Professional Documents
Culture Documents
009
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For the timely completion of this research, I would like to thank my instructor for the kind
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Tourism is a driver of how the world perceives a country or a state. Along the similar lines, it
can be said that image improvements for a country are mainly dependent on how tourism is
Following the same pattern, this research is aimed at identifying the issues associated with
tourism in Hong Kong. Tourists for this research are identified as prospect customers,
consumers, and buyers. While setting the scene in this research, various issues related to
tourism in Hong Kong are identified and stated. The literature review then talks about
consumer behavior and how tourists purchasing practices can be identified and capitalized
on. Later, the same presents various models of consumer behavior, selects one and applies the
same to the case of Hong Kong, and the final chapter of conclusion and summary presents the
outcome i.e. how practices as mentioned in the literature review can be applied to the case of
Hong Kong.
Deaton (1980) states that one of the variables, in a country’s balance sheet, that has an impact
on everything within an economy is the tourism sector. Crotts (1994) states that tourism
sector for a country is similar to the marketing department of an organization, whereby the
efforts made by both the tourism and the marketing departments influence the repeated
purchases of products and services by the customer from the entity like the government or the
organization. The product or service purchased from the government is a tourism pass.
Tourism has a direct linkage to a number of variables in the economy. For instance the flow
of foreign exchange, the demand of net production within a country, the movement of
investments for developing hotels and resorts, investments and establishment of tourist areas,
development work in the natural rural areas, and so on. Other than these variables, the
economy in itself gets a direct push as tourism enhances within a country. The following
The following section of this chapter presents the rationale for choosing the topic.
This topic has been chosen primarily because it is my topic of interest; I have always been
aspired by tourists and tourism and often thought how a government can influence or
encourage tourism because at most what is can do is improve on its infrastructure or beautify
understanding more the concepts and models associated to the consumer buying behavior
The following section of this chapter presents the academic objectives of this project.
The academic objective underlying this project was to make students aware of the tourism
environment and how students of hospitality management, our futures can significantly
The following section of this chapter defines the outline of the various chapters in this
research.
• This chapter has briefly presented the introduction to the various aspects of this
research.
• The second chapter is about setting the scene in which the tourism scenario in Hong
• The third chapter is about the literature review conducted extensively for studying
various models affecting consumer buying behavior, with much stress towards the
• The fourth chapter is the final chapter that presents the summary and conclusion of
This chapter mainly deals with setting up the scene i.e. providing background information to
Reiber (2005) states that during the shift from 80s to the 90s, Hong Kong’s tourism industry
was shifted to a services sector model, and since then it has become a major contributor to the
economy of the state, along with trade (import/export) and financial services. Nicola (2004)
states that the introduction of the Individual Visit Scheme during the year 2003 has witnessed
a sharp rise in the annual tourists visiting China, and this has also contributed significantly to
the numbers in Hong Kong. The number of tourists who visited Hong Kong in the year 2008
was over 25 million as the state today has over 600 hotels with accommodation facility of
over 52,000 rooms. The average occupancy rate for this accommodation has been over 80%
for the year 2008. Fallon (2006) states that the Hong Kong tourism board continues to
promote the state as a prime place for tourism, with massive marketing against its renowned
• Victoria park
• Soho
• Victoria harbor
Hong Kong is a shoppers’ paradise as almost everything is available here ranging from cloth
to an advance electronic appliance. Shopping in the state is not just a social activity, but at
times also quoted as a serious sport. It is rather a cultural aspect and a life style offered by the
state to the people. Consumerism is the dominant thought process in Hong Kong. Other than
shopping, Hong Kong is also renowned for its cuisines, watches, electronics, and jewelry.
consumer, are three of the major aspects of Hong Kong that bring is closer to the consumer,
Fallon (2006) states that, here, at the same time, it is important to notice that Hong Kong state
has a global reputation for selling counterfeits and fake products that are look-alike many a
times. Following the same and to assist the consumers, particularly the tourists, in identifying
who is genuine, the Hong Kong tourism board has published a book known as ‘a guide to
quality shops and restaurants’ that identifies the reliable vendors. Fallon (2006) also states
that apart from counterfeiting, Hong Kong is also known as a tourist trap place, as a number
of stores offer attractive discounts and after accepting the payment, either they are out of
stock or the accessories are not complete as they should be. Such issues have been identified
at various places and the government along with the tourism board is making tremendous
efforts to save the customers from these issues, particularly the tourists because these are the
ambassadors of various states visiting a country and take back the word of mouth that can
The next chapter presents an in-depth over view of the literature that has been studied for the
research for the readily done search jobs to ensure that re-inventing the wheel is avoided and
the done research by far lays the foundation to move on rather than a chance to re-prove it.
