Thursday 7 June 2012

The Needs of Package Tourists and Travel Agents – Neuromarketing in the Tourism Sector

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The Needs of Package Tourists and Travel Agents – Neuromarketing in the Tourism Sector
Ingo Markgraf; David Scheffer; Johana Pulkenat
Abstract
This article will examine, what makes package tourists spend a lot of money, compared to their day-to-day expenditures, on a service package of which true value appears weeks if not months after being purchased. Furthermore it will take a closer look at the motivational world of the travel agency staff and how both groups interact. These questions will be analysed with regard to its significance and applicability in brand management. The results of a neuropsychological study, which measured the implicit personality systems of package tourists and travel agents with a psychological test, are the foundations of this article.
1 Introduction
Only in recent decades, that holiday trips have been a possible leisure activity which is regularly affordable while still covering essential expenses (Mund, 2006, p. 115). Important drivers are more leisure time and a national income that has grown over the years.
For years sun, beach and relaxation have been the most important reasons for going on holiday according to travellers. Yet also other forms of holiday trips such as city, activity/sport, cruise or wellness holidays are enjoying an increasing popularity.
When investigating the travel market it must be taken into consideration that it is subject to considerable changes due to, for example, new dynamic production processes, price comparison systems, the growth of online providers etc.
2 Starting Position, Problems and Objectives
A brand core analysis in 2008 showed that brand packages of REWE Touristik GmbH, ITS, Jahn Reisen and Tjaereborg where being perceived as barely differentiated and hardly distinguishable. This applied to both customers and travel agents. The decision to continue the three brands led to the task of a new positioning, i.e. to make each brand unique and distinguishable in its perception.
The objective of the study which was carried out was, to better understand the package tourist market and come up with instructions for communication with package tourists through REWE Touristik brands. The key issues discussed where:
 Why do package tourists buy?
 Which scopes and potentials are there when positioning single brands?
 How can potential customers be better addressed and won as a customer?
Other issues where to better understand the travel agent group und to find out about their implicit effective sales motivation.
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Central question concerning travel agents where:
 How do travel agents “tick”?
 What is their main motivation (commissions, incentives…) for selling a holiday?
 How can travel agents be addressed more effectively?
 How can travel agents help to increase the sale of REWE Touristik products?
3 Solutions and Method
Focus groups, interviews or questionnaires are conventional ways of finding out which needs are behind the behaviour of individual people and groups. Methods which record implicit needs and motives are used in rare cases if at all. It has been proven, that emotional and cognitive processes which lead to purchase decisions are at least 95% unconscious (Zaltman, 2003). This is why people can only give inadequate information about the real reasons for their decisions. This fundamental knowledge has been scientifically beyond dispute for more than 30 years (Nisbett & Wilson, 1977). However this knowledge is still being taken less into account in market research, marketing and brand management.
The implicit test “Visual Questionnaire” (ViQ) has been used to come up with the results used in this article. The test measures implicit personality systems objectively, reliably and validly by using an easy, purely visual method (Scheffer & Loerwald, 2008). The implicit personality systems as scales of the ViQ mainly describe how people perceive things and how they make (purchase) decisions (Figure 1).
Figure 1: Explanation of the Implicit ViQ Personality system
The scale order in Figure 1 follows the functions of the personality system. Extraversion versus introversion are complementary ways of energy input and thereby an orientation on perception. Sensing versus intuition concerns perception itself, thinking versus feeling are decision strategies based on perception and judging versus perceiving relate to the handling of these decisions. The scales E/I as well as J/P are measured bipolar, S, N, T and F are all independent scales, which form the personality core area for perception and decision making. The abbreviation N for Intuition comes from an international convention, as the I already stands for introversion.
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For simplicity’s sake the ViQ scales are shown in the two-dimensional “NeurolPS®-Map” system and referred to elsewhere as dimensions. The dimensions of sensing (S), intuition (N), thinking (T) and feeling (F) are combined to provide a four-element breakdown and together with the Extraversion/Introversion (E/I) and Judging/Perceiving (J/P) dimensions form 16 groups (Figure 2).
Figure 2: Four Core Personalities and 16 Types of NeurolPS®-Map
Figure 2 shows four key neuropsychological types, which are driven by different motives and needs. This is why different tonalities, lines of argument and triggers of emotions lead to the types feeling called upon.
