Are Satisfied Tourists Loyal Tourists? A Case Study in Algarve, Portugal Sandra Teixeira & Pedro Cravo IASK Advances in To...
Summary <ul><li>What relationship may exist between the satisfaction about the tourist experience and the loyalty to a des...
Consumer Behaviour <ul><li>Consumer behaviour is fairly recent as a scientific discipline. Although the first books were w...
Consumer Behaviour <ul><li>Ryan argues that “the attitudes, expectations and perceptions of the holidaymaker are significa...
Consumer Behaviour <ul><li>The tourist-side variables, such as the skills. There are those who defend that the challenge i...
Consumer Behaviour <ul><li>All of these are important to understand the complexity of consumer behaviour. </li></ul><ul><l...
Consumer Behaviour and Management <ul><li>A constant challenge to managers is the search for an adequate competitive strat...
Consumer Behaviour and Management <ul><li>The satisfaction of these needs and desires is seen as a goal for success. </li>...
Consumer Behaviour and Management <ul><li>According to Oppermann, travel experience satisfaction contributes to destinatio...
Quality and Satisfaction <ul><li>Quality may be seen as a competitive advantage when it becomes superior to that offered b...
Satisfaction and Loyalty Processes <ul><li>Tourist’s satisfaction is extremely important for the success of any destinatio...
Satisfaction and Loyalty Processes <ul><li>Oliver states that consumers build expectation before purchasing a product, com...
Satisfaction and Loyalty Processes <ul><li>On a contrary direction, Tse and Wilton state that satisfaction is independent ...
Satisfaction and Loyalty Processes <ul><li>Gallarza and Saura also present several different methodologies to evaluate val...
The Arade Destination Case
Objectives and Methodology <ul><li>We intend to understand if, in the case of Arade’s municipalities, there is an evident ...
Hypotheses <ul><li>The analysis conducted wanted to verify the following hypotheses: </li></ul><ul><ul><li>H1 – Consumer s...
Respondents’ Profile Variable % Variable % <ul><li>Gender: </li></ul><ul><ul><li>Male </li></ul></ul><ul><ul><li>Female </...
<ul><li>Trying to understand if tourists’ satisfaction changes with each of the destination’s attribute (H1), we analysed ...
Hypotheses Analysis – H1 <ul><li>To confirm the independence of the different attributes, we applied the Kruskal Wallis te...
Hypotheses Analysis – H2 <ul><li>Verifying if the loyalty degree (measured by the intention to return) changes in function...
Hypotheses Analysis – H3 <ul><li>As for the third hypothesis, this time we tried to cross-analyse the degree of satisfacti...
Hypotheses Analysis – H4 <ul><li>As for the fourth hypothesis, higher degrees of satisfaction raise the probability of loy...
Hypotheses Analysis – H4 <ul><li>In the repetition intention, Spearman Correlation coefficient presents a negative value (...
Hypotheses Analysis – H4 <ul><li>As for the recommend intention, Spearman Correlation coefficient presents a negative valu...
Conclusions <ul><li>Today’s society has changed the way companies, as well as tourist destinations, handle the needs and d...
Conclusions <ul><li>This complexity is present on the study about the Arade destination. </li></ul><ul><li>The fact that e...
Sandra Teixeira [email_address] <ul><li>Muito obrigado! </li></ul><ul><li>Muchas gracias! </li></ul><ul><li>Grazie molto! ...
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Are Satisfied Tourists Loyal Tourists? A Case Study in Algarve, Portugal

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We present a reflection about the relation that may exist between consumers’ behaviour, quality and satisfaction with the tourist experience, and loyalty to a destination. Some authors state that satisfaction doesn’t guarantee loyalty, although some studies show that there is a bigger intention to return or recommend a destination in satisfied tourists. After exploring the different ideas of the main authors that have approached the subjects of consumer behaviour, quality of tourist experience and loyalty, as a case study we tried to verify the situation of tourists that visit the Arade municipalities, in Algarve, Portugal. For that, we analysed part of the results from a study carried out by CIDER (Regional Economy Research and Development Centre), an organization based in the University of Algarve. This study aimed to evaluate the degree of satisfaction of tourists with their experiences in these municipalities and their intentions to return or recommend this destination. Although there are some limitations in the results obtained, we can confirm that tourist satisfaction contributes to a higher probability of loyalty to this destination.

