CHAPTER 2 THE MICE MARKET 9
3.8 CHAPTER SUMMARY 95
Research interest in MICE was prompted by the rapid development of the sector due to high returns achieved for initial heavy investments, and its role in economic development of the country as a whole. In the early stages, these developments took place largely in Western countries. Hence, research was also focused on these countries. Still the top MICE destinations and markets are concentrated in Western countries.
MICE research started in the 1990’s. One of the earliest research reports was that of Oppermann (1996). Early studies focused on the quality of venues, convention planning and services. The expanded research in other countries concentrated on location selection, criteria of meeting planners, processes of MICE events with few works on the decision making process of delegates. The core research themes during 1990-2003 were: site selection, meeting participation processes, destination marketing, meeting participation processes, technology advancements and the economic impact of conventions. The rapid development of communication and travel facilities and other technologies has enabled global participation of diverse
cultural dimensions. High competition among MICE destinations results in each destination finding new ways of marketing itself to attract a maximum number of tourists.
There is a significant lack of research on the participant decision making process, especially applied to non-Western countries and to the KSA in this study context. Hitherto, the major inflow to the KSA was due to pilgrimage of Muslims to the two holiest Islamic places in the country. While this needs to be continued, for further increases of tourist inflows through MICE, the KSA needs to attract tourists from the main markets of the USA, Europe and Asia. The religious and cultural constraints discussed in Chapter 2 can act as a major deterrent to the efforts of the KSA in this direction.
Consumer decision making models are used in marketing of products and services in various sectors like the retail sector. Various decision making theories are applied in the conceptual development of models. Expected utility theory (von Neumann & Morgenstern, 1947) prospects theory (Kahneman & Tversky, 1974), regret theory, satisficing theory (Simon, 1957), theory of reasoned action (Ajzen & Fishbein, 1980) and its variant, and planned behaviour theory (Ajzen, 1987), differentiation and consolidation theory of Svenson (1992), theory of buyer behaviour by Howard & Sheth (1969), consumer decision model suggested and modified several times by Engel et al. (1968), theory of trying by Bagozzi & Warshaw (1990) and the theory of goal-directed behaviour by Perugini & Bagozzi (2001) are some of them. Mair (2005) proposed two models for situations when there is uncertainty of brand attributes. Both were dynamic models: one related to immediate utility and the other, future use. Mair (2005) discussed three grand models of consumer behaviour proposed by Nicosia (1966), Engel et al. (1968), and Howard & Sheth (1969). Wahab, Crompon, Rothfield, (1976), Schmoll (1977), Mayo and Jarvis (1981), Moutinho (1987), Van Raaij and Francken (1984), Woodside and Lysonski (1989), Um and Crompton (1990) are another set of ten models. The applicability of the consumer behaviour models of Wahab et al. (1976), Schmoll (1977), Mathieson & Wall (1982), van Raaij and Francken (1984), Moutinho (1987) to this study was evaluated in detail.
Specific models of MICE destination decision making were also examined for their applicability in this study. They are: Oppermann and Chon (1997), Zhang et al.
(2007), Mair (2005) and importance-performance analysis by Whitfield et al. (2014). Overall, these models have two common problems when trying to apply them in this study. Firstly, all the models are predictive in nature. They only predict how the decision will be made. This study looks back in time to determine the motivations, perceptions and attitudes of attendees of MICE events that have already happened. Secondly, and most importantly, none of the models has culture or religion as a component of decision making. This study aims to find out whether these factors play any role in decision making for MICE visits to the KSA. Therefore it is necessary to develop a new model which includes comparison of cultures in consumer decision making, and is also relevant specifically to the Middle East. Works on factors related to consumer decision making specifically in tourism were reviewed. The factors studied are: purpose, motivation, perception, attitude, demographic variables, internet, WOM, destination factors like location, hospitality, amenities, event schedules, other activities, leisure and entertainment activities. Crompton (1979) proposed the push–pull model of travel motivation. The effect of push force is to cause a tourist to leave home and seek some unspecified vacation destination, while the effect of pull force is to attract a tourist toward specific destinations perceived to be attractive because of their attributes. The factors may be different in different cultures and countries, socio-economic groups, due to cost factors. Pull factors may dominate over push factors. Hofstede’s cultural dimensions - uncertainty avoidance and variety seeking - is valid only in the case of high uncertainty avoidance. In the context of Muslims and Non-Muslims different push and pull forces might be at play. This is the second cultural dimension. Motivation may change from one event to another. Motivations of visitors participating in similar MICE events could be similar irrespective of their cultural background. Motivational differences can be used for market segmentation. This enables event managers to identify the strengths and the opportunities of each market and use appropriate strategies to maximise customer satisfaction in each segment, especially when MICE visitors are heterogeneous. Although the cultural distance of a country cannot be changed easily, certain policies and strategies of the host country can reduce the effect of cultural distance for the KSA on visitors from low cultural distance countries.
