CHAPTER 12

1. CHAPTER 12 Researching Tourist Behavior: Marketing Research

2. Marketing Research VS. Market Research • Marketing Research is the collection of data with the single intention of using it to make an organization’s marketing activities to be more effective • the systematic gathering and analysis of data to provide relevant information to aid decision-making • Market Research is applied, action-based research • To acquire information about market situation (Trends) • E.g. Competition, Economic situation (employment, income level of Thai people)

3. Sources of information 1) Internal source – internal information which held by the organization , including: • Customer records • Guest history • Departmental reports • Marketing and sales report

4. 2) External source – external information can be collected via internet and publications including : • International and national government organizations • Marketing research organizations • Company annual reports • Trade associations • Hospitality Industry trade press • Financial press • Universities and academic publishers

5. Data collectionSecondary data vs. Primary data Secondary (desk) data are data that have already been collected • It is relatively easy to obtain secondary data since the information has already been published • Limitations to secondary data include: • Data have been collected and analyzed by another organization • Some organizations may deliberately manipulate data • Other organizations may have introduced bias • Information is generally available to competitors • Secondary data and analysis can often be ‘out of dated’ because of the long time between carrying out the research and publishing the findings

6. Primary data consist of original information collected by an organization for a specific purpose. • The data have not been published before. • The organization conducting or commissioning the research determines the research objectives and research questions. • Data are collected directly to provide answers to those questions. • More costly. Advantages of primary research include the followings: • The ability to frame the research questions to the needs of the organization • Current and not dated • Confidential • Primary data can enable a hospitality company to gain competitive advantage if competitors are not carrying out similar research.

7. Consumer Research methodologyQuantitative Research Vs. Qualitative Research Quantitative Research • The findings are descriptive, empirical and if collected randomly (using a probability sample), can be generalized to larger populations. • Can be computer-analyzed, e.g. How many people use certain products, or asking about how f r e q u e n t l y t h e number of passengers, residents, diners, room nights, room occupancy • Examples of quantitative research methods • Mystery customer audits • Telephone surveys • Online surveys

8. Consumer Research methodologyQuantitative Research Vs. Qualitative Research Qualitative Research • Findings cannot be generalized to larger populations as the sample sizes are necessarily small. • Emphasis on open-ended and free response types of questions • Respondents spend a significant amount of time face-to face with a highly trained professional interviewer-analyst • High-cost due to small group of sample • the findings are not projectable to the market place • Good for New ideas for products or promotional campaigns • Examples of qualitative research methods • In-depth interviews, focus group, observation, qualitative questions in surveys

11. Closed vs. Open-ended Questions • Researchers usually ask a combination of both closed and open questions and combine qualitative and quantitative analysis. Closed questions provide a number of alternative answers from which the respondent chooses one answer, for example questions about: • respondent’s age, sex, employment, income • Closed questions use a structured format , data can be efficiently analyzed using statistical methods. • Closed questions are essential if a quantitative research method is used Open-ended questions allow respondents to provide their own answers, • Examples include ‘Where would you stay tonight if this hotel was fully booked?’ and ‘How did you feel about the quality of service?’ • Allows respondents to use their own words to describe their experience, feelings and opinions. • Qualitative research findings using open questions provide ‘rich’ data • Compare Le Meridien and Malmaison in-room customer questionnaires

12. Online Research Advantages of online research include: • significant cost savings in the design and administration of questionnaires and discussion groups • the ability to accurately target surveys to current, former or potential customers. • Often, customers are incentivized to participate in online surveys • Post- consumption e-surveys provide customers with a convenient tool to give feedback on service quality and customer satisfaction. • Tools such as blogs and social networking sites are useful to obtain unsolicited such for customer generatedcomment, e.g. real tourist’s comments

13. The purpose of gathering Consumer’s data 1. To provide opportunities to develop new product 2. To set price 3. To ensure the distribution network is working 4. To select the best promotional techniques & appropriate advertising media 5. Subdivide the whole market into segments 6. To provide customer service in the light of customer comments 7. To review & change brand and logo 8. To make decisions about investment in new facilities 9. To choose location for new business 10. To indicate opportunities for diversification

14. In researching consumer behavior in Hospitality & Tourism Industry, variety of data on tourist behavior is required including: 1. Statistical profiles of tourists • age, gender, income, marital status, occupation 2. Statistical records of tourist behavior • Where tourists like to take their holiday? • When do they take vacation? • How much they spend on their holiday? • How many trips they take each year? • How tourists make purchasing decisions? • Who make the purchase decision? • When the purchase decision is made?

