gon kim, park, gazzoli & sheng - benefit segmentation of international travelers to macau, china

8/11/2019 Gon Kim, Park, Gazzoli & Sheng - Benefit Segmentation of International Travelers to Macau, China

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Benefit Segmentation of InternationalTravelers to Macau, ChinaWoo Gon Kim

a, Yumi Park

b, Gabriel Gazzoli

c& Edmund Sheng

d

a

Robert H. Dedman Professor of Hospitality Management &Director of International Center for Hospitality Research, Dedman

School of Hospitality, College of Business, Florida State University,

Tallahassee, Florida, USAbOklahoma State University, School of Hotel and Restaurant

Administration, Stillwater, Oklahoma, USAcAston Business School, Aston University, Birmingham, United

KingdomdInstitute For Tourism Studies, Colina de Mong-Ha, Macao

Version of record first published: 06 Feb 2011.

To cite this article:Woo Gon Kim , Yumi Park , Gabriel Gazzoli & Edmund Sheng (2011): BenefitSegmentation of International Travelers to Macau, China, Journal of Quality Assurance in Hospitality &

Tourism, 12:1, 28-57

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Journal of Quality Assurance in Hospitality & Tourism, 12:2857, 2011

Copyright Taylor & Francis Group, LLCISSN: 1528-008X print/1528-0098 onlineDOI: 10.1080/1528008X.2011.541813

Benefit Segmentation of InternationalTravelers to Macau, China

WOO GON KIMRobert H. Dedman Professor of Hospitality Management & Director of International

Center for Hospitality Research, Dedman School of Hospitality, College of Business,

Florida State University, Tallahassee, Florida, USA

YUMI PARK

Oklahoma State University, School of Hotel and Restaurant Administration,Stillwater, Oklahoma, USA

GABRIEL GAZZOLIAston Business School, Aston University, Birmingham, United Kingdom

EDMUND SHENGInstitute For Tourism Studies, Colina de Mong-Ha, Macao

The purpose of this study is threefold: (1) to identify the underlying

benefits sought by international visitors to Macau, China, whichhas emerged as a popular gambling destination in Asia; (2) to

segment tourists visiting Macau by employing a cluster analysisbased on the benefits sought; and (3) to examine any salient differ-ences between the segment groups with regard to their behavioralcharacteristics, socio-economic characteristics, and demographic

profiles. A convenience sample was used to collect data in theMacau International Airport, in the Macau Ferry Terminal, andat the border gate with Mainland China. A total 1,513 useful

surveys were retained for data analysis. Cluster analysis dis-closes four distinct clusters: convention and business seekers,family and vacation seekers, gambling and shopping seekers,and multi-purpose seekers. Based on the results of our findings,

several managerial implications are discussed.

KEYWORDS benefit segmentation, cluster analysis, Macau, desti-nation management

Address correspondence to Woo Gon Kim, Ph.D., 288 Champions Way, UCB 4116, PO

Box 3062541, Tallahassee, FL 32306-2541. E-mail: [email protected]

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International Travelers to Macau, China 29

INTRODUCTION

The travel and tourism industry has become an essential factor in the devel-opment of many cities, regions, and countries (Weber & Teliman-Kouta,

1991). According to a study conducted by the World Travel and TourismCouncil (2008), the total expected tourism demand reached $7.8 trillion ineconomic activities worldwide in 2008, and this number is forecasted toincrease to $14.8 trillion in 2018. The same study reported that the tourismsector is expected to contribute 9.9 % of the global gross domestic product(GDP) in 2008, as well as employ more than 238 million people directlyand indirectly (Weber & Teliman-Kouta, 1991). In light of such astonish-ing statistics, the tourism industry is widely recognized as a major economicand social contributor to many destinations, and therefore, a focus on thisindustrys growth has become an important component in the development

strategy of any destination.As the tourism industry develops in new areas of the world, destina-

tion choices for consumers continue to expand. As a result, travelers havemore choices when making travel decisions, and these destinations, there-fore, must compete more than ever for tourist dollars. Consequently, tourismmarketers are faced with more complex and competitive marketplaces. Inorder to develop a competitive advantage and improve returns from market-ing investments, destinations must develop appropriate market segmentationstrategies. Following a basic principle of marketing strategy proposed byKotler (1967), destinations should segment their markets in order to identify

their most attractive customers. The importance of segmentation is so crucialfor an effective strategy that some scholars have suggested that if youre notthinking segments, then youre not thinking (Levitt, 1983).

