MKT201 Consumer Behavior: Analyzing Chinese Tourist Decisions

This case study explores the consumer behavior and travel decision-making processes of Chinese tourists, focusing on both outbound travel from China and inbound tourism to Australia. It examines the factors influencing Chinese tourists' choices, including economic growth, rising income levels, and the increasing popularity of international travel. The report delves into the differences between Chinese and non-Chinese tourists, highlighting preferences for experiences, safety, and unique attractions. It also analyzes the impact of social media and word-of-mouth on travel decisions, as well as situational factors such as antecedent conditions and time constraints. The study further investigates the decision-making process of independent travelers and the role of the Approved Destination Status (ADS) in facilitating tourism. The analysis aims to provide insights for tourism marketing experts to better understand and cater to the Chinese tourist market, contributing to the growth and development of the Australian tourism industry. Desklib provides access to similar case studies and solved assignments.

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MARKETING CONSUMER BEHAVIOR
Student’s Name
Subject: Marketing
Lecturer:
Institutional Affiliation:
Due Date:

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Table of Contents
Table of Contents...........................................................................................................................2
Tourist Market in Australia.............................................................................................................2
Introduction....................................................................................................................................2
Task 1..............................................................................................................................................3
Chinese Outbound Tourist Market..........................................................................................3
Task 2..............................................................................................................................................4
Chinese Inbound Tourist Market.............................................................................................4
Task 3..............................................................................................................................................5
Group and Interpersonal Influences........................................................................................5
Social Media Influences...........................................................................................................5
Word of Mouth (WOM) Influence...........................................................................................6
Task 4..............................................................................................................................................6
Situational Factors Influencing Consumer Decisions.............................................................6
Antecedent Conditions.............................................................................................................6
Time aspects and Unplanned Behavior....................................................................................7
Task 5..............................................................................................................................................7
Decision Making by Independent Travelers............................................................................7
Conclusion......................................................................................................................................8
References.......................................................................................................................................9

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Tourist Market in Australia
Introduction
In Australia, tourism is an important sector of the economy, contributing largely to the
country’s Gross Domestic Product (GDP) and creating job opportunities for several people
(Corrie, Stoeckl and Chaiechi, 2013). Popular tourist sites in Australia include the coastal cities
of Brisbane, Sydney as well as Melbourne. Other destinations that are regarded as elegant
include the Gold Coast, Tasmania wilderness, regional Queensland, the Australian outback,
Uluru and the largest reef in the world, the Great Barrier Reef. Types of tourism in the country
entail backpackers, international and domestic tourists who may be traveling in a group or
independently. Although domestic tourism plays a vital role in the industry, attracting tourists
from outside the country is a major task that needs to be exploited. Different consumers have
varied interests, behaviors, and characteristics and are seeking diverse experiences. It is therefore
crucial for the tourism marketing experts to understand these dissimilarities for the growth and
development of the industry. The major markets for Tourism Australia are the Americas, South
Korea, China, South East, and South Asia, Japan, New Zealand, and Europe (Pham, Nghiem, and
Dwyer, 2017). This report discusses international tourism particularly for travelers from China. It
highlights the outbound and inbound tourist market for Chinese people traveling to Australia. It
also outlines the consumer patterns and tourist decision making bring to light the different
aspects that affect the travel decisions made by Chinese tourists planning a holiday in Australia.
Task 1
Chinese Outbound Tourist Market
With the increased growth of China’s economy and rising income levels, consumption of
international and domestic products and services has amplified. The country has become one of
the most rapidly growing outbound tourism markets, as travel has become a major indicator of
the people’s quality of life. Currently, it is the norm for Chinese citizens to travel to other
countries such as Europe, New Zealand, Australia and North America (Pham, Nghiem, and
Dwyer, 2017). However, the most popular destinations for Chinese tourists are Taiwan, Macao,

