This study intends to investigate market segmentation of Taiwanese tourists based on their motivation to visit Indonesia, to investigate Taiwanese tourists’ preference of several types of tourism destinations offered in Indonesia, and to propose marketing strategy based on market segmentation and tourists’ preferences revealed. One thousand questionnaires were distributed to Taiwanese who especially live in three big cities: Taipei, Kaohsiung, and Taichung. There were 678 data collected (67.8% response rate) and 641 data could be used for further data processing. By using factor analysis, it was known that there were 19 important variables included in three factors solution: learning-in-relax, external appeals, and special visit. Afterwards, by using the selected variables, number of clusters was determined and market segmentation was revealed. Methods used were Self Organizing Maps and Particle Swarm K-means Optimization, respectively.
There were four clusters formed: passive tourists (26.68%), learning-in-relax tourists (32.92%), high perception tourists (18.56%), and high variation tourists (21.84%). It is strongly suggested to target learning-in-relax tourists and high perception tourists since they have already had good perception toward image of Indonesia tourism. Moreover, by using perceptual map, it was also known that most of respondents tend to visit heritage, culture, and nature-based tourism destinations offered in Indonesia.
Keywords: Market segmentation, Taiwanese, tourists’ motivation, Factor Analysis,PSKO, Perceptual Map