TABLE OF CONTENTS
I. Report Introduction
II. Executive Summary
III. Statistical Tolerance of Survey Data
IV. Methodology
V. Sampling Issues Geographical Groupings for this Study
VI. Consumer Demographics
VII. Consumer Diving Activities
VIII. Diving Equipment Brand Purchasing and Use Habits
IX. Certified Group Segmentation Responses
X. Diving Equipment Brand Perceptions and Ratings
XI. Consumer Profiles
XII. Appendix: Consumer Questionnaire
XIII. Cline Group Corporate Profile & Client List

I. Report Introduction
The Cline Group independently commissioned a nationwide study of the diving industry in October and November 1996. The study surveyed two different groups of diving consumers, representing the largest, most diverse group of diving consumers ever surveyed. The two sources for lists were as follows:
Group 1: Active divers having recently participate din dive travel activities to a Caribbean location within the past 12 months.
Group 2: Any diver certified over the last seven years, randomly drawn from PADI’s database of all certified divers. This study represent the most comprehensive study on consumer attitudes and opinions ever conducted for today’s diving consumers. Each list was sampled using the computer-generated random number selection methodology, ensuring a random and unbiased sample. All consumers were surveyed for this study, with the following objectives:
1. Study the relationship between diving consumers retailers and diving manufacturers.
2. Create a popularity index and ranking for various equipment manufacturers.
3. Establish consumer perceptions for both hard and soft goods across a wide-variety of brands.
4. Determine what features a consumer looks for when selecting a brand or manufacturer.
5. Create a base-line of consumer information and indexes for brand recognition. As this study involves sampling and surveying the largest cross-section of diving consumers to date, the data collected from that study is, in this organization’s opinion, the most valid diving consumer data ever collected, regarding dive equipment manufacturing and brand recognition. What makes this study unique to the diving industry is that this data is not only based upon surveying active divers, but also based upon PADI’s massive diver database as well, making this the most diverse consumer sampling ever conducted in the history of the diving industry.

           RETURN TO TABLE OF CONTENTS

VI. Consumer Demographics tables and conclusions within this report:
1. The responses to each question are grouped according to similar classifications and are listed in numerical order of response. The total number of subjects responding to each question are also indicated.
2. All answers are listed in percentages or mean (average) figures for a given response. Some responses total more that 100% due to survey subjects responding with multiple answers. The actual number of responses are listed after each percentage breakdown and labeled ‘Count’.
3. Most questions are broken-down into three classifications; A) Certified–representing the PADI database of all certified divers, regardless of diver activity level; B) Active–representing divers that have taken a tropical dive vacation out of the U.S. within the last 12 months; and C) Overall–the combined representation of both groups combined, generally providing the most accurate data analysis.
4. Where helpful, a chart or series of charts are displayed after a given question’s response, to graphically represent significant portions of the data.
5. Where there is a significant finding, a subjective analysis of the data is given for application of the reported findings.
6. All data analyzed within this report is taken directly from the survey collected for this study, however, within later sections, a previous consumer study will be clearly identified and referenced for projecting total industry expenditures and other projections.
7. Although the ‘Overall’ classification contains the outlined error rates, caution should be exercised in interpreting any segmentation data with a count of less than 50 subjects. The certified versus active segmentation breakdowns are provided for a point of reference only, the main trends and analysis will be focused on the ‘Overall’ heading, or the total response for a given question. The results from this consumer study are as follows:

RETURN TO TABLE OF CONTENTS

VII. Consumer Diving Activities

Q1.1 What is your highest diver certification level? Conclusions As evident, the certified group has a much higher proportion of entry-level certified divers. Whereas the actives appear to be more evenly distributed. Overall, the majority of divers are certified at the Open Water or equivalent level.

Q1.2 Through which agency were you last certified? Conclusions As the entire list for the certified sample came from PADI, only the active group is reported, due the bias of the PADI list in this question. However, among active divers, PADI has roughly a 65% marketshare, with NAUI coming in at 18%. All others have too few respondents to accurately determine ranking.

Q1.3 How many years have you been actively scuba diving? Conclusions As indicated, the average certified diver has been active for roughly 7 years, whereas the active diver has been active for almost 10 years. It should be noted that respondents may have answered this question with their total certification time, rather than actual active years diving.

Q1.4 Approximately, how many dives have you completed to date? Conclusions As indicated and what would expected, the active group has completed nearly 3 times as many dives as the certified group. It is interesting to note that the largest part of the certified group has completed less than 10 dives (17%).

Q1.5 How many dives have you completed in the last 12 months? Conclusions As indicated, 33% of the certified group did not dive at all in the last 12 months. As what would be expected, 90% of the active group have been diving have been diving at least 5 dives or more.