One criterion for destination market segmentation is to analyze thebenefits sought by tourists (Sarigollu & Huang, 2005). Kotler and Turner(1993) suggested that benefit segmentation is a powerful tool for puttingconsumers into more homogeneous groups. In addition, Haley (1968) pro-posed that benefit segmentation provides more accurate determinants ofhuman behavior than other approaches because the benefits that tourists

seek are the basic reasons for the existence of true market segments.The purpose of this study, then, is to examine the benefits sought bytourists at a particular destination, one which has gained popularity as agaming paradise and an emerging tourist destination in Asia: Macau, China.

Research Site

Macau is located on the South coast of China. Its territory is within a 60 kmreach of Hong Kong and 145 km from the city of Guangzhou (on MainlandChina). In the early 1500s, Macau was colonized by Portugal. The Portuguese

rule lasted until December 1999, when Macau was handed over to China.Today, Macau is a Special Administrative Region (SAR) of China, and, like


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30 W. G. Kim et al.

TABLE 1 Macau Economic and Tourism Indicators (20002008)

Indicator 2000 2001 2002 2003 2004 2005 2006 2007 2008

Unemployment rate (%) 6.75 6.39 6.23 6.02 4.75 4.1 3.72 3.04 3.02Nominal GDP (USD

billion)

6.1 6.2 6.9 8.0 10.3 11.5 14.2 18.8 21.7

GDP per capta (USD000s)

14253 14348 15671 17898 22554 24263 28536 35786 39577

Visitor arrival (million) n.a n.a 11.5 11.8 16.6 18.7 22 27 22.9Gross gaming revenue

(USD billion)n.a n.a n.a n.a n.a 5.9 7.2 10.5 13.8

Rooms available (fromguest houses to 5)

9,201 9,030 8,954 9,188 9,168 10,832 12,982 16,148 17,490

Hotel occupancy (%) 57.5 67.1 73.8 77.4 78.5 76.1 78.1 83.0 79.0Number of MICE events n.a n.a 136 125 278 305 360 1,117 1,240

Note: GDP =Gross Domestic Product

USD1 =MOP 7.98 as of December 12, 2009.

Source: Statistics and Cesus Services, Macao SAR Government

Hong Kong, it benefits from the principle of one country and two sys-tems (Macau Government Tourist Office, 2008). The resident population ofMacau has increased from 425,200 in 1998 to 541,200 in the third quarter of2009 (Macau Statistics and Census Services, 2009a). Macau has experienceda phenomenal growth in tourist arrivals in the past decade. In 1998, theregion registered 6.9 million arrivals and the numbers grew annually until2007, when Macau achieved a record high number of 27 million arrivals.However, in 2008, the region registered a decrease in the number of tourist

arrivals, totaling 22.9 million visitors. Tourists from Mainland China repre-sented 50% of the total arrivals in 2008, while 30% were from Hong Kong, 6%from Taiwan, and all other countries represented the remaining 14% (MacauStatistics and Census Services, 2009b). The contribution of Travel & Tourismto the Gross Domestic Product (GDP) of Macau is expected to changefrom 69.9% (USD 19.3 billion) in 2009 to 70.7% (USD 45.3 billion) in 2019(World Travel & Tourism Council, 2009). Macaus tourism industry currentlyemploys 177,000 people, representing 65.3% of the regions total employ-ment. According to the World Travel & Tourism Councils (2009) worldranking, Macaus tourism is listed as the 39th place in absolute size, thirdin contribution to national economy, and 35th in growth forecast among 181other countries. Table 1 presents the major economic and tourism indicatorsof Macau, and it shows how this destination evolved over the years from2000 to 2008.

LITERATURE REVIEW

The Need for Segmentation Research

Scholars in the field of consumer behavior focus their efforts on explainingthe decision-making processes of different consumers, and the foundation


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32 W. G. Kim et al.