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Are Satisfied Tourists Loyal Tourists? A Case Study in Algarve, Portugal

  1. 1. Are Satisfied Tourists Loyal Tourists? A Case Study in Algarve, Portugal Sandra Teixeira & Pedro Cravo IASK Advances in Tourism Research 2008 Aveiro, May 27 th 2008
  2. 2. Summary <ul><li>What relationship may exist between the satisfaction about the tourist experience and the loyalty to a destination? </li></ul><ul><li>The main objective of this paper is to show that loyalty can indeed be obtained by higher degrees of tourists’ satisfactions with their (tourist) experiences. </li></ul><ul><ul><li>Consumer Behaviour </li></ul></ul><ul><ul><li>Quality of Service and Satisfaction </li></ul></ul><ul><ul><li>Satisfaction and Loyalty Processes </li></ul></ul><ul><li>Case Study - Arade </li></ul>
  3. 3. Consumer Behaviour <ul><li>Consumer behaviour is fairly recent as a scientific discipline. Although the first books were written only in the 1960s, its origin dates back to the XIX century. </li></ul><ul><li>Studying consumer behaviour has become more popular with the Marketing theory. </li></ul><ul><li>Some of the aspects that are identified by Mowen and Minor as having an influence on consumer behaviour are: </li></ul><ul><ul><li> Information processing;  Motivation; </li></ul></ul><ul><ul><li> Personality;  The decision process; </li></ul></ul><ul><ul><li> Satisfaction;  Loyalty; </li></ul></ul><ul><ul><li> Situational influences. </li></ul></ul>
  4. 4. Consumer Behaviour <ul><li>Ryan argues that “the attitudes, expectations and perceptions of the holidaymaker are significant variables in setting goals, influencing behaviour and determining final satisfaction”. </li></ul><ul><li>Studying the behaviour of tourists and their attitudes requires several different aspects to be taken in consideration, namely: </li></ul><ul><ul><li>The perception of the activity’s importance in terms of self-development, self-enhancement, ego fulfilment, the social role it plays; </li></ul></ul><ul><ul><li>To think about tourism not only in terms of tourist’s needs, but also of theirs future profits. </li></ul></ul>
  5. 5. Consumer Behaviour <ul><li>The tourist-side variables, such as the skills. There are those who defend that the challenge imposed by external conditions and the ability to cope with them contribute to the tourist experience and to its satisfaction. </li></ul><ul><li>The presence of other individuals (or groups) or, on the contrary, the importance of their absence. </li></ul><ul><li>Other variables related to consumers’ attitude, behaviour and motivations are identified by Ryan as: </li></ul><ul><ul><li> the nature of the involvement;  sense of flow; </li></ul></ul><ul><ul><li> the risk role;  mindlessness; </li></ul></ul><ul><ul><li> the stress role;  needs analysis. </li></ul></ul><ul><ul><li> boredom and frustration; </li></ul></ul>
  6. 6. Consumer Behaviour <ul><li>All of these are important to understand the complexity of consumer behaviour. </li></ul><ul><li>but… </li></ul><ul><li>How can organizations handle it? </li></ul>
  7. 7. Consumer Behaviour and Management <ul><li>A constant challenge to managers is the search for an adequate competitive strategy, and this ultimately leads the company to obtain a competitive advantage. </li></ul><ul><li>In a growingly competitive and global society, the survival of companies and tourism destinations is ever more dependent on the way these can handle the needs and desires of consumers. </li></ul>
  8. 8. Consumer Behaviour and Management <ul><li>The satisfaction of these needs and desires is seen as a goal for success. </li></ul><ul><li>Several studies have shown that the consumers’ satisfaction, by itself, isn’t enough to guarantee success. </li></ul><ul><li>Thus has emerged the need for clients’ loyalty. </li></ul><ul><li>Loyalty is regarded as something that’s determinant to create and maintain the competitiveness of companies and tourist destinations. </li></ul>