15. Consumer perceptions • Perception leads to actual behavior 3. Tourist satisfaction 4.The identification of trends in tourist behavior 5.Segmentation criteria 6.Product positioning in relation to competitors 7.The attitude of non-users • To gain new customers

16. 8.Cultural & national differences in tourist behavior • Beneficial for International companies I. ‘Hard’ differences such as variation is in the main holiday season dates II. ‘Soft’ differences such as attitudes toward service and the desire for particular types of facilities. 9.The link between the consumer behavior of tourists and their purchase of products • People do not buy vacations in isolation from how they purchase other products. (lifestyles purchase behavior)

17. Current Weaknesses in ConsumerBehavior Research in Tourism Problems involved in the collection & interpretation of the gathered data 1. The difficulties in identifying & measuring tourism • Domestic tourism: tourists do not cross any national boundaries  difficult to identify numbers 2.Tourists can provide inaccurate information • Do not wish to offend the interviewer • Lie about activities because ashamed of them • Genuinely not remember

18. Current Weaknesses in ConsumerBehavior Research in Tourism (cont.) 4. The difficulties for tourists to answer some of the standard questions • Where & when did you first here about the destination? • Are you likely to use this airline again in future? 5. The problem of when to ask people question • Before/During /After 6.The difficulties of finding a sample of tourists that is representative of tourists as a whole • Seasonality of demand • Different types of tourists • Tourists are all individual • Interviewer bias

19. The Future of Consumer BehaviourResearch in Tourism 1. The development of more sophisticated techniques for collecting qualitative data in tourism; a) Focus group: group of consumer with similar age, sex and income, etc. • Use to elicit new attitudes and perceptions. • Consist of 8-10 respondents focused on a particular product. • Respondents are recruited on the basis of a carefully drawn consumer profile ( uses screener questionnaire) based on specifications. • E.g. In the focus group, the researcher gives a brochure and ask their opinions of a destination that a tour operator is tending to offer.

20. b) Observation: help solve the problem where tourists prefer to do one thing but in reality do another. • To gain insight into potentially effective product, promotion, price,anddistribution decision. • By watching the consumer in the process of buying and using products c) User diaries: consumers are asked to recount their activities • and impressions about their holidays. d) Informal conversation with tourists: a way of gauging tourists’ views and perceptions by using subjectivity of the technique. • Consumer feel more relax and friendly

21. e) Survey: a written instrument that asks consumers to respond to a predetermined set of research questions. • Surveys can be conducted in person, mail, phone or web. f) Interview: direct contact with consumers, more appropriate than focus groups when the topic is sensitive, embarrassing confidential, or emotionally charged. e) Experiments: to determine whether certain marketing phenomena affect consumer behavior. eg. Package, color, room temperature, etc.

22. 2. Making greater use of secondary & individual sources a) Wider dissemination of the work of academic researches and the report produced by organizations. b) Using feedback and perceptions from intermediaries such as travel agent. c) Undertaking more systematic scanning of their business environment which influence tourist behavior

23. 3. Satisfaction-related research • The implications of concerning with tourist satisfaction mean a greater role for; • Research which helps to identify where ‘critical incidents’ occur in tourism and consumer’s response to them. • E.g. employers responding when the service delivery system fails • Interviews with consumers before, during and after their consumption of the product. • Before – to get -- expectation • During –to get – fresh experience • After – to get– likelihood of future purchase

24. Ways in which tourism organizations can use the results of marketing research to improve their marketing • Know the profile to target customers who are the potential segment • Able to identify the business direction • develop the suitable marketing strategy to meet organization objective& goal • Create new products or services ex. new holiday package in summer for teenager providing with enthusiastic facilities

25. Examples

26. Examples of the Telephone Survey “Hello, this is ____ and I’m calling from XXX. We are conducting a study on behalf of YYY to measure customer satisfaction among YYY customers. This is not a sales call. Your responses will be used for statistical and research purposes and will be kept completely confidential.” In case that,… 1. Respondent available --Continue 2. No one by that name -- Thank and Terminate 3. Respondent not available/ not a good time --Set time to call back 4. Soft Refusal --Thank and Terminate 5. Hard Refusal --Thank and Terminate

27. Examples for the use of Screening Questions 1. Do you or does anyone in your family currently work in the following industry? (Read A – C) A Market research company B Advertising/Public Relations/Media company C Telecommunications Industry In case he/she says… • 1) Yes --Thank and terminate • 2) No -- Continue • 3) Refused --Thank and terminate

28. 2.Are you the (Read 1 – 3)? 1. Owner/Subscriber of this hotel/serviced apartment --Continue 2. Frequently user/Member of this hotel/serviced apartment-- Continue 3. None of the above --Thank and Terminate 4. Refused --Thank and Terminate

29. 3.Could you tell us your age? 4.How long have you been an XXX customer? 5.Have you ever been interviewed by The Gallup Organization regarding XXX customer satisfaction? In case he/she say…. • Yes --Thank and terminate • No-- Continue • Refused -- Thank and terminate

30. 6. Taking into account all the products and services you receive from us, how satisfied are you with XXX overall? (use a five-point scale) 7.How likely are you to continue to be XXX customer? 8.How likely are you to recommend XXX to a friend or associate? 9.Is XXX a name you can always trust? 10.XXX always delivers on what they promise? 11.XXX always treats me fairly? 12.If a problem arises, I can always count on XXX to reach a fair and satisfactory resolution?