Shopping decisions of international tourists to Korea: The Heckman sample selection approach

Most tourist destinations strive to attract more international tourists because shopping expenditures by those tourists affect the balance of international payments and can invigorate a sluggish domestic economy. With a large sample of international tourists to Korea (N=9636), this study examines how they make shopping decisions, and how their shopping behaviors are differentiated by gender. Using the Heckman sample selection model, assuming a sequential decision-making process for shopping activities, the study also attempts to identify several factors that shape international tourist shopping behaviors. Findings indicate that international tourists first consider whether or not to purchase products and then determine how much they will spend. The results show that gender plays an important role in the formation of consumer behaviors. Based on these findings, the study suggests some useful management implications that will enable destination marketers to improve the quality of their clientele's shopping experiences.