Tourism Marketing - Tourism: Principles, Practices, Philosophies - page 423

aimed at stimulating primary demand. In this stage of the life cycle, there will be a high percentage
of failures.

Growth

In the growth period, the product or service is being accepted by consumers. Market acceptance
means that both sales and pro ts rise at a rapid rate, frequently making the market attractive
to competitors. Promotional expenditures remain high, but the promotional emphasis is on
selective buying motives by trade name rather than on primary motives to try the product. During
the growth stage, the number of outlets handling the product or service usually increases.
More competitors enter the marketplace, but economies of scale are realized and prices may
decline some.

Maturity

The mature product is well established in the marketplace. Sales may still be increasing, but at a much
slower rate; they are leveling off. At this stage of the product s life cycle, many outlets are selling the

product or service; they are very competitive, especially with respect to price, and firms are trying to
determine ways to hold on to their share of the market. Ski resorts are an excellent example of a
mature product. After years of spectacular growth, sales are now leveling off, and the resorts are
looking for ways to hold market share and diversify.

'

Saturation

In the saturation stage, sales volume reaches its peak: The product or service has penetrated the
marketplace to the greatest degree possible. Mass production and new technology have lowered the
price to make it available to almost everyone.

Decline

Many products stay at the saturation stage for years. However, for most products, obsolescence sets in
and new products are introduced to replace old ones. In the decline stage, demand obviously drops,
promotional expenditures are lower, and there is usually a smaller number of competitors. Although it
is possible for a product to do very well in this stage of the product life cycle, there is not a great deal of
comfort in getting a larger share of a declining market. Hot springs resorts are a good example of a
tourist product in the decline stage. These facilities, at their peak in the 1920s, are no longer the
consumer

' s idea of an '' in '' place to go.

Service Quality

Service quality perception of the service component of a product. Service quality is

an important element of the marketing mix and in building and delivering a competitive advantage in
tourism.
Outstanding service quality leads to customer satisfaction, which leads to repeat business.
Customer satisfaction and loyalty are the keys to repeat business and long-term pro tability. Keeping
customers satis ed is everybody's job in an organization. Employees should strive to exceed customer
expectations.
Since in tourism there are many service transactions over the course of a trip, or a vacation, it is
increasingly useful to introduce the concept of the quality of the experience (QOE)

is the customers '

where tourism
experience consists of a complex chain of service transactions and visitor participation in a broad range
of activities and events. Using this framework, the goal of the tourism managers is to provide the

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