Description
This study aims to focus on the unique challenges of retail service delivery in rural tourism
markets. This paper specifically seeks to address: factors attracting individuals to a rural tourism
community; factors motivating resident and tourist customers to engage in tourism shopping;
satisfaction of resident and tourist customers with local retailers; and strategies to assist retailers in
successful service delivery.
International Journal of Culture, Tourism and Hospitality Research
Tourism shopping in rural markets: a case study in rural Iowa
J essica L. Hurst Linda S. Niehm
Article information:
To cite this document:
J essica L. Hurst Linda S. Niehm, (2012),"Tourism shopping in rural markets: a case study in rural Iowa", International J ournal of Culture,
Tourism and Hospitality Research, Vol. 6 Iss 3 pp. 194 - 208
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Fang Meng, Yingjiao Xu, (2012),"Tourism shopping behavior: planned, impulsive, or experiential?", International J ournal of Culture, Tourism
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J oaquín Alegre, Magdalena Cladera, (2012),"Tourist characteristics that influence shopping participation and expenditures", International
J ournal of Culture, Tourism and Hospitality Research, Vol. 6 Iss 3 pp. 223-237http://dx.doi.org/10.1108/17506181211246375
Lan-Lan Chang, Kenneth F. Backman, Yu Chih Huang, (2014),"Creative tourism: a preliminary examination of creative tourists’ motivation,
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Tourism shopping in rural markets: a case
study in rural Iowa
Jessica L. Hurst and Linda S. Niehm
Abstract
Purpose – This study aims to focus on the unique challenges of retail service delivery in rural tourism
markets. This paper speci?cally seeks to address: factors attracting individuals to a rural tourism
community; factors motivating resident and tourist customers to engage in tourism shopping;
satisfaction of resident and tourist customers with local retailers; and strategies to assist retailers in
successful service delivery.
Design/methodology/approach – Using Dillman’s survey techniques, data were collected from two
different groups: resident customers and tourist customers in a rural Iowa tourism community. Given the
study’s exploratory focus, a case study methodology was selected.
Findings – Shopping experiences were much less satisfying for resident customers than for tourist
customers in this study. Tourismretailers may not be effectively differentiating their customer service and
providing adequate attention during the shopping experience, particularly to resident customers.
Research limitations/implications – One limitation is that the study represents an initial test of
self-designed and/or modi?ed scales to capture the variables of interest in a single rural tourism
community in Iowa. Therefore ?ndings may only be generalizable to the unique nature of an established
tourist population in Midwestern regions of the USA.
Practical implications – An important implication from this study is rural tourism retailers need to
develop a comprehensive customer relationship management strategy to encourage repeat shopping
and sustained patronage behavior.
Originality/value – This study provides valuable strategic implications for rural tourism entrepreneurs,
business consultants and economic development professionals in rural tourism communities, and ?lls a
void in the tourism and patronage literature.
Keywords Tourism, Shopping, Residents, Tourists, Rural, United States of America
Paper type Research paper
Introduction
Global tourism has demonstrated dynamic growth in the last century, and is projected to
maintain this trajectory into the new millennium (World Tourism Organization, 2003). In the US,
tourismis one of the nation’s largest employers, generating 7.3 million direct travel-related jobs
(Travel Industry Association of America (TIA), 2006). Tourism is the third largest retailing
industry segment, with average spending of 1.6 billion dollars a day by domestic and
international travelers in the United States (US Travel Association, 2009). Furthermore, tourists
spend approximately one-third of their total expenditures on shopping (Gratton and Taylor,
1987; Littrell et al., 1994; US Travel Association, 2009). Shopping is an essential leisure activity
providing economic, social, and psychological bene?ts to tourist customers (Yu¨ksel, 2007).
In rural areas, tourismhas emerged over several decades as a popular economic development
strategy to offset declines in agriculture and related industry sectors (Sharpley, 2002). Tourism
has been embraced as a new economic driver in some rural areas due to associated
entrepreneurship opportunities and its ability to bring in dollars, generate jobs, and support
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VOL. 6 NO. 3 2012, pp. 194-208, Q Emerald Group Publishing Limited, ISSN 1750-6182 DOI 10.1108/17506181211246357
Jessica L. Hurst is Assistant
Professor and Linda S.
Niehm is Associate
Professor, both in the
Department of Apparel,
Educational Studies, and
Hospitality Management,
Iowa State University,
Ames, Iowa, USA.
Received April 2010
Revised August 2010
Accepted September 2010
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retail growth (Wilson et al., 2001). Rural tourism can also aid transitioning rural community
business sectors by providing more diverse economic and community development options
(Davis and Morais, 2004). Furthermore, due to the inherent qualities many rural communities
possess (i.e. personalized attention and genuine interaction with the customer, enthusiasm for
sharing local culture/heritage, and overall authenticity of character), the demand for rural
tourism and associated retail venues has increased in recent years (Gartner, 2004). This
increased interest in rural tourism, together with the current economic conditions and demand
for closer vacation destinations, creates greater need to understand rural tourism customers,
their shopping behaviors, and appropriate strategic responses by retailers.
Retailers in rural tourism communities must overcome obstacles of remoteness and
seasonality while acknowledging the diverse needs of their primary market segments:
resident customers and tourists (Wilson et al., 2001). In order to sustain economic growth,
rural tourism retailers must provide a balance of products and services catering to both
groups. Resident customers depend on local businesses to provide them with their basic
shopping needs (Hurst and Good, 2009; Miller and Kean, 1997a). For tourists, a trip is not
complete without having spent some time shopping (US Travel Association, 2009; Goeldner
and Ritchie, 2000; Hudman and Hawkins, 1989). According to the TIA (2009) shopping is the
most popular domestic trip activity. However, the importance of tourism shopping and the
role it plays in many people’s lives is under represented in the literature (LeHew and Wesley,
2007; Heung and Cheng, 2000; Law and Au, 2000). Additionally, a void in the tourism
literature exists in regard to rural tourism communities serving dual markets; where retailers
must cater to both resident customers and tourists. Therefore, the aims of the current study
are to gain insight regarding:
B the factors attracting individuals to this rural tourism community;
B the factors motivating resident and tourist customers to engage in tourism shopping;
B the satisfaction of resident and tourist customers with local retailers; and
B strategies to assist retailers in successful service delivery to both resident and tourist
customers with the aim of enhancing shopping satisfaction and outcomes.
Review of literature and research questions
Rural tourism and tourist shopping behavior
Tourism is an activity where travelers stay in places outside of their usual environment (Paci,
1992), and return to a permanent residence on completion of their trip. Rural tourism is
brie?y de?ned as tourism occurring in rural or non-metropolitan areas (Siemens, 2007).
Schroeder (2003) considers rural tourism to include some degree of involvement with the
outdoors/wilderness; capitalizing on the advantages of nature and open spaces possessed
by many rural areas. Shopping continues to the most popular of the leisure activities of
tourists (TIA, 2003). However, the importance of shopping as a tourist activity, and the
business behaviors of tourism retailers, remains under-researched (Law and Au, 2000;
Heung and Cheng, 2000). Additionally, the literature re?ects limited empirical studies
documenting tourist shopping behavior in the US, and very few addressing the rural tourism
context (Oh et al., 2004).
Shopping is a popular tourist activity and is often the most signi?cant expenditure category
for vacationers (Oh et al., 2004). Typically, tourists like to take something home fromtheir trip
(Gordon, 1986). A tourist’s shopping behavior is quite different fromhis/her normal shopping
behavior. According to Christianson and Snepenger (2002), tourists gain satisfaction from
the shopping experience, separate from the purchase of the product. Generally, tourists do
not go shopping with a list; rather, shopping becomes more of the end-result of their travel
experiences (Thomas and LeTourneur, 2001).
Tourist shoppers tend to look for unique products and experiences they cannot ?nd at home
or are distinctive to the tourist destination (Costello and Fairhurst, 2002; Paige and Littrell,
2003; Reisinger and Turner, 2002). Many tourists spend more money on an item while they
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are on vacation, than they would if they were at home. In addition to souvenirs, tourist
shopping includes clothing, books, jewelry, arts, crafts, and electronics (Thomas and
LeTourneur, 2001).
According to the April 2009 travelhorizons
TM
survey, an estimated 54 percent of American
households planned to take at least one leisure trip during summer 2009, compared to 50
percent at the same time the previous year (US Travel Association, 2009). As traveling
increases, so does shopping. Shopping (approximately 30 percent of all tourismactivities) is
just one of many elements comprising the tourism experience, followed by outdoor activities
(11 percent), rural sightseeing (10 percent), travel to beaches (9 percent), visits to historical
sites and/or museums (8 percent), theme/amusement parks (7 percent), national/state parks
(7 percent), and water sports/boating (4 percent).
Thus, the following research question is posed.
RQ1. What factors attract individuals to a rural tourism community?
Resident shopping behavior
Understanding the bene?ts of rural tourism, while trying to maintain a traditional lifestyle, is
often dif?cult for full time community residents (Perry et al., 1986). Resident customers, who
live in the area year-round, may limit their shopping while the tourism season is at its peak,
and only patronize necessary product/service environments (i.e. groceries, restaurants,
convenience stores). Often resident customers feel overlooked, mistreated, or as if they do
not matter to area businesses (Niehm and Sternquist, 1998), consequently affecting their
overall attitudes toward patronizing local retailers (Miller and Kean, 1997b).
Research on rural tourism and main street business districts by Snepenger et al. (1998)
reveals three clusters of local customers in regard to shopping satisfaction. In this study, a
sizeable group of customers (34 percent) found local shopping suf?ciently met their needs,
16 percent were not satis?ed with local retail offerings, and the majority of local customers
(50 percent) were neutral in their feelings toward local shopping. These ?ndings suggest a
large, untapped local market and an opportunity to better address and capitalize on this
neutral customer segment with special products, services, experiences, and promotions
during both peak tourism periods and the off-season. Networked efforts among local
retailers will likely provide the greatest appeal to and response from local customers while a
single local shop may have a more limited selection of offerings than larger chains. The
network of complementary offerings by local retailers creates greater diversity and more
customer choice (Milchen, 2000).
However, both resident and tourist customers need to be drawn to local retailers with
appropriate marketing communication and relationship management efforts to enable
long-term business sustainability, leading to the next research question.
