Tourism Management 33 (2012) 1281e1285
Contents lists available at SciVerse ScienceDirect
journal homepage: www.elsevier.com/locate/tourman
Perceptions of visitor relationship marketing opportunities by destination marketers: An importance-performance analysis Samantha Murdy, Steven Pike*
School of Advertising, Marketing & Public Relations, Queensland University of Technology, 2 George Street, Brisbane, Queensland 4001, Australia
a r t i c l e i n f o
Article history: Received 14 November 2011 Accepted 28 November 2011 Keywords: Customer relationship marketing CRM Visitor relationship marketing VRM Destination marketing organisations Importance-performance analysis
a b s t r a c t
Customer relationship marketing (CRM) initiatives are increasingly being adopted by businesses in the attempt to enhance brand loyalty and stimulate repeat purchases. The purpose of this study was to examine the extent to which destination marketing organisations (DMOs) around the world have developed a visitor relationship marketing (VRM) orientation. The proposition underpinning the study is that maintaining meaningful dialogue with previous visitors in some markets would represent a more efﬁcient use of resources than above the line advertising to attract new visitors. Importance-performance analysis was utilised to measure destination marketers’ perceptions of the efﬁcacy of CRM initiatives, and then rate their own organisation’s performance across the same range of initiatives. A key ﬁnding was that mean importance was higher than perceived performance for every item. While the small sample limits generalisability, in general there are appears to be a lack of strategic intent by DMOs to invest in VRM. Crown Copyright Ó 2011 Published by Elsevier Ltd. All rights reserved.
1. Introduction Customer relationship marketing (CRM) has become one of the fastest growing practices within business (Raman, Wittmann, & Rauseo, 2006). CRM is a customer-orientated and cross-functional business strategy process integrated with business technology (Goldenberg, 2000), rather than merely a software package (Harker & Egan, 2006), to enhance an organisation’s ability to create ongoing relationships with high yield customers, which is considered more cost-effective than a series of one-off transactions with new customers. The key goals are to create and enhance brand loyalty, increase customer retention, and stimulate repeat purchases (Chang, Yen, Ku, & Young, 2002; Marchand, 2006; Ozgener & Iraz, 2006). By increasing customer loyalty, value is added to the life of the customer (Beaujean, Davidson, & Madge, 2006) and reduces the overall cost of marketing (Ozgener & Iraz, 2006). This reduced cost is emphasised by the suggestion that it is at least ﬁve times more cost-effective for an organisation to retain existing customers, as opposed to continually acquiring new ones (Ozgener & Iraz, 2006). Of interest to this study was the proposition by Pike (2007) that maintaining meaningful dialogue with previous visitors is a more
* Corresponding author. E-mail address: email@example.com (S. Pike).
efﬁcient use of resources for destination marketers than traditional above the line advertising to attract a continual stream of new visitors. This is an important consideration given most destination marketing organisations (DMO) must use scarce resources for marketing communications across an increasingly fragmented media space, in multiple and diverse markets of interest to stakeholders, and in ways that effectively positions the destination against an almost unlimited range of direct and indirect competitors. Pike’s qualitative research explored the extent to which regional tourism organisations (RTO) in Australia were employing visitor relationship marketing (VRM) initiatives in their most important domestic market. While all the senior management of the RTOs acknowledged the potential for VRM in the future,...
References: Beaujean, M., Davidson, J., & Madge, S. (2006). The ‘moment of truth’ in customer service. McKinsey Quarterly, 2006(1), 63e73. Bielski, L. (2003). Taking CRM step-by-step. ABA Banking Journal, 95(4), 57. Blain, C., Levy, S., & Ritchie, J. (2005). Destination branding: insights and practices from destination management organizations. Journal of Travel Research, 43(4), 328e338. Bose, R. (2002). Customer relationship management: key components for IT success. Industrial Management & Data Systems, 102(1/2), 89e97. Bruyere, B., Rodriguez, D., & Vaske, J. (2002). Enhancing importance-performance analysis through segmentation. Journal of Travel & Tourism Marketing, 12(1), 81e95. Chang, J., Yen, D., Ku, C.-Y., & Young, D. (2002). Critical issues in CRM adoption and implementation. International Journal of Services and Technology Management, 3(3), 311e324. Crompton, J. L. (1979). An assessment of the image of Mexico as a vacation destination and the inﬂuence of geographical location upon that image. Journal of Travel Research, Spring, 18e23. Crompton, J. (1992). Structure of vacation destination choice sets. Annals of Tourism Research, 19(2), 420e434. Crompton, J., & Duray, N. (1985). An investigation of the relative efﬁcacy of four alternative approaches to importance-performance analysis. Academy of Marketing Science (Journal Pre-1986), 13(4), 69e80. Fakeye, P., & Crompton, J. L. (1991). Image differences between prospective, ﬁrsttime, and repeat visitors to the Lower Rio Grande valley. Journal of Travel Research, Fall, 10e16.
