Consumer Behavior in the Tourism Industry - Research Proposal Example

Market Research Name: Course: Institution: Date: Table of Contents Table of Contents 2 1.0 Introduction and Research Focus 3 2.0 Secondary Research 4 3.0 Exploratory Research Findings 6 4.0 Research Objectives 7 5.0 Conceptual Diagram 8 6.0 Questionnaire Design 8 7.0 Sampling Design 11 8.0 Conclusion and Practical Contributions 12 References 14 1.0 Introduction and Research Focus Over the years, the tourism industry has grown and expanded tremendously. In this case, the industry has increased to incorporate new aspects of market perception and management. One among them is increased perception and drive towards enhancing increased customer satisfaction in the industry. In this regard, organizations have resulted to the use of consumer traits perception as a feature in enhancing increased consumer satisfaction in the market. In evaluating factors influencing consumer satisfaction, studies on the tourism industry consumers establish that consumer attitudes greatly implicate on the overall consumer traits and satisfaction levels. Consumers’ attitudes can be described as the influencing factors that have an implication in the consumers’ decision making process. An attitude implicates on the consumers decision making process at the second and third stages that are information search and alternatives evaluation respectively (Vázquez, Lanero, García and García, 2013, p. 109). At the information search stage, attitudes influence the sources from which consumers in the industry search their information from. In the tourism industry, information sources include advertisements, agencies catalogues and respective nation’s tourism offices. In this case, the diverse sources present diversely biased information depending on the stakeholders’ interest. For instance, for agency firms, available information is characterized by the tourist destinations served while for tourism offices available information is biased to marketing a respective nation rather than specific destination. Therefore, travel destination attitude, as one of the attitudes in the tourism consumer base, is influenced by the available information source. This nature of attitude influences other market aspects such as segmenting as well as growth rates. Therefore, establishing the causes of these travel destination attitude as well as their direct and indirect implications is an imperative concept in enhancing appropriate management and policies development in the tourism industry (Bell, 2011, p. 14). To this effect, the proposed research study seeks to reveal these factors. Besides establishing the factors causing these attitudes, it will focus on establishing possible measures through which organizations can understand their consumer base traits based on the travel destination attitudes. Further, the proposed research will focus on establishing how the industry traits implicate on the consumer attitudes on travel destination diversity. 2.0 Secondary Research The tourism industry has been argued as one of the most drastically growing and evolving economies. In this case, the markets face an increased growth rates and attention for industry players. In this regard, a majority of investors have invested and expressed their investments interests in the industry. To this effect the industry and its support industries such as the hospitality and travel industries have registered increased market growth as well as increasing overall profitability levels. However, a research study developed by Beames (2003, p. 205) in a review of the Australian tourism industry established that despite the increased investment hype experienced in the industry and its alliances, investors face a number of challenges in determining the consumers needs on travel destinations. To this effect, the study established that travel destinations attitudes among the consumers differ largely resulting to increased market diversity and challenges. On one hand, this can be evidenced by the increased market segmentation approaches adopted by tourists’ organizations. Dolnicar (2007, p. 291) conducted a study to evaluate segmentation processes through which the tourism industry is subjected to. In this case, the study established that consumers’ attitudes played a significant role in determining the segmentation process. In this case, the respective consumers’ attitude perception was valuable in segregating them into respective markets. Therefore, in its analysis, the study established that it was imperative for investing organizations to establish the influencing consumers’ attitudes in the industry. Thus, it recommended for increased evaluation of factors influencing consumer attitudes with respect to destinations in tourism. To this effect, Huimin and Kavanaugh (2006, p. 28) conducted a study to evaluate factors influencing consumers attitude in the tourism industry. In this case, the study developed a hypothesis that consumers’ culture influenced their attitude on the destination places. On its part, the study sought to establish if indeed culture played a role in attitude development and analysis. In its analysis, the study revealed that culture greatly influenced the overall attitudes in consumers on tourism destinations. In this regard, cultural differences between consumers influence the manner in which they perceive issues in the industry. As such, the respective consumers perceive destinations with respect to their cultural orientations. It s imperative to acknowledge that cultural diversity leads to increased perceptions diversity. In this case, cultures append varied significances and preferences in the market. As such, the order of priority on the destinations varies accordingly. For instance, while as the Americans would be increasingly interested in technological aspects and destination places such as Dubai, the Asians, who have an increased cultural preservation, would be interested in exploring other