RQ2. What factors motivate resident and tourist customers’ shopping behavior?
Shopping and service satisfaction
The underpinnings of this research are founded in the service quality and satisfaction
literature. This body of literature also addresses retail and service relationships as critical to the
process of customer relationship management (Berry, 1983; Gro¨nroos, 1995, 2000; Sheth and
Parvatiyar, 1995). Gannon (1994) observes rural tourism retailers should benchmark business
behavior noted in the broader marketplace, such as using a more customer focused
approach in their marketing and communication efforts. Customer relationships and loyalty in
the rural tourism lodging context are enhanced by marketing efforts conveying a positive
perceived image and trustworthiness in the business (Loureiro and Gonzalez, 2008). Positive
image and trust subsequently in?uences perceived quality, satisfaction with the tourism
business and overall tourist experience, as well as a sense of loyalty.
In rural retail settings, image and trust are most frequently conveyed to both tourist and
resident customers through service interactions with retailers while shopping. To this point,
service interactions are also a signi?cant means of customer relationship management.
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Service quality is a primary way for rural retailers to differentiate their retail shopping
experience from those of their competitors. Service offerings can add uniqueness to a
business, aid in developing distinct competitive advantages, and foster the development of
lasting customer relationships in rural community settings (Miller and Kean, 1997a). Service
quality is a combination of overall service expectations and perceptions. These expectations
result from customers’ comparisons between their actual shopping experience and retailer
service performance, and their prior expectations for shopping and services (Chau and Kao,
2009; Dimitriadis and Stevens, 2008; To and Leung, 2001; Parasuraman et al., 1985). Good
quality retail service typically leads to customer satisfaction, which in turn, has a positive
impact on a customers’ store loyalty (Carillat et al., 2008; Gremler and Gwinner, 2000).
In addition to service, price and product mix are other essential tools used to attract resident
and the tourism customers to the retail setting. Tourists do not consider price a main
determinant in formulation of their overall impressions of a retail shop (Heung and Cheng,
2000). Conversely, resident customers may have very different demands and expectations
for shopping. Focusing time and resources on local as well as tourist customers may be
especially prudent given the swing in consumer interest toward buying local in the face of
current economic conditions. Recent industry reports state ‘‘buy local’’ campaigns are
making a difference for local businesses and small communities (Milchen, 2009). This report
concluded shoppers are enthusiastic about locally owned and operated retailers and many
intentionally shop locally to support those who they trust and those retailers who persist
during under tough economic conditions. In contrast, tourism customers tend to engage in a
great deal of leisurely or nonessential shopping (Gratton and Taylor, 1987). Retailers need to
cater to the needs of tourist customers who are shopping leisurely, and meet their expected
service needs. The primary objective of the retailer should be to ensure all customers’
satisfaction, which in turn, enhances sustainability and economic survival (Heung and
Cheng, 2000). In order to achieve the objective of customer satisfaction, retailers must ?rst
know their target customers and understand how they choose and evaluate retail offerings.
This is especially critical for retailers in rural tourist areas, because they serve a diverse
customer group with differing expectations and perceptions for products and services.
Satisfaction is ultimately determined by the customer. The evaluation of products/services
determines if expectations were met. In a survey regarding tourist satisfaction in Hong Kong,
Heung and Cheng (2000) found the most important dimension of customer satisfaction was
staff service quality, which includes: staff ef?ciency, attitudes, and language ability.
Hence, the ?nal research question:
RQ3. Are tourist customers more satis?ed than resident customers with their shopping
experiences in a rural tourism community?
Method
Case study approach
This study re?ects an in-depth case analysis of rural tourism shopping and retailing in rural
Iowa. The case study research strategy allows for in-depth analysis of customer shopping
expectations and satisfaction with shopping experiences for tourist and resident customers
in a single rural tourism community. A case study is an empirical inquiry assisting in the
investigation of a phenomenon within its real-life context (Yin, 2009). This methodology
enables us to better understand:
B the complex relationships between resident customers and tourist customers in a rural
tourism community;
B the unique nature and richness of this established tourism community in rural Iowa; and
B the shopping needs, expectations, and behaviors of year around resident and tourist
customers embedded in an established rural tourism community (Iowa Great Lakes
Chamber of Commerce (IGLCC), 2003).
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Survey instrument
The survey instrument consisted of six parts, including: attractiveness features of the rural
tourism community, motivations to engage in shopping in the rural tourism community setting,
enticement to shop in the rural tourism community, retail service expectations and perceptions
of resident and tourist customers, shopping outcome behaviors, and customer demographics.
To ensure accurate categorization regarding the two customer groups (residents and tourists),
each survey included appropriate criterion variables. For example, at the top of resident
customer’s survey, they indicated if they ‘‘rented’’ or ‘‘owned’’ residential property in the area,
and how many months out of the year they resided in the community. The tourist customers
were asked how long they planned to be in the area (with responses ranging from ‘‘1 week or
less’’ to ‘‘3 or more months’’. To assure reliable and valid measures, the survey was pre-tested
with relevant groups of local rural customers, rural tourismcustomers, andtourismretailers. The
instrument was subsequently re?ned and modi?ed based on results of the pretest.
The current study primarily focuses on informant responses to the following: the features
attracting individuals to this rural tourism community, resident and tourist customers’
shopping behavior, and satisfaction with the shopping experience. To measure customers’
overall satisfaction with the tourism environment and attractions, self-designed measures
were used based on suggestions from the area tourismdirector (Iowa Great Lakes Chamber
of Commerce (IGLCC), 2003). Responses were measured on a ?ve-point Likert scale
(1 ¼ not at all, 5 ¼ often, 6 ¼ does not apply). Examples included ‘‘I take advantage of the
lakes, amusement parks, golf courses, marinas, etc., in the area’’ and ‘‘Selection of retail
shops is something I consider important to the community.’’
To investigate what motivates customers to engage in shopping in rural tourism
communities, a series of self-designed measures created by modifying the Parasuraman
et al. (1991) scale on perceived service quality. Responses were measured on a seven-point
Likert scale (1 ¼ strongly disagree, 7 ¼ strongly agree), and some examples include
‘‘Retailers in this community are accessible when I need to buy something,’’ and ‘‘Retailers in
this community try to meet my special needs and requests.’’ Reliability of Parasuraman
et al.’s (1991) original measures for perceptual service items was .90.
To determine the motivations of customers to purchase products and services within a rural
tourism community, a series of self-designed measures modi?ed from work by Kelley and
Davis (1994) were used. This study assessed the level of satisfaction a customer
experienced with equipment and employees at a speci?ed health club, and had a reliability
of 0.95. Responses to our modi?ed version of this scale were framed as enticement to shop
and measured using a seven-point Likert scale (1 ¼ not important, 7 ¼ very important). This
item re?ects customers’ reasons for buying products or services.
To measure resident and tourist customers’ satisfaction with shopping experiences, the
survey used self-designed measures on a seven-point Likert scale (1 ¼ very dissatis?ed,
7 ¼ very satis?ed), including items such as: ‘‘How satis?ed are you with the customer
service you have received in this community?’’ or ‘‘How satis?ed are you with the selection of
local retailers in the area?’’.
To determine resident and tourist customers’ satisfaction with local retailers’ quality of
service, a modi?ed version of the SERV-QUAL scale (Parasuraman et al., 1994) was used.
Responses are measured on a nine-point scale (1 ¼ lower than my desired service level,
9 ¼ higher than my desired service level), and include items like: ‘‘Prompt service to
customers’’, ‘‘Willingness to help customers’’, and ‘‘Individual attention given to all’’.
Sample and data collection
A well established rural tourism community with a year-round population of
approximately16,100 people was the site of this study. This population expands to over
75,000 people during the summer months (Iowa Great Lakes Chamber of Commerce
(IGLCC), 2003). In addition to numerous recreational activities this rural tourism community
offers (e.g. ?shing, boating, biking, water skiing), there are also many different outlets to
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shop, eat and drink. More than 250 independently owned retail shops and one discount
chain store comprise the shopping options in this locale. This rural community is ideal for the
present study because it meets multiple criteria for a successful rural tourism area:
attractions, promotion, tourism infrastructure, services, and hospitality (Wilson et al., 2001).
Even though the glacier carved lakes of this rural tourism community are in an extremely
isolated location, there are many seasonal activities such as boating, ?shing, hiking, biking,
water-skiing, wakeboarding, canoeing, kayaking, and sailing attracting tourists for over 100
years. Additionally, there are two amusement parks, a water park, several golf courses,
walking trails, and two summer theatres.
Within this rural community, sub-groups of the two primary market segments (residents and
tourists) were surveyed during the peak tourism season (i.e. July) to ensure an adequate
sample size of tourist customers. Survey groups include resident customers (Target
N ¼ 125) and tourist customers (Target N ¼ 125). Based on Dillman’s (2007) total design
method personal interaction with members of each target group was determined to be the
most effective way to obtain the survey data. Accordingly, a canvassing approach was used
for data collection whereby surveys were hand-delivered and a scheduled time/date was
agreed on for pick-up of the completed survey (Dillman, 2007).
For the residents and tourist customers who owned or rented property in the tourism
community, street names were randomly selected fromthe phone book and canvassing was
conducted door-to-door on each street. For the tourist customers who did not rent or own
property in the area, resorts and hotels/motels were randomly selected from the phonebook
and canvassing was conducted door-to-door at each location. An overview of the study was
provided for informants at each selected street address/location. An initial scripted question
(i.e. their location of year-round residency) allowed researchers to categorize informants as
a resident or tourist and to administer the appropriate version of the survey. Researchers
arranged for a date and time to collect the completed survey. For informants who requested
to return the survey via mail, a stamped return envelope was provided. Several attempts
were made to administer surveys to potential informants who were not initially at home.
Sample description
A total of 194 useable informant surveys were received out of the 250 distributed, for an overall
response rate of 77.6 percent. Of the 125 completed surveys, 100 resident and 94 tourist
customers’ surveys were useable, resulting in a response rate of 80.0 and 75.2 percent,
respectively. For the local residents, 28 percent were between the ages of 18-44, 47 percent
were between the ages of 45-64, and 25 percent were 65 or older. A total of 46 percent owned
property in this area for 16 or more years. In contrast, the tourists were slightly older with about
12 percent between the ages of 18-44, 46 percent were between the ages of 45-64, and 32
percent were 65 or older. About 70 percent of the tourists owned property in the area. These
tourists with a second/summer home in this area contributed to the uniqueness of this rural
tourism community and their expectations for shopping. A comprehensive overview of
respondent characteristics by group (resident and tourist customers) is shown in Table I.