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and Hong Kong as well as other countries in Asia. In 2017, for instance, only 20% of Chinese
tourists traveled to Australia or New Zealand, 25% to North America, 38% to Europe, 51 percent
to Macao, Hong Kong or Taiwan and 67% to other Asian nations (NH, 2017). The huge number
of tourists visiting other Asian countries is attributed to factors such as the convenience of
transportation, more favorable prices and simpler procedures for visa acquisition (NH, 2017).
The Asian countries mostly visited by these tourists are South Korea, Japan, Thailand,
Singapore, Maldives, and Malaysia. With the advancement of travel routes in Europe, more
Chinese tourists are visiting the countries in the continent with Germany, the United Kingdom,
and France topping the list.
There are vast differences between Non-Chinese and Chinese tourists. For example, a
large number of non-Chinese tourists choose to travel independently while Chinese tourists
choose different forms depending on the region they are visiting. Most tourists from China travel
independently when visiting other countries in Asia such as Taiwan (56%) and Japan (65%).
Another difference is that Chinese tourists pay more attention to the experience as compared to
the price when making travel decisions. They prioritize aspects such as the friendliness visitors
receive in that country (35%), facets of the local environment such as safety (47%), easiness of
visa procedures (45%) and the uniqueness and beauty of tourist attractions topping the list at 56
percent (NH, 2017). On the contrary, affordability is the second most important factor put into
account by non-Chinese travelers after the beauty of the country’s tourist attractions. Also,
Chinese tourists essentially prefer visiting natural scenic features such as museums and historical
landmarks. Most Chinese tourists travel for leisure shopping and food. In addition, 97 percent of
Chinese travelers use smart communication gadgets while in their journey which enhances their
navigation and socialization. Some of these travelers rent local SIM cards and mobile phones
while others purchase the required devices for convenience. A larger percentage use roaming for
mobile phones or secure data plan packages at discounts while the younger ones who like to try
out new things rent global Wi-Fi (Shi, 2015).
Task 2
Chinese Inbound Tourist Market
As a result of the growth in its economy, China has become an imperative inbound
market for Australia, playing an increasingly significant role in boosting the nation’s tourism

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industry. It is the fastest growing tourism market for Australia, alongside India. The growth of
Chinese arrivals to Australia in the year 2014-2015 was at 22 percent, thus contributing largely
to that year’s inbound tourism GDP of $13.3 billion. It was even higher than the percentage
growth of Indian arrivals in that year, 19.6 percent (Pham, Nghiem, and Dwyer, 2017). Also, it
was an increase in tourism expenditure for China from 7 percent in 2007-08, making the country
the largest inbound market for Australia and pushing the latter towards its 2020 tourism target.
This is a government and industry strategy that intends to enhance the competitiveness and
resilience of the Australian tourism sector so as to increase its contribution to the economy. This
policy aims to improve the performance of the industry by addressing issues in the supply side
and pursuing new and more productive opportunities. The specific goal of Tourism 2020 is to
attain above $115 in overnight expenditure in the sector in 2020.
Tourism is quickly becoming a luxury household consumption item in China. The main
driver of the Chinese outbound tourism market is an increase in income levels and this is
expected to continue in the near future, causing a likelihood of demand for tourism to outgrow
the Chinese GDP. Studies indicate that the growth rate of arrivals in Australia is even more than
that of GDP per capita in China (Pham, Nghiem, and Dwyer, 2017). Chinese tourists travel to
Australia particularly due to the adventure the country provides in the form of natural beauty and
cultural attractions in addition to landmark buildings such as the Sydney Harbour Bridge and
Sydney Opera House. Conversely, many Chinese tourists visit the country for food, shopping,
and relaxation. They spend a larger portion on dining in comparison with other sectors. They are
influenced by Australia’s coffee culture and spend a lot in cafes. Many Chinese tourists are also
engaged in shopping whereby a large number of them purchase from duty-free shops and local
specialties that are predominantly appealing to them. As compared to other visitors, more than
average Chinese travelers also shop in luxury stores.
Task 3
Group and Interpersonal Influences
Social Media Influences
The Chinese tourism decisions are, to a large proportion influenced by social media. As
aforementioned, almost all Chinese tourists use smart communication devices during their travel
with which they take photographers and make videos of different places that they visit. In the

