Market Segmentation in Ecotourism: Penang National Park, Malaysia

Abstract

Ecotourism is considered the fastest growing market in the tourism industry. Ecotourism is
becoming an option for generating more income from the tourism sector particularly for
developing country especially Malaysia. One of the key elements to achieve a viable ecotourism
is by tapping the marketing of ecotourism into the right channels and segmenting the right
market. In general, the purpose of this paper is to present an effective segmentation of visitors to
Penang National Park. This paper also provides information on issues related to the
characteristics of visitors namely gender, age, education level and the visitor’s country of origin.
Findings of this study show that ecotourists are heterogeneous. It means that ecotourists
characteristics are diverse in many aspects and characteristics. The study also reveals that
ecotourists are different in their tastes and preferences such as trip motivation, trip characteristics
and types of product offered by the ecotourism parks. Understanding this information will help
park managers to create an efficient park management, and thus will make a contribution to the
long-term sustainable development of ecotourism areas especially national parks. All these
information, not only important for management and planning purposes but also for the
marketing strategies in particular.

Keywords: Ecotourism, Market segmentation, national park, Penang National Park, Marketing
strategy

Introduction

Ecotourism emerges as a major component of global tourism. It involves observation and

appreciation of wildlife and other aspects of natural environment and promotes conservation.
Ecotourism is one of the fastest growing sectors compared to other types of tourism; estimating
growth at 10-15% annually (Eagles, 1992). Lindberg et al. (1998) asserted ecotourism had
recorded faster growth than the tourist industry as a whole. Agrusa and Guidry (2006) stated that
ecotourism is growing in many developing countries and becoming one of the most important
sectors. The United Nations Environment Programme (UNEP, 1994) reported that countries with
numerous protected areas have recorded an increase in ecotourism. The industry has been
growing rapidly for the past two decades and is expected to grow further in the future. As of
recent, developing countries including Malaysia, Indonesia and Thailand; ecotourism is fast
becoming an option for generating more income for the countries. Due to the development and
importance of ecotourism, the United Nations (UN) declared the year 2002 as the ‘International
Year of Ecotourism’.

As mentioned, ecotourism is the fastest growing form of tourism in Malaysia. The

government of Malaysia started to pay more attention when it introduced the Seventh Malaysia
Plan (1996-2000). Subsequently, in the Eighth Malaysia Plan (2001-2005), government spent
RM14.2 million (USD3.8 million) on 20 ecotourism projects. Ecotourism Projects implemented

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under Eighth Malaysia Plan included Belum Forest (Perak), Tasik Kenyir (Terengganu), Pulau
Besar and Pulau Sibu (Johor). As for the Ninth Malaysia Plan (2006-2010) the government had
approved RM260.6 million (USD70.4 million) budget for 73 projects. At present, the Mulu
Caves and Kinabalu Park, as well as Tioman and Redang Islands, have been listed in UNESCO’s
World Heritage Sites.

In the tourism industry, market segmentation has been applied to overcome the issues of tourist
heterogeneity. Market segmentation is the identification of portions of the market that are
different from one another. It is about channelling resources towards potential customers who are
most likely to be persuaded to visit the destination and who fit the profile of the ‘type’ of
customer the destination wants to attract. Geographic, demographic, psychographic and
behavioralistic are criteria commonly used for segmenting consumer markets. The purpose of
this paper is to briefly review different approaches and criteria for market segmentation in the
Malaysian ecotourism industry focusing at Penang National Park (PNP). This paper concludes
that by having market segmentation, proper marketing strategies can be established for the
targeted segment.

Market Segmentation

Ziffer (1989) stated that in identifying market segmentation, markets can be divided based
on different ways and segmentation criteria such as purpose of travel (business, leisure),
geography (by country), buyer needs and motivations, buyer or user characteristics, demography
(age, gender, lifecycle), economic status (income, education, occupation), psychographic (psycho
centric [inward looking], allocentric [outward looking]), geo-demography and price (Smith,
1956; Middleton, 1994; Bieger and Laesser, 2002).

