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8/12/2019 Perceived Risk and India as Tourism Destination
1/22
An Analysis of the Influence of
Perceived Risk in Hong Kong TouristDecision Making Process toward an
Asia Developing Country India as a
Touris! Destination
Circle Yuen
Higher Diploma in International Hotel and Tourism Management
HTMi Switzerland
8/12/2019 Perceived Risk and India as Tourism Destination
2/22
Introduction
Negative image of India due to recent consecutive news related to female safety is in
the spotlight This not only drew local residents! outrage and government!s attention"
#ut also the worldwide awareness Since India government has #een promoting its
golf" polo" rural" eco" medical and wellness" cruise and heliport" adventure as well as
caravan tourism to the world $Ministry of Tourism %overnment of India" &'()*
+ccording to the India tourism statistic at a glance report $Ministry of Tourism
%overnment of India" &'(&*" there is a continuously increasing num#er of foreign
tourist travels to India from &'') to &'((" e,cept &''- The author would li.e to
analyse the influences of those une,pected negative incidents in India on Hong /ong
travelling tourist decision0ma.ing process The way people communicate their needs
is wants 1ased on different cultures as well as individual personality" people with it
need can have e,tremely different wants 2eople tend to select products" which are
the most value for money $/otler et al " &'('* 1lac. #o, model will #e used to
introduce the #asic concept of consumer #ehaviour 3hen tourists realise a 4ourney
will #e less en4oya#le due to visi#le or percepti#le dangers" another destination is tend
to #e selected $Hall et al " &'')* 1lac.well et al $&''(* mentioned" there is no
motivation on purchasing a product if an individual cannot accept the perceived ris.s
+ccording to Schiffman $&'('*" every single tourist has its own perception on ris."
they can #e divided into two main groups" narrow categorizers and #road categorizers
Thus" different types of perceived ris.s and tourist responses would #e discussed in
this paper 5urthermore" 2owell $(--6* and 1a.ewell $&''7* found that female and
male tend to have different decision0ma.ing style on ris. management
Santana $&'') cited in +vraham" &''7* pointed out that pu#lic!s perception towards a
destination can #e shaped #y international media" thus" a positive image of one city or
8/12/2019 Perceived Risk and India as Tourism Destination
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country is essential in order to #ecome a famous tourist destination +uthor will use
India as the case study and to e,amine the potential of India #ecome a worldwide
tourist destination Numerous research was found to #e discussing retail #uyers
#ehaviour $%anesan and 3eitz" (--78 Choi and %as.ill" &'''8 9osen#aum and
/untze" &'':8 Insch et al " &'((*" however" less has #een done on tourist #ehaviour
$Insch et al " &'(( and 2ongyeela" &'(&* 3hen discussing traveller decision ma.ing"
researchers mainly concentrate on e,amining factors influencing tourist decision
ma.ing and purchasing intention on selecting destination $1eerli et +l " &''6* 3ong
and Yeh $&''-* concentrated on several reasons of tourist hesitation and their
#ehaviour of changing destination Some previous studies have #een focusing on the
relationship #etween decision0ma.ing process of travel and the perception towards a
developed country $+zim" &'('* Moreover" tourist security feeling and perception
on developed destinations has also #een discussed $2age et al" &'':* 1ased on the
research from 2owell $(--6* and 1a.ewell $&''7*" there are significant different
approaches of female and male managing ris.s and ma.ing decision Thus" the
influences of perceived ris. on tourist from different gender ma.ing decision on
travelling to developing countries will #e the main focus of this research paper
Tourists Decision Making Process " Models# Theory and Concepts
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5igure & ( (; : stages #uying process model $Solomon et al cited in 1othz>* 1ettman
$(-6)* claimed that if the level of perceived ris. were higher than the individual
accepta#le level" the consumer would ta.e action to reduce ris. Ta.ing the second
step0information search can fulfill this ris. reduction #ehaviour Information search
can #e classified into internal and e,ternal" the former one means personal mind of the
8/12/2019 Perceived Risk and India as Tourism Destination
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decision ma.er" such as memory and the later one includes advertising strategy" media
and word of mouth $2erner" &'('* The higher cost or investment of the decision" the
more e,ternal research are to #e done #y the individual" for e,ample" when someone
#uy an apple" it is more li.ely to refer to the previous e,perience" nonetheless" when
someone purchase a house" it is suggested to as. for others! ideas and see. help from
professionals +fter doing the information search" more alternatives may rise up" and
then #ecomes stage ) evaluations on the choices +t this stage" consumer use the
information found in the previous stage to evaluate and ran. all the alternatives The
one #rings the most #enefit might not #e the #est choice as it is depends on the cost of
selecting the alternative Aast #ut not least" the final stage is post0purchase #ehaviour
