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Researching TouristBehavior:Marketing ResearchCHAPTER 12Marketing Research VS. Market Research

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

1) Internal source internal information which held by the organization , including:

Customer records

Guest history

Departmental reports

Marketing and sales report2) External source external information can be collected via internet and publicationsincluding :

International and national government organizations

Marketing research organizations

Company annual reports

Trade associations

Hospitality Industry trade press

Financial press

Universities and academic publishers

Data collectionSecondary data vs. Primary dataSecondary (desk) data are data that have already been collected It is relatively easy to obtain secondary data since the information hasalready been published Limitations to secondary data include:Data have been collected and analyzed by another organizationSome organizations may deliberately manipulate dataOther organizations may have introduced biasInformation is generally available to competitorsSecondary data and analysis can often be out of dated because of the long time between carrying out the research and publishing the findingsPrimary data consist of original information collected by an organizationfor a specific purpose.The data have not been published before.The organization conducting or commissioning the research determinesthe 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 organizationCurrent and not datedConfidential

Primary data can enable a hospitality company to gain competitive advantage if competitors are not carrying out similar research.Consumer Research methodologyQuantitative Research Vs. Qualitative ResearchQuantitative 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 occupancyExamples of quantitative research methodsMystery customer auditsTelephone surveysOnline surveysConsumer Research methodologyQuantitative Research Vs. Qualitative ResearchQualitative Research Findings cannot be generalized to larger populations asthe sample sizes are necessarily small.Emphasis on open-ended and free response types of questionsRespondents spend a significant amount of time face-to face with a highly trained professional interviewer-analystHigh-cost due to small group of sample the findings are not projectable to the market place Good for New ideas for products or promotional campaignsExamples of qualitative research methodsIn-depth interviews, focus group, observation, qualitative questions in surveys

Closed vs. Open-ended QuestionsResearchers 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 therespondent chooses one answer, for example questions about:respondents 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? andHow 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 dataCompare Le Meridien and Malmaison in-room customer questionnairesOnline Research Advantages of online research include:significant cost savings in the design and administration of questionnaires and discussiongroupsthe ability to accurately target surveys to current, former or potential customers.Often, customers are incentivized to participate in online surveysPost- 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 generated comment, e.g. real tourists commentsThe purpose of gathering Consumers data1. To provide opportunities to develop new product2. To set price3. To ensure the distribution network is working4. To select the best promotional techniques & appropriate advertising media5. Subdivide the whole market into segments6. To provide customer service in the light of customer comments7. To review & change brand and logo8. To make decisions about investment in new facilities9. To choose location for new business10. To indicate opportunities for diversificationIn 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, occupation2. Statistical records of tourist behaviorWhere 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? Consumer perceptionsPerception leads to actual behavior3. Tourist satisfaction4.The identification of trends in tourist behavior5.Segmentation criteria6.Product positioning in relation to competitors7.The attitude of non-users To gain new customers8.Cultural & national differences in tourist behaviorBeneficial for International companiesI. Hard differences such as variation is in the main holiday season datesII. Soft differences such as attitudes toward service and the desire for particular types of facilities.9.The link between the consumer behavior of tourists andtheir purchase of products

People do not buy vacations in isolation from how theypurchase other products. (lifestyles purchase behavior)Current Weaknesses in ConsumerBehavior Research in TourismProblems involved in the collection & interpretation of the gathered data1. The difficulties in identifying & measuring tourism Domestic tourism: tourists do not cross any national boundaries difficult to identify numbers2.Tourists can provide inaccurate information Do not wish to offend the interviewer Lie about activities because ashamed of themGenuinely not rememberCurrent Weaknesses in ConsumerBehavior Research in Tourism (cont.)4. The difficulties for tourists to answer some of the standardquestions 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 questionBefore/During /After6.The difficulties of finding a sample of tourists that isrepresentative of tourists as a whole Seasonality of demand Different types of tourists Tourists are all individual Interviewer biasThe Future of Consumer BehaviourResearch in Tourism1. The development of more sophisticated techniques for collecting qualitative data in tourism;a) Focus group: group of consumer with similar age, sex andincome, 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 drawnconsumer 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.b) Observation: help solve the problem where tourists prefer todo one thing but in reality do another. To gain insight into potentially effective product, promotion, price,and distribution decision.By watching the consumer in the process of buying and usingproductsc) User diaries: consumers are asked to recount their activitiesand impressions about their holidays.d) Informal conversation with tourists: a way of gauging touristsviews and perceptions by using subjectivity of the technique.Consumer feel more relax and friendlye) Survey: a written instrument that asks consumers torespond to a predetermined set of research questions.Surveys can be conducted in person, mail, phone or web.f) Interview: direct contact with consumers, moreappropriate than focus groups when the topic is sensitive,embarrassing confidential, or emotionally charged.e) Experiments: to determine whether certain marketingphenomena affect consumer behavior. eg. Package, color,room temperature, etc.2. Making greater use of secondary & individual sourcesa) Wider dissemination of the work of academicresearches 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 behavior3. Satisfaction-related researchThe implications of concerning with tourist satisfactionmean a greater role for;Research which helps to identify where critical incidents occurin tourism and consumers response to them. E.g. employers responding when the service delivery systemfailsInterviews with consumers before, during and after theirconsumption of the product.Before to get -- expectation During to get fresh experience After to get likelihood of future purchaseWays in which tourism organizationscan use the results of marketing research to improvetheir marketing Know the profile to target customers who are the potentialsegmentAble to identify the business direction develop the suitable marketing strategy to meet organization objective& goal Create new products or services ex. new holiday package insummer for teenager providing with enthusiastic facilitiesExamplesExamples of the Telephone Survey

Hello, this is ____ and Im calling from XXX. We areconducting a study on behalf of YYY to measure customer satisfactionamong YYY customers. This is not a sales call. Your responses will beused for statistical and research purposes and will be kept completelyconfidential.In case that,1. Respondent available --Continue2. No one by that name -- Thank and Terminate3. Respondent not available/ not a good time --Set time to call back4. Soft Refusal -- Thank and Terminate5. Hard Refusal --Thank and TerminateExamples for the use of Screening Questions1. Do you or does anyone in your family currently work in thefollowing industry? (Read A C)A Market research companyB Advertising/Public Relations/Media companyC Telecommunications IndustryIn case he/she says 1) Yes --Thank and terminate2) No -- Continue3) Refused --Thank and terminate2.Are you the (Read 1 3)?1. Owner/Subscriber of this hotel/servicedapartment --Continue2. Frequently user/Member of thishotel/serviced apartment-- Continue3. None of the above --Thank and Terminate4. Refused --Thank and Terminate3.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 terminateNo-- ContinueRefused -- Thank and terminate6. Taking into account all the products and services youreceive 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 toreach a fair and satisfactory resolution?