1. Memorandum of Class Exercise 2
Faculty of Management Sciences
Memorandum of Class Exercise 2

2. Question 1:
Illustrate and discuss Maslow’s Hierarchy of Needs (1971) and interpret the theory in the context of a tourist activity (5x3=15)

5. Distinguish between push and pull factors and give an example of each in the tourism industry (2x3=6)
Question 2:
Distinguish between push and pull factors and give an example of each in the tourism industry (2x3=6)

6. Distinguish between push and pull factors and give an example of each in the tourism industry (2x3=6)
PUSH FACTORS: a person is pushed into taking a holiday by the need to get away from their everyday environment
the motivation to escape from perceived mundane environments
relaxation and recuperation
the opportunity to play, providing adults with an opportunity to regress into the carefree state of childhood
strengthening of family bonds and the opportunity to spend time with other family members
gaining status and prestige amongst one’s peers (both at home and while on holiday)
social integration with hosts and other guests
romance and sexual opportunity
the opportunity for educational development and broadening of the mind
self fulfilment and the achievement of long-desired goals
shopping

7. PULL FACTORS: the encouragement to travel to a specific destination
Distinguish between push and pull factors and give an example of each in the tourism industry (2x3=6)
PULL FACTORS: the encouragement to travel to a specific destination
Distinguishing between one location and an alternative may be achieved by considering the pull factors for each
range of attractions, incl natural environment, cultural resources and a welcoming host population
availability and quality of amenities
special events
infrastructure and accessibility
suitable weather conditions
positive image as a safe, entertaining, interesting place to visit

8. Question 3:
Different tourists have different motivations for travelling to certain destinations. Name and discuss the four categories of tourist motivation (4x2=8)

9. Interpersonal Motivators Status and Prestige Motivators
Physical Motivators
Cultural Motivators
Refreshing the body
Curiosity about foreign lands and people
Reducing mental stress
Developing historical or cultural interests
Improve physical health
Attending cultural events
Exercising
Exploring local music, folklore, lifestyles, art, etc.
Having fun and enjoyment
Interpersonal Motivators
Status and Prestige Motivators
Maintaining and enhancing relationships with friends and family
Gaining status and recognition from others
Making new friends
Pursuing one own’s hobbies
Escaping own routine environment (incl. escape from one’s own family)
Continuing education and self-development

10. Question 4:
Name and discuss the four categories of market segmentation (4x3=12)

11. Segmenting the tourism market:
Categories:
Geographic variables
Demographic variables
Psychographic variables
Behavioural variables

12. 1. Geographic Variables:
Variables related to the areas in which consumers live
Continent (North America, South America, Asia, Africa)
Country (UK, France, Japan, Australia)
Region (Kunene region, Karas region, Khomas region)
Dividing areas according to a population’s specific buying or behavior patterns
Chosen destinations will be considered through: distance, convenience, climate and cost

13. 2. Demographic Variables:
Variables related to characteristics such as: age, gender, family composition, stage in lifecycle, income, occupation, education and ethnic origin
holidays chosen by 20 year olds will differ from 50 year olds
Increase numbers in elderly consumers
Greater number of living alone and travelling alone adults
Increase in income in certain age groups
UK: first property owners are dying now, significant inheritance for their offspring, rise in living standards, demand for second homes, in UK and abroad, changing leisure patterns, encourage growth in low-cost airlines
GEODEMOGRAPHIC VARIABLES?

14. 3. Psychographic Variables:
Variables related to characteristics such as: lifestyle, attitudes and personality, peer groups (influenced by those immediately surrounding us) and reference groups (those we most admire and wish to emulate)
Peer groups e.g. parents and teachers, influence till we become independent – more influenced by friends, students and colleagues
Reference groups e.g. celebrities, pop idols, cinema and TV ‘personalities’, media and modeling stars influence younger consumers
READ MORE ON PAGE 78

15. 4. Behavioural Variables:
Segmenting markets according to their usage of
the products
The frequency that we purchase the product
The quantities we buy
Where we choose to buy (direct/travel agent)
The sources where we get information on the products from
Marketers should know which benefits the customer is looking for when they purchase a product
e.g. lake and mountain holiday? Solitude and scenic beauty/recover from stress/photography/social interaction on hiking trip/waterskiing or mountaineering

16. Question 5:
Deciding where to go is a complex process and an individual’s personality traits will determine how the eventual decision is made. Name and distinguish between four methods of decision-making (4x3=12)

17. Consumer Processes: MAKING THE DECISION
Deciding where to go is a complex process and an individual’s personality traits will determine how the eventual decision is made
Extensive Problem Solving: wide range of products sought, each is evaluated and compared with similar products
Limited Problem Solving: satisficing (balance b/n satisfying and sacrificing), deliberately restricting options to guarantee buying the best available product
Routinised Response Behaviour: choices change relatively over time, brand-loyal customers
Impulse: typical of products costing little- this is becoming more and more prevalent

18. Question 6:
Distinguish between the two following concepts: the tourism multiplier and tourism leakages (2x3=6)

19. Income: The Tourism Multiplier
TIM (tourism income multiplier: tourism’s contribution to the income of an area
Money spent by tourists (direct income) in the area will be re-spent by recipients, augmenting the total
Direct income is spent to receive goods and services required for holiday (e.g. accommodation, meals, activities)
Tourism businesses spend some of the direct income obtaining goods and services to fulfil obligations to the tourist
Secondary spend of income:
Indirect income: e.g. entry fees to attraction paid by guide of the tourism business or attraction paying its guide
Induced Income: e.g. resident spending their pay on food or a visit to the cinema

20. Income: Leakages
Each time the money is circulated in this way, some money will be lost to the area / money that is lost from the system are known as leakages
Examples:
taxes paid are transmitted outside the area
savings removed from the area and spend elsewhere
some spend has gone to goods imported into the area from elsewhere
Therefore, if there are high tax rates or many goods demanded to be imported, the TIM may be low and the economy will not benefit greatly from tourism
Discussion: what about foreign-owned local hotels or coach operators?

21. Income: Leakages Principle reasons for leakages:
cost of imported good, especially food and drink
foreign exchange costs of imports for the development of tourist facilities
remittance of profits abroad
remittance of pay to expatriates
management fees or royalties for franchises
payments to overseas carriers and travel companies
costs of overseas promotions
additional expenditure on imports resulting from the earning of those benefiting from tourism

22. Question 7:
Discuss three socio-cultural effects of tourism and how it can be managed to eliminate/reduce its impact on a destination (3x4=12)

23. The socio-cultural effects of tourism
Criminal activities
Demonstration effect
Changes in employment
The impact of second home ownership
Exploiting local culture
The controversy of the photograph
Staged authenticity
The authenticity of souvenirs
Maintaining local traditions

24. Question 8:
What does carrying capacity of a destination mean? Define carrying capacity and elaborate on the two different types of carrying capacity and how to manage them (3x3=9)

25. Problems of congestion and erosion
Carrying capacity= the number of people an area can hold before the impacts caused are beyond recovery
*this emphasizes the conditions desired in an area and NOT the total use an area can tolerate
CC can be psychological (degree of congestion tolerated before it starts to lose its appeal) and physical (car parks, streets, beaches, ski slopes, cathedrals)
Measures to physical CC (limiting access daily and increased prices for access) and psychological CC (questionnaire about feeling overcrowded, 10sqm per person acceptable)

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