Decision ma.er will compare the actual gain and loss to the e,pectation If the
purchasing e,perience is #etter than the e,pected result" the satisfaction of the
consumer will #e increased $i#id* This is not a completed model as the final stage can
affect the first stage" for instance" the possi#ility of re0purchase will #e increased if
customers are satisfied #y this purchasing e,perience" as well as will recommend
others to select the same product or service
Nevertheless" if the product is out of e,pectation and unaccepta#le to the individual"
the purchasing process will end up in this stage $+#dallat and Bmam" &'()* +s a
conse@uence" a cycle should #e more suita#le for e,plaining tourist #ehaviour rather
than the unidirectional approach 5urthermore" %il#ert $(--( cited in Swar#roo.e and
Horner" &'(&* challenged that this model has omitted one of the .ey impacts which is
decision ma.er!s personal perception" attitude and personality
8/12/2019 Perceived Risk and India as Tourism Destination
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Consu!er Decision Making $ra!e %ork
5igure & ( & (; Consumer Decision Ma.ing 5rame 3or. $%il#ert" (--( cited in
Swar#roo.e and Horner" &'(& *
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The a#ove model suggested #y %il#ert $(--( cited in Swar#roo.e and Horner" &'(&*
shows that factors affecting consumer decision0ma.ing can #e categorized in two
levels The inner level is the first level" includes influences closely related to the
decision ma.er itself" such as motivation" perception toward the product" personal
attitude and .nowledge he she has The second level of influence is factors that #eing
developed in the socialization process" for instance" socioeconomic" cultural" family as
well as reference group In other words" second level is all the factors" which affect
the others instead of the decision ma.er itself In level one" referring to Han and
Aerner $&''6*" there are two types of ris. perception" which are certainty ris. and
uncertainty ris. Certainty ris. is controlla#le whereas uncertainty ris. is
uncontrolla#le #y an individual Aerner and /eltner $&''(* discovered that an
individual!s emotion could affect the ris. perception +ngry people can afford a
higher level of ris." which might not have #ig influence to the ris. perception" hence"
they will insist to the decision made Nevertheless" fear people can only afford a
limited level of ris." they will #e affected #y the certainty ris. and ta.e longer time to
evaluate the given choices to select the lowest ris. alternative 9egarding second
level" 1riley et al $&'''* #elieved and proved that individual decision0ma.ing process
is affected #y the cultural factor since culture will affect how people thin. and act" it
gives guidelines on ma.ing decision 5amily can #e one of the factors influencing
individual travel #ehaviour 2eople in different family life cycle stages" such as
married" single" with children and so forth" have different responses to the travel
decision
5amily concept actually #eing recognized as one of the .ey varia#le that affect
individual trip ma.ing #ehaviour for years and it is agreed #y several scholars
8/12/2019 Perceived Risk and India as Tourism Destination
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$ immerman" (->& cited in %rigolon et al" &'(&8 /itamura and /ostyniu." (->7 cited
in /itamura" (->>8 Collins and Tisdell" &''&* +ccording to 1lac.well et al $&''(*"
any person or groups that influence others! #ehaviours heavily are defined as
reference group" their #eliefs" attitude and #ehaviours can affect others easily" to
clarify teenagers are highly affected #y idols and peers" these people are then #ecome
the reference group of youngster Since there is no lin.age #etween level one and two
inner and outside varia#les" thus" it is suggested the model can #e presented in the
#elow way as to show a clear level of varia#les
5igure & ( & &; +mended Consumer Decision Ma.ing 5rame 3or.
Decision Making Process &ased on 'eg!entation
2owell and +nsic $(--6* found that female usually have lower ris. preference which
means that they may give up the current made decision due to uncertainty and
External
Factors
Internal
Factors
Consumer
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opportunity costs Nonetheless" ris. preference is not attri#uted to hidden cost During
the decision ma.ing process" female relatively refer to information found" thus" the
length of time is longer #etween the information searching process until the decision
made 3e#er $&''(* suggested E domains to investigate different #ehaviour of female
and male when ma.ing decision" which are gam#ling" health" and recreational and
social decisions In the research" they agreed that gender difference has significant
impacts on decision0ma.ing process $I#id and 1oa.ye" &''>* Harris and ?en.ins
$&''7* #elieve that the chance of re0purchase the same product or service is low in
#oth male and female +part from that" Aevin et al $&''6* noted that people with
different education level view things divergently" which will also have impacts on
decision0ma.ing process
Tourist Decision Making Process toward Developed Country 'tudies
1oa.ye $&'(&* has underwent a research investigate the relationship #etween tourist
ris. perception and decision ma.ing in %hana which situated in South +frica It was
found that there is a very close association #etween these two parties 2eople ris.
