target marketing for sustainable tourism products (december)

7/29/2019 Target Marketing for Sustainable Tourism Products (December)

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Target marketing for sustainable tourism

products. A case study of the Galapagos Islands

Ronald Leonardo Soto Aguirre

ID: ST10008626

MSc International Hospitality Management

University of Wales Institute, Cardiff (UWIC)

December 2011


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Acknowledgements

Many thanks to my mentors at London School of Commerce: Professor Hadyn

Ingram for reading my drafts and giving me immediate feedback about what is right

and what is not to make the necessary changes to finish this study on time. A

special thanks to Ricardo Luis Diaz Najera for being part of this process, he gave

me the courage and the strength with John Duran, thank you both for spending

your time with me during my time in London. I will miss you both.

I had a great time in LSC so thanks to all my classmates, as well thanks to the

people in the streets that helped me filling out the questionnaires. My teachers

from Ecuador did also a good job giving me advice and information about my

study.

My girlfriend Gaby was essential during this process and I want to say I love you.

Many thanks to all my friends and thank you very much to my family, mi father

Franco Soto, mi sister Paulina Soto and a very special thanks to my mother

Carmen Aguirre, I love you with all my heart and thanks for supporting me always.


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Abstract

A target market is a group of consumers that the company has decided to aim its

marketing efforts and ultimately its merchandise and talking about sustainable

tourism products, the researcher has found that is a type of tourism that cares

about the environment and the problems that is facing the nature by selling a

product that causes minor impacts to the place that this is taking place and at the

same time preserving the natural and cultural resources, because helps the

communities that live in the area; with these benefits the locals don't have the need

to damage their habitats and furthermore they can keep their traditions.

The dissertation has been divided in five chapters; Introduction, as part of this

chapter the aims and objectives of the dissertation were described. In the second

chapter the ideas posted in the first chapter were developed, the researcher

collected secondary data from previous studies, books, journals, websites and so

on. Marketing was one of the two fields that have composed the chapter and the

second field is the tourism itself with definitions, classification of the different types

of tourism and emphasized information about sustainability in tourism products.

To collect the primary data was necessary to establish the methodology that was

used in this study; the qualitative information was obtained from different sources,the Galapagos National Park management, the Ministry of Tourism in Ecuador and

travel agencies involved in the tourism industry in Galapagos. The quantitative data

was collected by questionnaires.

The researcher has analyzed the data collected finding the target market that the

archipelago of Galapagos seeks. Sustainability has been the priority in the Islands

and that is why the target market is conformed by responsible consumers to

conserve the environment and the communities that benefit from these tourismactivities.

Conclusions of the study were done to synthesize the information collected and

analyzed and recommendations also for further investigations and monitoring the

marketing strategies of the Galapagos in the world.


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Table of contents

Acknowledgements ----------------------------------------------------------------------------------------------------- iii

Abstract ------------------------------------------------------------------------------------------------------------------- iv

Table of contents --------------------------------------------------------------------------------------------------------- v

List of abbreviations --------------------------------------------------------------------------------------------------- viii

List of tables -------------------------------------------------------------------------------------------------------------- ix

1. Introduction ------------------------------------------------------------------------------------------------------------ 1

1.1 Background -------------------------------------------------------------------------------------------------------- 1

1.2 Aims and objectives --------------------------------------------------------------------------------------------- 3

1.3 Research questions ---------------------------------------------------------------------------------------------- 4

1.4 Methodology ------------------------------------------------------------------------------------------------------ 5

1.5 Limitations --------------------------------------------------------------------------------------------------------- 6

1.6 Structure ----------------------------------------------------------------------------------------------------------- 6

2. Literature review ------------------------------------------------------------------------------------------------------ 8

2.1 Introduction ------------------------------------------------------------------------------------------------------- 8

2.2 General overview of marketing ------------------------------------------------------------------------------- 8

2.2.1 Customers needs, wants and demands ------------------------------------------------------------ 10

2.2.2 Satisfaction, value and cost ---------------------------------------------------------------------------- 12

2.2.3 Customer orientation ----------------------------------------------------------------------------------- 12

2.2.4 Target market --------------------------------------------------------------------------------------------- 14

2.2.5 Consumer behaviour ------------------------------------------------------------------------------------ 14

2.2.6 Marketing management -------------------------------------------------------------------------------- 16

2.3 General overview of tourism -------------------------------------------------------------------------------- 22

2.3.1 Nature and components of tourism ----------------------------------------------------------------- 23

2.3.1.1 The basic components ----------------------------------------------------------------------------- 24

2.3.2 Classification by motivations.-------------------------------------------------------------------------- 26

2.3.2.1 Cultural tourism ------------------------------------------------------------------------------------- 27

2.3.2.2 Sport's tourism -------------------------------------------------------------------------------------- 28

2.3.2.3 Pleasure tourism ------------------------------------------------------------------------------------ 28

2.3.2.4 Business tourism ------------------------------------------------------------------------------------ 29

2.3.2.5 Ecotourism ------------------------------------------------------------------------------------------- 29


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2.3.2.6 Sustainable tourism products -------------------------------------------------------------------- 31

2.4 Conclusions of the chapter ------------------------------------------------------------------------------- 33

3. Research methodology -------------------------------------------------------------------------------------------- 35

3.1 Introduction ----------------------------------------------------------------------------------------------------- 35

3.2 Research philosophy ------------------------------------------------------------------------------------------ 37

3.3 Research approach -------------------------------------------------------------------------------------------- 38

3.4 Research strategy ---------------------------------------------------------------------------------------------- 39

3.5 Data collection methods ------------------------------------------------------------------------------------- 40

3.5.1 Interview --------------------------------------------------------------------------------------------------- 40

3.5.2 Questionnaires -------------------------------------------------------------------------------------------- 41

3.6 Conclusion ------------------------------------------------------------------------------------------------------- 42

4. Data and analysis --------------------------------------------------------------------------------------------------- 43

4.1 Introduction ----------------------------------------------------------------------------------------------------- 43

4.2 Analysis of the data from content analysis --------------------------------------------------------------- 43

4.2.1 Tourist arrivals to Ecuador (2009-2011) ------------------------------------------------------------ 43

4.2.2 Tourist arrivals to Galapagos (2009-2011) ---------------------------------------------------------- 44

4.2.3 Tourists arrivals by months---------------------------------------------------------------------------- 46

4.2.4 Ecuador's Main emitting countries ------------------------------------------------------------------- 47

4.2.5 Tourists arrivals by origin ------------------------------------------------------------------------------ 49

4.2.6 Types of accommodation used ------------------------------------------------------------------------ 50

4.3 Analysis of the data from questionnaires ---------------------------------------------------------------- 51

4.4 Analysis of the Data from Interviews ---------------------------------------------------------------------- 59

4.4.1 Target Market --------------------------------------------------------------------------------------------- 59

4.4.2 Importance of sustainable tourism in the global industry -------------------------------------- 61

4.4.3 Behaviour of the Galapagos' consumers ------------------------------------------------------------ 61

4.4.4 Target marketing for sustainable tourism products in Galapagos ---------------------------- 62

4.5 Conclusions of the Chapter ---------------------------------------------------------------------------------- 62

5. Conclusion, limitations and recommendations -------------------------------------------------------------- 65

5.1 Introduction ----------------------------------------------------------------------------------------------------- 65

5.2 Conclusion ------------------------------------------------------------------------------------------------------- 65

