & Carson, D. (2009). Innovative marketing in SMEs. European
Journal of Marketing, 43(½), 46-61. https://doi.org/10.1108/03090560910923238

Pappas, N. (2015). Marketing hospitality industry in an era of crisis. Tourism Planning &
Development, 12(3), 333-349. https://doi.org/10.1080/21568316.2014.979226

Pearson, C. M., & Clair, J. A. (1998). Reframing crisis management. Academy of management
review, 23(1), 59-76. https://doi.org/105465/amr.1998.192960

Peric, M., & Vitezic, V. (2016). Impact of global economic crisis on firm growth. Small
business economics, 46(1), 1-12. https://doi.org/10.1007/s11187-015-9671-z

Piercy, N. F., Cravens, D. W., & Lane, N. (2010). Marketing out of the recession: recovery is
coming, but things will never be the same again. The Marketing Review, 10(1), 3-23.
https://doi.org/10.1362/146934710X488915

Quintiliani, A. (2017). Financial distress cost of Italian small and medium enterprises. The
Journal of Risk Finance, 18(5), 564-580. https://doi.org/10.1108/JRF-04-2017-0071

Raggio, R-D., & Leone, R-P. (2009) “Postscript: preserving (and growing) brand value in a
downturn”. Journal of Brand Management, 17(1), 84-89. https://doi.org/10.1057/bm2009.15

Riege, A-M. (2003). Validity and reliability tests in case study research: a literature review
with hands-on applications for each research phase. Qualitative Market Research: An
International Journal, 6(2), 75-86. https://doi.org/10.1108/13522750310470055

64
Roberts, K. (2003). What strategic investments should you make during a recession to gain
competitive advantage in the recovery?. Strategy & Leadership, 31(4), 31-39.
https://.doi.org/10.1108/10878570310483960

Salman, D., Tawfik, Y., Samy, M., & Artal-Tur, A. (2017). A new marketing mix model to
rescue the hospitality industry: Evidence from Egypt after the Arab spring. Future Business
Journal, Vol. 3(1), 47-69. https://doi.org/10.1016/j.fbj.2017.01.004

Saunders, M., Lewis, P., & Thornhill, A. (2012). Research Methods for Business Students (6.
ed.). Harlow, England: Pearson Education Limited

Scaglione, M., Schegg, R., & Murphy, J. (2009). Website adoption and sales performance in
Valais’ hospitality industry. Technovation, 29(9), 625-631.
https://doi.org/10.1016/j.technovation.2009.05.011

Sharma, V., & Sonwalkar, J. (2013). Does consumer buying behaviour change during an
economic crisis?. International Journal of Economics & Business Administration, 1(2), 33-48.
Retrieved 2020-05-10 from
https://www.um.edu.mt/library/oar/bitstream/123456789/30981/1/Does_consumer_buying_beh
avior_change_during_economic_crisis_2013.pdf

Singh, M. (2012). Marketing mix of 4P’s for competitive advantage. Journal of Business and
Management, 3(6), 40-45. https://doi.org/10.9790/487X-0364045

Sinkovics, N. (2018). Pattern matching in qualitative analysis. The sage handbook of

qualitative business and management research methods, 468-485.
https://www.researchgate.net/publication/323856200_Pattern_matching_in_qualitative_analysi
s

Sok, P., O’Cass, A., & Sok, K-M. (2013). Achieving superior SME performance: Overarching
role of marketing, innovation, and learning capabilities. Australasian Marketing Journal, 21(3),
161–167. https://doi.org/10-106/j.ausmj.2013.04.001

65
Srinivasan, R., & Lilien, G-L. (2009). Marketing spending strategies in recession. Australasian
Marketing Journal, 18(3), 181-182. https://doi.org/10.1016/j.ausmj.2010.06.022

Statistics Sweden. (2020). SCB-Indikatorer ekonomisk månadsöversikt. Retrieved 2020-04-21

from
https://www.scb.se/contentassets/4c5460086a764383a59f83690e6b5dc8/aa0101_2020m03_ti_
a06ti2003.pdf

Statistics Sweden. (2020). Stora ekonomiska skillnader i coronakrisens spår. Retrieved 2020-
04-27 from https://www.scb.se/om-scb/nyheter-och-pressmeddelanden/stora-ekonomiska-
branschskillnader-i-coronakrisens-spar/

Statistics Sweden. (2020). Stor nedgång i näringslivets försäljning. Retrieved 2020-05-20 from
https://www.scb.se/om-scb/nyheter-och-pressmeddelanden/stor-nedgang-i-naringslivets-
forsaljning/

Statista. (2020). Number of coronavirus (COVID-19) cases in Sweden in 2020, by region.

Retrieved 2020-04-29 from https://www.statista.com/statistics/1103949/number-of-
coronavirus-covid-19-cases-in-sweden-by-region/

Sutton, C & David, M. (2016). Samhällsvetenskaplig Metod. Lund: Studentlitteratur AB

Swedish Customs. (2020). Tullverkets arbete med anledning av coronaviruset. Retrieved 2020-
05-16 from
https://www.tullverket.se/sv/privat/tullverketsarbetemedanledningavcoronaviruset.4.153f8c8c1
6ffad23c22736.html

Swedish Public Employment Service. (2020). Varselstatistik. Retrieved 2020-05-20 from

https://arbetsformedlingen.se/om-oss/statistik-och-analyser/statistik

The Confederation of Swedish Enterprises. (2020). Stor ekonomisk nedgång för företag I
Norrbotten. Retrieved 2020-05-16 from
https://www.svensktnaringsliv.se/regioner/norrbotten/stor-ekonomisk-nedgang-for-foretag-i-
norrbotten_774612.html

