This project work covers
the correction and regression analysis on consumer experience and
destination loyalty in tourist site of Rivers state as our case study
for a period of ten years (2005-2015). The whole project work contains
five chapters. The introduction of topic of the study, aims and
objectives of the project work were treated in chapter one as well as
the definitions of some terms. Chapter two deals with the literature
review. The method used in data collection, merits, and demerits of
various method used, and the presentation of the original data were
discussed in chapter three, while chapter four is for data analysis,
regression and correction co-efficient using the concept of variation,
test hypothesis on correction co-efficient and use of the Analysis of
Variance (ANOVA). Lastly, chapter five contains the findings from the
analysis, conclusion and recommendations based on the analysis made in
chapter five. The Reference is also stated in this chapter.
Tourism represents a key industry in the
Nigerian economy. In 2004, Nigerian received more than 12 million
tourists with tourism representing approximately 8% of the GDP. Tourism
also plays an important role in the Nigerian employment marketplace
since more than 10% the population is employed in tourism-related
sectors. Rivers State in the south of Nigeria, belongs to the top 10
travel destinations with the local economy relying mostly on the
tourism-related activities and oil.
Despite the exceptionally favourable
conditions for tourism (quality beaches, warm climate, hospitable and
friendly community and multiculturally-attuned), Rivers State has
recently experienced some difficulty in maintaining its position as a
preferred travel destination. Compared to 2004, the number of tourists
entering Rivers State decreased by 0.8% with lodging demand decreasing
by 4.8% (AHETA, 2005).
Although several external factors could
be mentioned as passive reasons for this occurrence, the current
condition of tourism in Rivers State is much the result of emerging new
holiday destinations that offer lower prices and, in some cases, higher
quality facilities (AHETA, 2005).
Even though the study of consumer
loyalty has been pointed out in the marketing literature as one of the
major driving forces in the new marketing era (Brodie et al., 1997), the
analysis and exploration of this concept is relatively recent in
tourism research. Some studies recognize that understanding which
factors increase tourist loyalty is valuable information for tourism
marketers and managers (Flavian et al., 2001). Many destinations rely
strongly on repeat visitation because it is less expensive to retain
repeat tourists than to attract new ones (Um et al., 2006). In addition,
Baker and Crompton (2000) show that the strong link between consumer
loyalty and profitability is a reality in the tourism industry.
The study of the influential factors of
destination loyalty is not new to tourism research. Some studies show
that the revisit intention is explained by the number of previous visits
(Mazurki, 1989; Court and Lupton, 1997; Petrick et al., 2001). Besides
destination familiarity, the overall satisfaction that tourists
experience for a particular destination is also regarded as a predictor
of the tourist’s intention to prefer the same destination again (Oh,
1999; Kozak and Rimmington, 2000; Bowen, 2001; Bigné and Andreu, 2004;
Alexandros and Shabbar, 2005; Bigné et al., 2005). Other studies propose
more comprehensive frameworks. Bigné et al. (2001) model return
intentions to Spanish destinations through destination image, perceived
quality and satisfaction as explanatory variables. Yoon and Uysal (2005)
use tourist satisfaction as a moderator construct between motivations
and tourist loyalty.
Recently, Um et al. (2006) propose a
model based on revisiting intentions that establishes satisfaction as
both a predictor of revisiting intentions and as a moderator variable
between this construct and perceived attractiveness, perceived quality
of service and perceived value for money.
1.1 Background of the Research
Oliver (1999, p. 34) has defined loyalty
as „a deeply-held predisposition to repatronize a preferred brand or
service consistently in the future, thereby causing repetitive same
brand purchasing, despite situational influences and marketing efforts
having the potential to cause switching behavior.‟ When a customer is
loyal, he or she continues to buy the same brand, tends to buy more and
is willing to recommend the brand to others (Hepworth and Mateus, 1994).
Loyalty has been measured in the
following ways: (1) the behavioral approach, (2) the attitudinal
approach, and (3) the composite approach (Jacoby and Chestnut, 1978).