5.2.1 Primary and secondary data --------------------------------------------------------------------------- 65

5.2.2 Limitations ------------------------------------------------------------------------------------------------- 69


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5.3 Recommendations --------------------------------------------------------------------------------------------- 70

Reference list / Bibliography ---------------------------------------------------------------------------------------- 72

Web sources --------------------------------------------------------------------------------------------------------- 74


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List of abbreviations

EU: European Union

CMC: Computer Mediated Communication

CRS: Computerized Reservation System

FtF: Face-to-face

GDS: Global Distribution System

MAE: Ministry of Environment of Ecuador (Ministerio del Ambiente del Ecuador)

MIT: Ministry of Tourism (Ministerio de Turismo)

PANE: Heritage of the State's Natural Areas (Patrimonio de Areas Naturales del

Estado)

SNAP: National System of Protected Areas (Sistema Nacional de reas

Protegidas)

SPSS: Statistical Package for Social Sciences

UNESCO: United Nations Educational, Scientific and Cultural Organization

UNWTO: World Tourism Organization

WTTC: World Travel and Tourism Council

WWF: World Wide Fund for Nature


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List of tables

Figure 1: Maslow's Hierarchy of Needs ---------------------------------------------------------------------- 11

Figure 2: The concept and relevance of customer orientation --------------------------------------- 13

Figure 3: Customer orientation and long-term business success----------------------------------- 13

Figure 4: Marketing mix and forces impacting it.---------------------------------------------------------- 18

Figure 5: Product life cycle (PLC) ------------------------------------------------------------------------------ 19

Figure 6: Pricing goals --------------------------------------------------------------------------------------------- 21

Figure 7: Basic components of the tourism ----------------------------------------------------------------- 24

Figure 8: A classification of travellers ------------------------------------------------------------------------- 25Figure 9: The relationship between sustainable tourism and other terms. ---------------------- 31

Figure 10: Principles behind sustainable tourism management. ------------------------------------ 32

Figure 11: The scope of sustainable tourism.-------------------------------------------------------------- 33

Figure 12: Research methodology as Onion --------------------------------------------------------------- 37

Figure 13: Process of deduction -------------------------------------------------------------------------------- 38

Figure 14: Tourist arrivals to Ecuador------------------------------------------------------------------------ 43

Figure 15: Tourists arrivals to Galapagos ------------------------------------------------------------------- 44

Figure 16: Tourists arrivals to Galapagos by months --------------------------------------------------- 46

Figure 17: Ecuador's Main emitting countries 2011------------------------------------------------------ 47

Figure 18: Tourists arrivals to Galapagos by origin ------------------------------------------------------ 49Figure 19: Types of accommodations used in Galapagos -------------------------------------------- 50

Figure 20: Gender: source questionnaires------------------------------------------------------------------ 52

Figure 21: Age Group: source questionnaires ------------------------------------------------------------- 52

Figure 22: Origin: source questionnaires -------------------------------------------------------------------- 54

Figure 23: Motivation: source questionnaires -------------------------------------------------------------- 56

Figure 24: Galapagos ---------------------------------------------------------------------------------------------- 58


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Chapter One

1. Introduction

The major focus of this study was to analyses the target marketing for sustainable

products, citing the case of the Galapagos Islands. By analysing the marketing

definitions, types and the marketing tools needed to focus a target marketing from

different authors and combining that information with the tourism industry,

motivations, definitions, types of tourism, ending with sustainable tourism as a

solution to fragile environments with the communities that surround the destination

as part of the solution. By linking these concepts and supported by primary

research, the researcher made the conclusion, which will have the benefit of

reaching new markets educating the guests about the sustainability.

Chapter one of this dissertation introduces; the background of the study, aims and

objectives, research questions, the methodology that was used to collect the

secondary and primary data and a summary of each chapter.

1.1 Background

The concept of marketing has been changing and evolving over a period of time

and nowadays, its base is give a serial of benefits to the customer which will help

to guarantee the provision of the good or service, creation of repetitive purchase,

potential clients, and the process of building and retaining of market share.

The Chartered Institute of Marketing define marketing as 'The management

process responsible for identifying, anticipating and satisfying customer

requirements profitably'


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Based in this definition, within an organization the process of Marketing as a

management process it is not only responsibility of the employees who has contact

with the costumer and personnel in charge of customer services; The development

of the Marketing practices should be design for competent managers implementing

campaigns, planning, and coordinating with the proper skills in order to guarantee

success. Marketing objectives and aims need to be under constant monitoring and

also analyse competition strategies to anticipate them and overcome them. A

market research can permit the organization to identify the needs of the customer

and try giving the benefits and the added value can a product or service delivers to

improve clients way of life and also ensure that the organization is going to be

rewarded by the revenues obtained from the customers purchases according to

Najera (2011).

Philip Kotler defines marketing as 'satisfying needs and wants through an

exchange process'

This investigation was conducted to describe how target markets are designed

using the tools provided by marketing in order to focus the marketing team

energies to reach the potential consumers, increasing sales therefore profits which

in the case of the Galapagos Islands have promoted sustainable tourism to sharethose profits among all the actors that are involve in the tourism industry in the

Galapagos National Park.

All these actors that are involved in the tourism industry have responsibilities; the

travel agencies that in the past used to have profits only for themselves excluding

the communities to be part of this activity, therefore the communities didn't benefit

for tourists services in their own locations. Tourist activities with no significant

controls that were damaging the environment of the Galapagos Islands andbenefiting only a few. The benefits were only for a special group while the

damages caused were problem of the communities that were not getting any

profits for these activities. Through the history of the world the consumer behaviour

has changed all the time and from the beginning of the tourism industry this


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behaviour has made the diversification of many products for this industry, being the

most popular nowadays the historical tourism, business tourism, leisure tourism

and increasing in tiny steps the sustainable tourism which is the one that benefit

the actual generation but not compromising the environment for the future

generations, taking advantage of what the environment offers in a responsible way

to try to don't make any impact or at least minimize impacts to the maximum in the

environment.

The main focus of this study was to analyse the target market for the Galapagos

Islands as a sustainable destination and make recommendations if needed.

1.2 Aims and objectives

According to the Ministry of tourism in Ecuador a total of 846.782 visitors have

entered the country from January to September with 139,988 visitors that went to

the Galapagos Islands during the same period as is stated in the website of the

Galapagos National Park (2011), the tourism industry within the islands has been

growing unusually and is the duty of every single person that has stepped in that

paradise, to help in the conservation of this fragile environment. Thus some aims

and objectives must were to guide this work and make it useful to the society,

taking advantage of all the resources that are available without compromising the

future of the archipelago or their inhabitants.

The researcher has decided to start the work with the two major disciplines and

concepts were cited and therefore subjects as marketing and tourism giving the

information needed to understand the two main fields that are involved in this

approach. With this information and aims set, the secondary data, involving the

archipelago with these concepts to target the market in the best way possible,

selling the Galapagos' as a natural paradise that is not seeking massive tourism,

but is seeking good revenues to keep the environment as natural as possible and

at the same time keeping the community happy making the dreams of the


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consumers becoming true.