Such customer types can be found in the top left corner of the NeurolPS®-Map, for which the classic economy image of homo oeconomicus generally applies, even though facts show that decisions are in the end based on an emotion – the good feeling to be able to do everything right and have it all under control. ST or analyst types need a rational, clear cost-benefit ratio which is clearly evident to them to be satisfied. They have a need for reliability, precision, systematics, objectivity and efficiency.
Customer groups which are found in the bottom right corner are the exact opposite. NF – or Trendsetter types reach top form when abstract ideas, arts or the unconventional are involved. They have a high need for individuality independent of the price. Idealism for them is regarded higher than a good cost-benefit ratio, which is important to analysts. The basic motivation of the SF-type or of the relationship person is, just as the name states, relationships and harmony. The highest priority for them is a harmonic, empathic relationship to people and animals. Yet additionally SF-Types think practically and realistically. Diametrically opposite of the SF-Type stands the NT- or strategist type. Thinking about major visions and strategies are important to him. Logic and self-determination are valued.
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Finally there are naturally also lots of hybrids, which are taken into account by using a graphical presentation of the Neurol®PS-dimensions in the analysis of package tourists and travel agents.
4 Study Design
A market research panel was commissioned to get package-holiday tourists to take part. 1082 package-holiday tourists of different brands took part (Figure 3), who clicked their way through a ViQ online and answered a few explicit questions at the end about brand and travel preferences.
Figure 3: random number (German: “Teilnehmerzahl”, English: Number of participants) travel brands for package tourists, panel, N = 1082
An animated banner was designed with an editorial tag “What kind of travel-sales type are you?” to get travel agents to participate. The banner was put up on different travel agent portals. Ultimately 130 travel agents took part in the study (Figure 4).
Figure 4: Animated Banner to Get Travel Agents to Participate, What Kind of Travel-Sales Type Are You?
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5 Results
5.1 Needs of Package Tourists
Age and sex distribution of random samples was approximately the same as the nation’s average.
The ViQ mean profile of all package-traveler samples allows a conclusion of the implicit personality systems and the needs and motives which are involved (Figure 5). Mean profiles for sub-groups can be created in detail (for example users of a certain brand) by analysing sub-group samples separately.
The ViQ mean profile is always worked out when the group of package tourists or one of their sub-groups is comparable to a representative norm of the total population.
The results are presented in z-standardised scales. The x-axis with the value 0 in the following graph shows a representative norm based on the mean of the population. The bars show the deviation of package-tourists or brand users respectively from this norm in z-standardised units. A value of 0.50 would therefore mean that brand users show a higher manifestation of one half of the standard deviation than the comparative norm. This would already equate to a very strong deviation or effect size.
Figure 5 illustrates that package tourists as an entire group only distinguish themselves in some personality systems by approx. one quarter of the standard deviation from the norm.
Figure 5: The Implicit Personality Systems of Package Tourists (N=1082) as the Standard Deviation from the German Norm (N=100,000)
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1. Higher values for the attribute “Extraversion”: Package tourists pull more energy by interacting with the environment than the average of the population. They have a higher need for exterior stimuli and react quickly. They openly share thoughts and feelings.
2. Higher values for the attribute “Sensing”: Package tourists have a higher need for realism and details. They rely more on their five senses for perception and less on their intuition. Believing means seeing for sensing types.
3. Higher values for the attribute “Perceiving”: Package tourists are more flexible than the average of the population. They have the need to keep alternatives open for themselves and to make spontaneous decisions, preferably just before a deadline, based on perception of different perspectives. The here and now is more important to them than rigidly pursuing goals. This for example becomes clear when seeing the results of an additional question which was explicitly posed after the ViQ, whether a particular travel agent would be preferred. 50.7 percent stated that no particular travel agent is preferred. The brand TUI finished with max. 8.5%, followed by subsiding percentages of the brands Alltours (7.6 percent) and Neckermann (5.1 percent).
5.2 Description and Motivation of Package Tourists in Accordance with their Types
Basically package tourists are an ESFP-type. EP-types are enterprising, always prepared to explore the new, lively, often loaded with energy, improvising and testing. They would prefer to savour the moment as if it didn’t have any prehistory and implications. ESFPs as a core target group are open-minded, friendly and enthusiastic. They love to live (in a regulated framework) a colourful, rich and intensive life. Their behaviour is often shaped by their need for variety and interpersonal harmony. Impressions exceeding the norm appeal to them. Holidays in foreign countries offer a good opportunity to escape from everyday life, this being one of the most fundamental motives to travel.
