The Customer Segmentation Analysis

Published Date: 02 Nov 2017

This chapter describes the research methodology used for the study, which would be used to help CITS expand their business in Guangzhou China by honeymoon tourism. It explains how the research is designed, pilot study, the sampling method and sample size, field work, and how the data will be analyzed.

3.1 Relevance tree (derived from the fishbone)

Theory on research methodologies used

Qualitative and quantitative researchers are two distinctive types of researches. First of all, they have different focuses. Qualitative researchers concentrate on understanding, exploring new ideas and discovering patterns of behaviors. Quantitative researches always try to develop and test their hypothesis as well as generate models and theories to explain behavior (Hoy, 2009). According to Proctor & Capaldi (2006), qualitative research emphasizes on in-depth understanding of social and human behaviors, and seeks to explore the reasons behind such behaviors. Quantitative research, on the other hand, is usually considered as scientific investigation using both experiments and other systematic methods which focuses on control and quantified measures of performance. Moreover, they rely on different methods. The qualitative method depends on the reported experiences of individuals through ethnographic analyses, fieldwork, and case studies. The quantitative research depends heavily on measurement and statistics for they are the connection connections between empirical observation and mathematical expressions of relations. This study has adopted inductive approach (Bryman & Bell, 2003). For this study, the author will adopt a multi-strategy research that combines both qualitative and quantitative approaches. The benefit of this strategy is to bring together different aspects of an investigation and to fill the gaps of either method by using the other to cross check the findings. (Bryman and Bell, 2003)

3.3 The role /position of the competences with regards to the research

The competencies of the IBMS Competency Framework are developed during the research and help the author facilities the research. Firstly, the author uses lots of international theories and company management model as the reference in this research. In tourism industry, travel agencies may design different product of tour all over the world, it is very important to develop Intercultural Competence. As in Business processes & change management, the author has looked into business processes & change management of the target company. Tourism industry is a very competitive market, which makes this research of strong entrepreneurial feature. So the author is able to develop Entrepreneurial management. As in Interpersonal Competencies, business communication and Business research methods are strongly developed during this process though the communication with the target Company and target customers. Because this thesis needs a number of theories support, the author need to look up lots of books and information. Meanwhile, the author learned a lot during the process. It is not only the way of writing thesis, but also a study attitude. The author’s self-learning and patience got a notable step forward. It is a good self-development. During the research, the author must contact with company’s staffs and target customers frequently, especially in the early period and the questionnaire period. Because all the cooperation should be developed on the basic of mutual trust, the author must make the responsibility for all the words the author told and all the promise he gave. Therefore, the author can feel that his consciousness of ethical and corporate responsibilities got a notable step forward.

3.4 Research strategy

Theoretically, a variety of research strategies could be adopted, such as experiment, survey, case study, grounded theory, ethnography, action research to gather information. As for the research topic to gather honeymoon tourists market information in Guangzhou China, several research strategies are also available. For example, in the qualitative research, the case study approach is adopted to collect the data of target respondents. Bell (2001) believes that the case study is particularly suitable for individual researchers because it provides an opportunity for the researcher to study one aspect of a problem in depth within a limited time frame. On the other hand, the quantitative research adopts a distinctive research strategy- a survey. The aim of a survey as defined by Bell (2001) is to obtain information that can be analyzed and compared. With regard to the research topic and given time frame, a survey may work better to test hypothesis developed for the research and to draw general conclusion than solely based on one or several case studies.

3.5 Research material

3.5.1 Secondary Data

Secondary data refers to the information which has already been gathered by other researchers other than the user (McDaniel and Gates, 2007). There are many sources of secondary data such as journals, newspapers, books, research reports and so on. For the research, secondary data is collected from various sources, e.g. books written by different scholars in the area of motivation have been used to get a thorough understanding of the concept and it after effects. The research is able to extract information and theories that are acknowledged by most of the scholars, among different writers and different views. Some arguments are against secondary data because the information provided may be outdated. Therefore, the researcher tries to use the information that has been tried and tested over time and has proved it authenticity. Besides, the author will also make use of information available on internet, journals and periodicals have been used updated the information regularly in the subject area.

3.5.2 Primary Data

Primary data refers to data which is collected by the researchers directly from their observations and experiences (McDaniel and Gates, 2007). Data can be collected in a variety of ways, in different settings-field or lab-and from different source. Interviewing, administering questionnaires, and observation are the three main data collection methods in survey research. Interviews could be unstructured or structured, and conducted either face to face or by telephone or online. A questionnaire is a pre-formulated written set of questions to which respondents record their answers, usually within rather closely defined alternatives. Questionnaires can be administered personally, mailed to the respondents, or electronically distributed. By using questionnaires, researchers could obtain data more efficiently in terms of researcher time, energy and costs (Sekeran, 2003). Observation research can be defined as the systematic process of recording the behavioral patterns of people, objects, and occurrences without questioning or communicating with them (Mcdaniel JR &Gates, 1998).

