Entrepreneurial Opportunity Recognition through a Market Segmentation of a Selected Filipino Youth Market

By Tibon, Maria Victoria P. | Journal of International Business Research, December 2012 | Go to article overview

Entrepreneurial Opportunity Recognition through a Market Segmentation of a Selected Filipino Youth Market


Tibon, Maria Victoria P., Journal of International Business Research


Youth travel is of special interest because a considerable number of Filipinos belong to the youth population. By focusing on the youth market, tourism enterprises can maximize considerable business opportunities. This study, using several known motivations and activity preferences of travellers, identified major push motives of young students.

Factor analysis of responses from 117 students revealed four push motives, namely, nature and wellness, education, meeting people and relaxation and unique experience. Young students have been found to travel from the hustle and bustle of city life and contemplate nature, learn, rest, interact with other people and acquire a different kind of experience.

Cluster analysis of responses from 95 students resulted to two market segments, the "enthusiasts" and the "moderates". The "enthusiasts" score higher in the motivations and activity preferences used in the study. The two groups can also be distinguished in terms of age, gender and monthly family income.

The young Filipino traveller is at least "midcentric" using Plog's typology. Product development efforts can be carried out using the findings of the study.

INTRODUCTION

Throughout the years, tourism has emerged as a major national income earner for the Philippines. Since the creation of the Ministry of Tourism in the 1970s, it has become a major contributor to the Philippine economy starting in the 1990s. It currently accounts for 4-5% of the nation's Gross Domestic Product and employs more than three million Filipinos.

Experts of world tourism say that consumers are no longer the same consumer decades ago. The Fordian paradigm of mass tourism with its standardized vacations and rigid packages is becoming obsolete. It has been in force immediately after the Second World War until the early part of the 80s. We are now in what is dubbed as "the New Age of Tourism". Consumers have transformed from being homogenous, having basic motivations and without previous experience to heterogeneous consumers who are experienced, unpredictable and more demanding. Suppliers are realizing that the Fordian paradigm is no longer adequate to address the challenges of competition.

This change in the nature of the consumer of tourism products can lead to many entrepreneurial opportunities. In terms of personality types, consumers can be classified as allocentrics, psychocentrics and midcentrics. Allocentrics, psychocentrics and midcentrics are personality types in Plog's psychographic typology (Weaver & Oppermann, 2000). The model is used for psychographic segmentation. Allocentrics and psychocentrics are extremes in Plog's bell curve. Allocentrics and near-allocentrics satisfy their intellectual curiosity by seeking adventures that allow them to immerse themselves in other cultures. In contrast, psychocentrics minimise risk by patronizing familiar destinations where usual goods and services are available. Midcentrics are between the psychocentric and allocentric characteristics. Today's traveller has been observed to be allocentric.

An understanding of the tourism market is vital to the growth of the industry. The tourism market has to be understood if it is to be served well and its profit potentials are to be realized. Among the different tourism markets, the youth population of the Philippines is a good target market. There are more than 20 million Filipinos included in this market.

Opportunity recognition, which consists of identifying possibilities for new profit potentials, is a critical task for tourism entrepreneurs. It usually entails significant improvements in product offerings. However, for product development to be effective, there is a need to understand the characteristics of the Filipino youth market. There is a need to look into their motivation and preferences on which their purchase of tourism products depends. Moreover, market segmentation is a powerful marketing tool to identify homogenous groups among the selected Filipino youth market in terms of their motivation and activity preference. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Entrepreneurial Opportunity Recognition through a Market Segmentation of a Selected Filipino Youth Market
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.