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Structure
3.0 3.1 3.2 3.3 3.4 3.5
MARKET RESEARCH
Objectives Introduction What is Market Research? Purpose of Market Research Stages of Research Study Research Methodologies 3.5.1 Quantitative Research Methodology 3.5.2 Qualitative Research Methodology 3.5.3 Primary Data Collection 3.5.4 Secondary Data Collection 3.6 Survey Methodologies 3.6.1 Field Surveys 3.6.2 Focus Groups 3.6.3 Observation Research 3.6.4 Experimental Research 3.6.5 Literature Review 3.7 Applications of Market Research 3.8 Tourism Research Areas 3.9 Multi Segment Research 3.10 Let Us Sum Up 3.11 Clues to Answer
3.0 OBJECTIVES
In this unit we will seek to understand: the importance of market research, how market research can be an important tool in understanding tourism markets and the changing concept of market research.
3.1 INTRODUCTION
Tourism with its multifaceted form is a type of activity, which cannot be understood till delved into deeply. Superficial study of any aspect of tourism would mean a flawed approach. In this context research becomes a very important component of the tourism industry. Particularly so, when we are analysing tourism markets, because, the whole foundation of the industry rests on the type and numbers/volumes of tourists coming to a destination. Keep ing this in mind, in this Unit, we will look at the intricacies of market research and how its application can prove beneficial to the industry as a whole.
publicity and consumers. They argue that research with consumers and their patterns of behaviour can be more narrowly defined as market research. For the purpose of this course however we will take both marketing and market research into consideration.
According to Reich the first stage is important, as a clear understanding of the purpose of research is needed to expedite the remainders of the research process. The setting of research objectives helps to further clarify the problem or opportunity and decide what information marketers require. According to Reich some typical objective oriented questions can be: Why are sales low? Are we missing any opportunities? etc.
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The second stage is designing a research plan for gathering information. Here, decisions on types of research, research continuity, collection methods and data requirements must be made. Research planning would be dealt in detail in this Unit later on. Collecting data is of primary importance. The three most commonly used contact methods (as methods of gathering information) are personal face to face contact with the respondents, sending a questionnaire through the mail and contacting respondents by telephone. Although, the Internet is currently not a highly effective method of collecting survey information, its glowing importance cannot be denied. Analyses and correct interpretation of data, then is o critical importance as it essentially summarises f research objectives. These have to be then tabled and reported as findings and formally presented so that they can be implemented. A slight variation in these stages, though evident, does not alter the bas ic structure of the market research process. Now we will try and look at the various research methodologies available to a researcher and how one should make optimum use of it. Check Your Progress 1 1) Explain the various stager of a research study. . . . . 2) What is the purpose of market research? . . . .
3.5.1
These methods generally involve statistical analysis. Quantitative research is concerned with how much and how many. Typically it involves larger scale research than qualitative research. And, as said before, statistical methods are used to analyse results. Quantitative methods have numerical basis to test a hypothesis or a generalization. This method is usually used on small numbers of people where the aim is not to generalize too broadly. Paul Brunt (Market Research in Travel and Tourism, Butterworth Heinemann, 1997, p16) has very aptly summarised the main attributes, advantages and disadvantages of quantitative research approach. According to him, some of the main attributes of quantitative approaches are: 1) Identical questions and methods of recording the answers are used on each respondent so that the information can be recorded easily. For example, if a hotel owner is researching guest satisfaction he has to have the same set of questions given to everybody. 2) The sample is usually quite large and representative of the population under consideration; for example one cannot take a sample of ten tourist and generalize on that basis that a destination is not popular anymore. The sample has to be adequate keeping in with the issue under consideration.
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3) Statistical analysis is used to draw conclusions; 4) Closed questions are used widely because they are more convenient for computer and statistical analysis; meaning whereby the questions have typically three answers yes, no and dont know giving no room for elaborate or subjective judgement. 5) Attitudes and opinions are measured by the use of scoring and rating scales, so an attraction would be either rated excellent, very good, good, poor or very poor or given a score on the scale of ten. Brunt says that these are few advantages of quantitative methods such as: 1) Large sample sizes commonly used are more representative of population. Thus, statements about the population can be made to a degree of confidence. 2) Much information in the tourism industry is required in a qualitative form to enable managers to make decisions or to conduct meetings in an informed context. This means that if a manager knows that 30% of hotel guests are dissatisfied with the bathrooms then action needs to be taken on it. 3) Data are easily summarized and analysed using computers. On the other hand, according to Brunt, there are quite a few disadvantages of quantitative methods, too. He says that: 1) Quantitative methods are often more impersonal when compared to qualitative methods. As said before, quantitative research is not subjective. So if we have to research the guest resident relationship in a destination we would get a very closed picture from this kind of research unlike where the sample is asked to give their detailed comments. 2) Large samples are required to be representative of the population or to allow for statistic al analysis. 3) Bias may be caused by poor questions or poor interviewers, which affects peoples answers. 4) Samples may not always be representative because of the problems associated with those who decline to take part in a survey.
