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MINISTRY OF EDUCATION & TRAININGUNIVERSITY OF ECONOMICS HO CHI MINH CITYFACTORS AFFECTING TOURISTS’ DECISIONMAKING TO BA RIA – VUNG TAUMajor: Management of Business AdministrationSubject: Marketing Management Lecturer: Ph Nguyen Viet Bang Students: Nguyen Lam Thuong - 202207032 Nguyen Van TungVu...

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MINISTRY OF EDUCATION & TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY

FACTORS AFFECTING TOURISTS’ DECISION MAKING TO BA RIA – VUNG TAU Major: Management of Business Administration

Subject: Marketing Management Lecturer: Ph.D Nguyen Viet Bang Students: Nguyen Lam Thuong - 202207032 Nguyen Van Tung

Vung Tau city – December 2021

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TABLE OF CONTEN 1.

The reason for choosing this topic

2

2.

The research purpose

3

3.

The research object and scope

3

4.

The research methodology

3

5.

Literature review of tourists’ decision making and tourism

3

5.1.

Overview of tourism

3

5.1.1.

Definition of tourism and tourist

3

5.1.2.

Ba Ria - Vung Tau tourism

6

5.2. Literature of decision-making and research model of tourists’ decision- making

7

5.2.1.

Definition of tourists’ decision-making

7

5.2.2.

Previous research model of tourist’s decision-making

8

6.

Research model and research hypotheses

25

6.1.

Research model

25

6.2.

Research hypotheses.

26

CONCLUSION

28

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1. The reason for choosing this topic Vietnam is joining the trend of globalization nowadays. As a result our economy is thriving in recent years, which raises the Vietnamese’s living standard. People nowadays are now demanding for both physical and mental needs. As a matter of fact, tourism is becoming an important industry in Vietnam to response to both domestic and foreign tourist as the number of tourist come to Vietnam in recent years is rising continuously. In recent years, our tourism industry has developed rapidly and little by little asserted our position as an ideal destination for many tourists. Vietnam is considered on of the most rapid growing tourism destination in Southest Asia. In December 31st 2011. Mr. Nguyen Tien Dung approved the “Strategy for Vietnam tourism development until 2020, vision 2030” which set out the views, goals, solutions and specific action programs to develop Vietnam tourism. The demand to travel of people is proportional with the development of the world. However, the travel demand now is not only simple that finding a place to relax, but including the need for sightseeing, discovering, studying and researching in order to accumulate more knowledge and satisfy the emotional need. The concept of nowaday tourism is changing and broadening into new market demanding Ba Ria – Vung Tau is a leading province in term of tourism, famous for its beautiful beach, this province is becoming one of the leading tourist centers of the country. Ba Ria – Vung Tau has the favorable conditions for the development of tourism with the ideal beaches, resorts that attract a lot of tourist each months. Recently, the needs of international tourists traveling to Ba Ria – Vung Tau has increased so in order to satisfy the diverse needs of tourists, this province must have specific strategies that match the characteristics and strengths of their locals scenic and facilities. Making decision on where to travel to is very important and it is a core factor of tourism consumer behavior. In tourism industry, understanding the decisions related to the choice of destinations of tourists is the key to develop and promote tourism. For Ba Ria - Vung Tau in particular and Vietnam in general, the research of factors affecting tourists’ decision-making is more than necessary in order to provide a clearer vision of what tourists are looking for when they decide to go traveling. However, Vietnam in reality, there are not that many researches about this topic for government as well as 2

tourism enterprises to captures the consumer trend to promote tourism and meet the needs and tastes of tourists. With all the aforementioned reasons, the author would like to choose the topic of “Factors affecting tourists’ decision making to Ba Ria – Vung Tau” for this thesis. 2. The research purpose This research topic is conducted with the following purpose: -