Data analysis
Data were analyzed using SPSS 15.0 utilizing descriptive statistics (i.e. means and
frequencies) and t-tests for group differences. T-tests were used to analyze the differences
between resident and tourist customers’ perceptions of community features, shopping
behavior, and satisfaction with tourism shopping experiences.
Results and discussion
This research investigates:
B customers’ perceptions of rural tourism community attractiveness features;
B the motivators of resident and tourist customers’ shopping behavior; and
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B resident and tourist customers’ level of satisfaction with their shopping experiences in the
rural community context.
Three research questions address focal areas of this study. Findings relevant to each
research question are reported and discussed in the following section.
In regard to RQ1 (What factors attract individuals to a rural tourism community?), the
selection of retail shops and restaurants, availability of recreation facilities, and access to
roads/ease of getting through town and to stores are among the most important factors
attracting both residents and tourists to the area. A signi?cant difference is indicated in the
importance of three community attractiveness features (access to roads/ease of getting
through town, selection of retail shops, and selection of restaurants) for resident and tourist
customers (see Table II). Findings reveal that residents are more concerned with the access
of roads/ability to get through town and the selection of retailers/restaurants.
Table I Description of sample
Resident Customers
(n ¼ 100)
Tourist Customers
(n ¼ 94)
Number (%) Number (%)
Gender
Male 30 30.0 27 28.7
Female 70 70.0 67 71.3
Age
18-24 6 6.0 5 5.3
25-34 11 11.0 5 5.3
35-44 11 11.0 11 11.7
45-54 26 26.0 22 23.4
55-64 21 21.0 21 22.3
65 or older 25 25.0 30 31.9
Level of education
Some high school 1 1.0 2 2.1
High school/GED 23 23.0 19 20.2
Some college 29 29.0 21 22.3
College graduate 32 32.0 29 30.9
Post-graduate 15 15.0 22 23.4
Missing data 0 0 1 1.1
Annual household Income
Under $25,000 11 11.0 5 5.3
$25,001-50,000 29 29.0 17 18.1
$50,001-75,000 17 17.0 14 14.9
$75,001-100,000 22 22.0 11 11.7
$100,001 or over 8 8.0 27 28.7
Missing data 13 13.0 20 21.3
Have owned property for number of years (local only)
5 yrs or less 21 21.0 N/A N/A
6-10 years 14 14.0 N/A N/A
11-15 years 18 18.0 N/A N/A
16 or more years 46 46.0 N/A N/A
Missing data 1 1.0 N/A N/A
Own or rent in community (tourist only)
Rent N/A N/A 5 5.3
Own N/A N/A 65 69.1
Neither rent or own N/A N/A 23 24.5
Missing data N/A N/A 1 1.1
If you don’t own property, where do you stay? (tourist only)
Resort N/A N/A 10 10.6
Condo N/A N/A 2 2.1
With family/friends N/A N/A 8 8.5
Campgrounds N/A N/A 7 7.4
Other N/A N/A 3 3.2
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Tourism community businesses need to work on establishing a local customer base with
year-round residents. Retailers in a rural tourism community, such as the one in this study,
must rely heavily on the off-season shoppers (residents) to sustain their businesses until the
peak tourism season; however, many businesses lose sight of this fact and cater solely to
their peak-season customer (tourists). Furthermore, residents and tourists report the
treatment they receive from area retailers affects their overall feelings about staying in the
area (tourist M ¼ 4.1, resident M ¼ 4.4; scale: 1 ¼ not at all, 5 ¼ often). Developing and
implementing service strategies aimed at attracting a loyal following of both resident and
tourist customers is the major challenge; however to remain ?nancially viable, rural retailers
need to embrace their uniqueness and ?exibility as smaller ?rms to provide customizable
service catering to both groups. See Table II.
For RQ2 (What factors motivate resident and tourist customers’ shopping behavior?), local
retailers are perceived to meet the special needs and requests of tourist customers rather
than residents (see Table III). Tourism retailers routinely supply goods and services to make
tourists’ visits to the area more enjoyable and memorable (Kean et al., 1996). However, for
many rural tourismretailers, catering primarily to tourist customers does not ensure business
survival during the off-season. Therefore, many tourismretailers need to continual seek ways
to enhance their service quality and build greater store loyalty by implementing customer
relationship programs tailored to both customer segments (Beatty et al., 1996).
Furthermore, when asked about their reasons for buying local products and/or services,
resident customers felt it was more important than tourist customers to support the local
economy and buy from area retailers as often as possible (see Table IV). This ?nding follows
industry reports suggesting a decided trend of customers directing more of their spending
toward local businesses, even in the presence of tighter budgetary conditions (Milchen,
2009). Local residents may be reacting to a combination of macro-environmental factors as
well as the social and economic void likely created if businesses were to disappear from
their community (Milchen, 2005). Whatever customers’ motives, rural tourism retailers need
to focus on relationship management strategies leading to long term customer satisfaction
and loyalty regardless of economic or seasonal factors.
In addition, residents and tourist customers differ signi?cantly on their responses to the
following four items in?uencing their shopping behavior: quality of service, courtesy of
employees, product selection, level of fun and adventure (see Table IV). Previous research on
Table II Importance of community and retailer attributes for resident and tourist customers
Resident (n ¼ 100) Tourist (n ¼ 94)
Variable Mean Std deviation Mean Std deviation t-value
I take advantage of area attractions (i.e. lakes, amusement parks,
golf courses, marinas, etc.) 3.6 1.3 3.9 1.3 21.60
I rely on advertising promotions in the area to tell me about
attractions offered in the community 3.6 1.1 3.6 1.2 0.01
Access to roads/ease of getting through town and to stores
something I consider important 4.3 0.9 4.0 1.1 2.47**
Availability of recreational facilities is something I consider
important 3.8 1.1 3.7 1.3 0.51
Availability/selection of lodging is something I consider important to
the community 3.7 1.4 3.3 2.0 1.51
Selection of retail shops is something I consider important to the
community 4.1 1.0 3.7 1.3 2.57**
Selection and availability of restaurants is something I consider
important to the community 4.4 0.7 3.3 1.3 7.67*
Treatment I receive from area retailers affects my overall feelings
about staying in the area and buying from local businesses 4.4 1.0 4.1 1.0 1.78
Treatment I receive from other community members affects my
overall feelings about staying in the area 3.9 1.2 3.9 1.2 0.13
Notes: Scale: 1 ¼ Not at all, 5 ¼ Often; a ¼ 0.67; *p , 0.01; **p , 0.05
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retail environment suggests a number of important bene?ts for retail ?rms regarding building
relationships with customers. The practice of relationship customization (Berry and Gresham,
1986) enables retailers to deliver unique customer service and value to customers, making
their service delivery less resistant to imitation and providing a baseline of differentiation in an
increasingly competitive retail marketplace (Reynolds and Arnold, 2000).
By fostering a close salesperson-customer relationship retailers may position themselves to
build satisfaction and loyalty around relational bene?ts rather than undifferentiated service
strategies (Gwinner et al., 1998). Using relational retailing can help retailers attract, retain,
and enhance customer relationships (Berry and Gresham, 1986) of both customer segments
(residents and tourists). These ?ndings also follow Gannon’s (1994) strategic
recommendation to rural tourism retailers to integrate a more customer focused approach
in their marketing and communication efforts.
Overall, our ?ndings for RQ3 (Are tourist customers more satis?ed than resident customers
with their shopping experiences?) reveals shopping experiences are much less satisfying
Table III Customers’ perceptions of local retailers in a rural tourism community
Resident (n ¼ 100) Tourist (n ¼ 94)
Variable Mean Std deviation Mean Std deviation t-value
Retailers in this community work very hard at keeping customers
satis?ed 5.0 1.4 5.2 1.2 1.07
Retailers in this community try to meet my special needs and
requests 4.6 1.4 5.1 1.2 2.72*
Retailers in this community are accessible when I need to buy
something 4.9 1.4 5.0 1.3 0.74
Retailers in this community are dependable and will provide service
at the time they promise to do so 4.8 1.4 5.0 1.3 20.73
I am able to buy basic necessities (toiletries, paper products,
household items, etc.) on a daily basis from most retailers in this
community 5.8 1.4 5.8 1.2 0.10
When I have a problem, retailers in the area are sympathetic and
reassuring 4.8 1.2 5.0 1.1 1.46
I have con?dence in local retailers’ products and services 5.1 1.2 5.2 1.1 20.71
Local retailers’ hours of operation are accommodating to
customers’ needs 5.0 1.5 5.3 1.2 1.22
Local retailers’ locations are easy to get to 5.6 1.1 5.2 1.2 2.13**
Notes: Scale: 1 ¼ Strongly disagree, 7 ¼ Strongly agree; a ¼ 0.90; *p , 0.01; **p , 0.05
Table IV Resident and tourist customers’ reasons for buying local
Resident (n ¼ 100) Tourist (n ¼ 94)
How important would you say the following
statements are to your reason for buying local
products and/or services? Variable: Mean Std deviation Mean Std deviation t-value
Quality of service 6.0 1.0 5.7 1.1 2.16**
Speed of service 5.8 1.0 5.6 1.0 1.24
Courtesy of employees 6.3 0.8 5.9 0.9 3.06*
Product selection 6.1 0.8 5.8 0.8 2.05**
Appearance/image of store 5.3 1.2 5.4 0.9 -0.66
Parking lot/accessibility 5.4 1.1 5.2 1.2 1.07
Perceived safety 5.3 1.3 5.0 1.4 1.39
Level of fun/adventure 4.6 1.4 5.1 1.2 -2.78*
Interest to entire family 4.8 1.5 5.2 1.3 -1.65
Reasonably priced 5.9 1.1 5.9 1.1 0.13
Buying from local retailers as much as possible 5.6 1.3 4.8 1.5 3.84*
Supporting local businesses and keeping the
community economy strong 5.8 1.3 5.1 1.3 3.40*
Notes: Scale: 1 ¼ Not Important, 7 ¼ Very Important; a ¼ 0.83 *p , 0.01; **p , 0.05
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for resident customers than for tourist customers in the tourism community context for this
study. This ?nding suggests tourism retailers may not effectively differentiate their customer
service and provide adequate attention during the shopping experience, particularly to the
resident customers (see Tables V-VII). When asked how satis?ed they were with their
shopping experiences, tourist customers were much more satis?ed than resident customers
on all dimensions, except the number of entertainment and recreational activities offered
(see Table V). However, statistically signi?cant differences were noted for the following
aspects of shopping satisfaction: the selection of retailers, the selection of apparel/clothing
stores, and the selection of shoe retailers. Intuitively, since the resident customers reside in
the area year-round, it is not surprising they are less satis?ed with the overall selection of
retail offerings in the area. Tourist customers are in the area for a shorter period of time, which
is why they appear to be more satis?ed with the retail offerings in this rural tourism
community.