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modern world of technological advancement, these pictures and videos are usually shared with
friends and family on various social media platforms. Many Chinese tourists are mostly
interested in the experience that they derive from a particular region and thus are largely
influenced by what others go through in that certain environment. Positive feedback on an
individual’s visit to a particular region accompanied by photographs of attractive scenes can
have a huge impact on the decision made by another about visiting the same place. This is
especially applicable if the person is most interested in having an awesome experience (Chen,
Becken and Stantic, 2018). Social media creates a positive influence on decision making as
persons mainly tend to share positive experiences (Ráthonyi, 2013).
Word of Mouth (WOM) Influence
Word of mouth is also a major influence on the decisions made by Chinese tourists.
Consumers share their experiences all the time, particularly when they are not satisfied with the
services or products offered. They talk to their family members, friends and even acquaintances
about the various areas in the world they have visited. Unlike in social media where it may be
difficult to share all the details, a traveler can give out specific information about the country, the
scenes, the friendliness of the locals and even the prices of products. WOM is a very effective
method to pass on the message as people tend to believe the information more easily if they are
given specific details (Huete-Alcocer, 2017). Individuals may not believe all that is said in social
media platforms as filters and other image enhancers may make scenic attractions look
exaggerated and unnatural. For a Chinese tourist interested in innate sceneries, landmarks, and
museums, this may not negatively influence his or her decision to travel to that specified location
or country. Unfortunately, people tend to spread the negative more than the positive which may
undesirably impact on the decision making of a traveler. A person is likely to discuss a
particularly lengthy and undesirable visa procedure for a long period of time as compared to the
beautiful Opera House in Sydney. This information is then spread from person to person,
ultimately altering the decisions made by a large group of people (Baggio et al., 2009).

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Task 4
Situational Factors Influencing Consumer Decisions
Antecedent Conditions
These are factors that shape the value in a situation by framing occurrences taking place.
They are based on the emotional sensitivities of the individual as well as the available economic
resources. Antecedent conditions include the consumer’s motivations values, perceptions,
attitudes, personality, expectations as well as satisfaction (Peng, 2013). Values refer to precise
modes of conduct or lasting beliefs that influence the behaviors of consumers with respect to
specific products and brands. In this case, the values of Chinese tourists influence their specified
destination. Motivations refer to an individual’s psychological want and needs which impact
their preferences as well as their expectations. A tourist is likely to visit an area satisfies them
psychologically. A person’s personality, attitudes, and perceptions affect the favorableness of the
situation on which they choose the most promising alternative (Cohen, Prayag and Moital, 2014).
Time aspects and Unplanned Behavior
Aspects related to time affect the feelings, thoughts as well as the behavior of consumers,
Chinese travelers included. Time pressure leads to decision making based on the habits of the
individual. For instance, if a Chinese tourist has limited time in which to travel, he or she will
most probably choose to visit countries or regions he/she has been to before. This is because of
the familiarity with the culture and the way of life of people in that country. This may reduce the
number of Chinese tourists traveling to Australia as only those who are familiar with the country
will visit it. Others may choose domestic tourism whereby they travel to locations in their
country and avoid wastage of time. The time of the year also affects t travel decisions made by
Chinese tourists. For instance, many travelers arrive in Australia from China during the holiday
seasons. In 2017, for example, more than half a million Chinese tourists traveled to different
cities in Australia, with the largest number visiting Sydney (62 percent), followed by Melbourne
(50%), then the Gold Coast (25%) (NH, 2017).