Market Segmentation Research in the Tourism Industry

As discussed earlier, market segmentation helps marketers break down het-erogeneous markets and define smaller segments of homogeneous groupsaccording to one or several variables. In the tourism field, the criteria

used for segmentation can be divided into two different groups: 1) gen-eral consumer characteristics that include psychographic, geographic, anddemographic variables; and 2) situation-specific characteristics, such asthe consumers perceptions, preferences, and attitudes toward products orservices; the modes of product usage and the benefits sought; and thepurchasing frequency and actual expenditure (Legoherel, 1998).

The literature shows that benefits have been defined and conceptual-ized differently by several scholars (Sarigollu & Huang, 2005). On one side,researchers have defined benefits as visitor ratings of amenities and activities(Tian, Crompton & Witt, 1996). This definition has been used in destinationimage research where the objective was to measure visitors impressions ofdestinations (Crompton, 1979). On the other side, in order to capture thetourists psychological benefit outcomes, researchers have focused on themotivations to travel (Bieger & Laesser, 2002). The present study adopts abroader view of benefit segmentation as it incorporates the desired activitiesand motivations that international travelers seek when considering Macauas a travel destination.

Besides different definitions and conceptualizations of benefit segmen-tation, the literature shows that this segmentation strategy can be classified as

either destination-specific or non-destination-specific. In destination-specificresearch, tourists to a common destination are classified into segments basedon the benefits they seek (desired activities or motivations). For example,Kim and Agrusa (2009) interviewed Japanese visitors in Honolulu, Hawai,and defined five groups on the basis of the tour-purpose segmentationmethod, namely: 1) Honeymoon tourism; 2) Fraternal association tourism; 3)Sports tourism; 4) Tourism for rest and relaxation; and 5) Business/VFRtourism. In addition, Li, Huang, and Cai (2009) collected data from adult vis-itors to a rural community in the state of Indiana, USA, and found 6 factors(out of 32 motivation variables), including escape; novelty; nostalgia and

patriotism; event excitement; family togetherness; and socialization.Non-destination studies, on the other hand, explain the general char-

acteristics (benefits) that tourists seek when planning to visit a destination.The data for this type of study are usually collected from specific regions(Sarigollu & Huang, 2005). Past non-destination-specific research includesBieger and Laesser (2002), who studied the general motivations of Swisstravelers in Switzerland and found motives such as nightlife, nature, culture,sports, and sun. Further, Shoemaker (1994), who segmented the US travelmarket by benefits, adopted 39 different variables including sun, sports,entertainment, family, convenience, and scenery. Finally, Cha, McCleary, and


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Uysal (1995) explored the travel motivation of Japanese overseas tourists andfound six motivational dimensions (e.g., relaxation, knowledge, adventure,travel bragging, family, and sports) out of a total of 30 motive variables.

According to the literature, the majority of published work within this

domain is destination-specific (e.g., Andreu, Kozak, Avei, & Cifter, 2005;Davis & Sternquist, 1987; Frochot, 2005; Huang & Sarigll, 2007; Johns &Gyimthy, 2002; Lang & OLeary, 1997; Loker & Perdue, 1992; May, Bastian,Taylor, & Whipple, 2001; Moscardo, Pearce, Morrison, Green, & OLeary,2000; Sarigll & Huang, 2005; Tian et al., 1996; Woodside & Jacobs, 1985).

Past research also shows an array of statistical techniques used in seg-mentation studies. Most of the studies have applied cluster analysis, as thistechnique has proven to be an effective marketing strategy tool becauseit yields viable market segments (Arimond & Elfessi, 2001). Besides clusteranalyses, other statistical techniques were added to complement the initial

cluster investigation. For example, May et al. (2001) used canonical discrimi-nant analysis to further analyze the differences between the clusters. Boo and

Jones (2009) applied discriminant analysis, and Bieger and Laesser (2002),as well as Sirakaya, Uysal, and Yoshioka (2003), used multiple discriminantanalysis (MDA) to further identify discriminating factors for each cluster.Kim and Agrusa (2009) added analysis of variance (ANOVA) and correspon-dence analysis to assess the differences in the travelers preferences andother travel-related, attitudinal, behavioral, and socio-demographic charac-teristics related to each tour purpose. Table 2 provides an overview of extantresearch on benefit segmentation within the tourism field.

