SOUVENIR MARKETING IN TOURISM RETAILING SHOPPER AND RETAILER PERCEPTIONS by KRISTEN K. SWANSON, B.S., M.S. A DISSERTATION IN CLOTHING, TEXTILES, AND MERCHANDISING Submitted to the Graduate Faculty of Texas Tech University in Partial Fulfillment of the Requirements for the Degree of DOCTOR OF PHILOSOPHY Approved Accepted August, 1994 1 o t.i.H" ^b^/ •b C'J ® 1994 Kristen Kathleen Swanson ACKNOWLEDGEMENTS The researcher would like to thank Dr. Patricia Horridge, advisor and friend, for her guidance and support at Texas Tech University. Dr. Horridge continually gives of herself to encourage and inspire her students. Additionally, this researcher would like to thank Dr. Claud Davidson, Dr. linger Eberspacher, Dr. Lynn Huffman, and Dr. JoAnn Shroyer for allowing this exploratory research to take place, and keep the study grounded. Each committee member took time to listen, evaluate and strengthen this study. Thank you to Tom Combrink, Arizona Hospitality Research and Resource Center, Northern Arizona University, for assisting with the statistical analysis. Further, this researcher would like to thank all of the graduate students who came before her, for it is by their accomplishments and mistakes that the present study was enhanced. The researcher would like to thank her husband James Power, her parents Richard and Bonnie Swanson, and Bill and Ruby Power, and special friends Chris and Judy Everett for their constant support in accomplishing this study and the degree which comes with the work. 11 TABLE OF CONTENTS ACKNOWLEDGEMENTS ii ABSTRACT vii LIST OF TABLES ix CHAPTER L INTRODUCTION 1 Theoretical Framework 2 Statement of Problem 3 Purposes of the Study 6 Research Objectives and Questions 7 Research Objectives 7 Research Questions 8 Limitations 9 Definition of Terms 9 II. REVIEW OF LITERATURE 13 Theoretical Development 13 Souvenir Phenomena 18 Craft Consumer Typology 23 Consumer Profile 26 Activities and Motivations 27 Demographic Characteristics 31 Retailer Profile 33 iii Retail Strategies 37 Summary 41 III. METHOD 44 Sample 44 Selection of Sample 45 Sample Size 46 Description of the Instrument 47 Souvenir Tourist Questionnaire 48 Souvenir Retailer Questionnaire 50 Procedure 51 Pilot Study 52 Statistical Analysis of Data 53 IV. RESULTS 56 Distribution and Completion of Questionnaires 56 Souvenir Tourist Sample 57 Souvenir Retailer Sample 57 Reliability of Scales 57 Description of Sample 58 Souvenir Tourist Sample 58 Souvenir Retailer Sample 58 Instrument Scales 63 Tourist Scales 63 iv Souvenir Merchandise Scale 63 Tourist Merchandise Selection Factors Scale 65 Information Sources Scale 65 Souvenir Shopping Locations 68 Tourist Patronage Motives 68 Tourist Reasons for Travel Scale 68 Tourist Travel Activities Scale 73 Retail Scales 78 Merchandise Assortment Scale 78 Merchandise Selection Factors Scale 78 Retail Patronage Motives 78 Identification of Tourist Groups and Retailer Groups 83 Tourist Groups 83 Retailer Groups 84 Analysis of Research Questions 84 Research Question 1 87 Research Question 2 87 Research Question 3 87 Research Question 4 90 Research Question 5 93 Research Question 6 93 Research Question 7 96 Summary of Findings for Research Questions 100 V. SUMMARY, CONCLUSIONS AND RECOMMENDATIONS . 102 Summary of the Study 102 Findings 104 Interpretation of the Results 109 Tourist Sample and Retailer Sample Differences 109 Souvenir Consumer Groups 112 Souvenir Retailer Groups 116 Conclusions and Implications 117 Recommendations for Further Study 119 Souvenir Phenomena 121 BIBLIOGRAPHY 123 APPENDICES A. TOURIST COVER LETTER AND SURVEY INSTRUMENT 128 B. RETAILER COVER LETTER AND SURVEY INSTRUMENT 141 C. USE OF CLUSTER ANALYSIS AND FACTOR ANALYSIS 150 VI ABSTRACT The purposes of this study were to determine shopping orientations of tourists in the Southwest using souvenir purchase behavior as a base measurement and to assess Southwestern retailers' knowledge of tourists visiting the Southwest. Tourist shopping segments were identified using souvenir merchandise purchases, souvenir merchandise selection factors, souvenir information sources, souvenir shopping locations, retail patronage motives, reasons for travel, travel activities, and demographic characteristics. In order to determine retailers' awareness of tourists' buying behavior, differences in souvenir merchandise offered emd purchased, souvenir merchandise selection factors, and retail patronage motives were compared. Tourists who visited Arizona, Colorado, New Mexico, and Utah, between July 1, 1992 and June 30, 1993, were sampled. Additionally, retailers in operation in Arizona, Colorado, New Mexico, and Utah, between the same dates were sampled. Two survey instruments, one directed at tourists and one directed at retailers, were distributed. A pilot