Additionally, it also allows a review of various models and techniques developed over the
years for analyzing behaviors, trends, issues and other variables as identified from the case of
the study.
Swarbrooke (2007) states that tourism in the twenty-first century today stands much beyond
just a trip that is aimed for excursion or spending a holiday at a place of interest, which was
the initial definition of tourism in the earlier times. With particular regards to places that offer
come, stay, and come over and over again is what truly defines a place for tourism. Beyond
religious reasons, history and beautification, it can be a shoppers paradise like Dubai – UAE,
or an ancient valley like Egypt, tremendously beautiful heaven on earth like Malaysia, or
holding some wonder of the world like Paris or China; these are the most attractive sports for
individuals who wish to create memories during their tourism visits. In the similar regard, the
places that offer a wide variety of mix for visitors are the ones that have most attraction
within themselves. A wide variety of mix here implies that a place should be able to offer a
variety of tourism services such as religious, beautiful scenarios, some wonderful places,
unique stuff, shopping, etc. When talking about such stuff, the first place that comes to ones
mind is Malaysia that has been recently tagged as truly Asia. However, Hong Kong has
As Genzberger (1994) calls it, and it is also more commonly known as the gate way to china,
Hong Kong has established itself as a multi-cultural spot where tourists have all reasons to
enjoy. Hong Kong is moving quick with the fastest cars, but with a ‘leaping’ economy. The
roads of Hong Kong provide quick tracks, lovely for fast paced driving. Showing majority of
symptoms of a mega city, with smokes and blare across the city, there is a place that can keep
tourists cool i.e. Victoria Peak. Hong Kong offers everything to offer to its tourists when it
comes to shopping; from a type of cloth i.e. silk to antics and to the latest electrical
appliances, Hong Kong has it all and the rates are highly competitive as well, and the variety
With a covered area of approximately 1,100 sq. km and a population of approximately 6.4
million, the weather in this state is very tourist friendly throughout the year. Temples in the
state mark the presence of heritage, with a wonder of the world i.e. world’s largest outdoor
bronze Budha, and some modern architecture present too. Hong Kong is, in essence, a picture
of the past to the present, making the viewers think where the past would lead us. Hong Kong
offers other tourism attractions too such as foods, wine, and other essentialities that tourists
look for. All in all, Hong Kong can be considered as another tourists paradise, and a must
visit place for those who wish to see all these fascinating things in the heart of Asia.
Hawkins (1994) calls it, because in this, marketers aim at understanding the consumer
behavior so that they can have their products and services appropriately priced, placed,
promoted and developed to cater to their precise target market. The text of marketing is piled
up with tons of definitions of consumer behavior, while some authors agree that a one liner is
have been written trying to cover the deep meanings of this term. This section looks at some
definitions of consumer behavior, and analyzing them to develop a unary outcome, with a
statement that can summarize some definitions and provide one outcome.
Consumer behavior is a science within itself, as stated by Mowen (1998), that asks certain
questions about consumers buying or not buying a product or service, and these questions
- when
- why
- how
- where
- what
Answering these questions lead to understanding the various elements related to behavior i.e.
sociology, anthropology, economics, and psychology. The underlying aim of this science, in
accordance with Mills (2005), is to determine and comprehend the decision making process
for a buyer. It is noticeable here that a buyer may not necessarily be the end-consumer. The
study is also aimed at understanding the impact of demographics towards the behavioral
variables for an individual. Alongside demographics, it has also been found that there is a
certain influence of various groups on a buyer or consumer, the study of which is also
included in consumer behavior. The detail of the science goes much deeper, which is beyond
mould their efforts in the right direction, i.e. for ultimately making the consumers choose
Clark (1995) stated that consumer behavior, in its linguistic meanings, is all about
determining and understanding the behavior of a consumer, and this definition of a consumer
includes a buyer in it as well, though this may not be the case necessarily. The consumer
and so on, are very much the factors around which the study of consumer behavior evolves.