As an objective of this work was to focus to attract only customers that likely do

sustainable tourism activities, using marketing tools to find the target market

appropriate that meet the requirements to be an educated guest, not only seekingpersonal fulfilment but giving chances to the personnel that works in the tourism

industry in the archipelago of Galapagos. Was important to get to understand the

consumer behaviour and so was important to know what kind of tourists exist,

breakdown the types of tourists to get to know our sustainable consumer; country,

education, income, age, months likely to travel, lodging likely to get and so on. To

learn about the communities and how the Galapagos Islands were manage by the

government and the local authorities to keep the tourism control, avoiding the

chances of affecting the environment by the tourists.

The main objective of this study was to analyse the target market of the Galapagos

Islands as a sustainable product, towards to find the strengths and weaknesses of

the marketing strategies used by the Galapagos National Park worldwide.

1.3 Research questions

The research questions were formulated to get a better understanding of what is

target marketing, sustainable tourism and these two disciplines linked together in a

case study of the Galapagos Islands.

1.- What is target marketing?

2.- What is the classification of tourism products and is sustainable tourismone of them?

3.- How important are sustainable tourism products in the global tourism

industry and at the same time are desirable for potential customers?

4.- How do Galapagos consumers behave?

5.- What are the characteristics of tourism and tourists in the archipelago?

6.- Is Galapagos considered as a place of sustainable tourism and if so doesit needed to be targeted as one?


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1.4 Methodology

To approach the topic with accurate information the researcher has decided to

collect two types of data; secondary data that was already collected by differentwriters in previous studies published in journals, newspapers, books, articles, web

sites or any other source available to developed the literature review addressing

the fields involved. Marketing definitions were provided and numbering of the tools

that marketers use to find their targets markets. Tourism industry from general

definitions until sustainability and linked with the case of the Galapagos for a

specific target market.

Sarah Boslaugh (2007) states that the difference between primary and secondarydata depends on the relationship between the person or research team who

collected a data set and the person who analysed it, therefore the data set could

be primary data in one analysis and secondary data in another. The secondary

data that was collected for this study came from sources like; books, journals, web

sites, newspapers about marketing, tourism or the Galapagos Islands in order to

link these three topics to answer the research questions. The places chosen to

collect this information were the British Library and Internet, being Ebscohost, E-

brary, Mylibrary, and Google Academic the main sources used in the investigation.

The primary data in order to support the investigation with accurate data, based in

qualitative data collected from interviews to different actors involved in the tourism

sector; the Galapagos National Park management, Ministry of Tourism, Heritours

travel agency and a recognized teacher of tourism in Ecuador.

With secondary data from previous studies and fresh primary data, coding and

analysing the information about the target market that Galapagos seeks, to supportthe sustainability in the archipelago. Conclusions and recommendations in order to

strengthen the weaknesses that the marketing might have.


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1.5 Limitations

The limitations of the study were focus in the difficulty of getting data about the

Islands on time, furthermore the short time that is available to finish the dissertationmaking it a little harder due to the fact that the researcher had to juggle time

between work and studies. Another limitations is perhaps the fact that the

researcher first language is not English making the job a little harder at the time of

writing the dissertation in the best way possible but probably more than a

limitations was a chance to improve the writing English. To get some information

from the main sources in Ecuador is necessary to know the people that work in any

project within the SNAP and unfortunately to make an appointment with them was

also difficult. Anyway this work shows correct information about the literature

review and the primary data that was collected to target marketing in the

Galapagos Islands and hopefully will help clear any doubts or even better leverage

the resources that the archipelago has.

1.6 Structure

This study consists of five chapters which are briefly outlined as follows:

The introduction consists of the background of the study, aims and objectives,

research questions, the methodology used to meet those aims, limitations and the

structure.

The second chapter reviews all the relevant information in the literature review.

The sources that were used includes: books, journals, web sites and newspapers.

The literature review discusses the general overview of target markets, tools to do

it and information about the tourism industry; definitions, classification, motivations,

profile of the potential tourists and sustainable destinations.


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The research methodology was cited in chapter three, showing the processes and

methods used to tackle the study. The chapter summarized the philosophy used,

approach, design and sample as well as data collection methods applied during the

investigation.

The chapter four interprets the research findings from the data collected. Findings

and results analysed and interpreted from the interviews and questionnaires.

Chapter five contains the researcher's explanation of the data, interpretation,

finding weaknesses and strengths. Recommendations also figure in this chapter,

suggesting further investigations and finishing with references and bibliography.


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Chapter Two

2. Literature review

2.1 Introduction

In chapter number two the secondary data will be selected and critically evaluated.

This bearing in mind the main research objective: to obtain a better understanding

of target marketing and sustainable tourism. In chapter number two, the secondary

data was selected and critically evaluated. This bearing in mind the main research

objective: to obtain a better understanding of target marketing and sustainable

tourism. The literature review was subdivided in two parts; a general overview of

marketing as an important part of the strategies of a company to reach the

customers for which it were created sustainable tourism products in the case of the

Galapagos Islands. The second part was about the tourism industry, the

motivations of the customers to identify the potential target market of the

archipelago of Galapagos, the classification of tourism and sustainability of tourism

products in fragile environments.

2.2 General overview of marketing

A literature review focuses on reviewing the current knowledge on a specific topic

(Copper, 1198). Nowadays, the majority of the successful organizations in the

market have something in common, and is commitment with the implementation of

marketing in their business strategies and highly focused to the customers when it

comes to create and build customers relationships. All these companies set


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strategies concentrating their efforts on the satisfaction of the needs of the

customers.

There is only one boss. The customer, and he can fire everybody in the company

from the chairman on down, simply by spending his money somewhere else.(Sam Walton, Walmart Founder)

The concepts of exchange and relationships lead to the concept of a market. A

market is the set of actual and potential buyers of a product. These buyers share a

particular need or want that can be satisfied through exchange relationships

according to the studies of Armstrong and Harker (2009).

Marketing means managing markets to bring about profitable customer

relationships, however, creating these relationships takes work. Sellers must

search for buyers, identify their needs, design good market offering, set prices for

them, promote them, and store and deliver them. Activities such as product

development, research, communication, distribution, pricing and service are

marketing activities.

The essence of the marketing concept is that organisations achieve their objectives

by satisfying customers said Houston (1986). With competition a fundamental

aspect of market-driven economies, the marketing perspective also asserts that the

key to achieving organisational goals is for organisations to determine the needs

and wants of target markets and to deliver the desired satisfactions more efficiently

and effectively that competitors as stated Fyall and Garrod (2005).


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2.2.1 Customers needs, wants and demands

Maslow (1943) in his paper A theory of Human Motivation, proposed the idea of

describing the stages of growth in humans, The most fundamental and basic four

layers of the pyramid contain what Maslow called "deficiency needs"; esteem,

friendship and love, security, and physical needs. With the exception of the most

fundamental (physiological) needs, if these "deficiency needs" are not met, the

body gives no physical indication but the individual feels anxious and tense.

Once the physiological needs are satisfied are we concerned with the higher order

needs of influence and personal development. Conversely, if the things that satisfyour lower order needs are swept away, there is no longer concerned about the

maintenance of the higher order needs as proposed by Maslow (1954).

The levels of Maslows hierarchy of needs were explained below:

1) Biological and Physiological needs air, food, drink, shelter, warmth, sex,

sleep, etc.

2) Safety needs protection from elements, security, order, law, limits,

stability, etc.

3) Belongingness and love needs work group, family, affection, relationships,

etc.

4) Esteem needs self-esteem, achievement, mastery, independence, status,

dominance, prestige, managerial responsibility, etc.

5) Self-Actualization needs realizing personal potential, self-fulfilment,

seeking personal growth and peak experiences.