Synthesize and systematize theories about tourism including definitions and

factors affecting tourists’ decision-making. -

Identifying the factors affecting decisions of tourists to travel to Ba Ria -

Vung Tau. -

Determine the model of factors affecting decisions of tourists to travel to Ba

Ria - Vung Tau. 3. The research object and scope -

Object of this research: Factors affecting tourists’ decision to travel to Ba

Ria – Vung Tau. -

Scope of this topic: Tourist and international tourist living who have already

traveled to Ba Ria – Vung Tau. 4. The research methodology In this research, the authors used the method of synthesis. For the method of synthesis, the authors acquired secondary data acquired from annual report, domestic and foreign publications as well as on the Internet. 5. Literature review of tourists’ decision making and tourism 5.1.

Overview of tourism

5.1.1. Definition of tourism and tourist 5.1.1.1. Definition of tourism As of now, according to the author’s research, there has not been any official definition of tourism. The Definition of Tourism varies source by source, person by person. There is no consensus concerning the definition of tourism. Therefore, the author synthesizes researches from international research to get a clearer look at the definition of tourism: 3

According to Wikipedia: Tourism is travel for pleasure, also the theory and practice of touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tours. World Tourism Organization UNTWTO defined tourism as: “Tourism comprises the activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes”. There is a difference between travel and tourism as not all travel is tourism. For tourism to appear, movement must occur. People must travel using all types of transport. Three criteria are used simultaneously to characterize tourism-related travel. The offset should be: -

This includes moving away from your normal environment. This term is very important and will be discussed later.

-

Purpose Type: Travel must be for purposes other than compensation within the site visited: Previous restrictions where tourism was limited to recreation and visiting family and friends are now extended to include a wide range of purposes.

-

Duration: Only the maximum duration, not the minimum, is displayed. The movement of tourists can occur with or without accommodation. Let us examine the characteristics of public transit visits from a conceptual and statistical point of view.

5.1.1.2.

Types of tourism Tourism activities can be grouped according to different groups depending

release criteria. Currently, the majority of experts on Vietnam's tourism divide types of tourism by group types according to the following basic criteria: Table 5.1: Types of tourism Base on Groups Types Type of

natural environment - Cultural

Base on purpose -

tourism

touris m

Base on

-

Natural

Adventure

Base on territory -

tourism -

Recreational

International

geographic -

tourism -

Domestic

features Coastal tourism

-

Mountain 4

tourist

tourism

-

Leisure tourism

-

Ecotourism

-

Sport tourism

-

Festival tourism

-

Religious tourism

-

Drug tourism

-

Business tourism

-

Dark tourism

-

Culinary tourism

-

…

tourism -

National Tourism

tourism -

Urban tourism

-

Countryside Tourism

(Source: Self-synthesized) Beside the basic criteria like natural environment, purpose, territory and geographic features, there are some other criteria to set the division of tourism, for examples: by transportation (sea traveling, air traveling…), by ages (teenagers, middle aged, elderly…), by trip duration (short term or long term), by form (group, individual or family) , by contract (packages or partial)… 5.1.1.3. Definition of tourist and international tourists According to Wikipedia: “a tourist is a person engaged in tourism—travel for recreational, leisure or business purposes.” In more detail, we can define tourist as: “A person who is supposed to leave his/her hometown (permanent place) on temporary, basis for the purpose of seeking new experiences, having fun & entertaining, doing sports, seeing cultural & historical places (attractives) etc. On the condition that she/he should stay no less than 1 day and no longer than 12 months, make use of a tourist facility for accomodation and spend her/his own Money through their holiday.” To sum up, we can understand that tourist is “The person who is supposed to leave his/her hometown in order to visit a diffirent area for the purpose of leaving an experience of shopping, entertaining, visiting, cultural & historical attractives having fun and so on the condition that (subject to) she/he should return to his/her own place, stay no longer than 12 months, make use of a tourist activitiy and spend his/her on money. 5

