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CONSUMER EXPERIENCE AND
DESTINATION LOYALTY IN TOURIST SITE IN RIVERS STATE
CHAPTER ONE
1.0 Introduction
Tourism represents a key industry in the Nigerian economy. In
2004, Nigerian received more than 12 million tourists with tourism representing
approximately 8% of the GDP. Tourism also plays an important role in the
Nigerian employment marketplace since more than 10% the population is employed
in tourism-related sectors. Rivers State in the south of Nigeria, belongs to
the top 10 travel destinations with the local economy relying mostly on the
tourism-related activities and oil.
Despite the exceptionally favourable conditions for tourism
(quality beaches, warm climate, hospitable and friendly community and
multiculturally-attuned), Rivers State has recently experienced some difficulty
in maintaining its position as a preferred travel destination. Compared to
2004, the number of tourists entering Rivers State decreased by 0.8% with
lodging demand decreasing by 4.8% (AHETA, 2005).
Although several external factors could be mentioned as
passive reasons for this occurrence, the current condition of tourism in Rivers
State is much the result of emerging new holiday destinations that offer lower
prices and, in some cases, higher quality facilities (AHETA, 2005).
Even though the study of consumer loyalty has been pointed
out in the marketing literature as one of the major driving forces in the new
marketing era (Brodie et al., 1997), the analysis and exploration of this
concept is relatively recent in tourism research. Some studies recognize that
understanding which factors increase tourist loyalty is valuable information
for tourism marketers and managers (Flavian et al., 2001). Many destinations
rely strongly on repeat visitation because it is less expensive to retain
repeat tourists than to attract new ones (Um et al., 2006). In addition, Baker
and Crompton (2000) show that the strong link between consumer loyalty and
profitability is a reality in the tourism industry.
The study of the influential factors of destination loyalty
is not new to tourism research. Some studies show that the revisit intention is
explained by the number of previous visits (Mazurki, 1989; Court and Lupton,
1997; Petrick et al., 2001). Besides destination familiarity, the overall
satisfaction that tourists experience for a particular destination is also
regarded as a predictor of the tourist’s intention to prefer the same
destination again (Oh, 1999; Kozak and Rimmington, 2000; Bowen, 2001; Bigné and
Andreu, 2004; Alexandros and Shabbar, 2005; Bigné et al., 2005). Other studies
propose more comprehensive frameworks. Bigné et al. (2001) model return
intentions to Spanish destinations through destination image, perceived quality
and satisfaction as explanatory variables. Yoon and Uysal (2005) use tourist
satisfaction as a moderator construct between motivations and tourist loyalty.
Recently, Um et al. (2006) propose a model based on
revisiting intentions that establishes satisfaction as both a predictor of
revisiting intentions and as a moderator variable between this construct and
perceived attractiveness, perceived quality of service and perceived value for
money.
1.1 Background of
the Research
Oliver (1999, p. 34) has defined loyalty as „a deeply-held
predisposition to repatronize a preferred brand or service consistently in the
future, thereby causing repetitive same brand purchasing, despite situational
influences and marketing efforts having the potential to cause switching
behavior.‟ When a customer is loyal, he or she continues to buy the same brand,
tends to buy more and is willing to recommend the brand to others (Hepworth and
Mateus, 1994).
Loyalty has been measured in the following ways: (1) the
behavioral approach, (2) the attitudinal approach, and (3) the composite
approach (Jacoby and Chestnut, 1978). The behavioral perspective defines
loyalty as actual consumption, as a sequence of purchase (Brown, 1952), as
proportion of market share (Cunningham, 1956), as probability of purchase
(Frank, 1962), as duration, as frequency and as intensity (Se-Hyuk, 1996;
Brown, 1952). This behavioral approach was viewed as producing only static
outcome of a dynamic process (Dick and Basu, 1994). In contrast, the
attitudinal approach goes beyond overt behavior and expresses loyalty in terms
of consumers‟ strength of affection toward a brand (Backman and Crompton,
1991a). Finally, composite measures of loyalty integrate both behavioral and
attitudinal dimensions. Day (1969) argues that to be truly loyal, a consumer
must both purchase the brand as well as have a positive attitude toward it.
