perceived risk and india as tourism destination

8/12/2019 Perceived Risk and India as Tourism Destination

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An Analysis of the Influence of

Perceived Risk in Hong Kong TouristDecision Making Process toward an

Asia Developing Country India as a

Touris! Destination

Circle Yuen

Higher Diploma in International Hotel and Tourism Management

HTMi Switzerland


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Introduction

Negative image of India due to recent consecutive news related to female safety is in

the spotlight This not only drew local residents! outrage and government!s attention"

#ut also the worldwide awareness Since India government has #een promoting its

golf" polo" rural" eco" medical and wellness" cruise and heliport" adventure as well as

caravan tourism to the world $Ministry of Tourism %overnment of India" &'()*

+ccording to the India tourism statistic at a glance report $Ministry of Tourism

%overnment of India" &'(&*" there is a continuously increasing num#er of foreign

tourist travels to India from &'') to &'((" e,cept &''- The author would li.e to

analyse the influences of those une,pected negative incidents in India on Hong /ong

travelling tourist decision0ma.ing process The way people communicate their needs

is wants 1ased on different cultures as well as individual personality" people with it

need can have e,tremely different wants 2eople tend to select products" which are

the most value for money $/otler et al " &'('* 1lac. #o, model will #e used to

introduce the #asic concept of consumer #ehaviour 3hen tourists realise a 4ourney

will #e less en4oya#le due to visi#le or percepti#le dangers" another destination is tend

to #e selected $Hall et al " &'')* 1lac.well et al $&''(* mentioned" there is no

motivation on purchasing a product if an individual cannot accept the perceived ris.s

+ccording to Schiffman $&'('*" every single tourist has its own perception on ris."

they can #e divided into two main groups" narrow categorizers and #road categorizers

Thus" different types of perceived ris.s and tourist responses would #e discussed in

this paper 5urthermore" 2owell $(--6* and 1a.ewell $&''7* found that female and

male tend to have different decision0ma.ing style on ris. management

Santana $&'') cited in +vraham" &''7* pointed out that pu#lic!s perception towards a

destination can #e shaped #y international media" thus" a positive image of one city or


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country is essential in order to #ecome a famous tourist destination +uthor will use

India as the case study and to e,amine the potential of India #ecome a worldwide

tourist destination Numerous research was found to #e discussing retail #uyers

#ehaviour $%anesan and 3eitz" (--78 Choi and %as.ill" &'''8 9osen#aum and

/untze" &'':8 Insch et al " &'((*" however" less has #een done on tourist #ehaviour

$Insch et al " &'(( and 2ongyeela" &'(&* 3hen discussing traveller decision ma.ing"

researchers mainly concentrate on e,amining factors influencing tourist decision

ma.ing and purchasing intention on selecting destination $1eerli et +l " &''6* 3ong

and Yeh $&''-* concentrated on several reasons of tourist hesitation and their

#ehaviour of changing destination Some previous studies have #een focusing on the

relationship #etween decision0ma.ing process of travel and the perception towards a

developed country $+zim" &'('* Moreover" tourist security feeling and perception

on developed destinations has also #een discussed $2age et al" &'':* 1ased on the

research from 2owell $(--6* and 1a.ewell $&''7*" there are significant different

approaches of female and male managing ris.s and ma.ing decision Thus" the

influences of perceived ris. on tourist from different gender ma.ing decision on

travelling to developing countries will #e the main focus of this research paper

Tourists Decision Making Process " Models# Theory and Concepts


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5igure & ( (; : stages #uying process model $Solomon et al cited in 1othz>* 1ettman

$(-6)* claimed that if the level of perceived ris. were higher than the individual

accepta#le level" the consumer would ta.e action to reduce ris. Ta.ing the second

step0information search can fulfill this ris. reduction #ehaviour Information search

can #e classified into internal and e,ternal" the former one means personal mind of the


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decision ma.er" such as memory and the later one includes advertising strategy" media

and word of mouth $2erner" &'('* The higher cost or investment of the decision" the

more e,ternal research are to #e done #y the individual" for e,ample" when someone

#uy an apple" it is more li.ely to refer to the previous e,perience" nonetheless" when

someone purchase a house" it is suggested to as. for others! ideas and see. help from

professionals +fter doing the information search" more alternatives may rise up" and

then #ecomes stage ) evaluations on the choices +t this stage" consumer use the

information found in the previous stage to evaluate and ran. all the alternatives The

one #rings the most #enefit might not #e the #est choice as it is depends on the cost of

selecting the alternative Aast #ut not least" the final stage is post0purchase #ehaviour