Similar to tourists, international tourist is defined as: “Any person who travels to a country other than that in which s/he has his/her usual residence but outside his/her usual environment for a period not exceeding 12 months and whose main purpose of visit is other than the exercise of an activity remunerated from with the country visited, and who stay at least one night in a collective or private accommodation in the country visited.” 5.1.2. Ba Ria - Vung Tau tourism Ba Ria-Vung Tau (Bà Rịa – Vũng Tàu) is a province of Vietnam. It is located on the coast of the country's Southeast region. It also includes the Côn Đảo islands, located some distance off Vietnam's southeastern coast. Vũng Tàu is an important tourist destination, being particularly well known for its beaches, for its colonial-era architecture, and the Christ of Vũng Tàu, a large statue built by Vietnam's Catholic minority. The most beautiful famous location of Vung Tau is Thuy Van beach is also known as Back Beach located in Thuy Van street. Along the coast of Long Hai, Xuyen Moc has many beautiful beaches and large resorts: The Grand Ho Tram, Vietsovpetro .... The famous tourist resorts include the famous Ho Tram Osaka, Lan Rung resort ... there are a lot of popular hotel with Pullman Hotel, Imperial Hotel, Intourco Resort hotel, DIC Star hotel ... Historic, cultural relics of Ba Ria-Vung Tau Province's diverse and influenced in various levels of age-old cultures associated with the seas. Part of the historical, cultural offers possibilities for tourism operators. Group of historical, religious architecture includes the architectural temples, pagodas, churches ... including Christ Statue, White Palace... are good places to be developed into tourist attractions. Festivals, spiritual, historical groups, revolutionary and resistance reflects the struggle to protect the nation's people's waters in two wars, such as Long Phuoc tunnels, Pursuant to Minh Damm, Bau Sen, Loc An, Con Dao prison... are famous historic sights for tourist sightseeing type. The sea food specialties of Ba Ria-Vung Tau province is quite rich, distinctive, refined processed, meet the demand for public enjoyment of tourists. Ba Ria – Vung Tau took actions to improve the tourism environment clean and beautiful, rectified the situation of vendors sales for improvement and raising the provincial tourism landscape. Travel service prices were and will be relatively stable and

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reasonable, the rescue and salvage were better organized to minimize the risk of accidents, drowning on the beach at the peak. The construction of tourism planning continues to be implemented in order to create prerequisites to attract tourism investment projects with large capital size, diverse product types and characteristics, in accordance with international tourism market, which would change the fundamental quantity, and quality of the province's tourism product. However, travel products have not created many groundbreaking innovative and high added values. The association and cooperative in tourism development is still limited and spontaneous result in wasting potential effectiveness and comparative advantages to develop tourism. Services still have not been diversified, lack of entertainment parks, performing arts centers ... and lack of proper investment. The propaganda and promotion was not effective enough, resources are limited lead to low performances. Promotional activities were still conducted under short-term plan. Business advisory orientation, proposing forms of advertising, the provincial tourism promotion have no breakthroughs and have not meet the requirements of tourists in practice Businesses has not really care or contributing supports to promote the propaganda of advertising, lack of investment, upgrade, implementation of the regulations on registration and listing price has not been done properly, need more proposing new products and services as well as tours, new routes to attract tourists coming to Ba Ria – Vung Tau. 5.2. Literature of decision-making and research model of tourists’ decision- making 5.2.1. Definition of tourists’ decision-making 5.2.1.1. Definition of consumer behavior There are different definitions of consumer behavior by researchers and economists. Following are some typical definitions: According to Philip Kotler (1999): “consumer behavior is the buying behavior of final consumers” or “Consumer behavior include mental activity, emotional and physical that people use during selection, purchase, use and dispose of products and services that satisfy their needs and desires”