The behavioral perspective defines loyalty as actual consumption, as a
sequence of purchase (Brown, 1952), as proportion of market share
(Cunningham, 1956), as probability of purchase (Frank, 1962), as
duration, as frequency and as intensity (Se-Hyuk, 1996; Brown, 1952).
This behavioral approach was viewed as producing only static outcome of a
dynamic process (Dick and Basu, 1994). In contrast, the attitudinal
approach goes beyond overt behavior and expresses loyalty in terms of
consumers‟ strength of affection toward a brand (Backman and Crompton,
1991a). Finally, composite measures of loyalty integrate both behavioral
and attitudinal dimensions. Day (1969) argues that to be truly loyal, a
consumer must both purchase the brand as well as have a positive
attitude toward it. This composite approach has been used a number of
times in leisure settings (Backman and Crompton, 1991b; Pritchad and
Howard, 1997). While this composite measurement seems to be the most
comprehensive, it is not necessarily the most practical. It has serious
inherent limitations, simply because of the weighting applied to both
behavioral and attitudinal components.
In this study, loyalty is defined as
tourists‟ intention to revisit and their recommendations to others
(Oppermann, 2000; Yoon and Uysal, 2005). This loyalty refers to
committed behavior that is manifested by propensity to participate in a
particular recreation service (Backman and Crompton, 1991a). This
definition is supported by Jones and Sasser (1995) who argued that
intent to repurchase is a very strong indicator of future behavior.
Apart from using intent to revisit, many tourism researchers have used
tourists‟ recommendation to others as a measure of attitudinal loyalty
(Chen and Gursoy, 2001; Oppermann, 2000). This research focuses on
attitudinal loyalty because the purchase of a tourism product is a rare
purchase (Oppermann, 1999). It does not occur on a continuous basis but
rather infrequently (Jago and Shaw, 1998). It can also be covert
behavior as reflected in intention to revisit in the future (Jones and
From SAS. Retrieved 2015-07-15. Customer
experience (CX) is the product of an interaction between an
organization and a customer over the duration of their relationship.
This interaction includes a customer's attraction, awareness, discovery,
cultivation, advocacy and purchase and use of a service. It is measured
by the individual's experience during all points of contact against the
individual's expectations. Thompson, Ed and Kolsky, Estaban (2004),
Gartner asserts the importance of managing the customer's experience.
Verhoef, Peter C (2009) said that
customer experience implies customer involvement at different levels -
such as rational, emotional, sensorial, physical, and spiritual.
Customers respond diversely to direct and indirect contact with a
In the consumer marketing community,
customer loyalty has long been regarded as important goal (Reicheld and
Schefter, 2000). Customer loyalty is critical for business to gain
competitive advantage. Firstly, it is much less expensive to retain
current visitors than it is to seek new ones (Reicheld and Sasser,
1990). Further, loyal customers are more likely to create a positive
word-of-mouth advertising at no extra cost to the service provider
(Shoemaker and Lewis, 1999). Thirdly, it secures the relationship
between customer and service provider, when the customer is faced with
increasingly attractive competitive offers. Finally, loyal customers are
more easily accessible than first-timers since organizations usually
retain records, making targeted indirect marketing more feasible. This
knowledge permits suppliers to precisely target the repeat segment and
solicit direct responses to promotions (Reid and Reid, 1993).
1.2 Statement of Research Problem
In today’s dynamic and competitive
global environment, planning and developing tourism attractions is only
half the battle faced by destination managers considering the fact that
so many destinations globally offer similar attractions, services and
experiences. Destination managers also have to plan and strategize the
marketing aspect of destination management. A well planned and developed
tourism product and/or destination will be useless unless it attracts
and retains its target market. Therefore, it is vital for managers to
understand what makes customers loyal to a destination and what their
expectations are so that destinations can modify their offerings,
service delivery and communication strategies to meet and exceed
- Consumer’s expectations and quality of service are not meet with.
- The cost of service and the quality of service are not relative to each other.
- Consumers complain that they are not welcomed as a result of lack of communication between service providers and consumers.