Decision ma.er will compare the actual gain and loss to the e,pectation If the

purchasing e,perience is #etter than the e,pected result" the satisfaction of the

consumer will #e increased $i#id* This is not a completed model as the final stage can

affect the first stage" for instance" the possi#ility of re0purchase will #e increased if

customers are satisfied #y this purchasing e,perience" as well as will recommend

others to select the same product or service

Nevertheless" if the product is out of e,pectation and unaccepta#le to the individual"

the purchasing process will end up in this stage $+#dallat and Bmam" &'()* +s a

conse@uence" a cycle should #e more suita#le for e,plaining tourist #ehaviour rather

than the unidirectional approach 5urthermore" %il#ert $(--( cited in Swar#roo.e and

Horner" &'(&* challenged that this model has omitted one of the .ey impacts which is

decision ma.er!s personal perception" attitude and personality


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Consu!er Decision Making $ra!e %ork

5igure & ( & (; Consumer Decision Ma.ing 5rame 3or. $%il#ert" (--( cited in

Swar#roo.e and Horner" &'(& *


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The a#ove model suggested #y %il#ert $(--( cited in Swar#roo.e and Horner" &'(&*

shows that factors affecting consumer decision0ma.ing can #e categorized in two

levels The inner level is the first level" includes influences closely related to the

decision ma.er itself" such as motivation" perception toward the product" personal

attitude and .nowledge he she has The second level of influence is factors that #eing

developed in the socialization process" for instance" socioeconomic" cultural" family as

well as reference group In other words" second level is all the factors" which affect

the others instead of the decision ma.er itself In level one" referring to Han and

Aerner $&''6*" there are two types of ris. perception" which are certainty ris. and

uncertainty ris. Certainty ris. is controlla#le whereas uncertainty ris. is

uncontrolla#le #y an individual Aerner and /eltner $&''(* discovered that an

individual!s emotion could affect the ris. perception +ngry people can afford a

higher level of ris." which might not have #ig influence to the ris. perception" hence"

they will insist to the decision made Nevertheless" fear people can only afford a

limited level of ris." they will #e affected #y the certainty ris. and ta.e longer time to

evaluate the given choices to select the lowest ris. alternative 9egarding second

level" 1riley et al $&'''* #elieved and proved that individual decision0ma.ing process

is affected #y the cultural factor since culture will affect how people thin. and act" it

gives guidelines on ma.ing decision 5amily can #e one of the factors influencing

individual travel #ehaviour 2eople in different family life cycle stages" such as

married" single" with children and so forth" have different responses to the travel

decision

5amily concept actually #eing recognized as one of the .ey varia#le that affect

individual trip ma.ing #ehaviour for years and it is agreed #y several scholars


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$ immerman" (->& cited in %rigolon et al" &'(&8 /itamura and /ostyniu." (->7 cited

in /itamura" (->>8 Collins and Tisdell" &''&* +ccording to 1lac.well et al $&''(*"

any person or groups that influence others! #ehaviours heavily are defined as

reference group" their #eliefs" attitude and #ehaviours can affect others easily" to

clarify teenagers are highly affected #y idols and peers" these people are then #ecome

the reference group of youngster Since there is no lin.age #etween level one and two

inner and outside varia#les" thus" it is suggested the model can #e presented in the

#elow way as to show a clear level of varia#les

5igure & ( & &; +mended Consumer Decision Ma.ing 5rame 3or.

Decision Making Process &ased on 'eg!entation

2owell and +nsic $(--6* found that female usually have lower ris. preference which

means that they may give up the current made decision due to uncertainty and

External

Factors

Internal

Factors

Consumer


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opportunity costs Nonetheless" ris. preference is not attri#uted to hidden cost During

the decision ma.ing process" female relatively refer to information found" thus" the

length of time is longer #etween the information searching process until the decision

made 3e#er $&''(* suggested E domains to investigate different #ehaviour of female

and male when ma.ing decision" which are gam#ling" health" and recreational and

social decisions In the research" they agreed that gender difference has significant

impacts on decision0ma.ing process $I#id and 1oa.ye" &''>* Harris and ?en.ins

$&''7* #elieve that the chance of re0purchase the same product or service is low in