Market segmentation for ecotourism is important in the tourism industry in order to

identify specific target markets and to develop the product and service packages that best suit
each segment. Based on the market segmentation, policies can be set up by the government to
encourage more ecotourists. Dolnicar (2008) stated that market segmentation allows researchers
and tourists as well as industry players to study the opportunities for competitive advantage in the
marketplace. When segmenting a market, groups of individual are developed which are similar
with respect to some personnel characteristics. Besides personnel characteristics, market
segmentation can be done using geographic, demographic and psychographic. Geographic
segments include region, size of area, population density and climate are often used in
segmentation. As for demographic segmentation, among variables that are used by marketer are
age, gender, family size, occupation, income, occupation, ethnicity, nationality, religion, and
social class. Psychographic segmentation groups consumers according to their lifestyle. Some
psychographic variables include activities, interest, opinion, attitudes and values. Behavioralistic
segmentation is based on actual consumer behaviour towards products. Among behavioralistic
variables are benefit sought, usage rate, brand loyalty, user status, readiness to buy and occasions.

Types of Market Segments

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Next section will discuss on types of segmentation involved in this study which will focus on
demographic, psychographic and product.

Demographic Segmentation

Demographic segmentation will group the market based on several characteristics including
gender, age, education level, income, occupation, nationality, ethnicity etc. Studies in ecotourism
present the significance differences in eco-tourists profile.

Psychographic Segmentation

Psychographic segmentation is also referred to as behavioural segmentation. This type of

segmentation divides the market into groups according to visitors’ lifestyles. It considers a
number of potential influences on visitors’ behaviour including the activities, attitudes, and
expectations of visitors. In this segmentation, ecotourists could be grouped based on among
others trip characteristics and motivation of ecotourists in making a visit to a particular park.

Product Segmentation

Product segmentation is a strategy to distinguish a product in one market segment from

competitors' products, as well as its own products available in other market segments. In
ecotourism, products could be segmented based on different types of ecotourism activities or trips
being offered by ecotourism parks.

Preliminary Findings and Discussion

The survey was carried out at the Penang National Park (PNP) from the 5th to the 7th of
November 2010. A survey form containing 42 questions was handed out to visitors exiting the
park. The respondents were not chosen based on any fixed criteria instead they filled the form
based on willingness and availability. Majority of visitors exiting the park from 11:00 a.m.
onwards were approached to fill out the questionnaire. The survey was carried out by one
interviewer which was initially stationed at the park headquarters and was later moved to the park
trail entrance.

Demographic Characteristics

Of the total 52 respondents surveyed, 55.8% were male while the rest, female. Refer Appendix 1.
Zaiton (2008) stipulated similar findings where majority of the visitors at Taman Negara National
Park (TNNP) were male. In addition, Hvenegaard and Dearden (1998) found that males visitors
(two third) dominated bird watching activity at Doi Inthanon National Park. However, some
researchers found recently more females dominated the ecotourism market. This is supported by
Weaver and Lawton (2002); they found that 62% of ecotourists at Queensland National Park
were female. There are several explanations for this. One of them is, ecotourists having higher
educational qualification; female students are disproportionately represented among university
students. In other words we can say the enrolment of female students in university is higher than
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male student. In terms of age, over 67.3% of the respondents were 30 or below the age of 30
while 7.7% were below the age of 35 and the remaining were above the age of 35 (Appendix 1).
Diamantis (1999) also found that more than half occasional (i.e. softer) ecotourists in the UK
were in the age group of 17-34. On the other hand, several authors such as Backman and Potts
(1993) and Fennell and Smale (1992) found that nature tourists are older than other type of
tourists. In general, we can say that age of ecotourists are varies with activity. Tourism Canada
(1995) found that older ecotourists (aged 45 and over) will involve in activities such as polar
watching, seal pup watching and sailing. Meanwhile, younger ecotourists aged less than 34 years
old were interested in various adventure activities such as ice and rock climbing, trail riding,
scuba diving and canoeing.