Tourism Research on Macau

The literature shows several recent studies related to tourism developmentin Macau. For example, Gu (2006) highlighted the importance for Macauto focus on product differentiation through a revenue management strategyas a mean to compete effectively against the emerging gaming destinationin nearby Asian countries. According to Gu, Macau should concentrate itsefforts on differentiated gaming service products, such as its VIP rooms

operations, in order to maximize the future revenue potential.Along the same line of thinking, Gu (2004) conducted a SWOT analysisof Macau before answering the question as to whether or not the destinationshould follow the Las Vegas style when developing its own gaming strategy.The author concluded that the Las Vegas business model is not a suitableapproach for Macau, as it will force Macau to compete against Las Vegas andother Las Vegas-type destinations in Asia. Moreover, the study suggestedthat if Macau follows the Las Vegas colossal gaming, entertainment, con-

vention, and shopping model, it would also compete against non-gamingdestinations, such as Hong Kong and other nearby Chinese cities. Therefore,


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T

ABLE2

SummaryofthePastRe

searchonSegmentationandStatisticalAnalysis

A

uthors(Year)

Subjecta

ndstudyregion

Benefitsso

ughtdimensions

(factors)

Segments

Differentsegmentation

criteria(Delineators)

B

oo&Jones(2009)

Travelerstothemajor

metropolitanareawho

visitedto

urism-related

sites

6factors(ou

tofatotal20

items)So

cial/Interaction;

Excitement/Fun;Relaxation;

Sightseeing;Family/Friends

Togetherness;andSports

3ClustersSocial-seeking

travelers;

Excitemen

t-seeking

travelers;and

Relaxation

-seekingtravelers

None/Discr

iminant

analysiso

feachgroup

K

im&Agrusa

(2009)

Japaneseto

uriststo

Honolulu

,Hawaii,USA

5groupson

thebasisofthe

tourpurposesegmentation

methodHoneymoon

tourism;F

raternal

associationtourism;Sports

tourism;T

ourismforrest

andrelaxation;and

Business/

VFRtourism

Socio-demo

graphicand

Behavioral

characteristics/Corres-

pondence

analysis

Li,Huang,&Cai

(2009)

Adultvisito

rsfromoutside

thehostcommunityinthe

ruraldestinationinthe

Midwest

(Indiana)ofthe

UnitedStates.

6factors(ou

tofatotalof32

benefits)

Escape;Novelty;

NostalgiaandPatriotism;

EventExcitement;Family

Togetherness;and

Socialization.

5Clusters-FamilyTravelers;

Event(festival)Enthusiasts;

LoyalFestivalGoers;

Escapers;

andSocial

Gathering

Lovers.

Demograph

icsand

TravelerB

ehavior

H

uang&Sarigll

(2007)

Touriststo

theCaribbean

5factors(ou

tofatotalof21

items)Sightseeing;Sports;

NightLife;

Beach;andParks

&Arts

4ClustersSun&Fun

Seekers;A

ctive

Sportspeople;Variety

Seekers;a

ndSightseers

Demograph

ics,Travel

behavior,

Decision

drivers,and

Personalitiesand

interests.

34


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A

ndreu,Kozak,

Avci,&Cifter

(2005)

BritishtouriststoMugla,

Turkey

5factors(ou

tofatotalof17

motivation

s)Enjoytourist

attractions;Diversityof

entertainm

entinavaluefor

moneydestination;Different

culturalen

vironment;Ease

ofaccess;andGettingaway

fromroutine

5ClustersFuzzytourists;

Activetou

rists;Recreation

seekers;E

scapeseekers;and

Relaxseekers

Socio-demo

graphic

characteristicsand

holiday-ta

kingpatterns

F

rochot(2005)

Touriststo

tworuralareas,

Scotland

4factors(ou

tofatotalof13

benefits)

Outdoors;

Rurality;Relaxation;and

Sport

4ClustersActives;Relaxers;