  9. 9. Consumer Behaviour and Management <ul><li>According to Oppermann, travel experience satisfaction contributes to destination loyalty, which is revealed by the intention to revisit or recommend the destination to others. </li></ul><ul><li>Several studies have showed there is a relation between clients’ loyalty and their satisfaction. </li></ul><ul><li>In order to understand the interrelations that can be established between satisfaction and loyalty many authors have approached the subjects of consumer behaviour, quality of services, satisfaction and loyalty. </li></ul>
  10. 10. Quality and Satisfaction <ul><li>Quality may be seen as a competitive advantage when it becomes superior to that offered by the competitors. </li></ul><ul><li>Quality is related to the individual experiences, to the manner in which these are lived through and to the level of realization of the expected results. </li></ul><ul><li>Satisfaction is a concept that is intimately related with the perception and expectations of consumers. Clients’ satisfaction with a service’s quality is defined by comparing the delivered service perception and the desired service expectations. </li></ul>
  11. 11. Satisfaction and Loyalty Processes <ul><li>Tourist’s satisfaction is extremely important for the success of any destination marketing strategy, as it influences its choice, the products and services consumption and the decision to return. </li></ul><ul><li>Satisfaction is seen as a parameter to evaluate the performance of any given destination, product or service. </li></ul>
  12. 12. Satisfaction and Loyalty Processes <ul><li>Oliver states that consumers build expectation before purchasing a product, comparing, afterwards, the performance obtained with those expectations. </li></ul><ul><li>In case the performance is better than expectations, there is a positive disconfirmation (the consumer is satisfied and will be predisposed to repeat the purchase in the future). </li></ul><ul><li>If the performance is worst than the expectation, there is a negative disconfirmation (the consumer unsatisfied and with the intention to search for alternative products in the future). </li></ul>
  13. 13. Satisfaction and Loyalty Processes <ul><li>On a contrary direction, Tse and Wilton state that satisfaction is independent of consumers’ expectations, depending solely on the product’s performance itself. </li></ul><ul><li>Considering six different approaches to satisfaction and loyalty, Oliver concludes that none of them explains completely the link between the two, so it can be said that this relationship is much more complex and hard to portray than most of the studies have considered. </li></ul>
  14. 14. Satisfaction and Loyalty Processes <ul><li>Gallarza and Saura also present several different methodologies to evaluate value perception, concluding that we can talk about the existence of a quality–value–satisfaction–loyalty chain. </li></ul><ul><li>In this sequence, perceived value depends upon quality and it can lead to satisfaction which, in term, will culminate in a loyalty attitude. </li></ul>
  15. 15. The Arade Destination Case
  16. 16. Objectives and Methodology <ul><li>We intend to understand if, in the case of Arade’s municipalities, there is an evident connection between tourists’ satisfaction with their vacation on this destination and their loyalty, measured by the intention to return or to recommend this destination to others. </li></ul><ul><li>The information was collected using a questionnaire applied to tourist that visited Silves, Lagoa, Monchique and Portimão (Arade’s municipalities) in 2004. </li></ul>