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Figure 1: Maslow's Hierarchy of Needs

Source: Business Balls 2011

Abhinandan (2000) referring to need, want and demand said, the starting point for

any marketing activity is the assessment of customer need. A need arises

whenever a customer feels that some of his basic requirements, are not being met.

For example, a manager may feel that he requires (needs) information to improve

his knowledge. The customer may have a number of options for satisfying his

need. A preferred option is called a want. Wants, therefore. are desired specific

satisfiers of 'needs'. In case of managers whose need is information, several

options like journals, magazines, books, etc. may exist which provide the required

information. One of the preferred options, like a journal, would be termed his want.

A demand for a product or service (wanted by a customer) would arise if the

customer is able to acquire and utilize the same. Thus, wants become demands

when supported by purchasing power, ability and infrastructure needed to buy and

use them according to Abhinandan (1999).


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2.2.2 Satisfaction, value and cost

If there is a product that is worth to buy and moreover satisfies the customer, is

likely that the customers would like to continue using and buying that product. One

of the ways in which a customer could feel satisfied is that the net derived value

(net customer value) of the offer is positive. The net customer value can be defined

as the difference between the total customer value and the total customer cost

according to Kotler (1995).

The sum of the benefits that the customer expects and receives from a given offer

is called 'total customer value'. The components of customer value are subdivided

in; product value, service value, and image value. On the other hand the 'totalcustomer cost' is the cost incurred by the customer in acquiring the product or

service. Those components are; monetary price, time cost, energy cost, and

psychic cost in the words of Abhinandan (2000).

2.2.3 Customer orientation

Customer orientation is one of the most important factors of success needed to

survive in an environment characterized by enormous competition. Customer-

oriented companies manage to arrive relatively quickly in a situation where they

can rapidly and effectively react to new market opportunities, so that they can, via

customer-focused concepts, adjust to newly-developed customer wants. Although

customer orientation has been supported for years now, and is the guiding

principle of many companies, just as before the offered product is more often than

not the centre of attention. This view has been supported in the work of Raab(2008).

However, customer orientation entails focusing the sum of small of all company

thoughts and actions on the customers needs, wishes, and problems. The

achieving of maximum customer orientation is based on suitable structures, and on


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the employment of modern technological solutions, management, and employees,

all acting and thinking with the point of view of the customer in mind.

Figure 2: The concept and relevance of customer orientation

Source: Raab 2008

Earlier research done by Simon (1998) demonstrates that the goal of customer

orientation is always customer satisfaction. Satisfied customers are more likely to

choose the product again, to passively or actively recommend it, and to react with

less price sensitivity. They might even become loyal customers, who no longer

take competing offers into consideration. This simplifies their decision, in the sense

that their choice of the product or service has become a matter of habit.

Figure 3: Customer orientation and long-term business success

Source: Raab 2008 based on Simon and Homburg 1998


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Therefore, Kotler (1995) summarized the marketing concept as follow:

The marketing concept holds that the key to achieving organizational goals

consists in determining the need and wants of target markets and delivering the

desired satisfactions more effectively and efficiently than competitors.

The marketing concept has four keys; target market, satisfying needs and wants

co-ordinated marketing, and organizational goals.

2.2.4 Target market

The target market is the objective that the marketing team wants to reach with the

product. The marketing concept emphasizes the need to focus, explicitly, on the

selection of the markets. Focus in the target market saves time, money, efforts and

take advantage of the resources of the company effectively and efficiently.

In the case of the Galapagos Islands, defining the target market makes the

difference between reaching potential customers that can afford the product and

can demand the product, from reaching people that might not be interested or

cannot afford the expenses of a purchase like this.

2.2.5 Consumer behaviour

Consumer behaviour is the study of when, why, how, and where people do or do

not buy a product. It blends elements from psychology, sociology, social

anthropology and economics. It attempts to understand the buyer decision making

process, both individually and in groups. It studies characteristics of individual

consumers such as demographics and behavioural variables in an attempt to

understand people's wants. It also tries to assess influences on the consumer from

groups such as family, friends, reference groups, and society in general.


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Customer behaviour study is based on consumer buying behaviour, with the

customer playing the three distinct roles of user, payer and buyer. Relationship

marketing is an influential asset for customer behaviour analysis as it has a keen

interest in the re-discovery of the true meaning of marketing through the re-

affirmation of the importance of the customer or buyer. A greater importance is also

placed on consumer retention, customer relationship management,

personalisation, customisation and one-to-one marketing. Social functions can be

categorized into social choice and welfare functions. Marketing provides services in

order to satisfy customers. With that in mind, the productive system is considered

from its beginning at the production level, to the end of the cycle, the consumer as

was found in a recent study by Kioumarsi (2009).

Key questions to understand the consumer behaviour were cited below:

Who is buying? Defines the consumer who have needs, for instance a travel

agency that is trying to satisfy the requirements of its clients. According to

Abhinandan (2000) it may be useful to identify; current and potential

customers, their location, etc.

What do they buy? With the information the researchers can identify the

current products, services, and mechanisms that the customers used to

satisfy their needs and requirements. Or to satisfy specific needs that the

customers have, which products or services are chosen.

How do they use the produce/service? Answer to this question may help the

researcher in identifying current and or potential products, services, and

mechanisms which could fit into the customers use process better.

Why do they buy? The motivations that a customer may have to buy a

certain product and pricing and non-pricing factors that may determine the

purchase. The information could be used for deciding how to promote the

products or services.

How do they buy? Identify the process of buying that the customers used;

recognise the need, search for information to generate potential alternative


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products/services which could satisfy the need, evaluate the alternatives

generated for satisfying the need and decide on purchase of one of the

options.

Who participates in buying? Identification of the participants in the buying

process, and their inclination for or against a specific option.

What are the sources of information? The buyer and the participants

involved in the buying process may be using different sources to get the

information on products or services. With this information the marketing

team could decide the media of promotion.

Where do they buy? Identifying the suppliers of the products or services.

With this information the marketing strategies may reach these channels of

distribution to get to the final consumer.

2.2.6 Marketing management

In a previous research Kotler (1995) described that marketing management is the

process of planning and executing the conception, pricing, promotion, and

distribution of products and services to create exchanges with target groups that

satisfy customer and organizational objectives.

Product Market

According to Abhinandan (2000) the product market is a set of customers with

similar needs which are satisfied through similar products/services.

Target Market

Any product market may be composed of one or more groups of customers,

wherein each groups has customers, who are similar to each other, or customers

in any two different groups, who are different, with respect to some key aspect of


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behaviour towards the product offering. Segmentation is the process of dividing the

market into major parts called market segments, which are mutually exclusive and

collectively exhaustive. The objective of segmentation may be evaluated and then

select those market segments that the organization can best serve.

Positioning

Ries (1981) concluded that positioning has come to mean the process by which

marketers try to create an image or identity in the minds of their target market for

its product, brand, or organization.

Re-positioning involves changing the identity of a product, relative to the identity ofcompeting products, in the collective minds of the target market.

De-positioning involves attempting to change the identity of competing products,

relative to the identity of your own product, in the collective minds of the target

market.

Marketing mix

The concept of marketing mix according to Saxena (2005) involves a deliberate

and careful choice of strategies and policies for organisation, product, price,

promotion and place. Individually, each of them is important, but when all the four

elements of marketing are properly selected, culled, and mixed in the right

proportion, they enhance the product and make it attractive to the customer.