Table V Resident and tourist customers’ satisfaction with retail shopping experiences in a rural tourism community
Resident (n ¼ 100) Tourist (n ¼ 94)
How satis?ed are you with the . . . Mean Std deviation Mean Std deviation t-value
Level of customer service you have received in this community? 5.1 1.3 5.4 1.1 21.79
Quality of customer service you have received in this community? 5.1 1.3 5.5 1.1 21.81
Selection of local retailers (i.e. apparel, souvenir shops, shoes,
antiques, crafts, etc.)? 4.7 1.6 5.3 1.3 22.97*
Apparel/clothing shops in the area? 3.9 1.8 4.9 1.9 23.51*
Craft and collectible shops in the area? 5.5 1.5 5.6 1.6 20.34
Selection of shoe retailers in the area? 3.5 1.8 4.4 1.9 23.26*
Selection of jewelry retailers in the area? 4.8 1.9 4.9 2.0 20.49
Selection of restaurants in the area? 5.8 1.5 5.6 1.2 0.90
Amount of entertainment features offered, such as live music,
theatre, comedy clubs, night clubs/bars, etc.? 5.7 1.5 5.6 1.6 0.39
Amount of recreational activities offered, such as amusement
parks, water parks, golf courses, lakes, water sports, camping,
?shing, etc.? 6.1 1.4 6.0 0.8 0.68
Notes: Scale: 1 ¼ very dissatis?ed, 7 ¼ Very satis?ed; a ¼ 0.87 *p , 0.01; **p , 0.05
Table VI Resident and tourist customers’ satisfaction with local retailers
Resident
(n ¼ 100)
Tourist
(n ¼ 94)
For each of the following statements, please indicate your
satisfaction with the quality of service provided to you while shopping
at local retailers Mean Std deviation Mean Std deviation t-value
Prompt service to customers 5.5 1.6 6.0 1.6 22.04**
Willingness to help customers 5.5 1.7 6.2 1.6 22.79*
Individual attention given to all 5.2 1.7 6.0 1.7 23.16*
Convenient business hours 5.6 1.8 6.0 1.6 21.63
Visually appealing facilities and store 5.6 1.3 6.0 1.3 22.17**
Modern ?xtures, display, and equipment 5.6 1.3 5.9 1.3 21.34
Readiness to respond to customers’ needs 5.6 1.6 6.1 1.5 22.24**
Employees have neat and clean appearance 5.6 1.6 6.2 1.5 22.59*
Selection of merchandise offered 5.4 1.9 6.0 1.6 22.15**
Quality of merchandise offered 5.9 1.5 6.1 1.7 21.04
Overall effort of local retailers towards customers 5.7 1.7 6.3 1.5 22.50*
Sales clerks who are knowledgeable about products offered 5.3 1.6 5.9 1.7 22.38**
Level of service the employees provide 5.6 1.6 6.0 1.6 21.88
Willingness of the employees to provide service 5.5 1.6 6.1 1.6 22.36**
Courtesy of employees 5.7 1.7 6.3 1.6 22.23**
Attention provided to me by local retailers and their employees 5.6 1.6 6.3 1.4 22.88*
Degree to which retailers and/or store employees care about me 5.4 1.7 6.0 1.6 22.66*
Retailers’ and/or store employees’ ability to correct service problems 5.5 1.7 6.1 1.6 22.30**
Notes: Scale: 1 ¼ Lower than my desired level of service, 9 ¼ higher than my desired level of service; a ¼ 0.98 *p , 0.01; **p , 0.05
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When resident and tourist customers were asked about their level of satisfaction with
shopping and the quality of service they received from local retailers, tourist customers are
again more satis?ed on every dimension (see Table VI). A signi?cant difference was noted in
the shopping satisfaction between resident and tourist customers on several dimensions,
such as: prompt service, willingness to help customers, individual attention given to all
customers, visually appealing store, readiness to respond to customers’ needs, employees
have neat/clean appearance, selection of merchandise, quality of merchandise, overall
effort of local retailers, sales clerks are knowledgeable, willingness to provide service,
courtesy of employees, attention provided by retailers, degree retailers care about
customers, and retailers ability to correct problems (see Table VI). These results indicate
tourist customers appear to be more focused on quality of service and relationships at the
?rm or community level; whereas resident customers may be seeking to form more
personalized relationships. Treatment received by retail entrepreneurs is often viewed as a
personal extension of the owner’s feelings and perhaps of the local business sector in
general (Niehm and Sternquist, 1998).
Retailers should ardently discern the unique nature of customer needs and re?ne their ability
to differentiate and customize their service efforts for both the resident and tourist
customers.
No signi?cant difference is indicated in overall satisfaction with shopping experiences for
resident and tourist customers in this study (see Table VII). Unfortunately tourist shoppers
are not experiencing signi?cantly greater satisfaction than resident customers which may
not be as lucrative a target market as a satis?ed resident shopper (LeHew and Wesley,
2007). However, there is a signi?cant difference in resident and tourist customers in overall
satisfaction with the quality of customer service provided while shopping in the area (see
Table VII). Tourist customers being more satis?ed possibly indicates differential treatment
given by area retailers to resident customers.
Rural tourism retailers tend to focus a majority of their attention on the peak-season shopper
(tourists) and lose sight of their resident customers responsible for sustaining their business
year-round (Snepenger et al., 1998). Retailers in the area need to focus on catering to both
the resident and the tourist shoppers by identifying the preferential treatment of both
customer groups. These two customer groups have distinct needs and wants regarding
shopping, and successful retailers will capitalize on meeting both groups needs. Therefore,
for service-intensive retailers, like those operating within rural tourism communities, the key
to differentiation may lie within how they treat their customers (i.e. service delivery or
relationship retailing). Rural tourism retailers need to develop a comprehensive service
strategy, particularly one emphasizing longer-term customer satisfaction.
Implications
This study provides valuable implications for retail entrepreneurs, business consultants, and
economic development specialists in rural tourism communities, and ?lls a void in the
tourism and patronage behavior literature. Empirical ?ndings from this study will help rural
tourism communities and retailers better understand their unique customer base and their
expectations for satisfying shopping experiences.
Table VII Resident and tourist customers overall satisfaction with shopping experiences
Resident (n ¼ 100) Tourist (n ¼ 94)
Summed items Mean Std deviation Mean Std deviation
Overall satisfaction (sum/average of all items listed in Table V) 5.1 1.4 5.3 1.0
Overall satisfaction with quality of customer service provided while
shopping in the area (sum/average of all items listed in Table VI)
5.5
a
1.4 6.1
a
1.3
Notes:
a
Signi?cant group difference (t-value =22.668; p , 0.01)
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An important implication from this study is rural tourism retailers need to develop a
comprehensive customer relationship management strategy to encourage repeat shopping
and patronage behavior. In particular, emphasizing longer-term relationship management
with residents through service interactions, while simultaneously catering to the tourist
customers’ unique needs may best lead to customer satisfaction. Merely satisfying the
customer to gain loyalty and competitive advantages is inadequate (Sivadass and
Baker-Prewitt, 2000). Long-term customer retention in rural tourism communities requires
retailers to go beyond basic satisfaction. Rural lodging customers considered satisfaction
and image as more important to business loyalty than quality or trust (Loureiro and
Gonzalez, 2008) indicating rural tourism retailers should focus on assessing de?ning
satisfaction to their customer segments, become aware of and manage all aspects of their
business and its brand image, and focus on delivering a service consistent with their desired
brand image and the drivers of satisfaction for their target customers.
These strategic suggestions are supported by the services literature which posits retail
service relationships as critical components of customer relationship management (Berry,
1983; Gro¨ nroos, 1995, 2000; Sheth and Parvatiyar, 1995). Customer service strategies may
be most effective when rural tourism retailers focus on fostering a positive image,
trustworthiness, and satisfaction in alignment with customer expectations suggesting an
approach which develops loyal relationships with both tourist and resident customers will
best position retailers for success and sustainability.
These ?ndings may aid rural tourism communities in understanding service expectations for
these core customer groups, and how they impact shopping behavior and retailer success
and sustainability in the local market. Understanding core customers’ shopping behavior
may provide retailers in rural tourism markets with insight and strategic direction needed to
improve service offerings, enhance employee training, and target scarce ?rm resources to
areas of greatest need.
Limitations and future research
While this is one of the few studies to date speci?cally addressing shopping behavior and
satisfaction with retail service quality in rural tourism markets there are also several
limitations providing opportunities for future research. One limitation is the initial test of
self-designed and/or modi?ed scales to capture the variables of interest in a single rural
tourism community in Iowa. Therefore, ?ndings may only be generalizable to the unique
nature of an established tourist population (i.e. second/summer home) in Midwestern
regions of the U.S. Additionally, this study is exploratory and continued re?nement and
testing is needed for the item measures used and developed in this study as they relate to
retailing and tourism shopping contexts. Another limitation is these surveys were collected
over a three-month time period and customers’ opinions toward the survey may only have
re?ected their experiences of the retail sector up to that point and variability may be noted
with length of residency.
Since the tourism community in this study has a strong focus on outdoor recreational
activities (i.e. boating, ?shing, biking, hiking, etc.), future efforts should focus on testing the
research model in a broader scope of rural tourism settings, such as those focused on
agri-tourism, historic or cultural venues. Replication of the case study approach used in the
current study would allow for greater understanding of shopping behavior for core customer
groups and their expectations for products, services, and experiences desired in diverse
rural tourism markets. Examination of differences in customer expectations and perceptions
of retail service varying with type and duration of tourism experience would also provide
insight to tourism shopping patterns and preferences.