  17. 17. Hypotheses <ul><li>The analysis conducted wanted to verify the following hypotheses: </li></ul><ul><ul><li>H1 – Consumer satisfaction is different with each of the destination’s attributes; </li></ul></ul><ul><ul><li>H2 – Loyalty degree (measured by the intention to return) changes in function of the satisfaction degree; </li></ul></ul><ul><ul><li>H3 – Loyalty degree (measured by the intention to recommend) changes in function of the satisfaction degree; </li></ul></ul><ul><ul><li>H4 – Higher degrees of satisfaction raise the probability of loyalty. </li></ul></ul>
  18. 18. Respondents’ Profile Variable % Variable % <ul><li>Gender: </li></ul><ul><ul><li>Male </li></ul></ul><ul><ul><li>Female </li></ul></ul>47.3 52.7 <ul><li>Residents in Portugal: </li></ul><ul><ul><li>North </li></ul></ul><ul><ul><li>Centre </li></ul></ul><ul><ul><li>Lisbon and Tagus Valley </li></ul></ul><ul><ul><li>Alentejo </li></ul></ul><ul><ul><li>Algarve </li></ul></ul>29.9 15.6 45.4 7.8 1.3 <ul><li>Age Groups: </li></ul><ul><ul><li>0 to 14 </li></ul></ul><ul><ul><li>15 to 24 </li></ul></ul><ul><ul><li>25 to 44 </li></ul></ul><ul><ul><li>45 to 64 </li></ul></ul><ul><ul><li>65 and + </li></ul></ul>3.0 18.2 50.4 28.0 0.4 <ul><li>Residents Abroad: </li></ul><ul><ul><li>Austria </li></ul></ul><ul><ul><li>Belgium </li></ul></ul><ul><ul><li>Finland </li></ul></ul><ul><ul><li>France </li></ul></ul><ul><ul><li>Germany </li></ul></ul><ul><ul><li>Hungary </li></ul></ul><ul><ul><li>Ireland </li></ul></ul><ul><ul><li>Italy </li></ul></ul><ul><ul><li>Netherlands </li></ul></ul><ul><ul><li>Norway </li></ul></ul><ul><ul><li>Spain </li></ul></ul><ul><ul><li>Sweden </li></ul></ul><ul><ul><li>United Kingdom </li></ul></ul><ul><ul><li>United States </li></ul></ul>0.6 2.5 0.6 2.5 3.7 0.6 6.8 1.9 3.7 0.6 1.2 1.9 72.8 0.6 <ul><li>Marital Status: </li></ul><ul><ul><li>Single </li></ul></ul><ul><ul><li>Married </li></ul></ul><ul><ul><li>Divorced </li></ul></ul>28.8 65.8 5.4 <ul><li>Education Level: </li></ul><ul><ul><li>Primary </li></ul></ul><ul><ul><li>Secondary </li></ul></ul><ul><ul><li>University </li></ul></ul>5.8 39.8 54.4 <ul><li>Location of Residence: </li></ul><ul><ul><li>In Portugal </li></ul></ul><ul><ul><li>Abroad </li></ul></ul>32.2 67.8
  19. 19. <ul><li>Trying to understand if tourists’ satisfaction changes with each of the destination’s attribute (H1), we analysed the results from the questions about the degree of satisfaction with each of the attributes considered. A summary of these is present in the chart. </li></ul>Hypotheses Analysis – H1
  20. 20. Hypotheses Analysis – H1 <ul><li>To confirm the independence of the different attributes, we applied the Kruskal Wallis test that, for 29 degrees of freedom, gave us a Chi-Square value of 565.695, which corresponds to a significance of 0.000 at the 0.05 level. </li></ul><ul><li>Thus, the first hypothesis can not be rejected. The attributes are independent, so we can conclude that consumers’ satisfaction is different with each of the destination’s attributes. </li></ul>
  21. 21. Hypotheses Analysis – H2 <ul><li>Verifying if the loyalty degree (measured by the intention to return) changes in function of the satisfaction degree, we tried to cross-analyse the degree of satisfaction with the intention to repeat the purchase. </li></ul><ul><li>As we can confirm by the Chi-Square tests’ results, the second hypothesis can’t be rejected. The intention to return to this destination changes in function of the satisfaction degree. </li></ul>Repetition intention Total Yes Maybe No Degree of satisfaction Not satisfied 9 16 4 29 Satisfied 54 75 11 140 Completely satisfied 52 18 1 71 Total 115 109 16 240 Value Degrees of freedom Asymp. Sig. (2-sided) Pearson’s Chi-Square 28.181 (a) 4 0.000 Likelihood Ratio 29.205 4 0.000 Linear-by-Linear Association 23.525 1 0.000 N of Valid Cases 240 (a) 2 cells (22.2%) have expected count less than 5. The minimum expected count is 1.93.