study of each instrument was conducted prior to the distribution of the questionnaires. The questionnaires were distributed to potential survey participants using the Dillman (1978) method for mail surveys. After three mailings, 398 usable tourist questionnaires and 307 usable retailer questionnaires were received. A variety of statistical procedures were employed to analyze the data. Cronbach's alpha reliability coefficients were calculated for scale consistency and internal reliability. Statistical methods included t-test and analysis of variance. Vll Findings indicated measurable differences in the merchandise purchased by souvenir consumers when compared with merchandise sold by retailers. The majority of merchandise categories were more important to tourists than to retailers. Differences were apparent in the importance of souvenir merchandise selection factors when comparing souvenir consumers and souvenir retailers. Fewer differences were evident between tourists and retailers with regard to merchandise selection factors than with merchandise assortment or retail patronage motives. Differences were evident in the importance of retail patronage motives when comparing souvenir consumers and retailers. The majority of patronage motives were more important to retailers than to tourists. Factor analysis of the tourist sample resulted in three tourist groupings: home-oriented, destination-oriented, and aesthetic-oriented. The profile characteristics of the three groupings of the tourist sample did not differ significantly. Factor analysis of the retailer sample resulted in four retailer groupings: tourist- directed, artistic/cultural-directed, adornment-directed, and collection-directed. The profile characteristics of the four groupings of the retail sample did not differ significantly. Vlll LIST OF TABLES 3.1 Description of Research Questions, Instrument, and Statistical Analysis 55 4.1 Tourist Demographic Characteristics 59 4.2 Retailer Demographic Characteristics 61 4.3 Summary Table for Tourist Souvenir Merchandise Categories 64 4.4 Summary Table for Tourist Merchandise Selection Factors 66 4.5 Summary Table for Tourist Information Sources 67 4.6 Summary Table for Tourist Souvenir Shopping Locations 69 4.7 Summary Table for Tourist Patronage Motives 71 4.8 Summary Table for Tourist Reasons for Travel 74 4.9 Summary Table for Tourist Travel Activities 76 4.10 Summary Table for Retailer Merchandise Assortment 79 4.11 Summary Table for Retailer Merchandise Selection Factors 80 4.12 Summary Table for Retailer Patronage Motives 81 4.13 Factor Loading: Souvenir Merchandise Scale Varimax Rotated Solutions 85 4.14 Factor Loading: Merchandise Assortment Scale Varimax Rotated Solutions 86 4.15 Summary Table for Retailer and Tourist Merchandise Category t-tests 88 4.16 Summary Table for Retailer and Tourist Merchandise Selection Factors t-tests 89 4.17 Summary Table for Retailer and Tourist Patronage Motives t-tests 91 IX 4.18 Summary ANOVA Table for Souvenir Tourist Groups Unequal Sample Sizes 92 4.19 Summary Table for Souvenir Tourist Groups Demographic Characteristics 94 4.20 Summary ANOVA Table for Souvenir Retailer Groups Unequal Sample Sizes 97 4.21 Summary Table for Souvenir Retailer Groups Demographic Characteristics 98 CHAPTER I INTRODUCTION Studies of consumer shopping orientations seek to identify a limited set of distinct shopper types, labeled typologies, to which retail management may direct marketing efforts (Westbrook & Black, 1985). The appeal of such typologies is the potential to improve retail decision-making by enabling retailers to "differentiate and target their offerings, locations, and promotional efforts" according to patronage responses of basic shopper types (Westbrook & Black, 1985, p. 78). Shopper typology studies are varied. Determination of groups has ranged from buying behavior of specific products or groups of products, to retail marketplace patronage characteristics (Westbrook & Black, 1985). An investigation of tourist shopping orientations for souvenir products and the preferred retail environments holds potential for retailers to better direct marketing efforts to a nonlocal clientele. Souvenirs are economically important for many retail businesses located near or at tourist destinations. Each year, gift shops sell $23 billion worth of souvenirs (Gordon, 1986). A portion of the income from souvenir sales is generated from gift, antique, food, apparel, accessory, and general merchandise retail businesses, and art galleries. The souvenir may be of various forms such as postcards, T-shirts, objects of nature, local crafts, fine art, wearable art, accessories, jewelry, toys, and other items. Souvenirs may be mass produced goods or expensive handmade items (Blundell, 1993). Theoretical