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Corresponding author
Jessica L. Hurst can be contacted at: [email protected]
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doc_476414518.pdf
This study aims to focus on the unique challenges of retail service delivery in rural tourism
markets. This paper specifically seeks to address: factors attracting individuals to a rural tourism
community; factors motivating resident and tourist customers to engage in tourism shopping;
satisfaction of resident and tourist customers with local retailers; and strategies to assist retailers in
successful service delivery.
International Journal of Culture, Tourism and Hospitality Research
Tourism shopping in rural markets: a case study in rural Iowa
J essica L. Hurst Linda S. Niehm
Article information:
To cite this document:
J essica L. Hurst Linda S. Niehm, (2012),"Tourism shopping in rural markets: a case study in rural Iowa", International J ournal of Culture,
Tourism and Hospitality Research, Vol. 6 Iss 3 pp. 194 - 208
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Tourism shopping in rural markets: a case
study in rural Iowa
Jessica L. Hurst and Linda S. Niehm
Abstract
Purpose – This study aims to focus on the unique challenges of retail service delivery in rural tourism
markets. This paper speci?cally seeks to address: factors attracting individuals to a rural tourism
community; factors motivating resident and tourist customers to engage in tourism shopping;
satisfaction of resident and tourist customers with local retailers; and strategies to assist retailers in
successful service delivery.
Design/methodology/approach – Using Dillman’s survey techniques, data were collected from two
different groups: resident customers and tourist customers in a rural Iowa tourism community. Given the
study’s exploratory focus, a case study methodology was selected.
Findings – Shopping experiences were much less satisfying for resident customers than for tourist
customers in this study. Tourismretailers may not be effectively differentiating their customer service and
providing adequate attention during the shopping experience, particularly to resident customers.
Research limitations/implications – One limitation is that the study represents an initial test of
self-designed and/or modi?ed scales to capture the variables of interest in a single rural tourism
community in Iowa. Therefore ?ndings may only be generalizable to the unique nature of an established
tourist population in Midwestern regions of the USA.
Practical implications – An important implication from this study is rural tourism retailers need to
develop a comprehensive customer relationship management strategy to encourage repeat shopping
and sustained patronage behavior.
Originality/value – This study provides valuable strategic implications for rural tourism entrepreneurs,
business consultants and economic development professionals in rural tourism communities, and ?lls a
void in the tourism and patronage literature.
Keywords Tourism, Shopping, Residents, Tourists, Rural, United States of America
Paper type Research paper
Introduction
Global tourism has demonstrated dynamic growth in the last century, and is projected to
maintain this trajectory into the new millennium (World Tourism Organization, 2003). In the US,
tourismis one of the nation’s largest employers, generating 7.3 million direct travel-related jobs
(Travel Industry Association of America (TIA), 2006). Tourism is the third largest retailing
industry segment, with average spending of 1.6 billion dollars a day by domestic and
international travelers in the United States (US Travel Association, 2009). Furthermore, tourists
spend approximately one-third of their total expenditures on shopping (Gratton and Taylor,
1987; Littrell et al., 1994; US Travel Association, 2009). Shopping is an essential leisure activity
providing economic, social, and psychological bene?ts to tourist customers (Yu¨ksel, 2007).
In rural areas, tourismhas emerged over several decades as a popular economic development
strategy to offset declines in agriculture and related industry sectors (Sharpley, 2002). Tourism
has been embraced as a new economic driver in some rural areas due to associated
entrepreneurship opportunities and its ability to bring in dollars, generate jobs, and support
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VOL. 6 NO. 3 2012, pp. 194-208, Q Emerald Group Publishing Limited, ISSN 1750-6182 DOI 10.1108/17506181211246357
Jessica L. Hurst is Assistant
Professor and Linda S.
Niehm is Associate
Professor, both in the
Department of Apparel,
Educational Studies, and
Hospitality Management,
Iowa State University,
Ames, Iowa, USA.
Received April 2010
Revised August 2010
Accepted September 2010
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retail growth (Wilson et al., 2001). Rural tourism can also aid transitioning rural community
business sectors by providing more diverse economic and community development options
(Davis and Morais, 2004). Furthermore, due to the inherent qualities many rural communities
possess (i.e. personalized attention and genuine interaction with the customer, enthusiasm for
sharing local culture/heritage, and overall authenticity of character), the demand for rural
tourism and associated retail venues has increased in recent years (Gartner, 2004). This
increased interest in rural tourism, together with the current economic conditions and demand
for closer vacation destinations, creates greater need to understand rural tourism customers,
their shopping behaviors, and appropriate strategic responses by retailers.
Retailers in rural tourism communities must overcome obstacles of remoteness and
seasonality while acknowledging the diverse needs of their primary market segments:
resident customers and tourists (Wilson et al., 2001). In order to sustain economic growth,
rural tourism retailers must provide a balance of products and services catering to both
groups. Resident customers depend on local businesses to provide them with their basic
shopping needs (Hurst and Good, 2009; Miller and Kean, 1997a). For tourists, a trip is not
complete without having spent some time shopping (US Travel Association, 2009; Goeldner
and Ritchie, 2000; Hudman and Hawkins, 1989). According to the TIA (2009) shopping is the
most popular domestic trip activity. However, the importance of tourism shopping and the
role it plays in many people’s lives is under represented in the literature (LeHew and Wesley,
2007; Heung and Cheng, 2000; Law and Au, 2000). Additionally, a void in the tourism
literature exists in regard to rural tourism communities serving dual markets; where retailers
must cater to both resident customers and tourists. Therefore, the aims of the current study
are to gain insight regarding:
B the factors attracting individuals to this rural tourism community;
B the factors motivating resident and tourist customers to engage in tourism shopping;
B the satisfaction of resident and tourist customers with local retailers; and
B strategies to assist retailers in successful service delivery to both resident and tourist
customers with the aim of enhancing shopping satisfaction and outcomes.
Review of literature and research questions
Rural tourism and tourist shopping behavior
Tourism is an activity where travelers stay in places outside of their usual environment (Paci,
1992), and return to a permanent residence on completion of their trip. Rural tourism is
brie?y de?ned as tourism occurring in rural or non-metropolitan areas (Siemens, 2007).
Schroeder (2003) considers rural tourism to include some degree of involvement with the
outdoors/wilderness; capitalizing on the advantages of nature and open spaces possessed
by many rural areas. Shopping continues to the most popular of the leisure activities of
tourists (TIA, 2003). However, the importance of shopping as a tourist activity, and the
business behaviors of tourism retailers, remains under-researched (Law and Au, 2000;
Heung and Cheng, 2000). Additionally, the literature re?ects limited empirical studies
documenting tourist shopping behavior in the US, and very few addressing the rural tourism
context (Oh et al., 2004).
Shopping is a popular tourist activity and is often the most signi?cant expenditure category
for vacationers (Oh et al., 2004). Typically, tourists like to take something home fromtheir trip
(Gordon, 1986). A tourist’s shopping behavior is quite different fromhis/her normal shopping
behavior. According to Christianson and Snepenger (2002), tourists gain satisfaction from
the shopping experience, separate from the purchase of the product. Generally, tourists do
not go shopping with a list; rather, shopping becomes more of the end-result of their travel
experiences (Thomas and LeTourneur, 2001).
Tourist shoppers tend to look for unique products and experiences they cannot ?nd at home
or are distinctive to the tourist destination (Costello and Fairhurst, 2002; Paige and Littrell,
2003; Reisinger and Turner, 2002). Many tourists spend more money on an item while they
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are on vacation, than they would if they were at home. In addition to souvenirs, tourist
shopping includes clothing, books, jewelry, arts, crafts, and electronics (Thomas and
LeTourneur, 2001).
According to the April 2009 travelhorizons
TM
survey, an estimated 54 percent of American
households planned to take at least one leisure trip during summer 2009, compared to 50
percent at the same time the previous year (US Travel Association, 2009). As traveling
increases, so does shopping. Shopping (approximately 30 percent of all tourismactivities) is
just one of many elements comprising the tourism experience, followed by outdoor activities
(11 percent), rural sightseeing (10 percent), travel to beaches (9 percent), visits to historical
sites and/or museums (8 percent), theme/amusement parks (7 percent), national/state parks
(7 percent), and water sports/boating (4 percent).
Thus, the following research question is posed.
RQ1. What factors attract individuals to a rural tourism community?
Resident shopping behavior
Understanding the bene?ts of rural tourism, while trying to maintain a traditional lifestyle, is
often dif?cult for full time community residents (Perry et al., 1986). Resident customers, who
live in the area year-round, may limit their shopping while the tourism season is at its peak,
and only patronize necessary product/service environments (i.e. groceries, restaurants,
convenience stores). Often resident customers feel overlooked, mistreated, or as if they do
not matter to area businesses (Niehm and Sternquist, 1998), consequently affecting their
overall attitudes toward patronizing local retailers (Miller and Kean, 1997b).
Research on rural tourism and main street business districts by Snepenger et al. (1998)
reveals three clusters of local customers in regard to shopping satisfaction. In this study, a
sizeable group of customers (34 percent) found local shopping suf?ciently met their needs,
16 percent were not satis?ed with local retail offerings, and the majority of local customers
(50 percent) were neutral in their feelings toward local shopping. These ?ndings suggest a
large, untapped local market and an opportunity to better address and capitalize on this
neutral customer segment with special products, services, experiences, and promotions
during both peak tourism periods and the off-season. Networked efforts among local
retailers will likely provide the greatest appeal to and response from local customers while a
single local shop may have a more limited selection of offerings than larger chains. The
network of complementary offerings by local retailers creates greater diversity and more
customer choice (Milchen, 2000).
However, both resident and tourist customers need to be drawn to local retailers with
appropriate marketing communication and relationship management efforts to enable
long-term business sustainability, leading to the next research question.
RQ2. What factors motivate resident and tourist customers’ shopping behavior?