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Figure 4: Marketing mix and forces impacting it.

Source: Saxena, 2005. Marketing management

Product

Clayton (2008) suggested that a useful way of looking at the hospitality product is

that it is actually the guests experience. In a restaurant, this involves not only the

food served but the way the server and guest interact and the atmosphere of the

place. This is not to argue that the physical product (food) is unimportant, but it

needs to be seen in the context of the overall concept of the operation that

determines the guests total experience. The discussion of product therefore

applies to the food and the restaurant concepts.

The product life cycle defines where the product is in the marketplace to take

decision about what to do about the competence, promotion and so on. Like

human beings, products also have an arc. From birth to death, human beings pass

through various stages e.g. birth, growth, maturity, decline and death. A similar life-cycle is seen in the case of products. The product life cycle goes through multiple

phases, involves many professional disciplines, and requires many skills, tools and

processes. Product life cycle (PLC) has to do with the life of a product in the

market with respect to business/commercial costs and sales measures. Levitt

(1965)


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Figure 5: Product life cycle (PLC)

Source: Clayton, 2008. Introduction to Management

Stage Characteristics

1. Market introduction stage

costs are very high slow sales volumes to start little or no competition demand has to be created customers have to be prompted to try the product makes no money at this stage

2. Growth stage

costs reduced due to economies of scale sales volume increases significantly profitability begins to rise public awareness increases competition begins to increase with a few new players in establishing market increased competition leads to price decreases


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3. Maturity stage

costs are lowered as a result of production volumes increasing andexperience curve effects

sales volume peaks and market saturation is reached

increase in competitors entering the market prices tend to drop due to the proliferation of competing products brand differentiation and feature diversification is emphasized to maintain or

increase market share Industrial profits go down

4. Saturation and decline stage

costs become counter-optimal sales volume decline

prices, profitability diminish profit becomes more a challenge of production/distribution efficiency than

increased sales

Price

According to Nagle (2002) price is the only revenue generating element among the

four Ps, the rest being cost centres.

The pricing goals are: Profit

Sales

Competition

Prestige

Status Quo


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Figure 6: Pricing goals

Source: Biz-development 2009

Place

In marketing, place refers to the location, the place where the good or service is

offered. Travel agencies and Internet are examples of places from the customers

can get their tourism packages.

Promotion

Kurtz (2010) urged, promotion is the communication link among sellers and buyers

for the purpose of influencing, informing or persuading a potential buyers

purchasing decision. Rajagopal (2007) said, a promotional plan can have a wide

range of objectives, including; sales increases, new product acceptance, creation

of brand equity, positioning, competitive retaliations, or creation of a corporate

image. Fundamentally, however there are three basic objectives of promotion.

According to Kurtz (2010) these are:

To present information to consumers as well as others

To increase demand

To differentiate a product


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In this chapter of the study the researcher has cited a general overview of

marketing subdivided in; needs, wants and demands that the customers have and

how to differentiate it. Satisfaction value and cost, differentiate among the value

that a product represents to a customers at what is the cost to get it. Target

markets for the products offered by a company. Consumer behaviour; what, why,

how, where the buyers get their products. The marketing mix and the 4 Ps,

product, price, place and promotion.

2.3 General overview of tourism

According to Goeldner (2009) tourism may be defined as the processes, activities,

and outcomes arising from the relationships and the interactions among the

tourists, tourism suppliers, host governments, and surrounding environments that

are involved in the attracting and hosting of visitors.

The UNWTO says that tourism is a social, cultural and economic phenomenon that

entails the movement of people to countries or places outside their usual

environment for personal or business/professional purposes. These people are

called visitors (which may be either tourists or excursionists; residents or non-residents) and tourism has to do with their activities, some of which imply tourism

expenditure.

According to Britton (1991) tourism has both a production and a consumption

component. As a form of production, tourism is multi-sectorial and multifaceted,

drawing upon the activities of a wide range of actors from a number of economic

sectors (Debbage and Daniels 1998). As an activity of consumption tourism is

distinct in that the consumer has to travel some distance to a destination in order to

consume the product. This feature of tourism means it is referred to as an invisible

sector (Mathieson and Wall 1982). It also means that tourism is the nexus between

systems of production and systems of consumption. The tourist product is varied. It

consists of both tangible (e.g. flights, hotel accommodation) and intangible (e.g.


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customer satisfaction or perception) elements (Smith 1994). Given its ephemeral

nature, the tourist product can be viewed as a highly perishable item (Mathieson

and Wall).

Goeldner (2008) cited the UNWTO and said, the UNWTO has taken the concept of

tourism beyond a stereotypical image of 'holiday making' The officially accepted

definition is "Tourism comprises the activities of persons travelling to and staying in

places outside their usual environment for not more than one consecutive year for

leisure, business and other purposes" The term usual environment was intended to

exclude trips within the area of usual residence, frequent and regular trips between

the domicile and the workplace, and other community trips of a routine character.

1. International tourism

a. Inbound tourism: Visits to a country by non-residents.

b. Outbound tourism: Visits by residents of a country to another

country.

2. Internal tourism: Visits by residents and non-residents of the country of

reference.

3. Domestic tourism: Visits by residents of a country to their own country.

4. National tourism: Internal tourism plus outbound tourism (the resident

tourism market for travel agents, airlines, and other suppliers).

2.3.1 Nature and components of tourism

World Tourism Organisation (WTO) statistics indicate that tourism industry will

continue to expand over the years. According to WTO, international tourist arrivals

worldwide will reach 1.5 billion by 2020. This industry has been subdivided in

components; the most common were enumerated as follows:


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2.3.1.1 The basic components

In order to understand tourism systematically, it is necessary to know the various

components which together make tourism happen. Three of these are considered

to be basic:

a) Transport

b) Attractions / Locale

c) Accommodation

Figure 7: Basic components of the tourism

Source: Franklin, 2003. Tourism: an introduction


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Figure 8: A classification of travellers

1. Tourists in international destinations2. Excursionists in international technical definitions3. Travellers whose trips are shorter than those that qualify for travel and

tourism: e.g. under 50 miles (80 km)4. Students travelling between home and school only - other travel of students

is within scope of travel and tourism.5. All persons moving to a new place of residence, including all one-way

travellers, such as emigrants, immigrants, refugees, domestic migrants, andnomads.

Source: Franklin, 2003. Tourism: an introduction


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2.3.2 Classification by motivations.

In a recent study by Banerjea (2007) about the main theories of travel motivation

suggested, tourist motivation can be defined "as the global integrating network of

biological and cultural forces which gives value and direction to travel choices,

behaviour and experience". (Pearce, Morrison & Rutledge, 1998) as cited by Allan

R. Rhodes Espinoza. According to Seaton (1997) motivation is a state of arousal of

a drive or need which impels people to activity in pursuit of goals. Once the goals

have been achieved the need subsides and the individual returns to the

equilibrium-but only briefly because new motives arise as the last one is satisfied.