However, motivation alone is not adequate to select a specific destination in preference over others. Perceptions about the destination leading to formation of destination image influences the decision making process from the point after motivation drives travel intent. Perception of the KSA as a MICE destination is important in the choice of the KSA as a destination. Perception is the process of attaining awareness or understanding of sensory information. It is the result of the interaction between past experiences including one’s culture, and the interpretation of what is perceived. Attitude, values and beliefs affect perception. Thus culture is an important factor for perception. Thus, Hofstede’s cultural dimensions also have implications for perceptions. Place attachment may be less for external tourists. Information provided in the internet and multimedia may influence perceptions. Individual differences among people of the same culture need to be recognised. MICE destination perception may depend on activities, attractions, visit restrictions, price and value for money, landscape as natural tourist attractions, night life and entertainment, culture and history, safety, relaxation, climate, local people’s attitude towards tourists, easy accessibility of information, sport, nostalgia, special events and adventure. Perception need not be reality as the tourist evaluates the destination based on his/her ability, gender, age, occupation, education, nationality, and marital status. All these factors influence the tourist's perception of objects, products, and destinations, safety in the case of solo women, past travel experiences (not necessarily to the same destination), familiarity, influence of family and friends. Perceptions can be induced or changed through effective promotional strategies. Attitudes are learned tendencies or a set of beliefs prompting action in a consistent way towards something or someone. Hence, it is not possible to change attitudes easily. Attitudes can be positive or negative, or simply opinions about issues without any strong emotional commitment. Several multi-attribute models are available to measure attitudes and they attempt to relate attitudes to behaviour as was suggested by Fishbein and Ajzen (1975). Attitude is a favourable or unfavourable evaluation of the object. Attitude to travel is governed by values as well. Cultural differences in values, beliefs and possibly rules of behaviour can lead to differential perceptions. It can vary between current and prospective tourists. Many dimensions of attitudes have been researched in relation to tourism.
Behavioural intention represents a major element of customer loyalty. This leads to repeated visits to the same destinations. Such visits, positive word of mouth and recommendations can influence behavioural intention.
It is not necessary that a cultural difference should exist. Country differences could very well be due to cultural differences. Culture can be considered as a broad, impersonal reference group consisting of knowledge, behaviour, customs, and techniques socially acquired by human beings. The way a person behaves as a consumer is also influenced by culture. In the case of MICE tourism, culture is defined as the values and beliefs that influence MICE participant’s motivations, perceptions, and attitudes. The conflicting needs of following host country culture and one’s own home culture is often difficult to balance. This conflict of interest determines the behaviour of a tourist in a country of different culture. It also influences perception, motivation and attitude which are factors of destination decision making. Inter-cultural and inter-personal cultural differences exits.
The role of religion and cultural characteristics has been identified as critical in shaping a tourist’s decisions and behaviour. OIC has promoted Islamic tourism. Religion can act as a motivating factor, a constraint or as a factor affecting visitation patterns. The Holy Quran encourages travel to other parts of the world to see the might of Allah in the creation and fate of those who denied him. Such travels also impose restrictions on perception and motivation as these are already prescribed. Terrorism has encouraged more Muslim travel to Muslim countries, if not by preferred choice, at least by contextual need. Destination imaging as per Islamic culture may contain elements which can deter Western tourists from Muslim countries which would like to increase tourist flows. Some differences between Muslims and non-Muslims are assumed rather than proven to exist. From the available evidence, it is difficult to conclude that destination decision making by the two groups differ by the content of Islamic culture in the MICE tour.
Based on the objectives of the study, three hypotheses on comparative motivations, perceptions and attitudes were formulated. Another set of 12 hypotheses (6 each for Muslims and non-Muslims) for positive and negative effects of differential perceptions of Muslims and non-Muslims on their behavioural intentions were also
formed. These hypotheses have been incorporated into a research framework proposed for this study.