cultures thus their possible preferred destinations in Australia and Africa respectively. In addition, a study by Elliott and Boshoff (2005, p. 46) established that consumers geographical location played a significant role in facilitating increased consumer attitudes diversity in the market. In this case, the study sought to establish if consumers’ geographical location had any implication on their attitudes on destination places. In its analysis, the study sought to establish consumer destination preferences for those within similar geographical locations and those in diverse locations. In its analysis, it established that consumers’ decision making models were similar for those within a shared geographical location. Moreover, it established that for the consumer bases in diverse geographical locations, the markets experienced increased diversity in attitudes. Consequently, the study established that geographical control plays a significant role in attitude influence. In this case, tourists were increasingly interested in visiting areas and destinations that presented unique geographical features from their home destinations. Therefore, in order to develop appropriate segmentation strategies in the market, it is imperative for industry stakeholders to consider this variation. Further, research studies argue that consumers’ occupations and career directions influence their destinations attitudes. In this case, consumers’ profession determines an individual’s perception and values. Stein and Pavetic (2013, p. 1719) argued that professional ethics, values and perceptions have impactions on individuals decision making process and models. In this case, individual decisions are based on a career and professional development alternative priority. As such, alternatives on tourist destinations toured are based on the overall market performance in the market. In this regard, markets face an increased attitudes diversion between professional orientations. Professional orientations influence people destination selection. For instance, environmental conservists will be inclined to prefer natural destinations such as wild life conservation parks. On the other hand, technology experts will be interested in touring technologically advanced areas to learn the development technique concepts. Therefore, an analysis on the secondary literature as discussed above establishes that tourist consumers attitudes on travel destinations are influenced by arrange of factors that ought to be considered prior to segmenting the market. 3.0 Exploratory Research Findings In developing a conceptual framework for the proposed research project, this study proposal established that the evaluation of secondary data was insufficient to develop a focused research on the concept of challenges facing online market segmentation and the associated challenges. In this case, the study proposal sought to utilize alternative primary data collection strategies such as the utilization of focus group. Babbie (2010, p. 233) argued on the merits of focus groups in data collection. In this case, the author argued that focus groups are an imperative data collection tool. On one hand, the focus groups allow for increased experts interactions though the development of diverse professional experts in the market. Moreover, they allow for information clarification through questions and answers sessions in the group discussions. Therefore, based on these merits the study proposal development process sought to develop and employ the merits of focus groups in its scope and objective development. In its analysis, the study established focus groups comprising of tourism industry consumers from across sectors in the market, on a ten member focus group. In this case, the focus group composition sought to establish a balanced perception and view on the online business platform market segmentation concept from both the marketing professionals and external stakeholders in the industry. In its discussion, the focus group met for a two hours session with the researcher as the focus group moderator. In the discussion, two main agendas were addressed namely, attitudes in consumers behaviour, as well as possible segmentation approaches for consumer interests in attitudes on travel destinations. In this case, the focus group developed a list of challenges as well as segmentation strategic options. On one hand, the group identified challenges such as customer profiling and geographical distribution challenges as key among the attitudes influencing factors. On the other hand, the group developed strategic options such as regional online travel agencies platforms establishment, product diversification and targeted marketing strategies as among the ideal strategic options available for addressing the consumers’ attitudes diversity on travel destinations. The proposed study seeks to utilize these strategies in the development of the proposed research study. In this case, the proposed organization seeks to establish strategies through which the market and be segmented. In particular the study seeks to develop the ideal market segmentation strategies through the establishment of appropriate questionnaire questions. Moreover, in its recommending for the strategic options, the study will evaluate respondents’ feedback on the ideal option among the developed strategies (Singh, 2012, p. 55). Moreover, the developed strategic focus group findings will form a basis for the development of the proposed study framework through which the study will be developed. Therefore, the focus group establishments will serve an imperative role in enhancing the proposed study development success. 