Gazers;an

dRurals

Activitiespreferences,

Socio-eco

nomicand

behaviora

l(holidaying)

characteristics,

Sarigll&Huang

(2005)

NorthAmericantouriststo

LatinAm

erica

5factors(ou

tofatotalof24

motives)

FunandSun;

Ecotourism

;PerformingArts

&Events;Outdoor

adventure;andGeneral

sightseeing

4ClustersAdventurer;

Multimfarious;Funand

Relaxation

;andUrbane

Demograph

ics,Travel

behavior,

Decision

drivers(e

.g.,Health

service,C

hilddaycare,

Telecomserviceetc.),

andPerso

nalitiesand

interests.

K

ang,Hsu,&Wolfe

(2003)

Travelers,w

hovisitedoneof

thethree

Travel

InformationCenters(TIC)

onthebo

rdersofKansas,

U.S

3ClustersIntergenerational

(ITG)travelers;Business-

mixed-with-pleasure(BMP)

travelers;andVisitingfriends

andrelatives(VFR)Travelers

Familydecision-making

process

Sirakaya,Uysal,&

Yoshioka(2003)

Japanesetr

avelerstoTurkey

8factorsLoveofNature;

EnhancementofKinship;

ExperiencingCulture;Living

theResort

Lifestyle;Escape;

Education

in

Archeology/History;Living

theExtravagantLifestyle;

andTravelBragging

2ClustersEscapersand

Seekers

None/Multiple

Discrimin

antanalysis

(MDA)

(Continued)

35


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T

ABLE2

(Continued)

A

uthors(Year)

Subjecta

ndstudyregion

Benefitsso

ughtdimensions

(factors)

Segments



B

ieger&Laesser

(2002)

Swisstrave

lersin

Switzerla

nd

10motivationfactorsincluding

nightlife,c

omfort,partner,

family,nature,culture,

liberty,sports,andsun.

4ClustersCompulsory

Travel;Cu

lturalHedonism;

FamilyTravel;andMeet

Marketing

Demograph

icsandTravel

behavior

(e.g.,means

oftransportation,

roundtrip

distance,

lengthof

visitetc./

Discrimin

antanalysis

ofeachgroup

Johns&Gyimthy

(2002)

VisitorstoBornholm,

Denmark

4factors(ou

tofatotalof19

activities)

Outdoor/social;

Outdoor/n

ature;Relaxing;

andSightseeing

2Clusters-ActiveandInactive

group

Amenities,Activities,

Attraction

visit

M

ay,Bastian,Taylor,

&Whipple(2001)

Wyomings

nowmobile

owners,Wyoming,U.S.

26benefitsincludingenjoying

nature,ac

hievement,

stimulation

,escape,

personal/s

ocialpressure,

andbeing

withfamilyand

friends

5Clusters

Achievement/stimulation;

Escapepe

rsonal/social;

Enjoynature/learning;

Beingwithsimilarfamily

andfriend

s;andEscape

PhysicalP

ressure

Socio-economic

characteristicsand

Behavior

(e.g.,number

ofdayssnowmobiling

peryear,

amountof

spenton

lasttrip,

etc.)/Canonical

Dicsrimin

antanalysis

ofeachgroup

36


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M

oscardo,Pearce,

Morrison,Green,

&OLeary(2000)

VisitorstoQueensland,

Australia.

(froma

secondar

ydatafromthe

QueenslandTouristand

TravelCorporation)

20benefitsincluding

relaxation,resort,warm

sunnywea

ther,

beach

activities,andenvironmental

activities

4ClustersBeachRelaxation

group;Inactivegroup;

ActiveNatureLoversgroup;

andActiveBeachResort

group.

Demograph

icsandTravel

behavior

(e.g.,travel

party,exp

enditure,

lengthof

stay,means

oftransportation,etc.)

