1. Tourism Marketing for small businesses
Chapter 5 Tourism Marketing Research

2. Chapter learning aims To enhance your understanding of:
the role of marketing research in management decision making
a six-step marketing research process
the value of using a mixed methods research design

3. Key terms
Primary data
New data being collected for the first time for a specific purpose, through interacting with, and/or observing participants, using qualitative and/or or quantitative methods.
Secondary data
Existing data that has previously been collected for a purpose other than the current research project.
Mixed methods
A research design employing both qualitative and quantitative data collection methods.

4. The need for marketing research
A marketing orientation dictates decisions be made with target consumers in mind.
This requires gathering information that will provide insights into the experience of current customers, and the needs of target consumers.
Marketing research is an essential activity, even for small tourism businesses with limited resources, because information reduces uncertainty in decision making.
However, marketing research is often under-utilised by small tourism businesses, due to lack of training, negative perceptions of the practical value, or perceived costs.

5. Marketing research defined
The process of designing, gathering, analysing, and reporting information that may be used to solve a specific marketing problem.
(Burns, Veeck & Bush, 2017)
This means any collection of information can be regarded as research
including informal approaches such as talking to customers or suppliers.

6. Stages in the marketing research process
1..Identification of the marketing decision problem (MDP)
6. Interpretation and presentation of the findings
5. Data analysis
4. Data collection
3. Research design
2. Formulation of the marketing research question (MRQ)

7. Identifying the management decision problem (MDP)
The reason research is needed
Defined in management terms
Eg Should we change our brand slogan?
Eg What price should we charge?
Eg Is our advertising working?
Critical stage of the MR process
Inadequate problem definition is the main reason for MR failures

8. Common MDPs relate to:
Improving profitability through increasing sales and/or reducing costs
Improving promotion effectiveness
Developing new markets/segments
Developing and pricing new service offerings
Improving service standards
Identifying market characteristics
Understanding consumer behaviour
Analysing competitors

9. Formulating the marketing research question (MRQ)
The MRQ is a broad and comprehensive description of the information required to make the management decision
The MRQ should:
Guide the researcher towards all information needed to address the management decision problem
Assist the researcher in formulating the specific research objectives
Suggest possible ways the data could be collected (the research design)

10. Relationship between MDP and MRQ
Marketing decision problem (MDP)
Marketing research question (MRQ)
Is there a problem with our service quality?
What are the perceptions of our service quality by customers and non-customers?
Develop packaging for new souvenir product
How are alternative package designs perceived by consumers?
Should we change the brand logo and slogan?
How is the brand positioned, relative to competitors, in the minds of target consumers?

11. Relationship between MDP, MRQ and research objectives
Should the new product be launched in the market?
MRQ
What are consumer perceptions of the product?
Research objectives
To identify consumer preferences for this type of product.
To identify consumers’ potential purchase intent for this type of product.
To identify the range of similar offerings by competitors.

12. Critical point
The importance of asking the right question at the outset
Getting the MDP and MRQ is critical to the success of the project, because they lay the foundation for the remaining stages.
The best data collection and analysis will be meaningless if based on the wrong question.
As Dr Karl Kruszelnichi reminds us: “It’s not the answer that gets you the prize, it’s the question”.

13. Ethics
MR should be undertaken in an ethical manner, particularly during primary data collection when we are dealing with human beings.
Codes of research ethics usually include the following principles (Jennings, 2001):
Voluntary participation
Informed consent
The right to refuse to answer any question
The right to withdraw at any time
Confidentiality
Participants’ access to the findings

14. Research design
The research design sets out the collection of primary and secondary data that will generate information to address the marketing decision problem.
A search of secondary data is the starting point in any MR project
Existing data that has previously been collected
Eg Government Census data, news media, DMO websites, industry reports, academic literature
We might find some or all of the information we need already exists
Helps us find out how others have designed their research

15. There is nothing so practical as good theory
Marketing research is underpinned by theory.
The value of reviewing the academic literature can guide us about theories relevant to our marketing research question (MRQ).
If our MRQ contains a construct, such as brand awareness or market position, for example, we can look for a theory that will guide our research design.
A theory is practical when it helps determine how the construct can be measured.

16. Mixed methods
Employing both qualitative and quantitative data collection methods
Provides a greater depth and breath of data
A qualitative stage (eg personal interviews) can be used prior to the development of a questionnaire, to help us understand key issues in the language of the consumer
A qualitative stage can be used following the questionnaire data collection, to tease out unexpected findings

17. Characteristics of qualitative and quantitative research methods
Qualitative research
Quantitative research
Purpose
To find meaning in a phenomenon or situation from an inside perspective.
To measure the phenomenon or situation and generalise results to the wider population of interest.
Sample
Relatively small in number. Non-probability methods. Not representative of the wider population of interest.
Relatively large in number. Probability methods. Representative of the wider population of interest.
Methods
Unstructured or semi-structured data collection, through personal interviews, focus groups, or observation.
Structured data collection, through observation, surveys, or experiments.
Data
Non-numerical.
Numerical.
Data analysis
Subjective interpretation.
Objective statistical analysis.
Outcome
An initial understanding of a situation, which may be tested through quantitative research.
Marketing implementation recommendations.

18. Practical tourism applications
Identifying items to include in a questionnaire.
Testing creative concepts such as new branding, advertising and packaging.
Exploring views and price impressions for a new product.
Generating new ideas for an old product.
Exploring motivations for an activity.
Observing a phenomenon, such as queueing for service.
Exploring barriers to purchase by non-customers.
Exploring issues that emerged from a questionnaire.
Measuring:
- brand awareness
- brand positioning
- brand loyalty
- service quality
- customer satisfaction
- differences between groups
Identifying different segments in the population.
Identifying associations between variables.

19. Limitations All MR projects have limitations
Rarely will the information collected be perfect for solving the MDP
The characteristics of the sample may not be completely representative of the wider population of interest.
The results are what participants have stated, such as purchase intent for example, but do not measure actual behaviour. Studies that measure both stated intent and actual behaviour are rare.
Most studies are in the form a snapshot at one point in time, and results might be different if investigated at another time. Longitudinal studies, which involve multiple surveys of the same participants over time, are rare.

20. Discussion questions
Why is it essential that all tourism business owners and marketing managers have an understanding of the principles of marketing research?
How would you decide whether to use a qualitative or quantitative stage in the research design?
Explain why it is acceptable to acknowledge the limitations of the findings in a marketing research project to stakeholders, such as management, staff, investors or financiers?