In short, it can be stated that consumer behavior is all about reading and understanding the
mindset of the consumer so as to develop ways and means to affect them and make them feel
that the product or service presented is the one they are looking for.
Advertising is another factor that plays a major role here but its discussions is very much
The three word term i.e. tourists buying behavior can be divided into three major sections
based on its word count i.e. tourists, buying, and behavior. First, it is essential to understand
Buying here implies the process of making a purchase, while behavior is the aspect defining
the various aspects leading to the purchase and the completion of it alongside the feedback.
Having defined buying and behavior independently, it is essential to focus lights on defining
tourists as buyers.
Pizam (1999) states that for various marketing researches, vendors define various kinds of
customers but fundamentally there are two; one is a walk-in and the other is a regular. Within
the category of a walk-in customer, there are many other categories but mainly, there are
As visible from the categorization depicted as above, tourists are categorized as walk-in
customers, who are not expected to come back always but their referrals matter as they share
their experiences, while regular customers are expected to visit every now and then and their
frequency of visit defines their experience. Researches reveal that more than half of the sales
customers, and other than this, an important research also reveals that walk-in customers tend
to share their experiences with others more than any regular customers. Both these
researches, as referred to in the previous sentence, have presented this outcome particularly
Having defined the three terms separately, it is important to define what tourism buying
behavior is, and alongside the variables that impact the tourists buying behavior.
Robertson (1973) states that tourists buying behavior is defined as the series or sequence of
steps that tourists take for purchasing a product i.e. behavior of tourists while purchasing a
product or a service. It is worth-mentioning here that it is very difficult to target the tourist
segmentations in them. For example if a vendor targets tourists with heritage products and
mementos, such product may attract tourists from the UK, for instance, and may not be of
much attraction to those coming from Asia, since they have access to such stuff locally.
Chinese restaurant, it would definitely attract people from the west, but Asian tourists will not
be much attracted. Subsequently, studying the tourist buying behavior becomes important,
and coming up with conclusions is compulsory for having successful sales deals, for instance,
a conclusion may be that to attract the youth amongst all tourists or to attract the women
amongst the tourists or single men or something along similar lines. Schiffman (1997) states
the Following as some of the variables that have a significant impact on the tourist buying
behavior:
- The multi-linguistic skills of the vendor i.e. if the seller can speak multiple language,
and the buyer is comfortable with any of those, then the comfort level enhances
- For tourists, the point of selling is the unique proposition that the items hold within
themselves, something that cannot be replicated; for example, selling a model of Taj
Mahal near the venue in India would definitely inspire the tourists to buy it as a
memento.
- Giving off a visiting card is often an effective tool, as the tourists, as they go back,
can share it with those who would be visiting the place very soon.
- Giving a free gift that creates memories to the venue is also very important as it
develops memories for a long time, and word of mouth recommendation can also take
place.
word of mouth.
- Asking for a cup of tea or a cold drink also affects the buyer behavior and forces him
academic models that describe various aspects of consumer behavior and are discussed in the
following section.
This section is devoted to the understanding of the model provided by Howard-Sheth (1969)
more commonly known as Howard-Sheth model of buyer behavior (1969), as it is the most
frequently quoted amongst all models of consumer behavior. In accordance with Keller
(2003), this model has been found highly effective since the time it was formulated, decades
back in 1969. This model is critical in understanding consumer behavior because it defines
how important is the inputs given to the consumer prior to the buying decision is made i.e. to
the decision making process, and also recommends ways and means for ordering of these
variables for a consumer prior to making the decision. Following is the pictorial
Likewise any model that tries to replicate a happening or an event or a relationship, this
model too has certain limitations, as it fails to explain all buyer behavior. However, it is
formulated using research that was empirical in nature. The most recent researches have been
aimed at analyzing the exchange perspective, i.e. more from a marketer’s perspective.