In this research, data will be collected by the personally administered questionnaire. The main advantage of this is that the researcher can collect all the completed responses within a short period of time. Any doubts that the respondents might have on any question could be clarified on the spot. The researcher is also afforded the opportunity to introduce the research topic and motivate the respondents to offer frank answers (Sekaran, 2003). In this research, 100 questionnaires will be distributed in different branches of Municipal Civil Administration Bureau in Guangzhou, because all couples need to go there and register their marriages. The purpose of the questionnaires used in this study is to understand the view of the salesperson on motivation. To know if the motivation taken by the enterprise has lived up to their expectation and what are the factors influencing effective motivation on salesperson. The questionnaire is in close ended format. This method is cheaper and faster and the results can be quickly analyzed. However there is also a limitation to this method that the respondent may not be able to express their idea comprehensively.

3.6 Research Planning (Grantt-chart)

3.6 Chapter’s summary

Research methodology refers to a system of rules and procedures with which the researcher could report how he/she generate all the findings while others could also evaluate these findings. Research methodology plays a significant role in a research for it determines the reliability and the validity of the results (Ghauri, 1995). For this research the author has choose the quantitative methodology. A administered personally questionnaires is designed for the research. 100 questionnaires will be distributed in different branches of Municipal Civil Administration Bureau in Guangzhou, because all couples need to go there and register their marriages. The implication of this research for expanding the honeymoon tourists is numerous. If the research findings are positive, it can develop a business plan to help CITS expand their business in Guangzhou China by honeymoon tourism.

Chapter Four Findings and Discussion

On the basis of the theoretical research, the author first carried out a questionnaire survey to investigate purchase decision behaviors of honeymoon travel consumers. In addition, the paper makes in-depth analysis into the characteristics of honeymoon tourist purchase decision makers, the characteristics of the purchase decision making behavior process of honeymoon travel and last but not least, the related factors that stimulate the formation of purchase intention. In that way, it is convenient to summarize the connotation of honeymoon travel purchase decision behavior process.

4.1 Customer segmentation analysis

In this paper, 87 effective samples are collected. In the first place, the characteristics of sample composition are analyzed. The author makes use of Spss17.0 to conduct a statistical study so as to find out the frequency distributions of such variables as gender, age, education background, and monthly income and consumer personality and so on and so forth. On that basis, this paper uses Excel to create charts in order to clearly display the characteristics of sample composition of honeymoon tourists.

4.1.1 The characteristics of gender

According to the frequency distributions of gender composition based on honeymoon tourists, men account for 43.7% and women account for 56.3%. Obviously the frequency distribution of women is 12% higher than that of men (see Figure 4-1). It is easy to find from the frequency distribution characteristic that during the investigation, women are a little more interested and more energetic in honeymoon travel-related topics than men.

Figure 4-1 characteristic of sample gender composition

4.1.2 The characteristics of age

In view of the frequency distribution of gender composition, newly married couples aging 26 to 30 years old account for 53.3%; samples aging 20 to 25 years old account for 40.2%; samples aging 31 to 5 years old account for 6.1% and only one sample ages 36 to 40 years old (see Figure 4-2). Considering random sampling with purpose is adopted in the paper, the age compositions of the samples are mainly concentrated on "the 1980s", especially on those of marriageable age. Among them, the newly married couples aging from 26 to 30 still account for the largest proportion. This has also confirmed that newlyweds aging from 25 to 29 are the principal forces constituting to the current newly married couples in our country to a certain degree. They are as well the major composition of the newly-wed couples in Shanghai area.

Figure 4-2 The age composition characteristics of samples

4.1.3 The characteristics of education background

In line with the education background composition of 87 samples, it can be found that newly married couples pursued in undergraduate degrees account for 58.6%, which makes up the overwhelming majority. Meanwhile, the samples who received graduate degree account for 9.2%. The newlyweds who have junior college or lower education degree account for 32.2% (see Figure 4-3). Honeymoon tourists generally have high academic degree. This also results from the fact that the samples are relatively young. In addition to this reason, the characteristic of high education degree signifies, to some extent, their culture demand degree and information processing ability during the trip.