perception toward one destination together with the individual characteristic need to
#e ta.en into account at the same time 2age et al $&'':* has #een analysing tourist
in4ury cases in Scotland and New ealand as well as to give solutions to avoid similar
situation happens on tourists
Perceived Risk as factor affecting travelling decision
Sonmez F %raefe $(-->* claimed that security is one of the most crucial elements of
one destination!s allure Destination fails to provide security will lose the competitive
power as it will stop tourist travelling to the particular destination and encourage
su#stitute consuming $1oa.ye" &'(&* 2revious researchers have identified different
8/12/2019 Perceived Risk and India as Tourism Destination
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ris.s" financial ris.s $Som et al" &'((*" physical ris.s $Sonmez F %raefe" (-->*"
social ris.s $Carter" (-->* and health ris.s $Aarsen et al" &''6* +ll of these ris.s pull
people to stop travel or to change travel destination due to the uncertainty $Sira.aya F
3oodside" &'':* /night $(-E>* was the first researcher developed the concept that
the level of perceived ris.s affects economic activities Chaudhuri $(--6* came up
with the idea of perceived ris.s and uncertainty varia#les will encourage changes on
decision ma.ing of travelling
Destination (ackground " India
5igure & ) (; India International Tourist +rrivals $The 3orld Tourism Grganization"
&'(&*
+ccording to the report from N3TG $The 3orld Tourism Grganization" &'(&*" also
shown a#ove" there are an increasing num#er of international tourist arrivals in India
from &''- to &'(( nfortunately" there was a (E> leap of reported se, criminal
rate in India recorded from ?anuary to March &'() $+non" &'()* 9esearch found
that since the first gang rape issue occurred in Decem#er &'(&" the num#er of female
tourists .eep going down #y &: as of March while the decreased of female travellers
is ): $+ssocham India" &'()* +ssociated Cham#ers of Commerce and Industry of
8/12/2019 Perceived Risk and India as Tourism Destination
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India $cited in ?amieson" &'()* attri#uted the dropped in num#er of visitors in whole
country to the se, crime The India %overnment noticed that the issue related to
women safety in India has put threat to the domestic and international female
travellers" thus they have made a note on the tourism #oard to clarify the current issue
as well as to reinsure women tourist that 4ourney to India will #e an en4oya#le and
safe e,perience $Incredi#le India" &'()* %overnment claimed that the previous sad
incidents are a#errations as they received over & 7 million female visitors travelling to
India in &'(& In addition" among this huge amount of in#ound lady tourists" there was
no single report stating that female is facing se,ual molestation" which proves that
apparently incidents are simply a#errations $I#id*
Conclusion and Reco!!endations
In this report" the : stages consumer #uying process and consumer #uying framewor.
are used to analyse the impact of perceived ris. of Hong /ong tourist toward an +sia
developing country" India This research uses @uantitative approach to e,amine the
effectiveness of the models mentioned
+fter analysing all the information found" it is o#vious that security issue is a crucial
factor" which affects tourist!s travelling #ehaviour Since there is continues se,
criminal in India" it changes people perception of the safety concern in India
Considering female and male has different ris. tolerance level" it may results in
dramatically decreasing num#er of female travellers to India in a short period of time
In order words" the tourism industry will #e harmed as well as the revenue generated
#y foreign tourist will #e reduced in a short period of time In the future" @ualitative
approach is suggested to #e adopted in future research to generate a more in0depth
view from the respondents 5urther research can #e #ase on international tourists!
8/12/2019 Perceived Risk and India as Tourism Destination
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#ehaviour instead of focusing on Hong /ong tourist only since cultural diversity
might #e another varia#le affecting individual!s perception of perceived ris.s +part
from that" it is worth to evaluate the difference sections within one segment as well as
to investigate which group of people are the most easily affected #y perceived ris.
+fter that" people can wor. on esta#lishing the theory to regain or reposition India to
strengthen it potentials to #ecome a world0class popular destination Bffectiveness of
the promotion strategy of India might #e investigated in the future as well Aast #ut
not least" it is also the high time for India government to understand the importance of
enhancing the positive image of India #y controlling and reducing se, criminal" which
happens every day
8/12/2019 Perceived Risk and India as Tourism Destination
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