This section aims at describing three other models related to consumer behavior, followed by
a) Engel, Kollat and Blackwell (EKB) (Engel, Black-well and Miniard 1993) model of
consumer behavior
Consumer behavior, as mentioned previously too, is all about how people make
purchasing decisions and the factors that influence the same. In the similar context,
Engel, Blackwell and Miniard presented their idea about consumer behavior in 1993
stating that the variables that define consumer behavior broadly fall in three major
categories:
i. Environmental influences
Furthermore, in accordance with Keller (2003), Engel and his fellow researchers
stated that the ‘need’ that eventually leads to thinking about a purchase must exist no
matter how dormant or un-recognized it is, and there is absolutely no chance for any
marketer to create a ‘need’. However, it is true that the communication led by the
marketing individuals can stimulate the desire for the purchase of a product or service
but the existence of a need is much beyond the factors of affluence for any business.
of variables defining or leading consumer behavior in the direction, and later on states
that marketers can only influence these categorized variables, with not much that can
test for the invariance of parameters across groups, achieved by placing some
causal in nature; this requires utilization of statistical data on the quantitative aspect
and assumptions on the qualitative side to formulate its mix. SEM is the form of a
model that encourages the utilization of confirmation rather than exploration thus is
used for testing theories rather than developing them. Fundamentally, it is based on a
hypothesis that is actually testing a model, and then SEM moves on to test it. SEM
has a few special cases like Regression, Factor Analysis and Path Analysis. The steps
SEM is often used as a tool for analyzing consumer behavior based on the data
collected in a primary research format. These models are often used in the studies
casual symptoms
- When explanatory variables that are significant are excluded from the analyses
person carries with him for a life time. Similar to the concept of shields or certificates
for participation in a certain program, tourists tend to collect such items from the
places they visit as a memorable item, keeping them reminded about the times they
had spent in the particular state. In accordance with Goldberg (1990), model of
souvenir purchasing behavior defines the way people behave and act or their behavior
towards purchase when they are looking to buy mementos. The model gives simple
and common sense theory but very important since common sense is not always very
common. In accordance with a model, a souvenir defines itself the way it will be sold,
because the value it will bring to the buyer would hold importance in their own eyes.
In accordance with the model, such items need not to be openly marketed because it’s
the need that drives the buyer towards the product in this case because the value of
this in the sight of the buyer, and its cost is not very much on a general note. As the
model moves further, it defines that souvenirs should be sold near the actual or in the
i.e. its model should be sold in the same area or someplace where there is another
similar memory of lovers. The model states that the unique feeling that a place has in
the heart of a visitor is what derives the will to buy a memento. Furthermore, it states
that souvenirs are the items that are most preferred by visitors as they give a direct
similar thing can be found any and everywhere by one means or the other but the
importance of a souvenir is directly from the heart and more often than not their
Posterior to the brief explanation about the models, following are the strengths and
The major strength of this model is that it defines the categories of variables that can
The major weakness of this model is that it rather de-motivates the marketer
confirming that a marketer cannot create needs but only simulate demand by
Thus, it lays stress on marketing communication for creating awareness of how needs
The major strength of this model is its accuracy in terms of providing the outcome
application of statistical tools and techniques giving rise to any chances for human
error leading to type I or type II error, i.e. increasing chances of rejecting a true
many a times.
The major strength of this model is that it directly relates to a specialized point of
concern i.e. for tourism and tourists, because neither of the above-mentioned models
are directly associated to the study of tourism and tourists. Thus, the specialization of
At the same time, the fact that this cannot be generalized to a greater degree or extent
Following section provides a brief comparison of the three models, based on variables of
reliability and validity to show its direct impact on the topic of research.
Comparison on a general note defines the differentiation amongst the variables under
consideration. However, in this case, it is essential to define the fact that despite having
different backgrounds, the utility of these models is what brings them on the same grounds
EKB is a model that talks about consumer behavior from the perspective of need and its
stimulation stating that need cannot be created, and its only the stimulation of purchasing that
SEM is a model that talks in a mathematical language, aimed at identifying, rather confirming
and testing a causal relationship between variables of interest, and has a generalized scale of
Model of Souvenir Purchasing Behavior is strictly limited in scope and particularly focused
towards buying behavior of tourists in particular towards items that create memories.