Shopping and service satisfaction
The underpinnings of this research are founded in the service quality and satisfaction
literature. This body of literature also addresses retail and service relationships as critical to the
process of customer relationship management (Berry, 1983; Gro¨nroos, 1995, 2000; Sheth and
Parvatiyar, 1995). Gannon (1994) observes rural tourism retailers should benchmark business
behavior noted in the broader marketplace, such as using a more customer focused
approach in their marketing and communication efforts. Customer relationships and loyalty in
the rural tourism lodging context are enhanced by marketing efforts conveying a positive
perceived image and trustworthiness in the business (Loureiro and Gonzalez, 2008). Positive
image and trust subsequently in?uences perceived quality, satisfaction with the tourism
business and overall tourist experience, as well as a sense of loyalty.
In rural retail settings, image and trust are most frequently conveyed to both tourist and
resident customers through service interactions with retailers while shopping. To this point,
service interactions are also a signi?cant means of customer relationship management.
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Service quality is a primary way for rural retailers to differentiate their retail shopping
experience from those of their competitors. Service offerings can add uniqueness to a
business, aid in developing distinct competitive advantages, and foster the development of
lasting customer relationships in rural community settings (Miller and Kean, 1997a). Service
quality is a combination of overall service expectations and perceptions. These expectations
result from customers’ comparisons between their actual shopping experience and retailer
service performance, and their prior expectations for shopping and services (Chau and Kao,
2009; Dimitriadis and Stevens, 2008; To and Leung, 2001; Parasuraman et al., 1985). Good
quality retail service typically leads to customer satisfaction, which in turn, has a positive
impact on a customers’ store loyalty (Carillat et al., 2008; Gremler and Gwinner, 2000).
In addition to service, price and product mix are other essential tools used to attract resident
and the tourism customers to the retail setting. Tourists do not consider price a main
determinant in formulation of their overall impressions of a retail shop (Heung and Cheng,
2000). Conversely, resident customers may have very different demands and expectations
for shopping. Focusing time and resources on local as well as tourist customers may be
especially prudent given the swing in consumer interest toward buying local in the face of
current economic conditions. Recent industry reports state ‘‘buy local’’ campaigns are
making a difference for local businesses and small communities (Milchen, 2009). This report
concluded shoppers are enthusiastic about locally owned and operated retailers and many
intentionally shop locally to support those who they trust and those retailers who persist
during under tough economic conditions. In contrast, tourism customers tend to engage in a
great deal of leisurely or nonessential shopping (Gratton and Taylor, 1987). Retailers need to
cater to the needs of tourist customers who are shopping leisurely, and meet their expected
service needs. The primary objective of the retailer should be to ensure all customers’
satisfaction, which in turn, enhances sustainability and economic survival (Heung and
Cheng, 2000). In order to achieve the objective of customer satisfaction, retailers must ?rst
know their target customers and understand how they choose and evaluate retail offerings.
This is especially critical for retailers in rural tourist areas, because they serve a diverse
customer group with differing expectations and perceptions for products and services.
Satisfaction is ultimately determined by the customer. The evaluation of products/services
determines if expectations were met. In a survey regarding tourist satisfaction in Hong Kong,
Heung and Cheng (2000) found the most important dimension of customer satisfaction was
staff service quality, which includes: staff ef?ciency, attitudes, and language ability.
Hence, the ?nal research question:
RQ3. Are tourist customers more satis?ed than resident customers with their shopping
experiences in a rural tourism community?
Method
Case study approach
This study re?ects an in-depth case analysis of rural tourism shopping and retailing in rural
Iowa. The case study research strategy allows for in-depth analysis of customer shopping
expectations and satisfaction with shopping experiences for tourist and resident customers
in a single rural tourism community. A case study is an empirical inquiry assisting in the
investigation of a phenomenon within its real-life context (Yin, 2009). This methodology
enables us to better understand:
B the complex relationships between resident customers and tourist customers in a rural
tourism community;
B the unique nature and richness of this established tourism community in rural Iowa; and
B the shopping needs, expectations, and behaviors of year around resident and tourist
customers embedded in an established rural tourism community (Iowa Great Lakes
Chamber of Commerce (IGLCC), 2003).
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Survey instrument
The survey instrument consisted of six parts, including: attractiveness features of the rural
tourism community, motivations to engage in shopping in the rural tourism community setting,
enticement to shop in the rural tourism community, retail service expectations and perceptions
of resident and tourist customers, shopping outcome behaviors, and customer demographics.
To ensure accurate categorization regarding the two customer groups (residents and tourists),
each survey included appropriate criterion variables. For example, at the top of resident
customer’s survey, they indicated if they ‘‘rented’’ or ‘‘owned’’ residential property in the area,
and how many months out of the year they resided in the community. The tourist customers
were asked how long they planned to be in the area (with responses ranging from ‘‘1 week or
less’’ to ‘‘3 or more months’’. To assure reliable and valid measures, the survey was pre-tested
with relevant groups of local rural customers, rural tourismcustomers, andtourismretailers. The
instrument was subsequently re?ned and modi?ed based on results of the pretest.
The current study primarily focuses on informant responses to the following: the features
attracting individuals to this rural tourism community, resident and tourist customers’
shopping behavior, and satisfaction with the shopping experience. To measure customers’
overall satisfaction with the tourism environment and attractions, self-designed measures
were used based on suggestions from the area tourismdirector (Iowa Great Lakes Chamber
of Commerce (IGLCC), 2003). Responses were measured on a ?ve-point Likert scale
(1 ¼ not at all, 5 ¼ often, 6 ¼ does not apply). Examples included ‘‘I take advantage of the
lakes, amusement parks, golf courses, marinas, etc., in the area’’ and ‘‘Selection of retail
shops is something I consider important to the community.’’
To investigate what motivates customers to engage in shopping in rural tourism
communities, a series of self-designed measures created by modifying the Parasuraman
et al. (1991) scale on perceived service quality. Responses were measured on a seven-point
Likert scale (1 ¼ strongly disagree, 7 ¼ strongly agree), and some examples include
‘‘Retailers in this community are accessible when I need to buy something,’’ and ‘‘Retailers in
this community try to meet my special needs and requests.’’ Reliability of Parasuraman
et al.’s (1991) original measures for perceptual service items was .90.
To determine the motivations of customers to purchase products and services within a rural
tourism community, a series of self-designed measures modi?ed from work by Kelley and
Davis (1994) were used. This study assessed the level of satisfaction a customer
experienced with equipment and employees at a speci?ed health club, and had a reliability
of 0.95. Responses to our modi?ed version of this scale were framed as enticement to shop
and measured using a seven-point Likert scale (1 ¼ not important, 7 ¼ very important). This
item re?ects customers’ reasons for buying products or services.
To measure resident and tourist customers’ satisfaction with shopping experiences, the
survey used self-designed measures on a seven-point Likert scale (1 ¼ very dissatis?ed,
7 ¼ very satis?ed), including items such as: ‘‘How satis?ed are you with the customer
service you have received in this community?’’ or ‘‘How satis?ed are you with the selection of
local retailers in the area?’’.
To determine resident and tourist customers’ satisfaction with local retailers’ quality of
service, a modi?ed version of the SERV-QUAL scale (Parasuraman et al., 1994) was used.
Responses are measured on a nine-point scale (1 ¼ lower than my desired service level,
9 ¼ higher than my desired service level), and include items like: ‘‘Prompt service to
customers’’, ‘‘Willingness to help customers’’, and ‘‘Individual attention given to all’’.
Sample and data collection
A well established rural tourism community with a year-round population of
approximately16,100 people was the site of this study. This population expands to over
75,000 people during the summer months (Iowa Great Lakes Chamber of Commerce
(IGLCC), 2003). In addition to numerous recreational activities this rural tourism community
offers (e.g. ?shing, boating, biking, water skiing), there are also many different outlets to
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shop, eat and drink. More than 250 independently owned retail shops and one discount
chain store comprise the shopping options in this locale. This rural community is ideal for the
present study because it meets multiple criteria for a successful rural tourism area:
attractions, promotion, tourism infrastructure, services, and hospitality (Wilson et al., 2001).
Even though the glacier carved lakes of this rural tourism community are in an extremely
isolated location, there are many seasonal activities such as boating, ?shing, hiking, biking,
water-skiing, wakeboarding, canoeing, kayaking, and sailing attracting tourists for over 100
years. Additionally, there are two amusement parks, a water park, several golf courses,
walking trails, and two summer theatres.
Within this rural community, sub-groups of the two primary market segments (residents and
tourists) were surveyed during the peak tourism season (i.e. July) to ensure an adequate
sample size of tourist customers. Survey groups include resident customers (Target
N ¼ 125) and tourist customers (Target N ¼ 125). Based on Dillman’s (2007) total design
method personal interaction with members of each target group was determined to be the
most effective way to obtain the survey data. Accordingly, a canvassing approach was used
for data collection whereby surveys were hand-delivered and a scheduled time/date was
agreed on for pick-up of the completed survey (Dillman, 2007).
For the residents and tourist customers who owned or rented property in the tourism
community, street names were randomly selected fromthe phone book and canvassing was
conducted door-to-door on each street. For the tourist customers who did not rent or own
property in the area, resorts and hotels/motels were randomly selected from the phonebook
and canvassing was conducted door-to-door at each location. An overview of the study was
provided for informants at each selected street address/location. An initial scripted question
(i.e. their location of year-round residency) allowed researchers to categorize informants as
a resident or tourist and to administer the appropriate version of the survey. Researchers
arranged for a date and time to collect the completed survey. For informants who requested
to return the survey via mail, a stamped return envelope was provided. Several attempts
were made to administer surveys to potential informants who were not initially at home.
Sample description
A total of 194 useable informant surveys were received out of the 250 distributed, for an overall
response rate of 77.6 percent. Of the 125 completed surveys, 100 resident and 94 tourist
customers’ surveys were useable, resulting in a response rate of 80.0 and 75.2 percent,
respectively. For the local residents, 28 percent were between the ages of 18-44, 47 percent
were between the ages of 45-64, and 25 percent were 65 or older. A total of 46 percent owned
property in this area for 16 or more years. In contrast, the tourists were slightly older with about
12 percent between the ages of 18-44, 46 percent were between the ages of 45-64, and 32
percent were 65 or older. About 70 percent of the tourists owned property in the area. These
tourists with a second/summer home in this area contributed to the uniqueness of this rural
tourism community and their expectations for shopping. A comprehensive overview of
respondent characteristics by group (resident and tourist customers) is shown in Table I.