Figure 4-3 The characteristics of education compositions of sample

4.1.4 The characteristics of monthly income

Disposable income is one of the main conditions to generate travel demand. In accordance with Figure 4-4, 44.1% interviewees have their monthly income ranging from 3001 RMB to 5000 RMB ; 27.6% newlyweds have their monthly income ranging from 5001 RMB to 7000 RMB ; 9.6% of samples reach from 7001 RMB to 9000 RMB per month and 5.4% of samples reach more than 9000 RMB per month. It is thus evident that in the sample composition, nearly 80 percent honeymoon tourists have reached middle and high income level. This has as well reflected that the consumption potential power of the honeymoon travel source market in Shanghai area.

Figure 4-4 The characteristic of samples’ monthly income

4.2 Stage characteristic analysis of honeymoon travel purchase decision making process

After making an exploration into the characteristics of honeymoon tourists, the paper further its analysis by using the following statistic methods: frequency statistics method and cross analysis. 87 effective samples are analyzed in terms of requirement identification, travel motivation, information search, scheme evaluation and purchase intention. In that way, it hopes to summarize the behavior characteristics shown from every link when honeymoon travel decision makers make purchase decisions.

4.2.1 The characteristics of requirement identification

It can be found from Figure 4-6 that 55.8% newly married couples take honeymoon travel as an indispensable step in their wedding ceremony. It is thus visible that the market demand of honeymoon travel is rigid to a certain extent. Apart from this, 5.7% interviewees think that honeymoon travel may or may not be needed. Although the samples holding this idea are in the minority of frequency distributions, in terms of tourism enterprise and marketers, this is exactly the target audience that tour operators need to operate marketing stimulation. It is a valuable project how to input information, making them realize the existence of honeymoon travel demands. Besides, 24.3% newly married couples consider honeymoon travel as an excellent chance to escape from busy daily work and get fully rest and relaxation. 11.5% newly married couples, however, think that honeymoon travel is good to relieve their tiredness in the wedding preparation process. The requirement identification of honeymoon travel from these two parts results from the dissatisfaction they gained in busy daily work and life. This will as well affect the formation of the travel motivation. Last but not least, 2.7% newly-wed couples put forward their own ideas to honeymoon travel. Without prior consultation, they all agree that honeymoon travel will be an unforgettable experience.

The characteristics of requirement identification

Figure 4-6 The characteristics of requirement identification of honeymoon travel purchase decision behavior

On the foundation that requirement is identified, honeymoon tourists still have certain chance to identify. That is to say, honeymoon tourists hope their honeymoon travel to be richer or more special than their previous travel experience. According to the investigation results of honeymoon travel expectation consumption perception, novelty-seeking and difference-seeking are the major desires for honeymoon tourists. Romantic and unforgettable take second place and the frequency distributions of relax and cost-effective come last (see Figure 4-7). It is thus clear that during the requirement identification stage, honeymoon tourists pay more attention to the satisfaction of curiosity and emotion while they attach less importance to the functional value of consumption.

Figure 4-7 The characteristics of honeymoon travel expectation consumption perception

4.2.2 The characteristics of travel motivation

Travel motivation is the fundamental driving force that generates tourists’ purchase behaviors. It is transformed from tourist requirement identification and thus comes into being. In light of the frequency distribution of tourist motivation, more than 80% honeymoon tourist purchase decision makers choose scenic spots. It is thus evident that sightseeing is still the principal travel destination for honeymoon travelers. The selection of foreign culture comes second in the frequency distributions. This happens to reflect the relatively high education background and tourist culture demand of honeymoon tourist purchase decision makers. Moreover, this as well reflects the sample characteristics of subculture of Shanghai regional culture. Besides, the frequency of special honeymoon travel activity is basically the same as the tourist motivations of two large traditional travel activities, leisure and entertainment as well as shopping. What this means is that honeymoon tourists look expectantly toward the travel products that can highlight honeymoon peculiarity. It may inferred that during the honeymoon travel purchase decision-making process, to go sightseeing in scenic spots and get to know foreign culture have prominent influences to potential honeymoon tourists. This confirms their novelty-seeking and difference-seeking requirement identifications from one side. From an overall perspective, however, the travel motivations of honeymoon travel purchase decision-makers are rich and various.

Figure 4-8 Travel motivation characteristic of honeymoon travel purchase decision behavior

4.2.3 Information search characteristic

Entering into the information search link of purchase decision behavior, consumers generally make internal information search with self-experience firstlyand then collect and make use of external information. In the first place, this paper makes cross analysis into the characteristic of previous travel experience and the characteristic of honeymoon travel purchase intention of honeymoon tourists. Through the cross analysis, the paper finds out how the internal information search of purchase decision-makers influences purchase decision making. It further analyzes the external information search manners and channels of honeymoon travel purchase subjects. Thus, the information search characteristic of honeymoon tourists is summarized.