Therefore, the fundamental point of differentiation here is the ability of the model to be
Other than this, SEM model is based on mathematics, while qualitative-ness is restricted
towards the assumptions aspect only. At the same time, EKB and Souvenir Purchase
Behavior model is also qualitative in nature and has almost no application of quantitative
numbers.
Following section is devoted towards analyzing further points within the literature review
For the purpose of further elaboration and application towards the scenario under
consideration, the model chosen hereby is the model of souvenir purchasing behavior. Prior
This model has been chosen as a tool for further discussion because:
i. This model is primarily aimed and specialized at determining and understanding the
tourists buying habits, and this research is about tourist buying habits. Therefore, in
accordance to this match, the said model is expected to provide effective outcome
herewith.
Posterior to the justification, now the elaboration of the buying behavior shall be made using
Firstly, it is essential to understand the tourist as a consumer. At this point in time, the term
consumer includes in its meaning the term buyer. As previously mentioned, tourist is similar
to a walk-in customer, who walks in once, not frequently, and may or may not come back, but
that one visit is the time for the store to make an impact on the tourist because this impact
will not just be the impact of a sales person or a shop but in actuality, it would be an impact
of the whole nation, heritage, and the culture created on this individual. This opinion would
eventually derive the tourist’s opinion about the people of the country and about the country
itself a courteous call from the shop keeper or the sales person can create a lifelong impact, so
much so that the tourist would be bound to re-visit when he visits that state again, and beyond
that, the word of mouth would definitely spread across various sections of this tourists sitting.
Therefore, the sales person should have the art to do this. This art would be actually aiming at
On a general note, a sales person or a marketer has open doors to tons of opportunities for
targeting, affecting and driving the consumer behavior in the direction towards the purchase
of the respective product or service, but a tourist is a non-resident and it is difficult to target
such individuals with advertisements in either ways. For example, as Yu Tony Fu-Lai (1997)
states that if a restaurant in Hong Kong plans to advertise its products in the UK, it may be
quite useless because not many would recall the restaurant address and even name at times
when visiting Hong Kong. Even the internet does not provide a very good platform. Though
of information about various places, but the issue is that recalling places to visit in terms of
cultural heritages or unique places may be simple, but recalling any particular restaurant or
any shop selling mementos, is quite difficult by all means and an acceptable point.
In the similar context, the sellers need to create an impact. The model of souvenir purchasing
behavior assists in this regard and respect. It clearly makes the point that a unique item would
market itself, and the point of differentiation should be unique enough to create an impact in
the memory. Subsequently, it invites the various vendors involved in selling such and similar
Mathews (2001) states a very positive example of the application of this concept and
‘creating an impact’ is witnessed in Dubai – UAE, whereby Souks (market places) are
established during the festival times, in which vendors selling similar products place stalls
and prices are rather fixed since the market place is common within a given piece of land.
Mathews (2001) gives another example of the same is the presence of a market place near Taj
Mahal, in the state of Agra – India, whereby the market place sells various mementos related
to the wonder of the world, by one means or the other such as statues, pictures, art pieces, etc.
all defining the greatness of the place and such items create a flair of association in the hearts
of the tourists who take these items back home as decoration pieces, associating their
memories of the visits or presenting them to their dear ones as a token of love and friendship.
These examples are the perfect placement of the model of souvenir purchasing behavior
The following chapter presents the application of this to the case of Hong Kong, in the form
This final section of this research presents the relationship between the knowledge gathered
in the previous chapter to the subject of research. The topic was initiated from the point of
importance of services for improving the present scenario of consumer buying habits in Hong
It has been found through the research and analysis of various literatures that the sellers of
various tourist items, and particularly those who run their businesses as a derived product of
the tourism in the country, should look forward to developing their service levels to such a
point whereby they gain customer loyalty of the tourists. This would lead to tourists coming
back to the same shop when they re-visit or recommend the same to the people whom they
know would be visiting thus creating a word of mouth. Such a service level is not difficult to
attain or manage however an easier mechanism for the same can be traced back to the model
of souvenir purchase behavior that clearly embarks giving the tourist an unforgettable
experience, which they would love to share with their families, friends, and with other
tourists. This sharing of experience is what the sales persons should look for because this
shall truly mark the success of the marketing or sales individuals involved in the process
herewith. The service levels of sales persons or marketers should be able to create an impact.
