Background Magnetic Island, which was named by James Cook in 1777 because he believed that the island affected the compasses on the Endeavour, is located eight kilometres from Townsville in North Queensland.The Island is off the coast of Townsville and is located on the Great Barrier Reef. The reef has received a great deal of media attention in recent times due to the redevelopment of Magnetic Island, Nelly and Geoffrey bays. A significant amount of Queensland’s share of the tourism market can be attributed to the attraction of the Great Barrier Reef, which is one of the seven natural wonders of the world. The Reef attracts around 1.7 million visitors annually, 40% of whom are from overseas. In 1996–1997, 20% of domestic travellers came to Queensland for pleasure or to visit friends. Out of the total 14 676 000 travellers, 10 226 000 were from within Queensland, while the other 4 450 000 were interstate travellers. Statistics for 1997 also showed that over two million people arrived in Australia for a holiday, of these visitors 23% travelled to Queensland. The northern region (Townsville and surrounds) greeted 117 400.
The greatest assets of Magnetic Island include its rugged natural beauty, wildlife, its many beaches, accessibility, shopping facilities and eateries. An abundance of recreational activities are also available including all water sports, golf, horse riding, parasailing, fishing, windsurfing, bush walking and Great Barrier Reef tours. The island has a population of 2500 people and it enjoys an average of 320 days of sunshine per year and boasts a balmy average temperature of 28 degrees. Magnetic Island has 25 beaches and 24 kilometres of walking tracks together with 5184 hectares of National Park. The warm waters, clear blue skies and pristine beaches create a scene that soothes all that visit Magnetic Island. The potential for Magnetic Island to become a tropical resort second to none along the Queensland coastline was realised in the 1920s.The island was recognised because of its unspoiled natural scenery, its safe beaches, tropical climate and its proximity to a regional centre.
However, Magnetic Island’s tourism potential could be increased with the construction of a marina, which is to be built in the Nelly and Geoffrey Bay areas. This marina has been the subject of controversy for the last ten years because of conservationist’s concern over the impact that the marina will have on the ecology of the island. It is believed that the constant sea traffic will emit pollutants, such as hydrocarbons, fuel, sewage and other waste products into the water. There are other scientific groups who are worried about the marina’s effect on the fringing reefs in Geoffrey and Nelly bays. The research study In 1999, a local business operator saw an opportunity in the recent development on Magnetic Island and believed that a new venture could be established to take advantage of these changes. He realised that the marketing activities associated with a tourist destination revolved around developing the destination and persuading tourists to choose that destination. However before approaching various banks for possible finance, the business operator wanted to determine the viability of establishing a tourist operation with glass bottom boats, which would enable visitors to easily observe the reef.
The organisation approached the School of Business at James Cook University Townsville to conduct a study to determine the market for possible interest in such an operation. The specific objectives of the study would be as follows:
- To determine if there is a need and a demand for such a business.
- To determine the price customers are willing to pay for this service.
- To determine how the Island’s inhabitants and other businesses on the Island might view such a business. Research methodology The study was conducted by survey questionnaires, administrated by undergraduate marketing students at James Cook University,Townsville Queensland.
There were ten groups, each group consisting of five students. The groups were given specific instructions and training in marketing research methods, surveying and interpersonal skills. Respondents would need to evaluate a set of questions that had been pre-tested in a series of focus group discussions.
The data was gathered in August when visitor numbers in the area was highest.
The response rate from visitors was very good, with the groups achieving a 99% completion rate from randomly chosen visitors.
The majority of respondents were Australians travelling with friends.
The questionnaire design consisted of both structured and unstructured questions.
744 MARKETING RESEARCH: AN APPLIED ORIENTATION CASE STUDIES QUESTIONS
- Describe the kind of qualitative and quantitative marketing research that was used to conduct the study on Magnetic Island.
- What are the advantages and the disadvantages of the methodologies used?
- Find an example of a similar investigation.
What can be learnt from this example that would provide useful input into the development of a questionnaire for the Magnetic Island business proposal?
Glass Bottom Boats
Brief explanation
Magnetic Island is located in North Queensland and attracts more than 1.7 million tourists from different countries yearly. Furthermore, the island has wildlife, beaches, eateries, shopping facilities, and recreational facilities that make it stand among Australia’s best islands. However, there is a need for glass-bottom boats to help tourists observe the reef. A local businessman plans to venture into the glass bottom boat business but requires adequate research to determine the glass bottom boats market. The study will adopt qualitative and quantitative methods to conduct the investigation.
- Describe the kind of qualitative and quantitative marketing research that was used to conduct the study on Magnetic Island.
The qualitative and quantitative marketing research used to conduct the study is a focus group and face-to-face interviews. Focus groups are a qualitative research method that entails people’s grouping to discuss a specific product and the strategies the product can use to reach a bigger audience. Additionally, these research methods target a group of people who will give back their opinions about a particular idea. Face-to-face interviews are quantitative market research methods used to collect data from the target audience, which involves a direct meeting between the interviewer and interviewee. This method is crucial in collecting data directly from the participants. Furthermore, the interviewer provides the interviewee with the topics to be discussed, and the face to face interaction can make the interviewer collect a lot of information from the participants. Therefore, the study will use focus groups and face-to-face methods to conduct the Magnetic Island study.
- What are the advantages and the disadvantages of the methodologies used?
Focus groups and face-to-face interviews have advantages and disadvantages, making them good or bad for the study. Focus groups have the following benefits. They allow organizations to get insight into how people are thinking about a particular idea. Additionally, they play an essential role in influencing a research output. Data is also gathered quickly because people are grouped into ten people. However, the disadvantages of focus groups are that the researcher has a hard time during data analysis. Additionally, the participants must be carefully trained, and it takes a lot of time to assemble groups. The advantages of face-to-face interviews advantages are, they allow in-depth data collection of participants, and the researcher can ask for explanations. The disadvantages of face-to-face interviews are that this type of method requires much time when recruiting interviews. Furthermore, the talks are expensive as it entails traveling to meet interviewees, and interviewees can be biased in some responses.
- Find an example of a similar investigation. What can be learnt from this example that would provide useful input into the development of a questionnaire for the Magnetic Island business proposal?
Hot air balloons for tourist to observe the reef is a similar investigation aimed at improving the tourist interaction at the reef. Additionally, the effectiveness of hot air balloons on helping tourists watch that reef can play an essential role in developing questionnaires for the magnetic island business proposal. Furthermore, this investigation will help researchers understand the importance of improving tourist sites while visiting the reef. This study will also help understand the advantages of tourist attraction and how they can impact this magnetic island’s economy. The tourist attraction is an essential aspect of tourism. It will help the researcher understand why to improve on tourist attraction that will also draw more tourists to magnetic island.
Overall, the qualitative and quantitative marketing researches suitable for the study are focus groups and face-to-face interviews. Focus groups allow the researcher to collect data quickly but also limit the research in analyzing the data. Face-to-face interviews play an essential role in allowing the researcher to conduct an in-depth interview but are disadvantageous because they can involve bias responses. Hot air balloons are a similar investigation that can help develop a questionnaire for magnetic island proposals once the effectiveness of hot air balloons improves how tourists observe the reef is understood. Lastly, this case study can be used to determine the market for possible interest for the glass bottom boats.
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