Information And Traveler Decision Making

Michigan State University Extension
Tourism Educational Materials - 33710085
06/06/02

Information And Traveler Decision Making

Source: Michigan State University
Authors: McDonough, Maureen; Ackert, Gary
ID: E1940
Year: 1986

Knowing when and how consumers get information plays a key
role in promotion and has very important implications for
the tourism industry. Properly timed and placed
information can mean the difference between successfully
reaching the right consumers or wasting your money on
ineffective promotion.

MARKETINGÄTHE PROCESS CONTINUES

In the tourism industry, marketing is a process that never
stops. It is essential that you have some understanding of
what this process is all about. There are two terms that
are central to this process and that need to be
understood: market and marketing.

MARKETÄ

Traditionally a market was a place where consumers went to
exchange goods, services, or money. This definition puts
emphasis on the place of the transaction, not on the
consumer. Think about the following terms: roadside
markets, farmers' markets, the market place, and
supermarkets. They are all places where people go to buy
and sell.

Marketing experts have expanded this definition to include
the consumer. A market now refers to potential customers
who share a specific need or want and who might be willing
to exchange something to satisfy that need or want. In
other words, a market is a group of consumers who have
similar needs or wants and who are willing to buy or sell
something to fulfill them. For example, a group of
consumers who may want to visit the Henry Ford Museum and
Greenfield Village is considered a market.

There are many markets for tourism businesses, but it is
impossible for any one business or community to reach them
all. You need to select one or more specific markets, e.g.
married couples, single parents, family groups, elderly
couples, campers, or first time visitors that you want to
use your goods or services. These are called your target
markets.

MARKETINGÄ

Marketing is the process of managing the exchange of
goods, services, and money to satisfy the needs of
consumers, or the market.
MARKETING VS. SELLING

There are two approaches to get consumers to use your
product. Are you selling or are people buying? Your choice
will determine how well you are able to market your
product or service. Selling is really only a small part of
marketing.

The Selling Approach

This approach focuses on the product(s) or service(s)
offered. It is based on the belief that the only thing
necessary to sell the product(s) or service(s) is to
overcome consumer buying resistance. It is not necessarily
concerned with consumers' needs, but attempts to get
consumers to buy something whether they need it or not.

This process starts by looking at what product(s) or
service(s) the seller has and selling them without any
concern for what consumers need or want. It is not
concerned with consumer satisfaction, but assumes that
dissatisfied consumers can be wooed back later.

The Marketing Approach

This approach focuses on consumer needs and acknowledges
the power and influence of a dissatisfied consumer. It is
based on the belief that there will be no consumer buying
resistance to overcome if the product(s) or service(s)
meets their needs.

This process starts with identifying consumers' needs and
wants and then producing product(s) or service(s) to meet
them. Consumer satisfaction is critical.

Of these two approaches, the marketing approach is more
effective. For example, take lemonade.

-Selling Lemonade ÄMarketing Lemonade
We will sell lemonade The weather is hot and
because people need something cold
a) We have a lot of lemons to drink. People like lemon-
and ade. Lemonade really
b) We make the best quenches thirst and is easy
lemonade. for people to drink as they
walk along the sidewalk.
Therefore, we will sell
lemonade.

GETTING INFORMATIONÄTHE CONSUMERS' WAY

One of the biggest needs consumers have is to get
information so they can decide what to buy or where to buy
it. Consumers have different preferences for where to get
information, just as they have different preferences for
food, entertainment, etc. It is extremely important to
understand the information preferences of your target
market so that you can get your message to them.
Otherwise, your promotion becomes a hit or miss venture.

Communication preferences will determine the source of
your target market's information. Sources of information
are divided into two categories, formal and informal.

A formal source is one that you plan to use. Generally,
you control the information that is presented through the
source and how it is presented. Examples of formal sources
include television, radio, newspapers, community
newsletters, and brochures.

An informal source of information is one that you have not
planned to use. You have very little control over what
information is presented and little control over how it is
presented. Examples of informal sources of information
include friends, family members, relatives, repeat
visitors, and word of mouth.

It should be noted that even though they can be divided
into two categories, information sources actually form a
spectrum ranging from formal to informal. Many of these
sources, especially press related sources (news, feature
or human interest stories, for example), are ones people
choose to use, yet they do not have much control over how
their information is used or presented. These types of
sources are still considered to be formal sources because
some control can be established and maintained by having a
good working relationship with the local press.

Your target market's preferences also influence the
channel through which your market gets its information and
when they look for it. The channel that your market
chooses for information is dependent on whether or not
they prefer formal or informal information sources. When
they get information will depend on whether or not they
need their information before their trip, during the trip,
or when they arrive at their destination.

Recently, a two year study was completed by the Department
of Parks and Recreation Resources at Michigan State
University of traveler information networks in Michigan.
This study determined the kinds and sources of information
used by groups of travelers both before their trip and
upon arrival at their recreation destination. Results
indicated that travelers made use of information at three
different times, or stages, during a trip. They show
preferences for specific channels and specific types of
information from these channels at each stage.

The first time that travelers make use of information is
before the trip starts. This stage is broken down into two
categories: awareness and actual trip preparation.

Before travelers can make use of a destination, they have
to be aware of it. They need to know it exists. The study
suggests that travelers learn about their particular
destination primarily through informal channels. Of the
respondents in the study, over 60% said that they first
learned of their destination through friends, families,
other word of mouth, and/or past trip experience. Formal
channels play a smaller role in awareness. Thirteen
percent surveyed said that they were made aware of their
destination through the mass media or publications.