3.5.2
Qualitative data explores ideas, feelings and attitudes. It is concerned with answering questions such as what is good about the destination/airline? Qualitative research is infact undertaken to provide the basis for designing quantitative research. In literal terms qualitative means pertaining to quality. Thus, this type of research involves collecting a great deal of rich information about relatively few people than limited information about a large number of people. Brunt has enumerated the main attributes, advantages and disadvantages of qualitative research which are very useful. Some of the main attributes of this approach are: 1) The aim is to gain in-depth more open-ended answers rather than yes/no response. 2) Usually, the interviewer tries to get people to share their thoughts on a topic with the minimum of guidelines about how they should answer. Thus, for example if we have to research as to why tourist prefer South East Asia to India and why we havent been able to tap a market for ourselves even though there are cultural similarities, we have to rely on qualitative research. The researches would have to haul information that would be definitely more in-depth than yes/no /dont know. Brunt has also listed the advantages of qualitative research: 1) Rich information is provided about people, their experiences, motivations, behaviour, their needs and aspirations.
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2) Changes are encompassed over time. Meaning whereby that since there is indepth information about the aspect researched, it can be incorporated over a period of time. 3) They are more personal. 4) The information is understandable by the majority statistical tests, are less important. The disadvantages of qualitative method according to him, on the other hand are : 1) Small numbers of people are normally involved, thus, generalizations about the population at large cannot be made. 2) The measurement of qualitative material often requires judgements to be made by the researcher. Hence questions of objectivity arise. However, the crucial aspect here is that both qualitative and quantitative research methods have their own pros and cons. At some place only statistical survey would be of use to organizations, like for example, calculating the number of people visiting a particular destination / attraction etc. But on the other hand, there are avenues where only qualitative research would be a useful exercise. In cases where impacts of tourism need to be understood or where residents opinion about tourists needs to be taken, only qualitative research will fill the gap. Let us now understand, what is meant by primary and secondary data collection.
3.5.3
Primary data collection is first hand information collection. This is information / data not to be found anywhere else, in any other form. It can, infact, be used by other people / agencies / researchers for their own purpose. For example, an agency or a researcher collecting information about the number of people coming to India at an International Airport on a particular day and visiting various destinations will be primary data collection. Similarly, a researcher collecting information about how visitors regard a particular attraction is primary data collection. For tourism, primary data is most important as this industry cannot rely on information collected otherwise.
3.5.4
Secondary data collection is sourced information. It is weaned from various sources in the form as desired. Thus, the researcher is the secondary us er. The use of census data, minutes of meetings, annual reports etc. are some sources of secondary information. For tourism purposes, the World Tourism Organisation (WTO), Organization for Economic Cooperation and Development (OECD) and the Economist Intelligence Unit all publish invaluable sources of tourism data. In India, for example, the ITDC annual report, the DOT marketing surveys are all valuable sources of secondary information collection.
3.6.1
Field Surveys
The field survey interviewing and asking questions to a number of people who are representative of the market is one of the most common means of market research. The main use of the field survey
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is to interview a broad sample of the whole market. Field surveys can be conducted by mail, media, telephone or face-to-face. The mailed survey is the least effective because, even with a reply paid envelope, most people do not have the time to answer. A survey questionnaire placed in a magazine also yields similar result. For example, tourists are least likely to mail back their answers to a destination governance or answer questions placed in a travel magazine about a destination they had visited. A telephone survey on the other hand has been found to be more effective because the interviewer is able to collect the data then and there. However, researchers claim the best source of data collection is a personal interview where every reaction of the person interviewed can be gauged.
3.6.2
Focus Groups
The focus group research method involves gathering together a group of people to discuss a topic which is of interest to the researchers. These groups are very helpful in quantification of research to a certain extent.