Generally, education is positively related to the participation in ecotourism destination. It shows a

consistent pattern with respect to the relationship between educational level of ecotourists and
ecotourism; ecotourists having higher educational qualification compared to other consumers
(Hvenegaard and Dearden, 1998). Backman and Potts (1993) make a similar observation;
ecotourists are more educated than general tourists. This study revealed similar findings; 50%
recorded degree as the highest level of education while a significant 19.2% marked secondary
school as the highest level of education achieved. TIAA (1994) learned that 35% of ecotourists
in the USA were in the professional/managerial occupation group. This study recorded that
23.1% were grouped as intermediate managerial, administrative or professional. Backman and
Potts (1993) discovered that ecotourists earn a higher income than other travellers. Blamey
(1995) also found that ecotourists earned more than non-ecotourists. Similar findings also
recorded in this study; the average income of the respondents was RM 3,056.

Trip Characteristics

Ecotourists can obtain information about ecotourism places through several channels, such as
magazines, newspapers, travel agents, radio and television, friends, relatives and other sources.
Zaiton (2007) found that the most popular source of information for TNNP among visitors was
travel guidebooks such as the Lonely Planet. However, this study found that the most popular
source of information is friends i.e. 39.7% (Table 1). Travel guide books (17.6%) were the next
best source of information followed by brochures (11.8%).

Table 1: Sources of information on the Penang National Park

Category Frequency Percentage (%)

Friends 27 39.7
Travel Guide Book 12 17.6
Brochure 8 11.8
Online 8 11.8
Visitor Information Centre 5 7.3
Family 4 5.9
Tour Guide/Agent 3 4.4
Newspaper 1 1.5
68 100.0

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Studies found that there is a possible link between independent travel and ecotourism. Zaiton
(2007) found that most of the visitors to TNNP (63.9%) preferred to plan their holiday on their
own. This study recorded similar findings; 78.8% of the respondents arranged the trips
themselves instead of engaging tours or leaving it to others (Table 2). Blamey and Hatch (1998)
discovered that 45% of Australian ecotourists tended to travel alone or were less likely to be
accompanied. Therefore, 59.6% of the respondents were quoted to have travelled to the park on
their own in this study.

Table 2: Arrangement of trip by respondents

Arrangement Frequency Percent (%)

Yes 41 78.8
No 11 21.2
52 100.0

Trip Motivation

Chin et al. (2000) found that over two-thirds of visitors to TNNP had gone there to be close to
nature (78.0%). Other reasons given were to observe wildlife and to enjoy the scenery. In this
study, most of the respondents associated PNP with natural scenery over lighthouse, turtle
nesting and the Meromictic lake (Table 3). Department of Wildlife and National Parks (DWNP,
1994) found that the reasons for visiting TNNP were dominated by the wish to see and
experience the rain forest (45.0%). This was followed by for a holiday (16.0%), having new
experience (10.0%) and observing wildlife (8.0%).Table 4 shows that most respondents who
visited PNP came to enjoy the natural attraction in the park and for holiday (Table 4).

Table 3: Attractions associated with the Penang National Park

Category Frequency Percent (%)

Natural scenery 44 84.6
Lighthouse 3 5.8
Turtle nesting 1 1.9
Meromictic lake 1 1.9

50 100

Table 4: Purpose of visiting the Penang National Park

Category Frequency Percent (%)

To enjoy natural attractions 16 30.8
Holiday 16 30.8
To be involved in recreational 9 17.3
activities

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 To appreciate nature 7 13.5
Environmental education 1 1.9
Others 2 3.8

52 100.0

Products Offered

Tourism Canada (1995) found that most common activities at ecotourism areas are trail riding,
canoeing, nature observation and wildlife viewing. Chin et al. (2000) found that the most
common activities at Bako National Park were hiking (76.0%), sightseeing (72.0%) and
observing wildlife (66.0%). The activity that was popular amongst PNP was hiking, followed by
the canopy walkway and picnicking. This was followed by turtle nesting, bird watching,
camping, swimming and fishing (Table 5).

