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TAPPING THE INVISIBLE MARKET: THE CASE OF THE CRUISE INDUSTRY A Dissertation by SUN YOUNG PARK Submitted to the Office of Graduate Studies of Texas A&M University in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY August 2006 Major Subject: Recreation, Park and Tourism Sciences TAPPING THE INVISIBLE MARKET: THE CASE OF THE CRUISE INDUSTRY A Dissertation by SUN YOUNG PARK Submitted to the Office of Graduate Studies of Texas A&M University in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY Approved by: Co-Chairs of Committee, James F. Petrick Joseph T. O’Leary Committee Members, David Scott Mary Zimmer Head of Department, Joseph O’Leary August 2006 Major Subject: Recreation, Park and Tourism Sciences iii ABSTRACT Tapping the Invisible Market: The Case of the Cruise Industry. (August 2006) Sun Young Park, B.H.E., Ewha Womans University, Seoul, Korea; M.P.S., University of Hawaii at Manoa Co-Chairs of Advisory Committee: Dr. James F. Petrick Dr. Joseph T. O’Leary The definition of business success has evolved from winning larger market share in fierce competition to creating one’s own markets. Exploring new markets is crucial especially for tourism businesses, as one of the basic motives for leisure travel is seeking new or different experiences. Nonetheless, current non-customers have rarely been studied in the context of tourism. Using the cruise industry as a case, the first purpose of this study was to enhance the understanding of current non-customers (i.e., “the invisible market”). Current non- customers of the cruise industry were defined as leisure travelers who take other leisure vacation types, but have not taken a cruise vacation in the last five years (i.e., past- cruisers) or have never taken a cruise vacation (i.e., non-cruisers). The second purpose was to propose practical approaches for the cruise industry to utilize to tap the invisible market based on the findings. This study consists two phases using a sequential study design. In Phase 1, 22 guided conversations were conducted with people with and without cruise experiences using a modified Zaltman Metaphor Elicitation Technique to explore their images of iv cruise vacations. The findings suggested that current non-customers had different images of cruise vacations than current customers. In Phase 2, a conceptual model was developed based on the findings of Phase 1 and the literature on destination image and choice, the Model of Goal-directed Behavior and the leisure constraints model. Eleven hypotheses were tested with data collected from a survey of U.S. leisure travelers using descriptive statistics and structural equation modeling. Most relationships (e.g., directions and valence) among constructs were found to be in accordance with previous studies. Further, results suggested that current non-customers were more similar to than different from current customers in terms of socio-demographics and general vacation behavior. However, results implied that current non-customers’ biases or negative images of cruise vacations could be the underlying factors that influence their decisions not to choose cruise vacations over other leisure vacation types. Practical recommendations for innovative marketing strategies are presented for the cruise industry. v DEDICATION To my parents vi ACKNOWLEDGEMENTS “When you want to accomplish something, always remember your enthusiasm and determination with which you start.” First of all, I would like to sincerely thank my parents for having been very supportive of me for chasing my goals irrespective of geographical locations and circumstances. Even though they wonder why I sometimes choose more complex and less-traveled roads, their continuous and unconditional support and love have helped me keep going forward, grow and become a better person. They are always my best mentors. I am grateful to have learned from faculty members with diverse insights at the Department of Recreation, Park and Tourism Sciences. Especially, I am truly indebted to my advisors. I would like to sincerely thank my co-advisor, Dr. Jim Petrick who has always encouraged me to persevere and has granted me the assistantship opportunities to become a better academic. His cheerful spirit and willingness to always help students have helped me realize again that days can be brightened by one’s own positive attitudes despite temporary obstacles. My “thank you” is not enough to my co-advisor, Dr. Joseph O’Leary, who is a genuinely respected leader and a guiding light of our department. He is an individual with admirable integrity and philosophy, not only for academia, but also for other vii matters that we experience in life. I have learned to be more patient and confident from my advisors. I would like to thank Dr. David Scott, my committee member, for his prompt and helpful feedback. I have learned from him how a professor can earn respect from students by being unambiguous, consistent and sincerely caring for their needs. I would like to also thank Dr. Mary Zimmer, my committee member, who has always welcomed me with smiles. She has listened to me with an open mind, has given me helpful comments and has encouraged me to widen and deepen my ideas. Moreover, I am very grateful to friends at the department and old friends in Singapore (Phaik Kuan Lim), Boston (Dr. Heejung Laird), Japan (Shinobu Shima and Dr. Hiroko Hanada) and Thailand (Usa Sathitsamitpong) for their caring support, help, advice, encouragement and love. My days at Texas A&M University have been a truly fulfilling life journey filled with “happenings” within and outside the academic environment. I have learned so much about myself and “how the world works” in a variety of aspects. With these invaluable lessons in mind and thoughtful people around me, I could complete this dissertation and the degree. viii TABLE OF CONTENTS Page ABSTRACT.............................................................................................................. iii DEDICATION .......................................................................................................... v ACKNOWLEDGEMENTS ...................................................................................... vi TABLE OF CONTENTS.......................................................................................... viii LIST OF TABLES .................................................................................................... xi LIST OF FIGURES................................................................................................... xiii CHAPTER I INTRODUCTION................................................................................... 1 Overview of Chapter I....................................................................... 1 Background of the Study................................................................... 1 Importance of the Study .................................................................... 8 Purposes of the Study........................................................................ 13 Organization of the Study ................................................................. 14 Limitations and Delimitations........................................................... 16 Definition of Terms........................................................................... 17 Summary of Chapter I....................................................................... 19 II LITERATURE REVIEW AND CONCEPTUAL MODEL ................... 20 Overview of Chapter II ..................................................................... 20 Conceptual Model for the Study ....................................................... 21 Destination Image ............................................................................. 34 Personal Characteristics........................................................... 38 External Stimuli........................................................................ 40 Tourists’ Choice of Travel Destination............................................. 44 Personal Values........................................................................ 51 Constraints to Leisure and Tourism .................................................. 54 ix CHAPTER Page Models and Theories for Understanding and Predicting Behavior ... 72 Desires...................................................................................... 80 Intentions.................................................................................. 83 Summary of Chapter II...................................................................... 86 III METHODOLOGY.................................................................................. 88 Overview of Chapter III .................................................................... 88 Research Design................................................................................ 88 Phase 1: Qualitative Exploration of Image of Cruise Vacations 89 Phase 2: Survey of U.S. Leisure Travelers............................... 103 Model and Hypotheses...................................................................... 105 Development of Survey Instrument .................................................. 110 Pre-tests.................................................................................... 121 Data Collection Procedures............................................................... 124 Data Analysis Methods..................................................................... 125 Summary of Chapter III ...................................................................

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