Data analysis
Data were analyzed using SPSS 15.0 utilizing descriptive statistics (i.e. means and
frequencies) and t-tests for group differences. T-tests were used to analyze the differences
between resident and tourist customers’ perceptions of community features, shopping
behavior, and satisfaction with tourism shopping experiences.
Results and discussion
This research investigates:
B customers’ perceptions of rural tourism community attractiveness features;
B the motivators of resident and tourist customers’ shopping behavior; and
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B resident and tourist customers’ level of satisfaction with their shopping experiences in the
rural community context.
Three research questions address focal areas of this study. Findings relevant to each
research question are reported and discussed in the following section.
In regard to RQ1 (What factors attract individuals to a rural tourism community?), the
selection of retail shops and restaurants, availability of recreation facilities, and access to
roads/ease of getting through town and to stores are among the most important factors
attracting both residents and tourists to the area. A signi?cant difference is indicated in the
importance of three community attractiveness features (access to roads/ease of getting
through town, selection of retail shops, and selection of restaurants) for resident and tourist
customers (see Table II). Findings reveal that residents are more concerned with the access
of roads/ability to get through town and the selection of retailers/restaurants.
Table I Description of sample
Resident Customers
(n ¼ 100)
Tourist Customers
(n ¼ 94)
Number (%) Number (%)
Gender
Male 30 30.0 27 28.7
Female 70 70.0 67 71.3
Age
18-24 6 6.0 5 5.3
25-34 11 11.0 5 5.3
35-44 11 11.0 11 11.7
45-54 26 26.0 22 23.4
55-64 21 21.0 21 22.3
65 or older 25 25.0 30 31.9
Level of education
Some high school 1 1.0 2 2.1
High school/GED 23 23.0 19 20.2
Some college 29 29.0 21 22.3
College graduate 32 32.0 29 30.9
Post-graduate 15 15.0 22 23.4
Missing data 0 0 1 1.1
Annual household Income
Under $25,000 11 11.0 5 5.3
$25,001-50,000 29 29.0 17 18.1
$50,001-75,000 17 17.0 14 14.9
$75,001-100,000 22 22.0 11 11.7
$100,001 or over 8 8.0 27 28.7
Missing data 13 13.0 20 21.3
Have owned property for number of years (local only)
5 yrs or less 21 21.0 N/A N/A
6-10 years 14 14.0 N/A N/A
11-15 years 18 18.0 N/A N/A
16 or more years 46 46.0 N/A N/A
Missing data 1 1.0 N/A N/A
Own or rent in community (tourist only)
Rent N/A N/A 5 5.3
Own N/A N/A 65 69.1
Neither rent or own N/A N/A 23 24.5
Missing data N/A N/A 1 1.1
If you don’t own property, where do you stay? (tourist only)
Resort N/A N/A 10 10.6
Condo N/A N/A 2 2.1
With family/friends N/A N/A 8 8.5
Campgrounds N/A N/A 7 7.4
Other N/A N/A 3 3.2
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Tourism community businesses need to work on establishing a local customer base with
year-round residents. Retailers in a rural tourism community, such as the one in this study,
must rely heavily on the off-season shoppers (residents) to sustain their businesses until the
peak tourism season; however, many businesses lose sight of this fact and cater solely to
their peak-season customer (tourists). Furthermore, residents and tourists report the
treatment they receive from area retailers affects their overall feelings about staying in the
area (tourist M ¼ 4.1, resident M ¼ 4.4; scale: 1 ¼ not at all, 5 ¼ often). Developing and
implementing service strategies aimed at attracting a loyal following of both resident and
tourist customers is the major challenge; however to remain ?nancially viable, rural retailers
need to embrace their uniqueness and ?exibility as smaller ?rms to provide customizable
service catering to both groups. See Table II.
For RQ2 (What factors motivate resident and tourist customers’ shopping behavior?), local
retailers are perceived to meet the special needs and requests of tourist customers rather
than residents (see Table III). Tourism retailers routinely supply goods and services to make
tourists’ visits to the area more enjoyable and memorable (Kean et al., 1996). However, for
many rural tourismretailers, catering primarily to tourist customers does not ensure business
survival during the off-season. Therefore, many tourismretailers need to continual seek ways
to enhance their service quality and build greater store loyalty by implementing customer
relationship programs tailored to both customer segments (Beatty et al., 1996).
Furthermore, when asked about their reasons for buying local products and/or services,
resident customers felt it was more important than tourist customers to support the local
economy and buy from area retailers as often as possible (see Table IV). This ?nding follows
industry reports suggesting a decided trend of customers directing more of their spending
toward local businesses, even in the presence of tighter budgetary conditions (Milchen,
2009). Local residents may be reacting to a combination of macro-environmental factors as
well as the social and economic void likely created if businesses were to disappear from
their community (Milchen, 2005). Whatever customers’ motives, rural tourism retailers need
to focus on relationship management strategies leading to long term customer satisfaction
and loyalty regardless of economic or seasonal factors.
In addition, residents and tourist customers differ signi?cantly on their responses to the
following four items in?uencing their shopping behavior: quality of service, courtesy of
employees, product selection, level of fun and adventure (see Table IV). Previous research on
Table II Importance of community and retailer attributes for resident and tourist customers
Resident (n ¼ 100) Tourist (n ¼ 94)
Variable Mean Std deviation Mean Std deviation t-value
I take advantage of area attractions (i.e. lakes, amusement parks,
golf courses, marinas, etc.) 3.6 1.3 3.9 1.3 21.60
I rely on advertising promotions in the area to tell me about
attractions offered in the community 3.6 1.1 3.6 1.2 0.01
Access to roads/ease of getting through town and to stores
something I consider important 4.3 0.9 4.0 1.1 2.47**
Availability of recreational facilities is something I consider
important 3.8 1.1 3.7 1.3 0.51
Availability/selection of lodging is something I consider important to
the community 3.7 1.4 3.3 2.0 1.51
Selection of retail shops is something I consider important to the
community 4.1 1.0 3.7 1.3 2.57**
Selection and availability of restaurants is something I consider
important to the community 4.4 0.7 3.3 1.3 7.67*
Treatment I receive from area retailers affects my overall feelings
about staying in the area and buying from local businesses 4.4 1.0 4.1 1.0 1.78
Treatment I receive from other community members affects my
overall feelings about staying in the area 3.9 1.2 3.9 1.2 0.13
Notes: Scale: 1 ¼ Not at all, 5 ¼ Often; a ¼ 0.67; *p , 0.01; **p , 0.05
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retail environment suggests a number of important bene?ts for retail ?rms regarding building
relationships with customers. The practice of relationship customization (Berry and Gresham,
1986) enables retailers to deliver unique customer service and value to customers, making
their service delivery less resistant to imitation and providing a baseline of differentiation in an
increasingly competitive retail marketplace (Reynolds and Arnold, 2000).
By fostering a close salesperson-customer relationship retailers may position themselves to
build satisfaction and loyalty around relational bene?ts rather than undifferentiated service
strategies (Gwinner et al., 1998). Using relational retailing can help retailers attract, retain,
and enhance customer relationships (Berry and Gresham, 1986) of both customer segments
(residents and tourists). These ?ndings also follow Gannon’s (1994) strategic
recommendation to rural tourism retailers to integrate a more customer focused approach
in their marketing and communication efforts.
Overall, our ?ndings for RQ3 (Are tourist customers more satis?ed than resident customers
with their shopping experiences?) reveals shopping experiences are much less satisfying
Table III Customers’ perceptions of local retailers in a rural tourism community
Resident (n ¼ 100) Tourist (n ¼ 94)
Variable Mean Std deviation Mean Std deviation t-value
Retailers in this community work very hard at keeping customers
satis?ed 5.0 1.4 5.2 1.2 1.07
Retailers in this community try to meet my special needs and
requests 4.6 1.4 5.1 1.2 2.72*
Retailers in this community are accessible when I need to buy
something 4.9 1.4 5.0 1.3 0.74
Retailers in this community are dependable and will provide service
at the time they promise to do so 4.8 1.4 5.0 1.3 20.73
I am able to buy basic necessities (toiletries, paper products,
household items, etc.) on a daily basis from most retailers in this
community 5.8 1.4 5.8 1.2 0.10
When I have a problem, retailers in the area are sympathetic and
reassuring 4.8 1.2 5.0 1.1 1.46
I have con?dence in local retailers’ products and services 5.1 1.2 5.2 1.1 20.71
Local retailers’ hours of operation are accommodating to
customers’ needs 5.0 1.5 5.3 1.2 1.22
Local retailers’ locations are easy to get to 5.6 1.1 5.2 1.2 2.13**
Notes: Scale: 1 ¼ Strongly disagree, 7 ¼ Strongly agree; a ¼ 0.90; *p , 0.01; **p , 0.05
Table IV Resident and tourist customers’ reasons for buying local
Resident (n ¼ 100) Tourist (n ¼ 94)
How important would you say the following
statements are to your reason for buying local
products and/or services? Variable: Mean Std deviation Mean Std deviation t-value
Quality of service 6.0 1.0 5.7 1.1 2.16**
Speed of service 5.8 1.0 5.6 1.0 1.24
Courtesy of employees 6.3 0.8 5.9 0.9 3.06*
Product selection 6.1 0.8 5.8 0.8 2.05**
Appearance/image of store 5.3 1.2 5.4 0.9 -0.66
Parking lot/accessibility 5.4 1.1 5.2 1.2 1.07
Perceived safety 5.3 1.3 5.0 1.4 1.39
Level of fun/adventure 4.6 1.4 5.1 1.2 -2.78*
Interest to entire family 4.8 1.5 5.2 1.3 -1.65
Reasonably priced 5.9 1.1 5.9 1.1 0.13
Buying from local retailers as much as possible 5.6 1.3 4.8 1.5 3.84*
Supporting local businesses and keeping the
community economy strong 5.8 1.3 5.1 1.3 3.40*
Notes: Scale: 1 ¼ Not Important, 7 ¼ Very Important; a ¼ 0.83 *p , 0.01; **p , 0.05
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for resident customers than for tourist customers in the tourism community context for this
study. This ?nding suggests tourism retailers may not effectively differentiate their customer
service and provide adequate attention during the shopping experience, particularly to the
resident customers (see Tables V-VII). When asked how satis?ed they were with their
shopping experiences, tourist customers were much more satis?ed than resident customers
on all dimensions, except the number of entertainment and recreational activities offered
(see Table V). However, statistically signi?cant differences were noted for the following
aspects of shopping satisfaction: the selection of retailers, the selection of apparel/clothing
stores, and the selection of shoe retailers. Intuitively, since the resident customers reside in
the area year-round, it is not surprising they are less satis?ed with the overall selection of
retail offerings in the area. Tourist customers are in the area for a shorter period of time, which
is why they appear to be more satis?ed with the retail offerings in this rural tourism
community.