  22. 22. Hypotheses Analysis – H3 <ul><li>As for the third hypothesis, this time we tried to cross-analyse the degree of satisfaction with the intention to recommend the destination to others. </li></ul><ul><li>Like previously, we can confirm by the Chi-Square tests’ results that the third hypothesis can’t also be rejected. The intention to recommend this destination changes in function of the satisfaction degree. </li></ul>Value Degrees of freedom Asymp. Sig. (2-sided) Pearson’s Chi-Square 36.906 (a) 2 0.000 Likelihood Ratio 29.003 2 0.000 Linear-by-Linear Association 35.409 1 0.000 N of Valid Cases 241 (a) 1 cells (16.7%) have expected count less than 5. The minimum expected count is 0.72. Recommend intention Total Yes Maybe No Degree of satisfaction Not satisfied 9 16 4 29 Satisfied 166 44 2 212 Total 175 60 6 241
  23. 23. Hypotheses Analysis – H4 <ul><li>As for the fourth hypothesis, higher degrees of satisfaction raise the probability of loyalty, an overview of the previous results seems to confirm it. </li></ul><ul><li>Even so, considering that the repetition and recommending intentions can be considered ordinal variables (yes=1; maybe=2; no=3), we decided to calculate Spearman correlation coefficient in order to confirm the previous observation. </li></ul>
  24. 24. Hypotheses Analysis – H4 <ul><li>In the repetition intention, Spearman Correlation coefficient presents a negative value (-0.323) with a significance of 0.000, which means that one of the variables value drops as the other increases. </li></ul><ul><li>Knowing that the repetition intention value is bigger for the non-intention to return (3=no), this means that the repetition intention raises with the degree of satisfaction. </li></ul>Repetition intention Total Yes Maybe No Degree of satisfaction Completely unsatisfied 4 5 1 10 Unsatisfied 2 2 1 5 Neither sat. nor unsat. 3 9 2 14 Satisfied 54 75 11 140 Completely satisfied 52 18 1 71 Total 115 109 16 240 Value Asymp. Std. Error (a) Approx. T (b) Approx. Sig. Interval by Interval Pearson’s R -0.242 0.064 -3.848 0.000 (c) Ordinal by Ordinal Spearman Correlation -0.323 0.059 -5.257 0.000 (c) N of Valid Cases 240 (a) Not assuming the null hypothesis. (b) Using the asymptotic standard error assuming the null hypothesis. (c) Based on normal approximation.
  25. 25. Hypotheses Analysis – H4 <ul><li>As for the recommend intention, Spearman Correlation coefficient presents a negative value (-0.403) with a significance of 0.000. </li></ul><ul><li>Therefore, we can also confirm that the intention to recommend raises with the degree of satisfaction, which together with the previous test, confirms this last hypothesis. </li></ul>Recommend intention Total Yes Maybe No Degree of satisfaction Completely unsatisfied 7 2 1 10 Unsatisfied 1 3 1 5 Neither sat. nor unsat. 1 11 2 14 Satisfied 99 40 2 141 Completely satisfied 67 4 0 71 Total 175 60 6 241 Value Asymp. Std. Error (a) Approx. T (b) Approx. Sig. Interval by Interval Pearson’s R -0.346 0.069 -5.702 0.000 (c) Ordinal by Ordinal Spearman Correlation -0.403 0.050 -6.810 0.000 (c) N of Valid Cases 241 (a) Not assuming the null hypothesis. (b) Using the asymptotic standard error assuming the null hypothesis. (c) Based on normal approximation.
  26. 26. Conclusions <ul><li>Today’s society has changed the way companies, as well as tourist destinations, handle the needs and desires of consumers/tourists. </li></ul><ul><li>Many authors have approached the questions of motivation, quality of tourist experiences and satisfaction. </li></ul><ul><li>Only more recently has emerged the concern with consumers’ loyalty. </li></ul><ul><li>Loyalty is quite complex and hard to explain. </li></ul>
  27. 27. Conclusions <ul><li>This complexity is present on the study about the Arade destination. </li></ul><ul><li>The fact that each attribute was evaluated differently by the same types of tourists reveals that destinations must continue to strive for tourist experience’s quality and tourists’ satisfaction, otherwise they can never aspire to their loyalty. </li></ul><ul><li>Even attributes least connected with tourist activities can have an influence on the final opinion that tourist form about the destination (limiting satisfaction and, consequently, the possibility of loyalty). </li></ul>
  28. 28. Sandra Teixeira [email_address] <ul><li>Muito obrigado! </li></ul><ul><li>Muchas gracias! </li></ul><ul><li>Grazie molto! </li></ul><ul><li>Kiitos! </li></ul><ul><li>Paldies! </li></ul><ul><li>Tusen takk! </li></ul><ul><li>Takk fyrir! </li></ul><ul><li>Thank you very much! </li></ul><ul><li>Merci beaucoup! </li></ul><ul><li>Dankeschön! </li></ul><ul><li>Dank u well! </li></ul><ul><li>Hvala lepa! </li></ul><ul><li>Děkuji! </li></ul><ul><li> Ω! </li></ul>Pedro Cravo [email_address]
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