Krippendorf (1987), as cited in Seaton (1997) suggests that the motivation of the

individual person to travel, to look outside for what he cannot find inside have beenlargely created by society and shaped by everyday life. People who live in cities,

for example, are motivated to travel as tourists to wilderness areas because they

need to escape from an artificial, monotonous environment. (Dann & Matley, 1976)

as cited in Mansfeld 1992). Gray's travel-motivation theory, as noted by Mansfeld

(1992), gives us two motives about why people go to natural settings. The first

motive is the desire to go from a known to an unknown place, called in Gray's

theory wanderlust'. Secondly, a place "which can provide the traveller with specific

facilities that do not exist in his or her own place of residence", referred in Gray's

theory as sun lust' (Mansfeld, 1992). It is a common practice to consider traveller or

tourist types as potential market segments for travel and tourism marketing (Smith,

1989 as cited in Theobald, 1996).Some of the motives which determine their travel

choices are recreation, pleasure, new experiences, cultural interest, shopping. Any

reader of literature of tourism motivation cannot help being struck by the similarity

in findings by many researchers.

The adjectives and categorisations of tourists based upon motivations may differ in

number, but recurrent themes emerge. For example the need to escape from

everyday surroundings for the purpose of relaxation, and discovering new things,

places and people are often alluded to. According to Crompton (1979), as cited in


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Bello & Etzel (1985), the need for relaxation, exploration,

The types of tourism cited in this chapter are:

1. Cultural Tourism

2. Sports Tourism

3. Pleasure Tourism

4. Business Tourism

5. Ecotourism

6. Sustainable Tourism

2.3.2.1 Cultural tourism

Cultural tourism has been defined as 'the movement of persons to cultural

attractions away from their normal place of residence, with the intention to gather

new information and experiences to satisfy their cultural needs according to

Richards (1996).

From the beginning, the journeys have been linked with the desire of the people for

knowing different cultures, customs and ways of expression. It is called Cultural

Tourism the journeys to places where the art and the culture is express notoriously

and above of other touristic resources. The tourists that travel for cultural

motivations, have the interest of visiting or studying specific features or combined;

history, archaeology, architecture, religion, philosophy, for example:

Religious Tourism: La Mecca, Rome, Canterbury and so on.

Politic Tourism: Cuba.

Post-war Tourism: Germany, UK.

Architectonical Tourism: Paris

Gastronomic Tourism: Italy, Switzerland, and Peru


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Chalmers (2011) urged, it is important that the destination planner takes into

account the diverse definition of culture as the term is subjective. Satisfying

tourists' interests such as landscapes, seascapes, art, nature, traditions, ways of

life and other products associated to them -which may be categorized cultural in

the broadest sense of the word, is a prime consideration as it marks the initial

phase of the development of a cultural destination.

2.3.2.2 Sport's tourism

Sports, or more correctly, Sport Tourism refers to travel which involves either

viewing or participating in a sporting event staying apart from their usual

environment. Sport Tourism is the fastest growing sector in the global travel

industry and equates to $600 Billion a year, according to a study done by

Commonwealth of Australia (2000).

The visitors could be motivated for any of the reasons cited below:

a) Participate as spectators of a sport event such as a world cup

b) Enjoy, learn or practice any sport activity

c) Participate in sport competitions

The diversity that this type of tourism offer is huge and there are several modalities

that need to be practice in a team (football, soccer, baseball), individually (athletics,

cyclist, surf), in couples (tennis, box), with animals (hunting, fishing), with special

equipment (diving, boating), with special installations (golf, ski).

2.3.2.3 Pleasure tourism

The researcher has found that this modality is very heterogeneous because it

includes different interests that generate the journeys with the finality of fun.

Although the motivation is the desire of having fun and enjoy life. This premise is

about getting away from the routine and forget about problems or just ignore them


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for a while. For this kind of customers exist an infinity of possibilities. recreational

parks is one of the most common places to go, cruises are popular too as well as

nightclubs and many more options. This is a massive tourism but there are some

selective options, which cost more to get differentiate from the rest. For these

reasons there are a lot of places to go to do this kind of tourism like beaches,

nightclubs in cities like Vegas or theme parks like Universal Studios.

2.3.2.4 Business tourism

According to the UK Governments Tourism Strategy (2001) in the study called

Tomorrows Tourism states, business tourism is one of the most lucrative, yet least

well acknowledged components of our tourist industry.

These are the journeys with a business purpose in between, out of the place of

residence. Nowadays is considered as a type of tourism, because, who is travelling

is using services such as transport, hotels, restaurants and any other service that

integrates de tourism industry. Usually these businessmen also do some shopping

activities while they visit a different city, buying souvenirs and doing activities as

any other tourist. The UNWTO also includes congress and conventions as a part ofbusiness tourism. A businessman opposed from a regular tourist is almost always

located in privileged services going from a flight in first class to luxuries hotels.

2.3.2.5 Ecotourism

Honey (2008) in the study Ecotourism and Sustainable Development: Who Owns

Paradise? define that the ecotourism is a form of tourism involving visiting fragile,pristine, and usually protected areas, intended as a low impact and often small

scale alternative to standard commercial tourism. Its purpose may be to educate

the traveller, to provide funds for ecological conservation, to directly benefit the

economic development and political empowerment of local communities, or to

foster respect for different cultures and for human rights. Since the 1980s


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ecotourism has been considered a critical endeavour by environmentalists, so that

future generations may experience destinations relatively untouched by human

intervention.

Ecotourism is a form of tourism that involves visiting natural areasin the remote

wilderness or urban environments. According to the definition and principles of

ecotourism established by The International Ecotourism Society (TIES) in 1990,

ecotourism is "Responsible travel to natural areas that conserves the environment

and improves the well-being of local people." (TIES, 1990). Martha Honey,

expands on the TIES definition by describing characteristics of ecotourism, which

are:

Involves travel to natural destinations

Minimizes impact Builds environmental awareness

Provides direct financial benefits for conservation

Provides financial benefits and empowerment for local people

Respects local culture

Supports human rights and democratic movements

Conservation of biological diversity and cultural diversity through ecosystem

protection Promotion of sustainable use of biodiversity, by providing jobs to local

populations

Sharing of socio-economic benefits with local communities and indigenous

peoples by having their informed consent and participation in the

management of ecotourism enterprises

Tourism to unspoiled natural resources, with minimal impact on the

environment being a primary concern.

Minimization of tourism's own environmental impact

Affordability and lack of waste in the form of luxury

Local culture, flora and fauna being the main attractions

local people benefit from this form of tourism economically, often more than

mass tourism


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2.3.2.6 Sustainable tourism products

There is no widely accepted definition of sustainable tourism according to

Swarbrooke (1999). It could, of course suggested that sustainable tourism should

simply be about applying the Brundtland Report definition of sustainability to

tourism. This could lead to definition such as: Forms of tourism which meet the

needs of tourists, the tourism industry, and host communities today without

compromising the ability of future generations to meet their own needs. Or could

lead to a definition that sustainable tourism: means tourism which is economically

viable but does not destroy the resources on which the future of tourism will

depend.

Figure 9: The relationship between sustainable tourism and other terms.

Source: Swarbrooke (1999) Sustainable tourism management

Sawrbrooke (1999) suggest that if is not easy to define sustainable tourism, it ispossible to propose a set of principles that should underpin any approach tosustainable tourism management.


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Figure 10: Principles behind sustainable tourism management.

Source: Bramwell 1996.

The approach sees policy, planning and management as appropriate, and, indeed

essential responses to the problems of natural and human resource misuse in

tourism.

The approach is generally not anti-growth, but it emphasizes that there are

limitations to growth and that tourism must be managed within these limits.

Long-term rather than short-term thinking is necessary.

The concerns of sustainable tourism management are not just environmental, but

are also economic, social, cultural, political and managerial.

The approach emphasizes the importance of satisfying human needs and

aspirations, which entails a prominent concern for equity and fairness.