4.0 Research Objectives In developing the proposed research project, this proposal establishes that the tourism industry faces an increased need for market segmentation to allow for efficiency and profit maximization in the industry ventures. In this regard, the proposed study is based a general objective as well as specific objectives. On one hand, the proposed study general objective is based on the principle and need for establishing a precise framework for market segmentation in the tourism industry. In this case, the study seeks to establish a general framework through which the tourism industry can be segmented based on consumer attitudes. In addition, the proposed study focuses on establishing the following specific objectives i. Establish the causes of consumer attitudes variances on travel destinations ii. Establish strategies to mitigate this diversity in attitudes iii. Develop recommendations for market segmentation based on established factors In this case, the first specific study objective is to evaluate the factors influencing consumers attitudes in the tourism industry. In this case, the study will evaluate the presence and influence of the discussed factors of culture, geographical location and profession influence on consumers’ attitudes. Further, the study will seek respondents’ opinions on alternative factors influencing on the overall influence on consumers attitudes in the industry. The realization of this objective will serve as a foundation for subsequent objectives achievement. The second study specific objective is to evaluate on methods and strategies to reduce on the established factors diversity in attitudes. In this case, the objective of the study in this aspect is to establish the methods in which the market attitudes can be grouped into definite groups with related attitude trends. Finally, the study seeks to develop a framework through which, the established study variances can be grouped into definite market segments to allow for successful segmentation in the tourism industry despite the travel destination attitude variances among the consumers. 5.0 Conceptual Diagram 6.0 Questionnaire Design Consumer Attitudes on Travel Destinations Introduction: This is a questionnaire on the concept of online markets segmentation rationale and alternatives. The findings established in this case will be used for academic purposes and published as scholarly works for reference in the segmenting of the tourism industry based on consumers’ attitudes on destination places. Contributions and responses offered in this questionnaire will be treated with utmost confidence and confidentiality and no disclosures on the information source will be offered in the analysis whatsoever. Section 1: Factors influencing consumer attitudes with respect to the travel destinations This section explores on the factors influencing consumers’ attitudes in the tourism industry. The questionnaire lists a series of alternatives through which you are required to tick as appropriate Please identity to what extent you agree with these statements Strongly disagree Strongly Agree 1 2 3 4 5 6 7 The tourism industry should consider consumer attitudes in its operations The tourism industry should segment its markets based on the consumers attitudes Geographical location has an influence on consumers travel destination attitude Consumer base cultures influence their attitudes on travel destinations Consumers professional careers influence their travel destinations attitude Section 2: Tourism Industry Segmentation Merits This section is a review of the positive implications of segmentation in the tourism industry as well as the negative consequences of such a segmentation process. The questions here under seek to evaluate your response on the role of segmentation and if consumer attitudes is a viable alternative for such segmentation processes Please identity to what extent you agree with these statements Strongly disagree Strongly Agree 1 2 3 4 5 6 7 Consumer segmentation in the tourisms industry will enhance increased industry performance Establishing the attitude diversity influencing factors will enhance tourism industry consumer satisfaction Lack of sufficient recognition of consumer travel destination attitudes in the tourism industry accounts for the low satisfaction levels in the market Considering consumers attitudes in the tourism industry will facilitate increased consumer satisfaction Consumer attitudes can be applied as basis for segmenting the tourism industry . Section 3: Tourism Industry segmentation Alternatives This section seeks to evaluate your opinion on the possibility for segmenting the tourism industry based on consumer attitudes established influencing factors. Please indicate to what extent you support market segmentation based on the listed segmentation alternatives Please identity to what extent you agree with these statements Strongly disagree Strongly Agree 1 2 3 4 5 6 7 Segmenting the tourism industry market can be achieved through attitudes influencing factors criteria The tourism industry can be segmented geographically based on consumers host regions Organisations in the tourism industry can segment their markets based on consumers culture through destinations alternatives presentation The industry can be segmented based on respective consumers professions Tourism industry can be segmented through organisations targeting a specific group based on the above listed criteria Section 4: Background Information In order to evaluate the offered information accurately, this research requests to obtain a background analysis on the respondents in order to relate the backgrounds with the offered responses. However, this information will be treated in confidence What is your age? Age Response (Tick as appropriate) Under 18 years 18-30 31-above What is your proffesiion…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….. Thank you for your cooperation. If any queries please contact the institution 7.0 Sampling Design In conducting a successful research operation in the market, it is imperative to adopt an appropriate methodology in the process. In this regard, an adopted research design and sampling process implicates highly on the research project success. On one hand in the design