66
Utkun, E. & Atilgan, T. (2010). Marketing innovation in the apparel industry: Turkey, Fibres &
Textiles in Eastern Europe, 18(6), 26-31.
http://acikerisim.pau.edu.tr/xmlui/bitstream/handle/11499/715/Marketing%20Innovation.pdf?se
quence=1&isAllowed=y

Varadarajan, R. (2018). Innovation, innovation strategy, and strategic innovation: In innovation

and strategy. Published online, 15, 143-166. https://doi.org/10.1108/S1548-
643520180000015007

Vargo, J. & Seville, E. (2011). Crisis strategic planning for SMEs: finding the silver lining,
International Journal of Production Research, 49(18), 5619-5635.
https://doi.org/10.1080/00207543.2011.563902

World Health Organization. (2020). WHO Director-General’s opening remarks at the Mission
briefing on COVID-19 – 12 March 2020. Retrieved 2020-04-29 from
https://www.who.int/dg/speeches/detail/who-director-general-s-opening-remarks-at-the-
mission-briefing-on-covid-19---12-march-2020

Widjojo, H., Fontana, A., Gayatri, G., & Soehadi, A-W. (2020). Value co-creation for
marketing innovation: Comparative study in the SME community. International Journal of
Management, 23(3), 2050030. https://doi.org/10.1142/S1363919620500309

Yazdanfar, D. (2011). Predicting bankruptcy among SMEs: evidence from Swedish firm-level
data. International Journal of Entrepreneurship and Small Business, 14(4), 551-565.
https://doi.org/10.1504/IJESB.2011.043475

Yazdanfar, D. (2011). The growth determinants among Swedish SMEs: evidence from firm-
level data. International Journal of Business and Globalisation, 6(3-4), 313-328.
https://doi.org/10.1504/IJBG.2011.03939

Yazdanfar, D., Öhman, P., & Homayoun, S. (2019). Financial crisis and SME capital structure:
Swedish empirical evidence. Journal of economic studies, 46(4), 925-941.
https://doi.org/10.1108/JES-04-2018-0147

67
Yazdanfar, D., & Öhman, P. (2018). “Growth and job creation at the firm level: Swedish SME
data. Management Research Review, 41(3), 345-358. https://doi.org/10.1108/MRR-03-2017-
0093

Yin, R. K. (2014). Case study research: Design and methods (applied social research
methods). Thousand Oaks, CA: Sage publications.

68
Appendix A - Interview Guide English Version
1.

SUBJECT QUESTIONS ANALYTICAL PURPOSE

The Business Tell us about your Comparison between

background in the industry? companies’ size and
experience.
What kind of products and
services does your company
offer?

How many years has the

company been operating?

How many years have you

run the company?

How many employees do you

have?

COVID-19 Business Impact Please, tell us how the
Coronavirus is impacting
your business?
What do you think about the
long-term impacts of this
crisis in your business?
The analytical purpose is to
receive an insight on how the
economic crisis derived from
COVID-19 has impacted the
selected businesses.

The Marketing Mix What is your plan for staying
competitive and thus also
keep selling your product or
service in order to stay
competitive?
To gain knowledge about
how the selected
organizations have
changed/innovated their
marketing strategy (i.e. the
marketing mix) as a response
to the changed customer
How does the coronavirus behavior derived from the
impact your marketing COVID-19 pandemic.
strategy?

Do you pay extra attention to

frequent customers during
this crisis?

Do you believe that price

reductions will attract more
customers in these times of
economic crisis?
Do you use the initial price
for quality products, or do
you offer quality products to
a reduced price?

Can you please tell us about

your new plan for promotion
and advertising?

Are you promoting more or

less than before the economic
crisis (derived from COVID-
19)?

Do you consider any new

ways of the distribution for
your products and services?
Appendix B - Interview Guide Swedish Version
2.
ÄMNE FRÅGOR
Verksamheten Berätta om din bakgrund i
branschen?
Vad för slags produkter och
tjänster erbjuder ditt företag?
Hur många år har företaget
drivits?
Hur många år har du drivit
företaget?
Hur många anställda har
företaget?
Bedömning av företagens Berätta hur Coronaviruset
konsekvenser från COVID- påverkar ditt företag?
19
Vad tror du om de
långsiktiga effekterna av
denna kris i ditt företag och
industri?
Marknadsmixen Vad är din plan för att
fortsätta sälja produkter eller
tjänst för att förbli
konkurrenskraftig?
Hur påverkar coronaviruset
marknadsföringsstrategin?
ANALYTISKT SYFTE
Jämförelse mellan företagens
storlek och erfarenhet.
Det analytiska syftet är att få
en inblick i hur den
ekonomiska krisen
härrörande från COVID-19
har påverkat de utvalda
företagen.
Det analytiska syftet är att få
kunskap om hur de utvalda
organisationerna har
ändrat/innoverat sitt sätt att
marknadsföra, som ett
gensvar på det förändrade
kundbeteendet härrörande
från COVID-19-pandemin.
Får frekventa kunder mer
uppmärksamhet under denna
kris?
Tror du att prissänkningar
kommer att locka fler kunder
i dessa kristider?

Använder du initiala priset

för kvalitetsprodukter eller
erbjuder du
kvalitetsprodukter till ett
reducerat pris?

Kan du berätta om din nya

plan för marknadsföring och
reklam?

Marknadsför du mer eller

mindre jämfört med före
denna kris?

Överväger du några nya sätt

att distribuera för dina
produkter och tjänster?