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In terms of the T and F decision-making dimensions package tourists are shown to be average in their nature. Package tourists find it relatively hard to make a decision. This is why package tourists happily accept the offer where the decision making and organization of a holiday is done for them. This convenience is far more important to them than individuality. In the extreme, carefree packages are the most significant part of services. When on holiday, package tourists want to have fun, “hang out”, go on safe adventure trips and provide their senses with information – see new things, taste, touch, smell and hear. If a trip doesn’t fulfill expectations then package tourists are able to improvise through the developed dimension P. This is why, compared to their everyday expenses, they are prepared to pay a large sum of money for a service package, the true value of which only becomes apparent on arrival at the holiday destination.
Of course the measured profile of package tourists is only valid in general for the overall sample. These profiles do partly deviate for customer groups of different brands. To this end Figure 6 shows the customer profiles of Jahn Reisen.
Figure 6: The Implicit Customer personality Systems of the Brand Jahn Reisen (N=90) as a Standard Deviation from the German Norm (N=100,000)
Jahn Reisen customers have stronger extraversion and perceiving attributes than any other package tourists. Additionally Jahn Reisen customers are clearly more intuitive than the average of the population and the other package tourists, i.e. they perceive the world abstractly and symbolically instead of realistically. Compared with other package tourists a higher degree of rationality is also significant. (Package tourists in total T=0.00, Jahn Reisen T=0.18). Basically Jahn Reisen customers, as a sub-group of the random sample of package tourists, generally belong to the ENTP-type.
This shows that Jahn Reisen customers are demanding, quick, innovative, imaginative, have wide interests, hands-on and love to keep in touch with the times.
Life seems to them seems like a dazzling spectrum of possibilities. Individual details are not so important. They prefer to look at the bigger picture with all possibilities. They mostly look towards
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the future. If given the opportunity Jahn Reisen customers prefer to consume exclusiveness – even if it costs significantly more. Logic is more important to Jahn Reisen customers than feeling. They feel especially well if they are consulted by independent, competent people who solve problems for them.
Short, succinct and straight to the point is the best way to provide Jahn Reisen customers with information, ideally supplemented by an abstract food for thought, as future trends and possibilities interest them greatly.
It is necessary to be prepared to discuss the pros and cons of the various options when talking to them. A bureaucratic approach scares them off.
With this description it is possible to optimize communications in many ways. To this end Figure 7 shows a briefing tool for developing communication.
Figure 7: Briefing Tool for Structuring Communication
The framed shape bottom left comes closest to a Jahn Reisen customer.
After completion of study results were used for fine tuning the catalogue’s design, for example. An exclusive, cool appearing hotel ambience is paramount for the ENTP-type. Figure 8 shows the evolutionary brand development of Jahn Reisen based on this briefing.
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Figure 8: Profiling of the Jahn Reisen Brand to a Clear Personality (extrovert, intuitive perception, rational and exclusively oriented)
By way of comparison Figure 9 shows the evolutionary ITS brand development. The ESFP brand core mainly shows ITS customers to fall in line with the character of package tourists.
Figure 9: Profiling the ITS Brand into a Clear Personality (extrovert, perceiving reality, primarily making decisions based on feelings, driven by flexibly)
5.3 Travel Agents Needs Compared to those of Package Tourists
The study at travel agency level predominantly involved female participants (71.5%). This reflects the industry’s typical gender structure. The age distribution corresponds, just like the package tourists, approximately to the general population.
Figure 10: The Implicit Travel Agent Personality Systems (N=130) as Standard Deviation from the German Norm (N=100,000)
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Figure 10 shows the characteristics of implicit travel agent personality systems. The dimensions perceiving and extraversion are the same for travel agents and the group of package tourists. The dimension of perception “intuition” approximately corresponds to the value of package tourists, whereas the dimension of perception “sensing” (0.03) is clearly behind the value of package tourists by a delta of 0.20. Therefore travel agents are less interested in facts and details as well as a step by step procedure. The dimension of decision “feeling” clearly emerges with a standard deviation of 0.35. Travel agents tend to base their decision on instinct rather than proceeding from any analysis. They think they need to defend their values and are inclined to make decisions subjectively. For them interpersonal contacts, fostered by trust and empathy, are vital to them. So in essence travel agents can be regarded as ENFP type.