F

ormica&Uysal

(1998)

VisitorstotheSpoleto

FestivalinItaly

6factors(ou

tofatotalof23

motives)

Socializing;

Cultural/historical

significanc

e;Group

togetherne

ss;Sitenovelty;

Eventattra

ction&

excitement;andFamily

Togetherness

2ClusterE

nthusiastsand

Moderatesgroup

Demograph

icsandTravel

behavior

(e.g.,repeat

orfirst-tim

evisitor)

Lang&OLeary,

1997

Australiannaturetravelersto

outsideo

fAustraliaand

NewZea

land(outbound

naturetravelmarket)

7benefitfactors(outofatotal

of25bene

fits)New

Experience;Escapeand

Entertained;Showandtell;

FamilyOriented;Cultural

GroupsInterest;Physical

Challenge

andNature;and

Relax

6ClustersPhysicalChallenge

Seekers;F

amilyVacationers;

Culturean

dEntertainment

Seekers;N

atureTourists;

Escapean

dRelax

Vacationers;andIndifferent

Travelers

Motivation-participation-

preferenc

emulti-

segmentationapproach

T

ian,Crompton,&

Witt(1996)

MuseumgoersinGalveston,

Texas

18benefitsincluding

relaxation,entertainment,

socializing,

bonding,social

recognition,selfesteem,and

education

4clusters

Demograph

icsandTravel

behavior

(e.g.,

frequency

oftravel,

typeofm

useums

visited,etc.)

C

ha,McCleary,&

Uysal(1995)

Japaneseoverseastourists

6factors(e.g

.relaxation,

knowledge,family,and

sports)outofatotalof30

motivevar

iables

3Clusters-S

portsseekers;

Noveltyseekers;and

Family/relaxationseekers

Demograph

ics (C

ontinued)

37


12/31

T

ABLE2

(Continued)

A

uthors(Year)

Subjecta

ndstudyregion

Benefitsso

ughtdimensions

(factors)

Segments



Shoemaker(1994)

UStravelm

arket

39differentvariablesincluding

educationa

lpossibilities,

environme

ntalaspects,

resortset,sunsports,

popularity

ofdestination,

value,scenery,friend,

relatives,e

ntertainment,

family,an

dconvenience

Demograph

icsandTravel

behavior

(e.g.,number

oftripsperyear,plans

forfuture

tripetc.)

Loker&Perdue

(1992)

NorthCaro

lina

12benefitsincludingescape,

relaxation,natural

surroundin

gs,excitement

variety,fam

ily,andfriends

6Clusters

D

avis&Sternquist

(1987)

Traversecity,U.S.

10benefitsincludingsports,

sightseeing,rest,shopping,

food,entertainment,and

culture

Demograph

icsandTravel

behavior

(e.g.,

destinatio

n,totalsizeof

travelgro

up,

lengthof

visitetc.)

38


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creating its own model and focusing on the niche gaming segment wouldhelp Macau differentiate itself from similar Las Vegas-type destinations (Gu,2004). Further, Nadkarni and Leong (2007) indicated that the developmentof MICE (Meeting, Incentive, Convention, and Exhibition) facilities, cou-

pled with other leisure and entertainment factors, will create a competitiveadvantage for Macau over its regional competitors, and it will yield higher-spending business tourists. Lastly, many other researchers argued that Macaucan be re-created as the Las Vegas of Asia (McCartney 2003; McCartney &Nadkarni, 2003; Tang, Choi, Morrison, & Lehto, 2009). This vision has beenembraced by the Macau Government and some casino operators, such asLas Vegas Sands, who opened The Venetian in 2007: an integrated gamingand MICE resort (McCartney, 2008a).

Several studies related to Macau as a destination have centered theirresearch questions towards Macaus image. The literature shows two

research streams within its destination image. The first stream focused onMacaus projected online images from different websites (e.g., Choi, Lehto,& Morrisson, 2007; Tang et al., 2009). Choi et al. (2007) attempted to iden-tify the image attributes of Macau on the internet by examining 61 websitesdivided into five different categories, namely 1) Macau official tourism web-site (MGTO), 2) travel guides, 3) travel magazines, 4) travel blogs, and 5)travel trade. The results from the content and correspondence analysisshowed that Macau has many faces, and its projected image varied accordingto the different online information sources. For example, the word casino

was the fourth and fifth most frequent word in travel magazines and blogs,

respectively, and 47th on the MGTO website, whereas the word museumwas the second most frequent word on the MGTO website, sixth on traveltrade sites, 25th on the blogs, and 57th in magazines. These findings suggestthat the MGTO website is trying to move away from a gaming image byfocusing its communication efforts on a more diverse set of activities, such asculture/sightseeing, shopping, and other leisure activities (Choi et al., 2007;Tang et al., 2009).

