New Methodology for Analyzing Competitive Positions: A Demonstration Study of Travelers' Attitudes Toward Their Modes of Transport

This research introduces a new methodology for analyzing the competitive relationships among a set of choice alternatives. The nonparametric methodology recommended for analyzing the competitive relationships works on a disaggregate level. It combines an exploratory step—condensing the attitudes about modes into a small set of attitudinal patterns—with an inferential step of using contingency for pairs of alternatives to examine relationships. A simple coefficient derived from these tables indicates the amount of “similarity” competition. Data on travelers' attitudes toward the modes of transport train, air, and bus are used to illustrate applying the methodology. Segments are identified based on specific attitudes. Interdependence of attitudes means that, for example, a consumer's judgment of air travel influences his/her simultaneous judgment of train travel. Asymmetry of the travelers' belief systems implies that managers of airline, train, or bus companies face unequal attitudinal conditions in their target groups leading to competitive advantage or disadvantage. For the segments the meaning and implication of attitudes towards modes being interdependent and not symmetric is considered. The results obtained are not meant to be generalized. Rather they are a vehicle to highlight the method's value for both researchers and practitioners for studying the competitive positions of businesses associated with classes of tourist products or services.