1. 6th World Conference for Graduate Research in Tourism, Hospitality and Leisure, Fethiye,
Turkey, 24 – 29 April 2012
Testing segment quality in rural
tourism
Juho Pesonen
juho.pesonen@uef.fi
University of Eastern Finland

2. Presentation structure
What?
Why?
How?
So what?
Juho Pesonen 6.6.2012 2

3. Segmentation
•One of the cornerstones of marketing: right
product for the right customers
•Finding homogenous groups of customers that
behave in a similar way
– Data driven and common sense
segmentation
•Focus of earlier research has been on finding
the segmentation solution and profiling
segments -> clustering
Juho Pesonen 6.6.2012 3

4. Literature review
- However, there exists several pitfalls when
clustering customers (Dolnicar, 2002).
- A “correct” solution is always found.
- There are always differences between segments
- What are the most meaningful segments for practitioners?
- Dibb & Simkin (2010): six segment quality
themes: homogenous segments, segment size
and potential profitability, segment stability,
segment accessibility, segment compatibility
and segment actionability.
Juho Pesonen 6.6.2012 4

5. - In this study the focus is on segment size and
segment stability.
- Using qualitative criteria to evaluate quality of
the segments (Dibb & Simkin, 2010).
- Pesonen (forthcoming)
- Tell me who you are and I will tell you where to go
(Gretzel et al. 2004).
- Overlapping market segments:
- Clustering does not allow overlapping segments.
- Baloglu and Uysal (1996) found significant overlap
between segments using canonical correlation
analysis.
Juho Pesonen 6.6.2012 5

6. Rural tourism
- Segmentation also popular in rural tourism (Park &
Yoon, 2009; Molera & Albaladejo, 2007; Frochot, 2005;
Kastenholz et al. 1999).
- Motivation segmentation
- Clustering methodology
- Very important form of tourism in Finland
- Cottages and nature
- Finnish and foreign tourists
- Most of the rural accommodation is reserved
online: largest website www.lomarengas.fi.
Juho Pesonen 6.6.2012 6

7. Three research
questions:
•How well can Finnish rural tourists relate
themselves to the rural tourist segments?
•How does the segments overlap each other?
and
•How does two different samples from the
website differ regarding travel motivations and
demographics? -> Stability
Juho Pesonen 6.6.2012 7

8. Data and methods
• Pesonen (forthcoming) and Pesonen and Komppula (2010) found
four different rural tourist segments in Finland.
• Data collected using banner advertisement
• Summer 2009: 727 usable answers from users of
www.lomarengas.fi
• Summer 2011: 1778 usable responses from users of
www.lomarengas.fi
• 12 travel motivations were measured in both studies using seven
point likert-scale.
• Data was analysed using cluster analysis and segments validated
using ANOVA and chi-square.
• How well can tourists relate themselves to segments? (Gretzel et
al. 2004).
Juho Pesonen 6.6.2012 8

9. Ta
Descriptions of the four segments
Segment name Description
During your holiday you want to meet interesting people, be active and
Social travellers maybe even have a feeling of romance. You appreciate destination that has a
rich history and culture and where you can meet new people outside your
(N=213, 29.3 %) own family. You also like to have control over your own holiday. You prefer
travelling with friends.
You enjoy travelling with your family. Having fun, being together with your
Family travellers family, new "once in a lifetime" experiences and all new and exciting motivate
you to travel. You want the destination to be safe for the family and that your
(N=202, 27.8 %) children enjoy the destination. You also appreciate environmental friendliness
of a destination.
You want to escape the busy everyday life to the peace and quiet of the
Well being tourists countryside. You want to relax from the ordinary and hassle of the cities and
enjoy privacy and comfort. You appreciate that there are no timetables for
(N=164, 22.6 %) you, peaceful atmosphere, good possibilities for outdoor activities and
beautiful landscapes.
Home region
traveller You are interested in travelling to the region where your family comes from.
(N=148, 20.4%)
Something else, If none of the above options does not describe you as a rural tourists you can
what? define your own rural tourism behaviour here.
Juho Pesonen 6.6.2012 9

10. Segments size and overlap in 2011 study
Segment name Rural tourists relating themselves to segments
Social rural
170 (9.6 %)
tourists
Family travellers 643 (36.2 %)
Well being
606 (34.1 %)
tourists
Home region
75 (4.2 %)
traveller
People belonging
180 (10.1 %)
to two segments
People belonging
28 (1.6 %)
to three segments
People belonging
8 (0.4 %)
to four segments
Something else 68 (3.8%)
Juho Pesonen 6.6.2012 10

11. Comparing data sets
Motivations:
Statistically significant differences in many travel motivations.
All the motivations that differ have higher mean score in the study conducted during summer
2009 expect for one. However, seven point Likert is an ordinal
Similarities in relative importance of items.
Demographics:
In the study conducted in 2009 17 per cent of respondents were male. In the current study 26.3
per cent are male (χ2=24.35, p<0.001).
The respondents are also younger in this study with average age of 39 years compared to 43
years in 2009 study. (F=40.37, p<0.001).
CBTS 2011/ Juho Pesonen 6.6.2012 11

12. So what?
• Segment sizes obtained from clustering are not very
reliable.
• Only little overlap between segments.
– Not a problem in segmentation.
• Cluster descriptions were quite accurate.
– Good stability.
• Differences between samples
– How useful is a questionnaire in segmenting online
customers?
– RSE?
• Limitations in data collection (Internet).
Juho Pesonen 6.6.2012 12

13. Questions, comments?
Thank you!
www.uef.fi