Q1.6 How many dive vacations out of the U.S. did you take last year? Conclusions Again, as reflective with the diving activity, a large portion of the certified group did not take a dive vacation last year, as compared to the active group (62% for certified and 24% for active).

Q1.7 Approximately, how much total did you spend on vacations out of the U.S. last year in which you participated in diving activities (including airfares, activities, food, lodging, diving etc.)? Conclusions This table clearly proves a relationship between diving activity and travel expenditures, as the average active group participant spent over $1,000 more on diving activities in 1995.

Dive Trip Expenditures Crosstab Analysis Using the information reported in the above question, it is possible to crosstabulated dive trip expenditure by a variety of questions, creating a profile for the largest dive travel spenders.

Q1.7-1 Vacation Expenditures by Certification Level Conclusions As evident, the higher the certification, the more spent on dive vacation.

Q1.7-2 Vacation Expenditures by Number of Dives Completed to Date Conclusions As what would be expected, there is a clear relationship between diver activity and travel expenditures. The highest reported expenditures are with divers that have made 201 or more dives.

Q1.7-3 Vacation Expenditures by Number of Dives Completed in the Last 12 Months Conclusions Again, the highest reported expenditures are with divers that have made 20 or more or more dives within the last 12 months.

Q1.7-4 Vacation Expenditures by Respondent’s Gender Conclusions Among the certified group, males spend nearly $500 more than females on dive vacations, whereas among the active group, females spend almost $800 more. However, when both groups are averaged, males spend slightly more on dive travel than females.

Q1.7-5 Vacation Expenditures by Respondent’s Age Classifications Conclusions The largest spending group appears to be within the 50 to 55 age bracket, with the three age classifications beneath following closely (40 to 49). There is a slightly younger peak among the active group (45 to 49) as compared to the certified group (50 to 55). The largest drops in expenditures appear to come from the 35 to 39 group, possibly accounting for family or career commitments at that stage in their lives.

Q1.7-6 Vacation Expenditures by Respondent’s Profession Conclusions As what would be expected, the professional classification is among the highest. However, it should be noted that any count response below 8 should be viewed as exploratory data only.

Q1.7-7 Vacation Expenditures by Respondent’s Household Income Conclusions Interestingly, one of the highest vacation expenditure groups is one of the lowest income classifications ($19,000 or less). This may be picking up student dive travel, where a parent or other is paying for travel. Additionally, the second lowest classification, $20,000 to $29,000, is very high as well.

Q1.7-8 Vacation Expenditures by Date of Last Dive Equipment Purchase Conclusions This question compares the date of a consumers last dive equipment purchase to their average dive travel expenditure. Furthermore, this table indicate a clear relationship between purchasing dive equipment and trip expenditures. As indicated, the largest dive travel expenditures are with divers that have purchased a piece of equipment, costing more than $100, within the last 2 years. The largest average appears with divers not purchasing for at least 1 year, but not more than 2 years ($4,161 overall average).

Q1.7-9 Vacation Expenditures by Region of Residency Conclusions Although there are slight variations among the two groups, generally, all three regions spend equally for dive vacations as a whole. Slight increases are seen on the Eastern Region for the certified group, and the Midwest for the active group.

Q2.1-2 Dive Equipment Expenditures by Number of Dives Completed to Date Conclusions As what would be expected, there is a clear relationship between diver activity and equipment expenditures. The highest reported expenditures are with divers that have made 201 or more dives.

Q2.1-3 Dive Equipment Expenditures by Number of Dives Completed in the Last 12 Months Conclusions The highest reported expenditures are with divers that have made 30 or more dives within the last 12 months.

Q2.1-4 Dive Equipment Expenditures by Dive Travel Expenditures Conclusions Clearly, divers that spend more on dive travel, spend more on dive equipment. As indicated, divers that spend in excess of $2,000 annually on dive travel, spend almost twice as much on dive equipment each year. This response proves a clear relationship between travel and equipment expenditures.

 

Q2.1-5 Dive Equipment Expenditures by Respondent’s Gender Conclusions As indicated, male respondents spent on average, overall, almost $1,300 more on dive equipment than females respondents. These differences are even more pronounced in the active group, where males spend nearly $1,600 more.

Q2.1-6 Dive Equipment Expenditures by Respondent’s Age Conclusions What might be expected, the older the participant (to the age 49), the larger the dive equipment expenditure. This trend stops at the 50 to 55 age classification. The largest age equipment expenditure group is the 45 to 49 age classification.

