Culture, Product Differentiation and Market Segmentation

A Structural Analysis of the Motivation and Satisfaction of Tourists in Amsterdam

The varied supply of tourism services — with particular emphasis on tangible and intangible cultural aspects — corresponds ideally to visitors' characteristics and wishes. This paper considers a major tourist destination, such as Amsterdam, as an export-oriented multi-product company, characterized by spatial and functional market segmentation and monopolistic competition reflected in product differentiation. Urban branding and attractiveness may favour tourist destination loyalty.

The complex decision web of motivation and satisfaction of tourists in Amsterdam is analysed with a structural equations model (SEM). The authors find that different tourist profiles, in terms of personal characteristics and motivations, can significantly impact the satisfaction received from tourism services. Furthermore, and most interestingly, the results suggest that satisfaction does not necessarily lead to improved destination loyalty, but is contingent on the source of satisfaction. In this case, satisfaction resulting from tangible or intangible cultural sources has clearly different implications for loyalty, with relevant managerial implications.

Romao, J., Neuts, B., Nijkamp, P., & van Leeuwen, E. S. (2015). Culture, product differentiation and market segmentation: a structural analysis of the motivation and satisfaction of tourists in AmsterdamTourism Economics21(3), 455-474.

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