UNIVERSITY OF LJUBLJANA FACULTY OF ECONOMICS MASTER THESIS Michael Leonard MASTER THESIS THE CHALLENGES OF IDENTIFYING AND PROFILING GAY TOURIST SEGMENTS: AN EXPLORATORY RESEARCH July 31st, 2013 Michael Leonard AUTHORSHIP STATEMENT The undersigned, Michael Leonard, a student at the University of Ljubljana, Faculty of Economics, (hereafter: FELU), declare that I am the author of the master’s thesis entitled “The Challenges of Identifying and Profiling Gay Tourist Segments: An Exploratory Research”, written under supervision of professor Irena Ograjensek. In accordance with the Copyright and Related Rights Act (Official Gazette of the Republic of Slovenia, Nr. 21/1995 with changes and amendments) I allow the text of my master’s thesis to be published on the FELU website. I further declare the text of my master’s thesis to be based on the results of my own research; the text of my master’s thesis to be language-edited and technically in adherence with the FELU’s Technical Guidelines for Written Works which means that I o cited and / or quoted works and opinions of other authors in my master’s thesis in accordance with the FELU’s Technical Guidelines for Written Works and o obtained (and referred to in my master’s thesis) all the necessary permits to use the works of other authors which are entirely (in written or graphical form) used in my text; to be aware of the fact that plagiarism (in written or graphical form) is a criminal offence and can be prosecuted in accordance with the Copyright and Related Rights Act (Official Gazette of the Republic of Slovenia, Nr. 21/1995 with changes and amendments); to be aware of the consequences a proven plagiarism charge based on the submitted master’s thesis could have for my status at the FELU in accordance with the relevant FELU Rules on Master’s Thesis. July 31st, 2013 Author’s signature: (July 31st, 2013), TABLE OF CONTENTS LIST OF TABLES AND FIGURES .........................................................................iii ABBREVIATIONS .................................................................................................... iv INTRODUCTION ....................................................................................................... 1 1 BACKGROUND INFORMATION ........................................................................ 2 2 CRITICAL LITERATURE REVIEW ................................................................... 3 2.1 Gay Consumer Behavior Theory ....................................................................................... 3 2.1.1 Definitions: Homosexuality and Identity ....................................................................... 3 2.1.2 Gay Population as a Target Consumer Group ............................................................... 4 2.1.3 Framework for Gay Market Characteristics ................................................................... 6 2.1.4 The Gay Travel Industry ................................................................................................ 8 2.2 Gay Travel Motivations ....................................................................................................... 9 2.2.1 Push/Pull Factors ............................................................................................................ 9 2.2.2 Sex Tourism ................................................................................................................ 10 2.2.3 Destination Choice Model ......................................................................................... 10 2.2.4 Risk Avoidance .......................................................................................................... 12 2.2.4.1 Risk Assessment – Organic Imagery ............................................................................... 13 2.2.4.2 Risk Assessment – Induced Imagery ............................................................................... 13 2.3 Market Segmentation ...................................................................................................... 15 2.3.1 Defining Segmentation Basis .................................................................................... 16 2.3.2 Segmentation Methodology ....................................................................................... 18 2.4 Gay Market Segments ..................................................................................................... 18 2.4.1 Perspectives on Motivations and Segments in the Gay Travel Market ................... 18 2.5 Sampling the Gay Population ......................................................................................... 21 2.5.1 Definition of Hidden Population ............................................................................... 22 2.5.2 Fundamental Challenges of Sampling a Hidden Population .................................... 22 2.5.3 Non-probability Sampling for Hidden Populations .................................................. 23 2.5.4 Sampling Techniques of Hidden Populations ........................................................... 24 3 METHODOLOGY ................................................................................................ 26 4 PHASE 1 – QUALITATIVE RESEARCH ......................................................... 26 4.1 Phase 1: Methodology – Qualitative Research ............................................................ 26 4.2 Phase 1: Qualitative Data Analysis ................................................................................ 27 4.2.1 Push Motivation Variables ......................................................................................... 28 4.2.2 Substantive Variables ................................................................................................. 32 5 PHASE 2 – QUANTITATIVE RESEARCH ....................................................... 33 5.1 Phase 2: Methodology – Quantitative Research .......................................................... 33 5.1.1 Survey Creation .......................................................................................................... 33 5.1.2 Descriptive Statistics .................................................................................................. 34 5.1.3 Factor Analysis ........................................................................................................... 35 5.2 Phase 2: Quantitative Data Analysis ............................................................................. 36 i 5.2.1 Analysis of Respondents ............................................................................................ 36 5.2.2 Descriptive Statistics .................................................................................................. 36 5.2.2.1 Age .................................................................................................................................... 37 5.2.2.2 Permanent Residency and Current Residency ................................................................. 38 5.2.2.3 Settlement .......................................................................................................................... 39 5.2.2.4 Education .......................................................................................................................... 40 5.2.2.5 Employment ...................................................................................................................... 40 5.2.2.6 Household Information ..................................................................................................... 42 5.2.2.7 Income Level ..................................................................................................................... 43 5.2.2.8 Sexuality ............................................................................................................................ 44 5.2.2.9 Travel Frequency .............................................................................................................. 45 5.2.2.10 Push Motivation Variables ............................................................................................. 46 5.2.2.11 Substantive Travel Variables .......................................................................................... 47 5.2.3 Factor Analysis of Push Motivation Variables ......................................................... 48 6 AGGREGATE RESULTS– PHASE 1 AND PHASE 2 ...................................... 54 6.1 Demographic Results ....................................................................................................... 54 6.2 Psychographic Variables ................................................................................................. 55 CONCLUSION AND FUTURE RESEARCH ....................................................... 56 LIST OF REFERENCES ......................................................................................... 59 APPENDICES ii LIST OF TABLES AND FIGURES Table 1. Classification of Segmentation Bases. Table 2. Significant Motivation Variables after Qualitative Analysis Table 3. Significant Substantive Variables after Qualitative Analysis Table 4. Descriptive Statistics for Age Table 5. Average Yearly Household Income Level with Corresponding Currencies Table 6. Descriptive Statistics for Average Trips per Year Table 7. Pattern Matrix of Factor Analysis (after oblique rotation) Table 8. Factor Correlation Matrix of Adjusted Factor Analysis Table 9. Summary of Factors with Underlying Theme Figure 1. Framework for Identifying Market Characteristics