All stakeholders need to be consulted and empowered in tourism decision-

making, and they also need to be informed about sustainable development issues.

While sustainable development should be a goal for all policies and actions,

putting the ideas of sustainable tourism into practice means recognizing that in

reality there are often limits to what will be achieved in the short and medium

term.

An understanding of how market economies operate, of the cultures and

management procedures of private sector businesses and of public and voluntary

sector organizations and of the values and attitudes of the public is necessary in

order to turn good intentions into practical measures.

There are frequently conflicts of interest over the use of resources, which means

that in practice trade-offs and compromises may be necessary.

The balancing of cost and benefits in decisions on different courses of action must

extend to considering how much different individuals and groups will gain or lose.


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Figure 11: The scope of sustainable tourism.

Source: Swarbrooke (1999) Sustainable tourism management

2.4 Conclusions of the chapter

The researcher in this chapter has seen the overview of marketing, definitions, the

needs, wants and demands that the customers have when they are making a

decision from a need and based on the pyramid of hierarchy proposed by Maslow,

that there is scale of needs and a person cannot desire anything if the basic needs

haven't been met. The consumer orientation of a company which focus its energy

to gain a customer and satisfying the needs that this may have and therefore the

success of the company retaining that customer.


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The consumer behaviour was also analysed in the chapter to know how customers

make their purchase decisions. With that information the marketing can focus their

efforts in the right target market to take advantage of the resources effectively and

efficiently and reach those potential customers with an accurate marketing mix

process.

The second part of the chapter refers to an overview of the tourism industry;

definitions were suggested from different authors to reach a whole idea of the

industry. The components of tourism packages and make these activities possible.

The main classification of the tourism activities brought new definitions about the

most common types of tourism and finalising with the sustainable tourism that is a

mix of tourism activities protecting the resources within the attraction and helps to

preserve the culture of the inhabitants, sharing the profits in a fair way among the

actors in the sustainable tourism activity.


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Chapter Three

3. Research methodology

3.1 Introduction

The purpose of this chapter is to explain the methodology adopted by the

researcher in the data collection process for the fulfilment of the aims and

objectives of the investigation, target marketing for sustainable products. Creswell

(1998) states that, Methodology includes the following theories, concepts or ideas

collection; comparative study of different approaches and critique of the individual

methods.

According to Kumar (2008), research is an intensive and purposeful search for

knowledge and understanding of social and physical phenomena. Research is a

scientific activity undertaken to establish something, a fact, a theory, a principle or

an application. It is an academic activity. Research in Common Parlance refers to a

search for knowledge. Research as a movement, a movement from the known tothe unknown. It is a voyage of discovery.

Kothari (2008) said, Research is an academic activity and as such the term should

be used in a technical sense. According to Clifford Woody research comprises

defining and redefining problems, formulating hypothesis or suggested solutions:

collecting, organizing and evaluating data; making deductions and reaching

conclusions; and at last carefully testing the conclusions to determine whether they

fit the formulating hypothesis. Slensinger and Stephenson in the Encyclopaedia of

Social Sciences define research as "the manipulation of things, concepts or

symbols for the purpose of generalizing to extend, correct or verify knowledge,

whether that knowledge aids in construction of theory or in the practice of an art."

Research is, thus, an original contribution to the existing stock of knowledge


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making for its advancement. It is the pursuit of truth with the help of study,

observation, comparison and experiment. In short, the search for knowledge

through objective and systematic method of finding solution to a problem is

research. The systematic approach concerning generalization and the formulation

of a theory is also research. As such the term 'research' refers to the systematic

method consisting of enunciating the problem, formulating a hypothesis, collecting

the facts or data, analysing the facts and reaching certain conclusions either in the

form of solutions towards the concerned problem or in certain generalizations for

some theoretical formulation.

Research methodology can therefore be defined various ways in which a

researcher uses in the data collection process, that are related to the researchquestions. For this study in particular the researcher has divided the research

methodology in four parts; philosophy of the research, approach, strategy of the

research and the data collection method. All these four parts of the research

methodology have helped the researcher in the process of analysing the target

markets for sustainable tourism products. Saunders (2003) compared the research

methodology steps with removing layers of onion as shown in the diagram below.

Saunders urged "onion" is used to describe a process by which the researcher

must consider the constituent parts (or layers of the onion) for the purpose of make

choices about which research philosophies, techniques of data collection and

analysis procedures to adopt. All this process is like removing the layers of an

onion.


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Figure 12: Research methodology as Onion

Source: Saunders, 2006

3.2 Research philosophy

A philosophical framework guides the way scientific research is conducted and is

influenced by people's idea of the reality which changes over time (Collis and

Hussey. 2009). Research philosophy relates to the development of knowledge and

the nature of that knowledge Saunders (2009). Epistemology, Ontology and

Axiology are three ways of thinking about research philosophy and the main

research questions and the possibility to work within Positivism and Interpretivism

is given, as this practical approach includes various perspectives to support

gathering data and interpreting those as said Saunders (2009).

The principal reason of using interpretive is due to the nature of the study, which

attempts to understand the fundamental meaning, about the target market of the

Galapagos Islands with sustainable tourism products. Saunders (2007) said,

interpretive is an appropriate method in the case of business and management


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research. Most of business researches use interpretive because to their complexity

and uniqueness.

The researcher in this process responds as a whole person and is an instrument,

observing, selecting, coordinating and interpreting data. Strauss (1998) urged, the

interpretive paradigm gives the researcher ability and willingness to listen to and

give voice to participants. The researcher believes that interpretive philosophy is

appropriate in interpretive the consumers' perception towards sustainable tourism

products.

3.3 Research approach

Piepenburg (2011) cited the research approach is subdivided into two research

types of reasoning; the deductive and inductive approach based in the words of Gill

and Johnson (2009). Within the deductive approach a theory and hypotheses are

developed and a strategy is designed to test the Hypotheses stated Saunders

(2009).

Figure 13: Process of deduction

Source: Bryman and Bell, 2003

1. Theor

1. H otheses

1. Revision of

Theory

1. Hypotheses

confirmed or

rejected

1. Findin s

1. Data Collection


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Bryman and Bell (2003) outline that theory and the hypotheses deduced from it

come first and drive the process of gathering data. By analysing the data the

hypotheses are either confirmed or rejected and the theory is revised again.

Saunders (2009) described that the inductive approach is the contrary, as the first

step is the data collection and a theory is developed after the analysis of that data.

This approach is referred to as moving from the specific to the general and theory

is developed from the observation of empirical reality thus general inferences are

induced from particular instances as suggested by Collis and Hussey (2009).

Several advantages are present on inductive research methodology as argued

Saunders (2006); first the approach can be easily applied because it uses

empirical evidence, it helps the researcher to explain the reasons of phenomenon

which are taking place during the research process and it permits changes to takeplace in the research progresses.

3.4 Research strategy

Saunders (2003) defined research strategy as the plan towards answering the

research questions. The research strategies used by the researcher for tthis study,constitutes the formulation of the research questions and identifying relevant

research methodology for answering those questions. The research questions are

focus in target market for the Galapagos Islands by sustainable tourism products.