On the other hand, the second research stream has tried to capturethe image perceptions from actual and potential visitors to Macau (e.g.,

McCartney, 2005; McCartney, 2008b; McCartney, Bluter, & Bennett, 2008).McCartney (2005) studied the impact of the 50th Macau Grand Prix eventon visitors destination image perceptions. His findings showed that theGrand Prix itself did not change the image perceptions of tourists, and thattourists sometimes have a negative perception of Macau as being exclusivelya gaming destination. McCartney (2008b) compared data from travelers rep-resenting the four major tourist markets in MacauHong Kong, Beijing,Taiwan, and Shanghaiand found significant differences between the mar-kets in all 33 measured image attributes. Overall, the attributes gamblingopportunities, good night-life/adult oriented, and restful and relaxing

showed the highest mean ratings across all regions. Weaker perceptions


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40 W. G. Kim et al.

across the respondent groups were related to attributes such as place todo business, place to have meeting/exhibition, rich cultural heritage,and important museums. The same study also examined the differencesin travel motives between the four regions, and the results showed that

significant differences exist between Macaus major travel markets. In gen-eral, the highest motives for travel were relax physically and mentally andexperience a new culture, whereas visit friends and relatives and ableto gamble legally were the weakest motives, respectively.

In sum, our literature review shows that Macaus image remains some-what perceived as solely a gaming place (McCartney, 2008a), despitegovernmental efforts to reposition this destination as a place where one canenjoy different activities, such as MICE, culture, and entertainment. Sincelearning what drives tourists activities and motivations becomes crucial foran effective destination positioning (McCartney et al., 2008), this study seeks

to answer the following three research questions:

1. What are the underlying benefit factors sought by Macau visitors?2. How best? to segment tourists who visit Macau by employing cluster anal-

ysis, based on their specific activities and the benefits they seek duringtheir stay in Macau?

3. What are the salient differences between the different segments ofvisitors with regard to their behavioral characteristics, socio-economiccharacteristics, and demographic profiles?

METHODOLOGY

This study conducts a benefits market segmentation analysis of internationaltourists visiting Macau. The benefit factors are generated through the desiredactivities and motivations of tourists when they consider Macau as a traveldestination. The information required to perform this research was obtainedby questionnaire.

Questionnaire Development and Data Collection

The questionnaire was developed to collect a wide rage of informationfrom international tourists to Macau and was comprised of two major parts.The first part of the questionnaire assessed behavioral, socio-economic, anddemographic variables, such as party size and composition, purpose of trip,length of stay, entry mode, country of origin, age, household income, accom-modation type, package users vs. non-package users, and occupation andeducational levels. The second part of the questionnaire was composed of25 items, representing the activity attributes that international visitors per-

ceive as most important when considering Macau as a travel destination.


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The activity variables were measured on a 7-point Likert-type scale (from1 = strongly disagree to 7 = strongly agree) and selected after an extantliterature review in academic journals, interviews with Macau residents, andconsultation with tourism scholars from that region.

Due to the large number of visitors coming from Mainland China andHong Kong, the English questionnaire was also translated into traditionaland simplified Chinese by an employee from a local university. It was thenpresented to staff members and students of the same university, as wellas employees of a local hotel, for verification purposes. After verifying thetranslations, the three versions of the questionnaire were pre-tested on 18different students for validity purposes.

Nine paid students from the university were hired to support the datacollection phase. These students attended a 2-hour training session givenby one of the researchers, who was also on-site. The field researchers were

instructed to perform the following three steps: 1) to approach internationaltravelers; 2) to introduce the purpose of the study; and 3) to request theirparticipation in the survey. The data was collected during July and August2007, and a convenience sample method with a self-administered ques-tionnaire was applied. The locations used for data collection were in theMacau International Airport, on the Macau Ferry Terminal, and at the bordergate with Mainland China. In total, the researchers gathered 1,812 question-naires, but due to a substantial amount of missing information in many ofthe questionnaires, 1,513 useful surveys were retained for data analysis.