4.2.3.1 Internal information search characteristic of honeymoon travel purchase decision

(1) Cross analysis of precious travel destination and honeymoon travel destination selection

In terms of travel destination selection, Figure 4-9 shows that 91.2% honeymoon tourists who were previously keen on outbound travel still select outbound travel products in the honeymoon travel purchase decision making. For those decision makers who were enthusiastic about domestic travel would be more inclined to travel in foreign countries. Honeymoon tourists make sufficient arrangement and preparations in time, money and psychology. In the meantime, a majority of interviewees have the demand of novelty-seeking and difference-seeking. Therefore, it is not difficult to understand their absorption in outbound travel. From this, according to the cross analysis result of travel destination, honeymoon travel purchase decision-makers’ previous selection tendency of travel destination have no impact on the selection of honeymoon travel destination. This means that the selection preference of previous travel destination has no connection to the selection of honeymoon travel destination in the process of internal information search.

Cross analysis of previous travel destination and honeymoon travel destination selection

Figure 4-9 cross analysis of previous travel destination and honeymoon travel destination selection

(2) Cross analysis of previous travel per capita expense and honeymoon travel per capita budget

According to the cross analysis result of travel per capita expense, previous travel per capita expense is proportional to honeymoon travel per capita budget to a certain degree. This means that the more per capita expense in previous travel experience, the more per capita budget in honeymoon travel purchase decision. Therefore, expense in previous travel experience will become the empirical reference for honeymoon tourists.

Previous travel per capita expense

Honeymoon travel per capita budget

Cross analysis of previous travel per capita expense and honeymoon travel per capita budget

Figure 4-10 Cross analysis of previous travel per capita expense and honeymoon travel per capita budget

(3) Cross analysis of previous travelling ways and honeymoon travelling ways selection

Figure 4-11 reflects the comparison between previous travelling ways and honeymoon travelling ways selection of honeymoon purchase decision makers. In the purchase decision-making of honeymoon travel, it is visible that more than half of interviewees that selected package tour in the past would still select package tour products. As for the honeymoon travel decision-makers that were fond of free travel in early days, they would still insist on their choice in honeymoon travel products. As for the interviewees who went on their trip in the way of self-organized tour, more than half of them would still have the tendency of self-organized tour. It is thus clear that ways of travelling seems to be a kind of travel consumption preference that has been formed by travelers. Under this circumstance, in the internal information search process for honeymoon travel purchase decision-makers, the experience of previous ways of travelling would as well have certain influence on their selection of honeymoon travelling ways.

Cross analysis of previous travelling ways and honeymoon travelling ways selection

Figure 4-11 Cross analysis of previous travelling ways and honeymoon travelling ways selection

To sum up, in terms of the internal information search link in honeymoon travel purchase decision-making process, the previous travel expense and ways of travelling will exert certain influence on the purchase intention of purchase decision-makers. However, the generation of these influences depends on the selection of travel destination. Take as an example the newly married couples who always insist on free travel as their ways of travelling in the country. Clearly these newly married couples have never experienced outbound travel before. If they happen to choose to have their honeymoon travel in foreign countries, there are great opportunities that they will not choose free travel as their travelling ways. Also, they are likely to raise the budget of honeymoon travel. Travel consumption behavior is uncertain, subjective and complicated. Its characteristics cause the previous travel experience of honeymoon travel purchase decision-makers to be not so closely related to their current decision-making. This also highlights the necessity and significance of external information search link.

4.2.3.2 External information search of honeymoon travel purchase decision

It is not difficult to find out from Figure 4-12 the two large principal ways to obtain information, online travel institutions and travel agencies, which are the easiest ways considered by honeymoon tourists. Online travel institution is the largest on the distribution. This phenomenon also fully reflects that the development and application of internet make a big difference to the consumption ideas and consumption ways of honeymoon tourists, with "the 1980s" as the major composition. Apart from online travel institutions and travel agencies, the experience from family and friends is the third largest way for decision makers to acquire information. It is thus clear that the information that honeymoon tourists expect to acquire emphasizes profession and reliability. Meanwhile, it is not hard to find out that the frequency distributions of social networking platform and travel destination websites have exceeded those of traditional information media like television broadcasting, newspapers, and magazines and so on and so forth. This fully demonstrates that with the development of scientific information, the ways for travelers to acquire and disseminate information become richer and wider.

Figure 4-12 external information search channels’ characteristic of honeymoon travel purchase decision