Table V Resident and tourist customers’ satisfaction with retail shopping experiences in a rural tourism community
Resident (n ¼ 100) Tourist (n ¼ 94)
How satis?ed are you with the . . . Mean Std deviation Mean Std deviation t-value
Level of customer service you have received in this community? 5.1 1.3 5.4 1.1 21.79
Quality of customer service you have received in this community? 5.1 1.3 5.5 1.1 21.81
Selection of local retailers (i.e. apparel, souvenir shops, shoes,
antiques, crafts, etc.)? 4.7 1.6 5.3 1.3 22.97*
Apparel/clothing shops in the area? 3.9 1.8 4.9 1.9 23.51*
Craft and collectible shops in the area? 5.5 1.5 5.6 1.6 20.34
Selection of shoe retailers in the area? 3.5 1.8 4.4 1.9 23.26*
Selection of jewelry retailers in the area? 4.8 1.9 4.9 2.0 20.49
Selection of restaurants in the area? 5.8 1.5 5.6 1.2 0.90
Amount of entertainment features offered, such as live music,
theatre, comedy clubs, night clubs/bars, etc.? 5.7 1.5 5.6 1.6 0.39
Amount of recreational activities offered, such as amusement
parks, water parks, golf courses, lakes, water sports, camping,
?shing, etc.? 6.1 1.4 6.0 0.8 0.68
Notes: Scale: 1 ¼ very dissatis?ed, 7 ¼ Very satis?ed; a ¼ 0.87 *p , 0.01; **p , 0.05
Table VI Resident and tourist customers’ satisfaction with local retailers
Resident
(n ¼ 100)
Tourist
(n ¼ 94)
For each of the following statements, please indicate your
satisfaction with the quality of service provided to you while shopping
at local retailers Mean Std deviation Mean Std deviation t-value
Prompt service to customers 5.5 1.6 6.0 1.6 22.04**
Willingness to help customers 5.5 1.7 6.2 1.6 22.79*
Individual attention given to all 5.2 1.7 6.0 1.7 23.16*
Convenient business hours 5.6 1.8 6.0 1.6 21.63
Visually appealing facilities and store 5.6 1.3 6.0 1.3 22.17**
Modern ?xtures, display, and equipment 5.6 1.3 5.9 1.3 21.34
Readiness to respond to customers’ needs 5.6 1.6 6.1 1.5 22.24**
Employees have neat and clean appearance 5.6 1.6 6.2 1.5 22.59*
Selection of merchandise offered 5.4 1.9 6.0 1.6 22.15**
Quality of merchandise offered 5.9 1.5 6.1 1.7 21.04
Overall effort of local retailers towards customers 5.7 1.7 6.3 1.5 22.50*
Sales clerks who are knowledgeable about products offered 5.3 1.6 5.9 1.7 22.38**
Level of service the employees provide 5.6 1.6 6.0 1.6 21.88
Willingness of the employees to provide service 5.5 1.6 6.1 1.6 22.36**
Courtesy of employees 5.7 1.7 6.3 1.6 22.23**
Attention provided to me by local retailers and their employees 5.6 1.6 6.3 1.4 22.88*
Degree to which retailers and/or store employees care about me 5.4 1.7 6.0 1.6 22.66*
Retailers’ and/or store employees’ ability to correct service problems 5.5 1.7 6.1 1.6 22.30**
Notes: Scale: 1 ¼ Lower than my desired level of service, 9 ¼ higher than my desired level of service; a ¼ 0.98 *p , 0.01; **p , 0.05
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When resident and tourist customers were asked about their level of satisfaction with
shopping and the quality of service they received from local retailers, tourist customers are
again more satis?ed on every dimension (see Table VI). A signi?cant difference was noted in
the shopping satisfaction between resident and tourist customers on several dimensions,
such as: prompt service, willingness to help customers, individual attention given to all
customers, visually appealing store, readiness to respond to customers’ needs, employees
have neat/clean appearance, selection of merchandise, quality of merchandise, overall
effort of local retailers, sales clerks are knowledgeable, willingness to provide service,
courtesy of employees, attention provided by retailers, degree retailers care about
customers, and retailers ability to correct problems (see Table VI). These results indicate
tourist customers appear to be more focused on quality of service and relationships at the
?rm or community level; whereas resident customers may be seeking to form more
personalized relationships. Treatment received by retail entrepreneurs is often viewed as a
personal extension of the owner’s feelings and perhaps of the local business sector in
general (Niehm and Sternquist, 1998).
Retailers should ardently discern the unique nature of customer needs and re?ne their ability
to differentiate and customize their service efforts for both the resident and tourist
customers.
No signi?cant difference is indicated in overall satisfaction with shopping experiences for
resident and tourist customers in this study (see Table VII). Unfortunately tourist shoppers
are not experiencing signi?cantly greater satisfaction than resident customers which may
not be as lucrative a target market as a satis?ed resident shopper (LeHew and Wesley,
2007). However, there is a signi?cant difference in resident and tourist customers in overall
satisfaction with the quality of customer service provided while shopping in the area (see
Table VII). Tourist customers being more satis?ed possibly indicates differential treatment
given by area retailers to resident customers.
Rural tourism retailers tend to focus a majority of their attention on the peak-season shopper
(tourists) and lose sight of their resident customers responsible for sustaining their business
year-round (Snepenger et al., 1998). Retailers in the area need to focus on catering to both
the resident and the tourist shoppers by identifying the preferential treatment of both
customer groups. These two customer groups have distinct needs and wants regarding
shopping, and successful retailers will capitalize on meeting both groups needs. Therefore,
for service-intensive retailers, like those operating within rural tourism communities, the key
to differentiation may lie within how they treat their customers (i.e. service delivery or
relationship retailing). Rural tourism retailers need to develop a comprehensive service
strategy, particularly one emphasizing longer-term customer satisfaction.
Implications
This study provides valuable implications for retail entrepreneurs, business consultants, and
economic development specialists in rural tourism communities, and ?lls a void in the
tourism and patronage behavior literature. Empirical ?ndings from this study will help rural
tourism communities and retailers better understand their unique customer base and their
expectations for satisfying shopping experiences.
Table VII Resident and tourist customers overall satisfaction with shopping experiences
Resident (n ¼ 100) Tourist (n ¼ 94)
Summed items Mean Std deviation Mean Std deviation
Overall satisfaction (sum/average of all items listed in Table V) 5.1 1.4 5.3 1.0
Overall satisfaction with quality of customer service provided while
shopping in the area (sum/average of all items listed in Table VI)
5.5
a
1.4 6.1
a
1.3
Notes:
a
Signi?cant group difference (t-value =22.668; p , 0.01)
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An important implication from this study is rural tourism retailers need to develop a
comprehensive customer relationship management strategy to encourage repeat shopping
and patronage behavior. In particular, emphasizing longer-term relationship management
with residents through service interactions, while simultaneously catering to the tourist
customers’ unique needs may best lead to customer satisfaction. Merely satisfying the
customer to gain loyalty and competitive advantages is inadequate (Sivadass and
Baker-Prewitt, 2000). Long-term customer retention in rural tourism communities requires
retailers to go beyond basic satisfaction. Rural lodging customers considered satisfaction
and image as more important to business loyalty than quality or trust (Loureiro and
Gonzalez, 2008) indicating rural tourism retailers should focus on assessing de?ning
satisfaction to their customer segments, become aware of and manage all aspects of their
business and its brand image, and focus on delivering a service consistent with their desired
brand image and the drivers of satisfaction for their target customers.
These strategic suggestions are supported by the services literature which posits retail
service relationships as critical components of customer relationship management (Berry,
1983; Gro¨ nroos, 1995, 2000; Sheth and Parvatiyar, 1995). Customer service strategies may
be most effective when rural tourism retailers focus on fostering a positive image,
trustworthiness, and satisfaction in alignment with customer expectations suggesting an
approach which develops loyal relationships with both tourist and resident customers will
best position retailers for success and sustainability.
These ?ndings may aid rural tourism communities in understanding service expectations for
these core customer groups, and how they impact shopping behavior and retailer success
and sustainability in the local market. Understanding core customers’ shopping behavior
may provide retailers in rural tourism markets with insight and strategic direction needed to
improve service offerings, enhance employee training, and target scarce ?rm resources to
areas of greatest need.
Limitations and future research
While this is one of the few studies to date speci?cally addressing shopping behavior and
satisfaction with retail service quality in rural tourism markets there are also several
limitations providing opportunities for future research. One limitation is the initial test of
self-designed and/or modi?ed scales to capture the variables of interest in a single rural
tourism community in Iowa. Therefore, ?ndings may only be generalizable to the unique
nature of an established tourist population (i.e. second/summer home) in Midwestern
regions of the U.S. Additionally, this study is exploratory and continued re?nement and
testing is needed for the item measures used and developed in this study as they relate to
retailing and tourism shopping contexts. Another limitation is these surveys were collected
over a three-month time period and customers’ opinions toward the survey may only have
re?ected their experiences of the retail sector up to that point and variability may be noted
with length of residency.
Since the tourism community in this study has a strong focus on outdoor recreational
activities (i.e. boating, ?shing, biking, hiking, etc.), future efforts should focus on testing the
research model in a broader scope of rural tourism settings, such as those focused on
agri-tourism, historic or cultural venues. Replication of the case study approach used in the
current study would allow for greater understanding of shopping behavior for core customer
groups and their expectations for products, services, and experiences desired in diverse
rural tourism markets. Examination of differences in customer expectations and perceptions
of retail service varying with type and duration of tourism experience would also provide
insight to tourism shopping patterns and preferences.
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Corresponding author
Jessica L. Hurst can be contacted at: [email protected]
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