development process is the establishment of a research sample. In conducting a research project, it is not viable for the researchers to investigate on the whole population. Therefore, research samples are developed form the entire population on a fair and representative basis (Kothari, 2005, p. 152). Therefore, in order to enhance this, there are numerous sampling designs available for researchers. In the proposed online market segmentation alternatives study, the study has a wide population base that ranges from online organizations, consumers as well as the technology developers. As such, it is imperative to develop a research sample that is representative of the entire population while as well enhancing increased success possibility. As such, the proposed study adopts other simple random stratified sampling design. In this case, the study stratifies its population base on the three identified categories namely the online organizations, consumers and technology developers. In this case, the proposed study sampling design will select members from each of the established stratus for fair representation purposes. Moreover, the sampling in each of the individual stratus will be random. As such, the study will focus on randomly selecting the samples without any discrimination. The adoption of a simple random sampling technique allows for increased equal population representation. In this case, the researcher’s attribute influence and the subsequent bias in sample selection will be reduced. Therefore, the approach and sampling technique allows for increased study results authenticity and market relevance. The provision of an equal sample and population segments representation in the study allows for the establishment of wide scope and inclusive proposed study finding and subsequent segmentation recommendations. 8.0 Conclusion and Practical Contributions In summary, it is apparent that the tourism industry is drastically growing and developing on the global platform. The research evaluation establishes that this has increasingly drawn an increased range of investments into the industry and its support industries namely the hospitality and transportation industries. However, the research analysis establishes that despite the increased market expansion and forecasted growth and expansion potential, the industry faces an increased market segmentation challenge. In this case, the research establishes that there exists an increased market segmentation challenge with respect to the existence of diverse consumer attitudes in the market. As such, a preliminary secondary research analysis establishes that the tourism industry consumers’ attitudes are influenced by a range of factors. Among those established as key among them are the cultural, geographical and professional factors. In this regard, the analysis, through a series of secondary empirical studies established that the established factors implicate on the overall consumer decision making process in the industry. Further, a focus group moderated by the researcher established that the industry faces segmentation challenges as result of increased attitude variance. As such, a study is proposed to evaluate how the attitudinal variances can be harnessed to enable market segmentation The proposed study seeks to serve a number of practical merits to the industry, individual organisations and on consumers. For the latter, the study will enhance increased consumer satisfaction as it exposes their needs and priorities to enable their meeting by the respective stakeholders. Moreover, with respect to the organisations serving in the tourism industry, the study seeks to establish a guiding framework through which such organisational ventures are established in the market. This is through enhancing efficiency in their segmentation process. Finally, the study will create efficiency and order in the tourism industry by allowing focus on definite segments rather than managing the industry in entirely. A secondary beneficiary to the proposed study is the government that is expected to rely on the study findings in subsequent industry policies developed. In conclusion, the proposed study findings will be used as a background framework for future research study on related topics on consumer market segmentation. References Babbie, Earl R. 2010. The practice of social research. Belmont, Calif: Wadsworth Cengage Beames, Geoffrey. 2003. The rock, the reef and the grape: The challenges of developing wine tourism in regional Australia. Journal of Vacation Marketing 9, (3) (06): 205 Bell, Holly A. 2011. "A Contemporary Framework for Emotions in Consumer Decision-Making: Moving Beyond Traditional Models." International Journal of Business and Social Science 2 (17) Dolnicar, Sara. 2007. Management learning exercise and trainer's note for market segmentation in tourism. International Journal of Culture, Tourism and Hospitality Research 1, (4): 289-295 Elliott, Roger, and Christo Boshoff. 2005. The influence of organizational factors in small tourism businesses on the success of internet marketing. Management Dynamics 14, (3): 44-58 Huimin, Gu, and Raphael R. Kavanaugh. 2006. A critique of market analysis for suburban tourism in Beijing, china. Journal of Vacation Marketing 12, (1) (01): 27-39 Kothari, C. R. 2005. Research methodology: methods & techniques. New Delhi: New Age International (P) Ltd Singh, Nitish. 2012. Localization strategies for global e-business. Cambridge: Cambridge University Press. Stein, Petra, and Monika Pavetic. 2013. A nonlinear simultaneous probit-model for the investigation of decision-making processes: Modelling the process of setting up a family in partnerships. Quality and Quantity 47, (3) (04): 1717-1732 Vázquez, José Luis, Ana Lanero, María García P., and Jesús García. 2013. "Altruism or Strategy? A Study of Attributions of Responsibility in Business and Its Impact on the Consumer Decision Making Process." Economics & Sociology 6 (1): 108-122 Read More