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Michael R. Solomon stated his concept of consumer behavior to be “the study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires” So researches on consumer behavior aim at answering the questions concerning motivation of consumers, "why consumer behaviors occur?”. Answer to this question is included in the definition of consumer behavior. Consumer behavior is to meet the needs and demands of him. Behavior is a tool to achieve objectives and target consumer derives from his needs and desires. Consumer behavior is also a process: Consumer behavior, including the selection, purchase and consumption of goods and services that include elimination of three steps before buying activities, purchasing activities, activities after purchase.(Rostami, 2001) Moreover, this process is affected by factors, external and internal. Those factors vary from person to person, throughout time and places. Understanding those factors and consumer buying process, business and manufacturers can apply these insights onto their strategies of products from the perspective of consumer, to make their goods and services meet the demand of consumers better in the long run 5.2.1.2. Definition of decision-making In psychology, decision making is defined as a cognitive process in which a belief or course of action is selected among several alternative possibilities. Every decisionmaking process leads to a final choice. You may or may not take action. Decision making is the process of identifying and selecting alternatives based on the values and preferences of the decision maker. Tourism selection and decision-making has become one of the cornerstones of research in the tourism literature that spans 50 years of theoretical and empirical developments (Smallman and Moore 2010). In other words, decision-making is the process of choosing the best among various alternatives. It is an act of choice. Organizations and departments have numerous alternatives. Making a decision is defined as choosing one of the best alternatives. All alternatives with known advantages and disadvantages should be evaluated before making a decision. This will help you make better decisions. It is also one of the important management functions. It cannot do without other administrative functions 8

such as planning, organization, directing, controlling, and staffing. Because decisions are very important in this management function. 5.2.2. Previous research model of tourist’s decision-making 5.2.2.1. Customer-Based Destination Brand Equity Modeling: The Role of Destination Resources, Value for Money, and Value in Use A study by Tatyana Chekalina, Mathias Fuchs, and Maria Lekshagen, published in Journal of Travel Research in 2016, promotes knowledge about transferring the concept of customer-centric brand equity into the context of travel destinations. This study proposes a need-based model of brand equity for destinations, which consists of five subordinate constructs, including awareness, loyalty, and three destination brand promise constructs that make up the inner core of the model: destination resource, use value. And value for money.

Hypothesis 1. The stronger the perception of the destination, the more positive the client's perception of the destination's (a) tangible, (b) intangible, and (c) social resources. Hypothesis 2: The more positively customers perceive (a) tangible, (b) intangible, and (c) social object resources, the more positively consumers perceive use value. Hypothesis 3: The more positive the customer's perception of (a) material, (b) immaterial, and (c) social resources, the more positive the customer's perception of cost value. 9

Hypothesis 4: The more positive shoppers perceive the value of use, the more loyal they are to the destination. Hypothesis 5: The more positive the value for money shoppers perceive, the more loyal they are to the destination. This model was iteratively tested for Sweden's premier mountain resort, Åre, using a linear structural equation modeling approach. A total of 5,668 people were invited to participate in the online survey. Data was collected anonymously between April and May 2010. The acquired data confirms the track structure of the proposed model. Confirming the hypothesis that destination use value is a direct precursor to destination loyalty is indeed an important finding not previously discussed in the literature. 5.2.2.2. Risk and Uncertainty in Travel Decision-Making: Tourist and Destination Perspective Published in the Journal of Travel Research in 2016, this study by Marion Karl is a comprehensive, comprehensive study that uses key characteristics of destinations at the stage of a virtual and realistic destination, as well as travelers' self-assessment of the risks and uncertainties of travel decisions. Research approach. . process. The focus of this study is on risk and uncertainty. This is because these factors play an important role at different stages of the travel decision-making process.

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Hypothesis 1: Travelers who tend to be high-risk and uncertain when making travel decisions are considering low-risk and low-uncertainty destinations for their hypothetical future vacations. Hypothesis 2: High risk is a deterrent in realistic travel centers for tourists obsessed with low risk and uncertainty in travel decisions. Hypothesis 3. The...