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Adoption of destination marketing systems by tourism operators

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					Adoption of Destination Marketing
Systems by Tourism Operators in
  Australia: Expert Perceptions
                     Paper by: Glen Hornby
                    g.hornby@griffith.edu.au
                       Griffith University

                   Presented by: Dean Carson
                      dcarson@scu.edu.au
                   Southern Cross University

    Supported by the Cooperative Research Centre for Sustainable Tourism
                    Agenda
•   In a nutshell…
•   Australian context
•   What we know about DMSs
•   Adoption of DMS
•   Marketing channel relationships
•   Convergent interviewing methodology
•   Emerging themes
•   Summary

                   ENTER 2004 Research Track   Slide Number 2
                  In a nutshell…
• Examines the factors that influence adoption of destination
  marketing systems (DMSs) by tourism operators

• DMS function as (info)intermediaries, so what is the role
  of marketing channel relationships in operators adoption?

   – Is it just technology barriers, or do marketing channel
     relationships also influence?

   – What are the roles of Dependency, Agency Theory,
     Trust?

                      ENTER 2004 Research Track       Slide Number 3
          The Australian context
• Small tourism operators have had a low uptake
  rate of online technologies (CRC for Sustainable
  Tourism, 1999)


• Slow uptake of electronic intermediaries (Daniele,
  Mistilis, & Ward, 2000)


• High level of government involvement in
  destination promotion (CRC for Sustainable Tourism,
  1999)
                     ENTER 2004 Research Track   Slide Number 4
      What we know about DMSs
• Approaches to development (Klein & Tschanz, 1996;
  Martini, Jacucci, Cattani, & Claza, 2000; Pollock, 1998;
  Schucan, 1998; Laubenheimer, Carlsson, & Makinen,
  1999)


• Assessment framework (Buhalis & Spada, 2000)

• Success criteria (Frew & O'Connor, 1999)


                      ENTER 2004 Research Track      Slide Number 5
           Adoption of DMS & ITs
• ‘Wilderness’, ‘wait-and-sees’, ‘early adoptors’ and
  ‘techno-whizzo’ (Morrison, 2002)

• Ignorance of the benefits from ITs, inadequate
  management and training, deficient education and training,
  external decision-making, and lack of financial resources
  (Buhalis & Main, 1998)

• Relative advantage, compatibility with the business,
  managerial time, information intensity, competition,
  knowledge of computers, cost of implementation and
  enthusiasm of top manager (Mirchandani & Motwani, 2001)

                       ENTER 2004 Research Track    Slide Number 6
 Marketing Channel Relationships I
• Dependency on the DMO and DMS
  – how much the tourism operator depends on the DMO or
    the DMS for its existence (Coughlan et al., 2001).

• Trust of the DMO
  – Positive attitudes about others’ motivations, believing
    that others will perform whatever serves the trustor’s
    best interest, even in the absence of control (Das & Teng,
    1998).
  – Believing the DMO would not act opportunistically

                      ENTER 2004 Research Track       Slide Number 7
   Marketing Channel Relationships II
• Agency Theory. Structuring of relationships between two
  parties, where both parties attempt to structure the
  relationship to protect their own interests (Eisenhardt, 1989)

• hidden characteristics problem. the principal having a lack
  of information about the ability of the agent to perform the
  task (Spake, D'Souza, Crutchfield, & Morgan, 1999)
   – Does the DMO have the expertise to operate the DMS?

• hidden action problem occurs due to the principal having a
  lack of information about the agent’s behaviour (Eisenhardt,
  1989).
   – Will they act opportunistically?
   – How do we know they are performing well on our behalf?

                           ENTER 2004 Research Track          Slide Number 8
 Convergent Interview Methodology
• Expert opinion utilises the experiences and
  knowledge of the industry experts (Flick, 2002)

• Convergent interviewing technique (Dick, 1990):
   – begins with broad question about topic
   – Then utilises ‘probe questions’ to delve deeper
   – After each interview, issues identified become probe
     questions for the next interview…

• Identify the issues that experts agree on
                      ENTER 2004 Research Track     Slide Number 9
                     Experts
• Participants included:
   – E-manager of national tourism organisation
   – E-managers of 3 state and 1 territory DMOs
   – 3 representatives of 2 peak industry bodies


• Find 4 themes in identified factors:
   – Technology barriers, Relationship with the DMO,
     Relationship with the DMS,and Characteristics of
     Tourism Operators



                    ENTER 2004 Research Track      Slide Number 10
          Technology Barriers

• Confirmed the existence of technology
  barriers
  – Technology skill
  – Individual preference for using technology
  – Adoption of technology needed a ‘culture’ or
    ‘mindset’ shift of the operators




                  ENTER 2004 Research Track   Slide Number 11
      Relationship with the DMO
• Dependency
  – operators had inaccurate perceptions of how dependent
    they were, which reduced adoption


• Communication and trust
  – personal and face-to-face communication enhanced
    trust, and enhanced rate of adoption
  – communication reduced the hidden characteristics
    problem, with operators verifying the DMO had the
    required characteristics to perform marketing functions
    on their behalf.
                     ENTER 2004 Research Track     Slide Number 12
       Relationship with the DMS
• Low dependence on the DMS
• Operators were very wary of online opportunities
   – Low budgets, and skeptical of the ability of the DMO to
     deliver benefits
   – (hidden characteristics problem)
• Operator’s wanted the ability to monitor the
  effectiveness
   – (the hidden action problem)


                      ENTER 2004 Research Track    Slide Number 13
Characteristics of Tourism Operators
• Smaller businesses less likely to adopt
   – Shortage of funds, lifestyle motivations
• Accommodation businesses more likely to adopt
   – commodity nature of the accommodation product,
     increased ability to monitor outcomes, consumer driven
• Regional businesses less likely to adopt
   – Lifestyle motivations, slower filtration of information
• Social networks their major information source


                      ENTER 2004 Research Track      Slide Number 14
                In summary…
• Interviews with seven experts from major tourism
  organisations in Australia

• Technology adoption barriers still exist

• Marketing channel relationships, as depicted by
  Dependency, Agency theory and Trust are playing
  a role in the adoption of DMS

• In need of further investigation

                   ENTER 2004 Research Track   Slide Number 15

				
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