This composite approach has been used a number of times in leisure settings
(Backman and Crompton, 1991b; Pritchad and Howard, 1997). While this composite
measurement seems to be the most comprehensive, it is not necessarily the most
practical. It has serious inherent limitations, simply because of the weighting
applied to both behavioral and attitudinal components.
In this study, loyalty is defined as tourists‟ intention to
revisit and their recommendations to others (Oppermann, 2000; Yoon and Uysal,
2005). This loyalty refers to committed behavior that is manifested by
propensity to participate in a particular recreation service (Backman and
Crompton, 1991a). This definition is supported by Jones and Sasser (1995) who
argued that intent to repurchase is a very strong indicator of future behavior.
Apart from using intent to revisit, many tourism researchers have used
tourists‟ recommendation to others as a measure of attitudinal loyalty (Chen
and Gursoy, 2001; Oppermann, 2000). This research focuses on attitudinal
loyalty because the purchase of a tourism product is a rare purchase
(Oppermann, 1999). It does not occur on a continuous basis but rather
infrequently (Jago and Shaw, 1998). It can also be covert behavior as reflected
in intention to revisit in the future (Jones and Sasser, 1995).
From SAS. Retrieved 2015-07-15. Customer experience (CX) is
the product of an interaction between an organization and a customer over the
duration of their relationship. This interaction includes a customer's
attraction, awareness, discovery, cultivation, advocacy and purchase and use of
a service. It is measured by the individual's experience during all points of
contact against the individual's expectations. Thompson, Ed and Kolsky, Estaban
(2004), Gartner asserts the importance of managing the customer's experience.
Verhoef, Peter C (2009) said that customer experience implies
customer involvement at different levels - such as rational, emotional,
sensorial, physical, and spiritual. Customers respond diversely to direct and
indirect contact with a company.
In the consumer marketing community, customer loyalty has
long been regarded as important goal (Reicheld and Schefter, 2000). Customer
loyalty is critical for business to gain competitive advantage. Firstly, it is
much less expensive to retain current visitors than it is to seek new ones
(Reicheld and Sasser, 1990). Further, loyal customers are more likely to create
a positive word-of-mouth advertising at no extra cost to the service provider
(Shoemaker and Lewis, 1999). Thirdly, it secures the relationship between customer
and service provider, when the customer is faced with increasingly attractive
competitive offers. Finally, loyal customers are more easily accessible than
first-timers since organizations usually retain records, making targeted
indirect marketing more feasible. This knowledge permits suppliers to precisely
target the repeat segment and solicit direct responses to promotions (Reid and
Reid, 1993).
1.2 Statement of
Research Problem
In today’s dynamic and competitive global environment,
planning and developing tourism attractions is only half the battle faced by
destination managers considering the fact that so many destinations globally
offer similar attractions, services and experiences. Destination managers also
have to plan and strategize the marketing aspect of destination management. A
well planned and developed tourism product and/or destination will be useless
unless it attracts and retains its target market. Therefore, it is vital for
managers to understand what makes customers loyal to a destination and what
their expectations are so that destinations can modify their offerings, service
delivery and communication strategies to meet and exceed customers’
expectations.
1. Consumer’s
expectations and quality of service are not meet with.
2. The cost of
service and the quality of service are not relative to each other.
3. Consumers
complain that they are not welcomed as a result of lack of communication
between service providers and consumers.
1.3 Objectives of
the Study
As previously mentioned, both marketing scholars and
practitioners need to identify and assess the relative impact of
competitiveness factors and destination equity on the loyalty of tourists. In
doing so, the destination marketers can properly develop strategy and manage
resources efficiently. Therefore, the objectives of this research are three
fold;
1. To assess the
relative impact of destination equity on the loyalty of tourists and
2. To
differentiate those results between the domestic tourists and the international
tourists.