#oth male and female +part from that" Aevin et al $&''6* noted that people with

different education level view things divergently" which will also have impacts on

decision0ma.ing process

Tourist Decision Making Process toward Developed Country 'tudies

1oa.ye $&'(&* has underwent a research investigate the relationship #etween tourist

ris. perception and decision ma.ing in %hana which situated in South +frica It was

found that there is a very close association #etween these two parties 2eople ris.

perception toward one destination together with the individual characteristic need to

#e ta.en into account at the same time 2age et al $&'':* has #een analysing tourist

in4ury cases in Scotland and New ealand as well as to give solutions to avoid similar

situation happens on tourists

Perceived Risk as factor affecting travelling decision

Sonmez F %raefe $(-->* claimed that security is one of the most crucial elements of

one destination!s allure Destination fails to provide security will lose the competitive

power as it will stop tourist travelling to the particular destination and encourage

su#stitute consuming $1oa.ye" &'(&* 2revious researchers have identified different


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ris.s" financial ris.s $Som et al" &'((*" physical ris.s $Sonmez F %raefe" (-->*"

social ris.s $Carter" (-->* and health ris.s $Aarsen et al" &''6* +ll of these ris.s pull

people to stop travel or to change travel destination due to the uncertainty $Sira.aya F

3oodside" &'':* /night $(-E>* was the first researcher developed the concept that

the level of perceived ris.s affects economic activities Chaudhuri $(--6* came up

with the idea of perceived ris.s and uncertainty varia#les will encourage changes on

decision ma.ing of travelling

Destination (ackground " India

5igure & ) (; India International Tourist +rrivals $The 3orld Tourism Grganization"

&'(&*

+ccording to the report from N3TG $The 3orld Tourism Grganization" &'(&*" also

shown a#ove" there are an increasing num#er of international tourist arrivals in India

from &''- to &'(( nfortunately" there was a (E> leap of reported se, criminal

rate in India recorded from ?anuary to March &'() $+non" &'()* 9esearch found

that since the first gang rape issue occurred in Decem#er &'(&" the num#er of female

tourists .eep going down #y &: as of March while the decreased of female travellers

is ): $+ssocham India" &'()* +ssociated Cham#ers of Commerce and Industry of


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India $cited in ?amieson" &'()* attri#uted the dropped in num#er of visitors in whole

country to the se, crime The India %overnment noticed that the issue related to

women safety in India has put threat to the domestic and international female

travellers" thus they have made a note on the tourism #oard to clarify the current issue

as well as to reinsure women tourist that 4ourney to India will #e an en4oya#le and

safe e,perience $Incredi#le India" &'()* %overnment claimed that the previous sad

incidents are a#errations as they received over & 7 million female visitors travelling to

India in &'(& In addition" among this huge amount of in#ound lady tourists" there was

no single report stating that female is facing se,ual molestation" which proves that

apparently incidents are simply a#errations $I#id*

Conclusion and Reco!!endations

In this report" the : stages consumer #uying process and consumer #uying framewor.

are used to analyse the impact of perceived ris. of Hong /ong tourist toward an +sia

developing country" India This research uses @uantitative approach to e,amine the

effectiveness of the models mentioned

+fter analysing all the information found" it is o#vious that security issue is a crucial

factor" which affects tourist!s travelling #ehaviour Since there is continues se,

criminal in India" it changes people perception of the safety concern in India

Considering female and male has different ris. tolerance level" it may results in

dramatically decreasing num#er of female travellers to India in a short period of time

In order words" the tourism industry will #e harmed as well as the revenue generated

#y foreign tourist will #e reduced in a short period of time In the future" @ualitative

approach is suggested to #e adopted in future research to generate a more in0depth

view from the respondents 5urther research can #e #ase on international tourists!


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#ehaviour instead of focusing on Hong /ong tourist only since cultural diversity

might #e another varia#le affecting individual!s perception of perceived ris.s +part

from that" it is worth to evaluate the difference sections within one segment as well as

to investigate which group of people are the most easily affected #y perceived ris.

+fter that" people can wor. on esta#lishing the theory to regain or reposition India to

strengthen it potentials to #ecome a world0class popular destination Bffectiveness of

the promotion strategy of India might #e investigated in the future as well Aast #ut

not least" it is also the high time for India government to understand the importance of

enhancing the positive image of India #y controlling and reducing se, criminal" which

happens every day


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