3.6.3
Observation Research
This is perhaps the simplest way of market research. Observation can be human (when observed by humans) or mechanical (as by video recording). Observation may be useful in situations where a questionnaire might be inappropriate such as monitoring very young childrens responses or watching guests/hosts in restaurants.
3.6.4
Experimental Research
Experimental Research or experimentation takes various forms and can be a useful tool for predicting behaviour. This works for instance, when a hotelier is thinking of changing dcor or a coffee shop its menu. When this is done, a few rooms or main items are redecorated/altered and the opinion of guests invited.
3.6.5
Literature Review
Research is not possible without references. Gathering of information from secondary data is of prime importance in research. Many organizations keep data like this for future references. However, one has to be very judicio us in reviewing literature or primary data as the researcher has to interpret them correctly.
Check Your Progress 2 1) Briefly explain research methodologies. . . . 2) What are the various survey methodologies? . . .
Nature of involvement higher the commitment greater would be the degree of success, Role of risk going to new places involves risk, some are more likely to take risk than others, Boredom and frustration holiday making can involve both of these feelings, Sense of flow when things get going, participant feels capable of handling things, not only things are dealt automatically but also there comes a sense of achievement, Needs analysis holidays are motivated by a need to achieve certain goals.
In most cases of research pertaining to tourist attitudes these fundamental areas are overlooked. As a result you are able to know very little about the importance of discovered attitudes or the duration or sustainability of that attitude or even the degree of involvement that the participant has with the place and as a result experience or interaction that has occurred. Another important area, besides tourist attitudes to be researched is tourist satisfaction. Tourist satisfaction can be seen as a gap between expectation and reality. Study in this area holds importance due to the fact that the performance of service occurs within a context of not simply a physical environment but rather in an environment which is managed. There are, hence, possibilities that a service may be carefully conceived and performed, yet fail to generate client satisfaction because you have failed to access correctly his/her needs. In another situation you have correctly identified your customers needs but failed to perceive ability of staff to implement the specifications. Here it can be argued that management overestimates guests expectation and their perception of guests needs become the optimal target, the provision of a service that satisfies becomes a process of target satisfying. The gap between guests/expectation and guests/perception of actual service might be part of same process. Expectation might be based on what you have promised in your marketing campaign and whilst the actual experience is one that is based on degree of tolerance of service that is satisfactory but which doesnt quite meet expectation. If after conducting proper research it indicates that customer tolerance of some deviation from expectation exist and this level of service less than the ideal one doesnt generate dissatisfaction then the analysis of client has to be conducted in terms of what Laws (1990) has defined as the just noticeable difference. This is not only a factor of past consumer experience but also of structural components within the service delivery process. So far our understanding is restricted to a consideration of the concept of services and perceived gaps between expectation and perceptions of service in terms of market research in to service provision. It is not highlighting context related to wider holiday experience. To Pearxe (1988) a series of scripted encounters take place during a holiday experience. Thus, holiday is far more dynamic in its creation of much more complex interactions such as: i) The relationship between holidaymaker and provider of services,
ii) The relationship between tourist and tourist, iii) Use of tourist destination zone by holidaymaker, iv) The relationship between tourist and agencies of tourist industry, v) The relationship between tourist and members of host community not employed in tourist industry. From this perspective you as a tour operator provide components, which create a product, and just as the holiday market consumer a product compared to some elements within management control, so it can be arranged that holiday is experienced as a series of events rather than one event. Hence, each event gives rise to an opportunity for satisfaction or dissatisfaction. The answer lies in your market research and type of analysis you perform a holidaymakers as well as a varying degree of importance to the events that comprise the experience and evaluate each accordingly to come to a judgement.
further research is carried out. If you were planning to target luxury or high spender then location and facilities would be the criteria for research and customers satisfaction. Transporter would plan independent market research. Since mobility is the basis of travel and tourism and this mobility is provided by different modes of transport. If transporters do not carry out a market research to determine preferences among these modes of transport or to find out which areas need improvement to increase level of customers satisfaction: To conclude market research is not a single area of study but you should see it as an applied subject in tourism with different perspectives. Each area has its own requirements and so focus of research will shift accordingly. Hence, talking about only one area for consideration will not justify the purpose. You will have to address all the considerations to get desired results. Check Your Progress 3 1) Discuss factors which affect human behaviour. . . . 2) Why do we need to research tourist satisfaction? . . .
Check Your Progress 2 1) Qualitative and quantitative research methodologies to be explained. Refer Sec. 3.4. 2) Refer Sec 3.5.