1.3 Objectives of the Study
As previously mentioned, both marketing
scholars and practitioners need to identify and assess the relative
impact of competitiveness factors and destination equity on the loyalty
of tourists. In doing so, the destination marketers can properly develop
strategy and manage resources efficiently. Therefore, the objectives of
this research are three fold;
- To assess the relative impact of destination equity on the loyalty of tourists and
- To differentiate those results between the domestic tourists and the international tourists.
- To evaluate consumers experience and irrigate tourist site.
- To express the degree of relationship between the two variables, (consumers experience and destination loyalty).
1.4 Scope of the Study
Regression and correlation are common
methods of analyzing data to provide useful information in making
decision. The project covers a period of 10 years (2005-2015) thus
predictions shall be made on the bases of the accuracy of the analyzed
There are many numerical variables to be
considered in in this research work such as the income and expenditure
of Rivers State on tourist destination (tourist center) on which this
project work is based.
1.5 Research Hypothesis
Hypotheses are some finding which are
yet to be proved. In statistics, when data are collected the purpose is
to find a reasonable criterion for deciding on a proper line of action,
whether the assumption is to be accepted or rejected.
H0. There is no linear regression between consumers experience and destination loyalty.
H1. There is linear regression between consumers experience and destination loyalty.
H0. There is no association between consumers experience and destination loyalty.
H1. There exists an association between consumers experience and destination loyalty.
In order to make this decision
significant, test are carried out on the hypothesis, insignificant is
called the null hypothesis denoted by Ho and the assumption made against
the null hypothesis is the alternative hypothesis denoted by H1.
To test hypothesis on regression coefficient,
T – statistics is applicable and it is given as:
Tcal = with n-2 d.f
1.6 Limitation of study
During the course of
performing/researching this project work, the researcher encountered a
lot of challenges as well as opposition which ranges from financial
constraints, time factor. This factors in their own ways, slowed down
the speedy progress of this work that resulted to the researcher not
being able to finish the research work on time as is required
Also, within the area of study the
researcher was faced with some other forms of constrains that
contributed to the limitation of this researcher work, like
accessibility to data, information and facts concerning the present
study due to some reasons or the other, some not willing to give out
information that it is to be within the workers.
1.7 Definition of Terms
This is a statistical statement which can be true or false and whose
validity can be tested. It is a statement about a population which we
want to verify on the basis of the information available from a sample.
ii. Null Hypothesis: It is the hypothesis we have set for the purpose of rejection and it is denoted by Ho.
iii. Alternative Hypothesis: It is the hypothesis that has being set for the purpose of acceptance and it is denoted by Hi.
iv. Variable: This is the observable outcome of the data collected on certain phenomenon of interest through various methods.
v. Independent Variable:
This is a variable that can be controlled or manipulated by a
researcher in order to determine its relationship with the observed
state of things.
vi. Dependent Variable:
This is a variable that is observed as outcome of an experiment. It
changes according to the changes or manipulation made on the input
vii. Free Hand Method: It is a procedure that try to draw a line that passes through or close to as many points as possible on the scattered diagram.
viii. Rank Correlation:
Instead of using precise value or when such precision is unavailable,
the data can be ranked in order of size, importance e.t.c.
ix. Co-Efficient of Determination:
It is another significant method to determine the degree of
relationship that exists between two variables. It indicates the
proportion of changes in value of independent variable Y that can be
predicted from change in the value of independent variable ‘X’.
x Confidence Internal:
This is the interval or region within which an hypothetical value must
lie before it can be accepted as a member of the population.
xi. Analysis Of Variance (ANOVA): This is a technique where by total variation present in a set of data are partitioned into several components.
xii. An Estimate: This is the value which as estimator takes for a particular sample.
xiii. Positive Correlation: This is a situation when there is simultaneous increase in the value of Y as X increases
xiv. Negative Correlation: This is a situation when increase or decrease in one variable brings about a change in the value of the other variable.
xv. Zero Correlation: This is a situation when increase or decrease in one variable brings about no change in the value of the other variable.