5.4 General Description and Motivation of Travel Agents as well as Potential Discord Among Travel Agents
Travel agents are amicable, relaxed, warm-hearted, full of energy, authentic and have people skills. Travel agents generally have a relatively strong profile. To attune to many different customers and communicate with them is a special ability of travel agents. They are good at observing and forefeeling what is going on inside of someone, sensing feelings and giving words or actions a special meaning. In general problems which suddenly appear are dealt with their talent for improvisation at astonishing ease.
Travel agents are very sociable and sometimes can’t wait to tell others about their extraordinary adventures and experiences. This can by all means take some time. Yet simple stories are not the focus of their tales but rather more the effort to pass on truths about human impressions and strongly convincing.
It might happen that they just fixate on own ideas and expectations whilst consulting package tourists. They sometimes think too much about what they would want.
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Considering the profile it can be suspected that travel agents, despite their inspirational aura, can’t fulfill the role which customers give them. Customers expect clear decision-making support when choosing their holiday destination. The structured and analytical thinking which is required isn’t the travel agents’ strong point and thus demotivated them. Travel agents prefer working associatively and emphatically. Travel agents have varied interests – they are also interested in themselves. Personal target setting and development have a high priority compared to other types.
Travel agents like to think about “nice things”. Working daily with stories and pictures of holiday trips really meets the neuropsychological function, which have developed them most. From their point of view it is necessary to experience intensive emotions to have a fulfilling life. They find it great undergoing new and positive experiences. Trips and parties offer such new stimuli. This is why travel agents get bored with everyday life. They take great joy in expanding their practical expertise and applying it in direct communication when working together with other people. Every sales conversation is a small adventure, an impression and is different just like people. Wealth of experience which touches people’s hearts interests travel agents. Sales conversations often have a pleasant atmosphere as people look forward to their holiday which is in line with the travel agents nature. Travel agents can only flourish in a good atmosphere.
5.5 Communication with Travel Agents
Experiencing hands-on is the best way of learning for travel agents. Things they experienced themselves sticks with them can be reproduced easily. However they find it difficult to acquire knowledge from catalogues. Therefore stories backed up by picture material are very important for communicating with travel agents. Written detailed information should be kept as short as possible.
They like energetic and inspiring communication and appreciate it when being acknowledged and recognised. Ideally information is passed on in short separated sequences. Markers can be applied to better emphasize single sequences. For example a model elephant could be put on the table during a sequence of Africa.
Training must be very lively, varied and unconventional, backed up by picture material, surprising actions and stories. Events not only demand the most expensive champagne because cheaper options may be more effective, tailored and come with a surprise element. The possibility to introduce oneself, ask questions and opportunities to further develop greatly improve an event program.
An information overload is the greatest mistake when communicating with travel agents.
6 Discussing the Results and Practical Implications
The subconscious personality profile of brand users tells a lot about needs, motives and resulting preferences which can be used together with visual briefings for structuring communication. Furthermore the mean profile of brand users tells something about the brand personality. These should be strengthened by consistent communication specifically for target groups because matching brand and customer profiles are an essential factor for achieving brand preference (Florack &
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Scarabis, 2007). By using empirical methods of unconscious personality profiles of brand users, differentiation of brands can be applied more specifically and effectively (Markgraf & Scheffler, 2011).
References
Florack, A. & Scarabis, M. (2007). Personalisierte Ansätze der Markenführung. In A. Florack, M. Scarabis and E. Primosch (ed.), Psychologie der Markenführung. Munich: Vahlen.
Markgraf, I. & Scheffler, D. (2011). Differenzierung von Marken durch Neuromarketing am Beispiel der Tourismusbranche. Working papers of the Nordakademie, 2011-03, Internet publications by the Nordakademie: http://www.nordakademie.de/arbeitspapier+M55765093672.html
Mund, J. W. (2006). Tourismus (Third Edition). Munich: Oldenbourg.
Nisbett, R. E., & Wilson, T. D. (1977). Telling more than we can know: Verbal reports on mental processes. Psychological Review, 84, 231-259.
Scheffer, D. & Loerwald, D. (2008). Measuring personality characteristics with the Visual Questionnaire (ViQ) – Attraktivität als Nebengütekriterium. In W. Sarges & D. Scheffer (ed.), Innovative Ansätze für die Eignungsdiagnostik, (pp. 51-63). Göttingen: Hogrefe.
Zaltman, G. (2003). How customers think. Boston: Havard Business School Press.

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