3. To evaluate
consumers experience and irrigate tourist site.
4. To express the
degree of relationship between the two variables, (consumers experience and
destination loyalty).
1.4 Scope of the
Study
Regression and correlation are common methods of analyzing
data to provide useful information in making decision. The project covers a
period of 10 years (2005-2015) thus predictions shall be made on the bases of
the accuracy of the analyzed data.
There are many numerical variables to be considered in in
this research work such as the income and expenditure of Rivers State on
tourist destination (tourist center) on which this project work is based.
1.5 Research
Hypothesis
Hypotheses are some finding which are yet to be proved. In
statistics, when data are collected the purpose is to find a reasonable
criterion for deciding on a proper line of action, whether the assumption is to
be accepted or rejected.
Hypothesis one
H0.There is no linear regression between consumers experience
and destination loyalty.
H1.There islinear regression between consumers experience and
destination loyalty.
Hypothesis Two
H0.There is no association between consumers experience and
destination loyalty.
H1. There exists an association between consumers experience
and destination loyalty.
In order to make this decision significant, test are carried
out on the hypothesis, insignificant is called the null hypothesis denoted by
Ho and the assumption made against the null hypothesis is the alternative hypothesis
denoted by H1.
To test hypothesis on regression coefficient,
T – statistics is applicable and it is given as:
Tcal = with n-2 d.f
1.6 Limitation of
study
During the
course of performing/researching this project work, the researcher encountered
a lot of challenges as well as opposition which ranges from financial
constraints, time factor. This factors in their own ways, slowed down the
speedy progress of this work that resulted to the researcher not being able to
finish the research work on time as is required
Also, within the area
of study the researcher was faced with some other forms of constrains that
contributed to the limitation of this researcher work, like accessibility to
data, information and facts concerning the present study due to some reasons or
the other, some not willing to give out information that it is to be within the
workers.
1.7 Definition of
Terms
i. Hypothesis:
This is a statistical statement which can be true or false and whose validity
can be tested. It is a statement about a population which we want to verify on
the basis of the information available from a sample.
ii. Null
Hypothesis: It is the hypothesis we have set for the purpose of rejection and
it is denoted by Ho.
iii. Alternative
Hypothesis: It is the hypothesis that has being set for the purpose of
acceptance and it is denoted by Hi.
iv. Variable: This
is the observable outcome of the data collected on certain phenomenon of
interest through various methods.
v. Independent
Variable: This is a variable that can be controlled or manipulated by a
researcher in order to determine its relationship with the observed state of
things.
vi. Dependent Variable: This is a variable that is
observed as outcome of an experiment. It changes according to the changes or
manipulation made on the input (independent variable).
vii. Free Hand
Method: It is a procedure that try to draw a line that passes through or close
to as many points as possible on the scattered diagram.
viii. Rank
Correlation: Instead of using precise value or when such precision is
unavailable, the data can be ranked in order of size, importance e.t.c.
ix. Co-Efficient of
Determination: It is another significant method to determine the degree of
relationship that exists between two variables. It indicates the proportion of
changes in value of independent variable Y that can be predicted from change in
the value of independent variable ‘X’.
x Confidence
Internal: This is the interval or region within which an hypothetical value
must lie before it can be accepted as a member of the population.
xi. Analysis Of
Variance (ANOVA): This is a technique where by total variation present in a set
of data are partitioned into several components.
xii. An Estimate:
This is the value which as estimator takes for a particular sample.
xiii. Positive
Correlation: This is a situation when there is simultaneous increase in the
value of Y as X increases
xiv. Negative
Correlation: This is a situation when increase or decrease in one variable
brings about a change in the value of the other variable.
xv. Zero
Correlation: This is a situation when increase or decrease in one variable
brings about no change in the value of the other variable.
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