S. Murdy, S. Pike / Tourism Management 33 (2012) 1281e1285 Fyall, A., Callod, C., & Edwards, B. (2003). Relationship marketing: the challenge for destinations. Annals of Tourism Research, 30(3), 644e659. Goldenberg, B. (2000, 27e29 June). What is CRM? What is an e-customer? Why you need them now. Paper presented at the proceedings of DCI customer relationship management conference, Boston. Harker, M. J., & Egan, J. (2006). The past, present and future of relationship marketing. Journal of Marketing Management, 22(1e2), 215e242. Harris, R., Jago, L., & King, B. (2005). Case studies in tourism & hospitality marketing. Sydney: Pearson Education Australia. Hollenhorst, S., Olson, D., & Fortney, R. (1992). Use of importance-performance analysis to evaluate state park cabins: the case of the West Virginia state park system. Journal of Park and Recreational Administration, 10(1), 1e11. Hudson, S., & Shephard, G. W. H. (1998). Measuring service quality at tourist destinations: an application of importance e performance analysis to an alpine ski resort. Journal of Travel & Tourism Marketing, 7(3), 61e77. King, S., & Burgess, T. (2006). Beyond critical success factors: a dynamic model of enterprise system innovation. International Journal of Information Management, 26(1), 59e69. Lin, C., Lin, K., Huang, Y., & Kuo, W. (2006). Evaluation of electronic customer relationship management: the critical success factors. The Business Review: Cambridge, 6(2), 206e212. Marchand, D. (2006). Customer relationship management challenging the myth: focus on people not the technology. Perspectives for Managers, 131(1), 1e4. Martilla, J., & James, J. (1977). Importance-performance analysis. Journal of Marketing (pre-1986), 41(000001), 77e79. Milman, A., & Pizam, A. (1995). The role of awareness and familiarity with a destination: the central Florida case. Journal of Travel Research, 33(3), 21e27. O’Neill, M., & Charters, S. (2000). Service quality at the cellar door: implications for Western Australia’s wine tourism industry. Managing Service Quality, 10(2), 112e122.
Ozgener, S., & Iraz, R. (2006). Customer relationship management in small-medium enterprises: the case of Turkish tourism industry. Tourism Management, 27(6), 1356e1363. Park, S., & Petrick, J. (2006). Destinations’ perspectives of branding. Annals of Tourism Research, 33(1), 262e265. Pike, S. (2002). The use of importance-performance analysis to identify determinant short break destination attributes in New Zealand. Paciﬁc Tourism Review, 6(2), 23e33. Pike, S. (2006). Destination decision sets: a longitudinal comparison of stated destination preferences and actual travel. Journal of Vacation Marketing, 12(4), 319e328. Pike, S. (2007). Repeat visitorsean exploratory investigation of RTO responses. Journal of Travel & Tourism Research, . Raman, P., Wittmann, C., & Rauseo, N. (2006). Leveraging CRM for sales: the role of organizational capabilities in successful CRM implementation. Journal of Personal Selling and Sales Management, 26(1), 39e53. Sheehan, K., & McMillan, S. (1999). Response variation in E-mail surveys: an exploration. Journal of Advertising Research, 1999, (July/August). Sin, L., Tse, A., & Yim, F. (2005). CRM: conceptualization and scale development. European Journal of Marketing, 39(11/12), 1264e1392. Sue, V., & Ritter, L. (2007). Conducting online surveys. London: Sage Publications. Tourism Queensland. (2006). Why do kiwis come to Queensland? T.Q. News, 7(Winter), 45e47. Uysal, M., Chen, J. S., & Williams, D. R. (2000). Increasing state market share through a regional positioning. Tourism Management, 21(1), 89e96. Wilson, H., Daniel, E., & McDonald. (2002). Factors for success in Customer Relationship Management (CRM) Systems. Journal of Marketing Management, 18(1/2), 193e219. Woodside, A., & Sherrell, D. (1977). Traveler evoked, inept, and inert sets of vacation destinations. Journal of Travel Research, 16(1), 14e18.
Please join StudyMode to read the full document