Table 5: Percentage of response to the likelihood of participating in activities

available at the park

Category Definitely Possibly Undecided Not likely Not at all

Hiking 51.9% 28.8% 3.8% 0% 3.8%
Canopy walkway 30.8% 40.4% 9.6% 1.9% 3.8%
Picnic 40.4% 26.9% 9.6% 0% 11.5%
Turtle nesting 32.7% 32.7% 13.5% 3.8% 5.8%
Bird watching 28.8% 28.8% 17.3% 7.7% 5.8%
Swimming 25.0% 30.8% 11.5% 9.6% 11.5%
Camping 28.8% 26.9% 11.5% 7.7% 13.5%
Fishing 25.0% 23.1% 9.6% 13.5% 15.4%

Conclusion

This study found that ecotourists are heterogeneous which are diverse in many aspects and
characteristics. In order to overcome the issue of heterogeneity among ecotourists in terms of
their needs, desires, attitudes and behaviours, we suggested that proper market segmentation need
to be established. The study also revealed that ecotourists are different in their tastes and
preferences such as trip motivation and trip characteristics. Types of product offered by the
ecotourism parks were also considered as one of the characteristics that were selected for their
destinations. Thus, marketing strategies for a targeted market segments is needed in order to
provide high value products and services, and greater levels of ecotourist’s satisfaction. The
strategies provide assistance to the industry players particularly ecotourism managers and tour
operators in order to understand their potential ecotourists from the perspective of their needs,
desires, attitudes and behaviours. The ecotourism managers and tour operators are also able to
design and implement promotional efforts that are likely to transform interested individuals into
visitors to desired tour destinations. By concentrating their efforts on a small part of the overall
market, it will enable them to raise their credibility, acquiring higher levels of ecotourists’

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satisfaction and more cost-effective marketing efforts which likely to turn interested individuals
into Malaysian ecotourism.

References

Agrusa, J.F. and Guidry, J. (2006). Ecotourism and Sustainable Development of the Maya Rain
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Backman, K. F., and Potts, T. D. (1993). Profiling nature-based travelers: Southeastern market
segments. South Carolina: Strom Thurmond Institute.

Bieger, T. and Laesser, C. (2002). Market Segmentation by Motivation: The Case of

Switzerland. Journal of Travel Research, Vol. 41, 68-76.

Blamey, R. (1995). The nature of ecotourism. Occasional Paper Number 21. Canberra: Bureau of
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Blamey, R., and Hatch, D. (1998). Profiles and motivations of nature-based tourists visiting
Australia. Occasional Paper No. 25. Canberra: Bureau of Tourism Research.

Chin, C. L. M., Moore, S. A., Wallington, T. J., and Dowling, R. K. (2000). Ecotourism in Bako
National Park, Borneo: Visitors' perspectives on environment impacts and their
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Diamantis D. (1999). The characteristics of UK’s ecotourists. Tourism Recreation Research,

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Middleton, V.T.C. (1994). Marketing in Travel and Tourism. Chichester UK: Heinemann

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Appendix 1
Respondents Profile

Category Frequency Percentage (%)

Gender
Male 29 55.8
Female 21 40.4

Marital Status
Married 15 28.8
Single 34 65.4
Divorced 1 1.9
Widowed - -

Nationality
Malaysian 39 75.0
Others 13 25.0

Ethnic group

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Bumiputra 26 50.0
Chinese 12 23.1
Indian - -

Age
Less than 20 6 11.5
21-25 16 30.8
26-30 13 25.0
31-35 4 7.7
36-40 3 5.8
41-45 2 3.8
46-51 3 5.8
More than 51 3 5.8

Education
Secondary 10 19.2
Diploma 4 7.7
Degree 26 50
Masters/PhD 9 17.3
Missing data 3 5.8

Profession
Higher managerial or professional 7 13.5
Intermediate managerial, 12 23.1
administrative or professional
Supervisory or clerical, junior 5 9.6
managerial, junior administrative
Skilled working class, skilled 4 7.7
manual workers
Unskilled manual workers 3 5.8
Pensioner 2 3.8
Student 15 28.8

Income (RM)
Less than 2,000 16 30.8
2,001 – 4,000 8 15.4
4,001 – 6,000 2 3.8
6,001 – 8,000 2 3.8
8,001 – 10,000 3 5.8