As mentioned in the previous chapter, there are examples of such impact in various parts of
the world, who wish to retain their memories in the eyes and minds of the tourists. Hong
Kong should look for a solution within the similar lines for improving the purchasing
behavior of tourists coming to Hong Kong for tourism purposes and to make sure they get an
experience worth sharing and worth pushing them to come over again.
research.
There were some limitations to this research. First and foremost was the availability of data
as not many websites or books shed light upon the tourism aspect in Hong Kong, and the
availability of the limited books that do shed some light was a crucial limitation. Other than
that, the limited time and cost was another critical line for research.
The following section of this research sets the stage for further research work or study
As a researcher, one would always acknowledge and appreciate their research used as a
fundamental to move on and build upon for further research study. Carrying on from this
research, it is suggested to study how in actuality the various concerned stakeholders are
targeting tourists, the efforts that they are making, and the outcome of these efforts and
calculating its ROI (Return on Investment) is an important aspect which I would really want
to be covered, and this research can prove to be a vital foundation in that regard.
The following section of this research presents in brief form how this work can be utilized
and applied to cases other than that of Hong Kong as discussed in this research.
The work that has been done in this report can well be applied to other countries that are
looking to monitor and audit their tourism industry efforts, in terms of the revenues and other
variables that determine the effectiveness. Other than that, another point of concern is that not
just monitoring and auditing is important, but improvements are the utmost important aspect,
the world is going about these practices and how a nation in itself is doing this work.
The following section of this research provides a brief over view of the personal opinions
The personal opinion I formulated in this regard is that the tourism industry of any country
holds extreme importance, as it can influence the opinions of the tourists who visit their
country, and subsequently, have them come over again and again, and gain in terms of
revenues from tourism. I realized that it is all in the hands of marketers and sales individuals
about the impact they create and the impression, and the values that they communicate to the
tourists.
Research is nearly always a tremendous experience to enhance the class room learning from
the text books and instructor experiences, and this research was no different. It provided me
with a unique experience of exploring the tourism industry within Hong Kong and a brief
global perspective added a brilliant touch to the same. The most interesting parts of this
research for me were the point of choosing the topic and the point associated with the
literature review. Choosing a topic as interesting because I had to hunt information, dig
around opinions of the gurus and people close to me to see what topic would enhance my
understanding about the topic. Other than this, I really enjoyed the literature review. While I
was doing this assignment, the real learning for me came at the point where I gather
information on the various models included in the literature review, and one of them had to
be chosen and applied to this given case, and the justification was also mandatory. I must
acknowledge the fact that the analyses have truly shaken my analytical skills and made me
• Abraham Pizam, Yoel Mansfeld (1999) Consumer behavior in travel and tourism.
Haworth Press
• Beth Reiber (2005) Frommer's Hong Kong. John Wiley and Sons
• Del I. Hawkins, Hawkins, Neal, Pascale Genevieve Quester, Cathy M. Neal, Quester
• Genzberger, Christine A. (1994) Hong Kong Business: The Portable Encyclopedia for
• John C. Crotts, W. Fred van Raaij (1994) Economic psychology of travel and tourism.
Haworth Press
Heinemann
• Juline E. Mills, Rob Law (2005) Handbook of Consumer Behavior, Tourism, and the
• Leon G. Schiffman, Leslie Lazar Kanuk (2006) Consumer Behavior. Pearson Prentice
Hall
Committee for Research on Consumer Attitudes and Behavior (1955) New York
University Press
Press.
• Punam Anaud Keller, Dennis W. Rook, Association for Consumer Research (2003)
Australia.
Prentice-Hall
Madison
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