RESULTS

Factor Analysis and Reliability Test of Macau Visitors Activities

Factor analysis was used to identify the underlying constructs of the 25 activ-ities performed by visitors to Macau. Three items were deleted after factoranalysis, and two more were eliminated after a reliability test, resulting in 20items (of the original 25) used in the survey. A Principal Component Analysis(PCA) with a Varimax rotation was used with a pre-determined cut-off eigen-

value equal to or greater than 1.0 (Heung & Cheng, 2000). Only factors withmore than .4 loading were retained and included in the factor identifica-tion. The Cronbachs alpha coefficient of each factor ranged from .63 to .92,

which was considered acceptable. In relation to the reliability of the scale,the Kaiser-Meyer-Olkin measure of sampling adequacy (KMO =0.805) wasquite high, and Bartletts test of sphericity was significant (Approx. 2 =13198.473,df =210,p


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42 W. G. Kim et al.

togetherness, and shopping (see Table 1). The first dimension, labeledgambling, accounted for 22.62% of the total variance with a reliability coef-ficient of .91. The second dimension, labeled convention and business,explained 12.65% of the variance with a reliability coefficient of .92. The

third dimension, labeled pleasure, explained 10.91% of the total variancewith a reliability coefficient of .74. The fourth dimension, labeled culturalexploration, accounted for 7.60% of the variance with a reliability coeffi-cient of .64. The fifth dimension, labeled family togetherness, accountedfor 5.77% of the variance with a reliability coefficient of .63. The sixth andfinal dimension, labeled shopping, explained 5.09% of the variance with areliability coefficient of .69.

Cluster Analysis for Market Segmentation of Macau Visitors

Cluster analysis is a multivariate analysis technique, which is also called seg-mentation analysis or taxonomy analysis. It is a statistical tool that classifiesobjects into a set of groups according to the characteristics of the objects.It seeks to identify a cluster, which both minimizes within-group variationand maximizes between-group variation (Hair, Black, Babin, Anderson, &Tatham, 2006).

To enhance our understanding of the factor structure, cluster analy-sis was employed to classify Macau visitors into mutually exclusive groups,based on a K-means clustering method. A non-hierarchical algorithm (Hair,

Anderson, Tatham, & Black, 1998) was used to determine the best num-ber of clusters based on the activity factors. Cluster analysis suggested thata four-cluster solution was most appropriate for organizing the data con-cerning Macaus visitors as well as the benefits they sought. Multivariatestatistics indicated that significant differences existed between the fourclusters (p


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T

ABLE4

ResultsofClusterAnalysisforMacauVisitorsActivitiesandMotivations

Scheffemultiplera

ngetests

V

ariable/Motivator

Cluster1

(n=

554

)

Cluster2

(n=

311)

Cluster3

(n=

324)

Cluster4

(n=

324)

F-value

12

13

14

23

24

34

G

ambling

3.98a

1.79

4.18

2.26

401.33

n.s.b

B

usinessand

convention

4.93

2.22

1.64

2.39

736.00

n.s.

P

leasure

4.16

3.15

3.64

3.21

66.78

n.s.

C

ultureexploration

4.76

4.71

4.32

3.80

51.89

n.s.

Familytogetherness

4.82

4.96

3.50

3.02

260.79

n.s.

Shopping

4.77

5.32

5.50

3.00

344.57

n.s.

C

lustername

Businessand

conventio

n

seekers

Familyand

vacation

seekers

Gamblingan

d

shopping

seekers

Multi-purpose

seekers

PillaiTrace=

1.565

WilksRamda=

.100

Hotelling-LawleyTra

ce=

3.702

RoysGreatest=

2.110

aMeanvalueswerecomputedonthebasisof7-pointLikert-typescale7(Stronglyagree)to1(Stronglydisagree).

bn.s.indicatesnotsignificant.

Significantatp

gon kim, park, gazzoli & sheng - benefit segmentation of international travelers to macau, china

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