Segmenting Downhill Skiing’s Latent Demand Market

ABSTRACT: This journal article covers the participants and non-participants in the sport of downhill skiing as surveyed in Alberta Province, Canada. The researchers in this study found that there is a wealth of quantitative and qualitative data on the participation rates and constraints of downhill skiing. The reason for this study is for tourism management and for the ski industry to evaluate how to gain more participants. If tourism boards and ski resorts can help to alleviate these constraints, they can gain more valuable participants. The researchers also embarked on this project to find the reasons for the stagnating Canadian ski industry. The methodology of the research was both qualitative and quantitative. The qualitative approach was carried out with focus groups that helped to clarify the reasons that keep people from skiing. The quantitative approach was performed with a survey of people over 17 who had never skied or had not skied in the last two years. The survey was performed randomly in Alberta with a demographic match of the province. To evaluate the commonalities and differences in the data, the researchers used robust cluster analysis techniques. Through the survey the group found that there are several constraints to participation in skiing according to the six subgroups the cluster analysis identified. The most commonly mentioned aspect was fear, skiing gave respondents the ideas of steep mountainsides, bodily harm, learning to ski, using lifts and skiing out of control. Another highly restrictive element was the cost of skiing and the perception of it as an expensive and elitist sport. They viewed several aspects of the sport as expensive such as equipment, along with lessons, lost time, lift tickets and transportation. The commitment to becoming competent at skiing was also highly restrictive to these non-participants. Of the six subgroups, it was determined that the “Young Family” and “Social Adventurer” groups showed the highest likelihood of skiing in the future, while the other four groups (Rural Sedentary, Upwardly mobile, Fearful Elder, Disinterested) showed little to no chance of converting to the sport. Most respondents suggested hassle-free beginner packages as the most likely method of luring them to a ski resort. This study found that to most of these latent demand groups, skiing is just to frightening and expensive, although, with some work by the ski resorts, they could lure those respondents that look favorably upon the sport.

Data Sources:

Survey Performed by Marktrend Marketing Research, Inc. 1990

Subcategory data:

Stynes et al. 1980. Michigan Downhill ski marketing study: A comparison of active, inactive, dropout and potential skier market segments. (Research Rep. 389) Michigan State University, Agricultural Experiment Station.

Robust Cluster Technique:

Green et al. 1988. Research for Marketing Decisions (5th ed.) Englewood Cliffs, NJ: Prentice Hall.

Williams, Peter. 1992. “Segmenting Downhill Skiing’s Latent Demand Markets.” American Behavioral Scientist. Vol. 36, No. 2, November 1992, p.222-235.