Thus sustainability in the tourism industry within the Galapagos Islands and the

target that seeks are the answer. The researcher in the process of data collection

used interviews to the management of the Galapagos National Park, Ministry of

Tourism, Heritours travel agency, and teachers of tourism in Quito. From those

interviews the qualitative data was collected because these are active actors in the

tourism industry within the Galapagos Islands. Questionnaires were used to collect

quantitative data among tourist in London. Robson (2002) stated the advantage of

using questionnaires as the best way which are standard since they uses the same

questions to all respondents.


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3.5 Data collection methods

To answer the research questions proposed, the researcher has selected methods

of data collection. According to the Sociology commission (2006) the classificationof data collection is subdivided in quantitative and qualitative data, both collected

from primary sources, it means that the data collected is specifically to answer the

questions of this study and have not been used before. Primary data given to the

researcher brought accurate data to answer the research questions even though to

obtain this data takes time, while secondary data showed the ideas of previous

researchers and is easy to find and collect. The methods used by the researcher to

get this data were questionnaires and interviews, while the secondary data came

from books, journals and web sites.

3.5.1 Interview

Kvale (1983) defines the qualitative research interview as "an interview, whose

purpose is to gather descriptions of the life-world of the interviewee with respect to

interpretation of the meaning of the described phenomena".The researcher conducted a total of four interviews; the director of the Galapagos

National Park gave the researcher half an hour to discuss about the figures that the

Park has had this year. The number of visitors subdivided in locals and overseas

visitors, high and low season in the park, where the tourist prefer to lodge, the

countries of provenance, average age and the profile of the visitors.

The second interview with the secretary of the Ministry of Tourism in Ecuador, the

main points were about the number of visitors that Ecuador received this year to

make a comparison with the data from the Galapagos Park. Also the researcher

discussed the presence of countries that not figure in the Galapagos Islands as

visitors like Colombia and Cuba.

The third interview was to the owner of Heritours travel agency that is involved in

the tourism industry in the Galapagos Islands, The interview was about the target


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market of the Galapagos, finding the profile of the customers and their preferences,

provenance and attitudes towards visiting the archipelago of Galapagos.

The last interview was with a MSc. in Tourism that teaches in an important

university in Ecuador specialized in tourism, the main information obtained from

this interview was about the sustainability in places like the Galapagos Islands.

Possible weaknesses and his point of view of possible solutions to reach

international markets.

3.5.2 Questionnaires

Saunders (2003) suggested that usually it is better to link questionnaires with other

methods. Two types of questions were used by the researcher to conduct the

survey, closed-ended questions, which obligated the surveyed to choose one of

the answers proposed and open-ended questions, which give the chance to

answer whatever the surveyed think is correct, without having to choose an option.

A questionnaire is a research instrument consisting of a series of questions and

other prompts for the purpose of gathering information from respondents. Although

they are often designed for statistical analysis of the responses, this is not alwaysthe case. Sir Francis Galton invented the questionnaire.

Questionnaires have advantages over some other types of surveys in that they are

cheap, do not require as much effort from the questioner as verbal or telephone

surveys, and often have standardized answers that make it simple to compile data.

However, such standardized answers may frustrate users. Questionnaires are also

sharply limited by the fact that respondents must be able to read the questions and

respond to them. Thus, for some demographic groups conducting a survey by

questionnaire may not be practical. A total of 100 questionnaires were taken in

London to contribute to this study.


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3.6 Conclusion

Both methods seek to answer the research questions, perhaps the sample was too

small in order to reflect a more accurate situation about the target market that theGalapagos Islands seek. However the qualitative data helped the researcher to

answer the questions that were not helpful from the questionnaires.


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Chapter Four

4. Data and analysis

4.1 Introduction

The researcher in this study has used a qualitative method for analysing data

obtained from open-ended questions from the questionnaire and interviews. While

quantitative method has been used to analyse the closed ended questions the data

obtained from the structure questionnaire have been collected, summarized,

coded, and analysed using computer software called Statistical Package for Social

Sciences (SPSS). The closed questions were analysed by using the SPSS, while

the information, which was obtained from the open-ended questions, was well

summarised.

4.2 Analysis of the data from content analysis

4.2.1 Tourist arrivals to Ecuador (2009-2011)

Figure 14: Tourist arrivals to Ecuador

Month/Year 2009 2010 2011

January 86.544 96.109 105.541

February 72.742 89.924 86.424

March 72.226 82.452 87.486

April 72.910 70.540 87.509

May 70.277 77.618 82.811June 89.889 91.602 99.944

July 102.571 110.545 117.997

August 87.221 95.219 98.987

September 68.124 71.776 80.083

Total 722.504 785.785 846.782


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Source: Ministry of tourism 2011

The statistics done by the ministry of tourism pointed that in 2009 Ecuador

received a subtotal of 722.504 visitors from January to September while in 2010

during the same months the number had raised to 785.785. For 2011 the number

rose again, this time to 846.782 visitors. In all three years July is the busiest month

while September is the slowest.

4.2.2 Tourist arrivals to Galapagos (2009-2011)

Figure 15: Tourists arrivals to Galapagos

0

20.000

40.00060.000

80.000

100.000

120.000

2009

2010

2011

Year Overseas Locals Total

2009 106,646 55,964 162,610

2010 111,723 61,574 173,297

2011 89,527 50,461 139,988


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Source: Galapagospark 2011

According to the Galapagos National Park the archipelago in 2009 received a total

of 162,610 visitors, from those 55,964 where citizens of Ecuador and the rest a

total of 106,646 were overseas visitors while in 2010 with a total of 173,297 visitors

from those have visited the archipelago a total of 61,574 locals and 111,723

overseas visitors. From January 2011 to September of the same year a total of

139,988 tourists have visited the islands and the prediction until the end of the year

goes over 184,000 tourists which means that the tourism in the archipelago is

growing every year in approximately 10,000 tourists, from overseas a total of

89.527 in those months while the number of tourists that have visited Ecuador in

the same period was 846.782, it means that a little over 9% of the tourists that

came in 2011 have visited the archipelago and the remaining 50.461 were locals.

0

20

40

60

80

100

120

140

160

180

20092010

2011

Overseas

Locals

Total


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4.2.3 Tourists arrivals by months

Figure 16: Tourists arrivals to Galapagos by months

Moths Overseas Locals TotalJanuary 9,833 4,274 14,107

February 8,800 4,879 13,679

March 10,799 4,538 15,337

April 10,182 5,947 16,129

May 10,310 6,474 16,784

June 9,765 $ 5,960 15,725

July 12,248 7,542 19,790

August 11,174 6,914 18,088September 6,416 3,933 10,349

Total 89,527 50,461 139,988

Source: Galapagospark 2011

The researcher have found that the number of visitors changes every month

according to the Galapagospark archives, being the most visited the month of July

with a total of 19,790 tourists (12,248 overseas visitors and 7,542 locals), while the

Overseas

0

5

10

15

20

Overseas

Locals

Total


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slowest month of the year was September with only 10,349 visitors (6,416

overseas visitors and 3,933 locals). From October to December the sales picked

up again like in previous years. With these data the researcher determined that the

month of September is the slowest of the year in the Galapagos.

4.2.4 Ecuador's Main emitting countries

Figure 17: Ecuador's Main emitting countries 2011

Main emitting countries 2011

United States 200.390Colombia 213.473

Per 122.743

Spain 50.138

Argentina 30.377

Chile 28.810

Venezuela 28.703

Germany 22.156

Canada 20.295

Cuba 20.099


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Source: Ministry of tourism 2011

The main emitting countries of visitors to Ecuador are our

target marketing for sustainable tourism products (december)

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