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Task 5
Decision Making by Independent Travelers
With the relaxation of restrictions on outbound tourism in China by the Ministry of
Public Security and the China National Tourism Administration, the sector has sprouted in the
country. More destinations have also been proven as suitable through the Approved Destination
Status (ADS). This is a huge improvement from the 1980s and early 1990s whereby domestic
tourism and inbound tourism were the most important segments in the Chinese tourism industry.
During these periods, group package tours were the most common forms of travel in China. The
country has since been termed by the World Tourism Organization as the chief traditional source
for outbound tourism market (UNWTO, 2013). It contributed to the highest growth rate in
outbound tourism expenses in 2012 (CNTA, 2012). Due to the relaxation of application for
private passports and simplification of procedures in general as well as the development of
favorable foreign exchange policy, there has been an increase in personal purposed travel to
other countries (Artal-Tur, Pallardó-López, and Requena-Silvente, 2016).
Up until the late 1990s, the group package tour was the only product in the outbound
tourism market in China, unlike in Western countries where independent travel has been the
trend since as early as the 1980s. The tours were all-inclusive, comprising of full-time guides, all
meals, transportation, and accommodation. There has been more independent travel by the
Chinese in recent years although group package tours are still conducted. There is however a gap
between male and female independent travelers with more males traveling independently as
compared to female Chinese Tourists. The majority of outbound independent tourists from China
are aged between 25 and 44 years and have high educational backgrounds (Xiang, Y., 2013).
They travel for various reasons such as business, sightseeing or for holiday or leisure purposes.
Traveling for health or religious purposes is almost non-existent for Chinese outbound tourists.
Decision making by Chinese independent travelers is mostly before departure whereby
they allocate the budget and expenditures for the trip. Travel itinerary arrangements, choice of
destinations, accommodation and transportation are all decisions made and possibly purchased
prior to the start of the journey. The decision-making process for this form of travel is highly
subjective as the individual makes plans that are specifically suitable for him or her. The process
entails the need for recognition whereby the tourist comes to a conclusion on their need to travel.

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This is followed by the acquisition of all kinds of information about the country, culture
transportation, accommodation, and any other data obtainable by the person intending to travel.
The individual then assesses the possible alternatives and settles on the best choice on all aspects
involved. The choices they make are influenced by factors such as previous experience in a
certain area, time and finances available, perceived risk such as safety in the region, the purpose
of traveling as well as personal preferences (Xiang, 2010). The purpose is an important factor in
that it may impact other aspects. For instance, a business trip may be conducted even though the
risk is high. Many Chinese tourists traveling to Australia search for information online and then
follow up with calls to find out more and confirm various issues before making concrete
decisions.
Conclusion
In conclusion, the Chinese outbound tourists are an important part of the Australian
tourism industry as they contribute to its development and growth. The increased outbound
tourism in China is as a result of growth of the economy which has led to increase in per capita
income. The growth rate of this sector is expected to continue increasing in the near future and
might advance beyond the growth rate of per capita income. Other than China, major markets for
Tourism Australia are the Americas, South and South East Asia, New Zealand, Europe and
South Korea. There are various tourist attraction sites in Australia including The Great Reef,
Uluru, and Sydney Opera House. Many Chinese tourists also travel to the coastal cities of
Melbourne, Sydney and the Gold Coast. Decisions making by Chinese tourists is influenced by
the social media as well as the word of mouth (WOM) whereby individuals speak of their
experiences in different regions. Chinese tourists are more interested in the experience as
compared to the affordability of the trip. The number of independent travelers from China has
increased in the recent years due to the relaxation of restrictions to outbound tourism. The
decisions made by independent travelers are highly subjective as they are based on personal
preferences and situational influences such as time and money.
References
Artal-Tur, A., Pallardó-López, V.J. and Requena-Silvente, F., 2016. Examining the impact of
visa restrictions on international tourist flows using panel data. Estudios de Economía, 43(2),
pp.265-279.

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Baggio, R., Cooper, C., Scott, N. and Corigliano, M.A., 2009. Advertising and word of mouth in
tourism, a simulation study. Marketing innovations for sustainable destinations, pp.13-22.
Chen, J., Becken, S., and Stantic, B., 2018, June. Sentiment Analytics of Chinese Social Media
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Barometer, 11.

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