Informal sources were preferred over formal sources in the
traveler's trip preparation. In making their choices about
what to do on the trip, where to stay, and how to get
there, travelers chose to talk to repeat visitors going on
the trip with them, friends who were not going on the
trip, or other people in their traveling group.
Newspapers, the major formal source mentioned, were
important only in choosing local community events
travelers wanted to explore. Of the informal sources,
repeat visitors were the number one choice for all types
of information, while friends not going on the trip were
second.

The second time travelers make use of information is when
they are traveling to their destination. Thirty-three
percent of all travelers sampled made use of information
during this time. Formal sources such as travel
information centers, billboards and signs and informal
sources such as people outside the group were the main
channels of information about tourist attractions,
recreational activities, and places to eat in the
destination area. Of those who used these channels during
the trip, 22% changed their plans for their trip based on
information they acquired.

The third time that travelers use information on a trip is
when they arrive at their destination. At this point,
travelers rely primarily on informal channels. Employees
at lodging facilities, campgrounds, and repeat visitors in
the group were the main channels of information on area
recreation activities. For deciding where to eat, where to
stay, or what attractions in the area to visit, many
people chose to visit places that they saw while driving.

The results of the study show that travelers use different
channels of information for different types of information
at different times during a trip. The most common channels
were informal and included friends and family, repeat
visitors, and lodging employees. Formal channels were used
in a limited capacity and primarily at the beginning of a
trip.

IMPLICATIONS FOR MARKETING AND PROMOTIONAL PLANNING

What does all this suggest? One thing that is needed is a
shift in emphasis from the mass media and other formal
channels to informal channels. Informal channels often
have more influence on travelers than do any of the
traditionally used mass media channels. Examples are:

* A community's hospitality and service

* A community's image and atmosphere

* Community awareness and pride

* Family members and friends

* Informed employees

* Repeat visitors in groups.

To effectively market your tourism resources, you need to
seriously consider using these channels. Informal channels
can be used to:

* Pass out brochures for people to take home

* Make sure your employees know what recreational
activities are available in the area and how to get to
them
* Start a "reference chain" with businesses in your
community. Refer people to them and have them do the
same for you.

* Be hospitableÄmake travelers feel at home.

* Keep your community clean and attractive.

* Create a "community atmosphere" around your community
theme (See Extension bulletins E-1957 and E-1938).

These are some of the ways that you can use informal
channels. This list is not exhaustive. The only limits you
have in using informal channels are the types of informal
channels your target market prefers to use and your
imagination in using these channels.

A second conclusion that can be drawn from the above study
is the need to identify your target market as clearly and
concisely as possible. This will allow you to identify:

* Your target market's information needs

* Where they get their information

* When they look for it.

CONCLUSION

Research shows that travelers prefer to use different
information sources to get information at different stages
of a trip. Being able to identify and understand your
target market's preference is an important step in
developing an effective promotional strategy. This
bulletin was written to give a basic understanding of what
these preferences are.

People make the difference between a successful or
unsuccessful effort. Effective marketing means that you
have a good enough understanding of your target audience
so that you can put your information where people look for
it when they need it!

OTHER RESOURCES

* Constantin, James A., Rodney E. Evans, and Malcom L.
Morris. Marketing Strategies and Management. Dallas:
Business Publications, Inc., 1976.

* Cravens, David W., Gerald H. Hills, and Robert B.
Woodruff. Marketing Decision MakingÄConcepts and
Strategies. Rev. ed. 1980. Illinois: Irwin, 1976.

* Kotler, Philip. Marketing Management. Fifth ea.,
Prentice-Hall, Inc., Englewood, NJ 07632, 1984.

* McCarthy, E. Jerome, and William D. Perreault, Jr. Basic
Marketing, 8th ed. Illinois: Irwin, 1984.

* McDonough, Maureen H., Cheryl Dyer, and Cathy Eckstein.
"Information Networks and Great Lakes Recreational
Implications for Increasing Tourism in Michigan," Unpubl.
manuscript, Dept. of Park and Recreation Resources, 131
Natural Resources Bldg., Michigan State University, East
Lansing, MI 48824.

* Sissors, Jack Z. Problems in Marketing Management.
(supplement to Market Management by Kotler). Prentice-Hall
Inc., Englewood, New Jersey, 07632, 1984.

Tourism Information Series

The Tourism Information Series is for those interested in
tourism development. To obtain the series, contact your
county Extension office. Look in the white pages under
County Government.

1. E-1937, Tourism and Its Significance in Local
Development
http://www.msue.msu.edu/msue/imp/modtd/33520059.html

2. E-2004, Tourism Planning
http://www.msue.msu.edu/msue/imp/modtd/33000005.html

3. E-1958, Developing A Tourism Organization
http://www.msue.msu.edu/msue/imp/modtd/33520069.html

4. E-1959, Tourism Marketing
http://www.msue.msu.edu/msue/imp/modtd/33700082.html

5. E-1992, Feasibility Analysis in Tourism
http://www.msue.msu.edu/msue/imp/modtd/33119709.html

6. E-1939, Developing A Promotional Strategy
http://www.msue.msu.edu/msue/imp/modtd/33710086.html

7. E-1957, Creating A Promotional Theme
http://www.msue.msu.edu/msue/imp/modtd/33710088.html

8. E-1940, Information and Traveler Decision Making
(this bulletin)

9. E-1938, Managing Tourism Information Systems
http://www.msue.msu.edu/msue/imp/modtd/33109703.html

10. E-2005, Selecting Promotional Media

http://www.msue.msu.edu/msue/imp/modtd/33710093.html

11. E-1999, Pricing Tourism Products and Services
http://www.msue.msu.edu/msue/imp/modtd/33740097.html

12. E-1960, Direct Marketing of Agricultural Products to
Tourists
http://www.msue.msu.edu/msue/imp/modtd/33839811.html

Series Editor, Maureen H. McDonough, Associate Professor,
Department of Park and Recreation Resources.

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