Q2.1-7 Dive Equipment Expenditures by Respondent’s Residency Conclusions It appears that the Midwest region spends more for dive equipment than elsewhere, in the active group. However, when all are averaged, all three spend nearly the same amount.

Q2.2 What was the last piece of diving equipment you purchased that cost in excess of $100 (if more than one, please list the most expensive)? Conclusions Interestingly, the number one item costing $100 or more purchased was a BCD, followed by ‘noting’ and diving computers. Actually, given the error rates for the overall classification, little differences are reported between the second, third and fourth line items. However, the BCD is clearly the number one classification, overall.

Q2.3 What was the approximate month and year of the purchase (referring to question 2.2)? Conclusions When the two groups are compared, there is again a significant difference between buying frequency for the active group as compared to the certified group (4.3 years for last purchase for the certified group and 1.3 year for the active group).

Date of Last Equipment Purchase Crosstab Analysis Q2.3-1 Dive Equipment Expenditures by Date of Last Dive Equipment Purchase Conclusions This question compares the date of a consumers last dive equipment purchase to their average dive equipment expenditure. As indicated, those that purchased within the last two years tend to spend more, overall, on dive equipment.

Q2.4 Who was the manufacturer or brand of the item purchased (referring to question 2.2)? Conclusions Based on the last purchase, U.S. Divers has the number position in the U.S., with Sherwood and Dacor following closely. Given the error rates, there is little difference between the third and fourth brands overall (Dacor and Seaquest) in terms of marketshare. Due to the small sample size, only the first 5 to 6 responses are accurate. This question asked which brand was last purchased, and will vary when compared to question 2.7 asking which brands have ever used or purchased. It is also important to note that this marketshare breakdown reflects items retailing for $100 or more and does not take into account masks, fins, snorkels, or other items retailing for less than $100.

Q2.5 What source was most influential in your decision to select that particular product or brand (referring to question 2.2)? Conclusions As indicated, the dive retail staff ins the single largest source for purchasing dive equipment. According to the certified group, the retailer is used in 60% of the time, as compared to the active group’s 41% of the time. However, the ‘friend or other diver’ refers the active diver almost 20% more than the certified group. As this question was a multiple response answer, the percent a cases is also shown, indicating the percentage of times a particular response was selected. Other significant differences are noted with the magazine editorial classification, as the active group uses this source 12% of the time, whereas the certified group only uses this source 4% of the time. Another interesting point is that price is located equally down the list with both groups, and varies less than .2%.

Source of Purchasing Influence Crosstab Analysis Q2.5-1 Dive Equipment Expenditures by Source of Purchasing Influence Conclusions This response compares how each respondent is influenced to buy equipment, then compares the average amount spent to date on dive equipment. As evident, dive store personnel influence more sales with the active group than friends’ or other divers’ influence.

Q2.6 Which single publication (if any) is most influential in your decision to purchase dive equipment? Conclusions As illustrated, there are large differences between the two groups in terms of publication influence. Skin Diver has the largest influence of the certified group, whereas Scuba Diving has the largest influence for the active group. Both these differences are significant in terms of error rates, and are clearly the most influential for each group. When both groups are combined, statistically, there is little difference in terms of influence between Skin Diver and Scuba Diving, with Skin Diver pulling slightly ahead overall. Dive Training does maintain a clear third place, however, there is a significant difference in terms of response, even with the error rates, between Dive Training and Skin Diver or Scuba Diving.

Publication Crosstab Analysis Q2.6-1 Dive Equipment Expenditures by Dive Publication Influence Conclusions It appears that respondents that read Scuba Diving magazine appear to spend more on dive equipment, by almost $1,000, over Skin Diver readers. This trend is equalized with the active group, and Skin Diver’s readers outspend Scuba Diving’s by less than $100, indicating nearly equal buying power with this active group. However, when both groups are averaged, Scuba Diving magazine’s readers spend, on average, almost $500 more on dive equipment than Skin Diver’s readers. Although the Dive Training sample is very small, and caution should be exercised when interpreting the results, it appears that Dive Training readers spend, on average, over $2,000 more on dive equipment than Scuba Diving’s or Skin Diver’s readers. Caution should be used when viewing any data derived from less than 8 responses overall for this question.

Q2.7 Please indicate if you own or have used any dive equipment manufactured by the following companies (check all that apply)? Conclusions The above table represents a true marketshare in terms of consumer use and purchasing. As this question was a multiple response answer, the percent a cases is also shown, indicating the percentage of times a particular response was selected. As indicated, the top brands are Dacor and U.S. Divers by a significant margin, followed by Sherwood, Scubapro and Seaquest. However when the two groups are analyzed, there are differences between the various brands. It appears that U.S. Divers has the number one position with the active diver group, whereas Dacor has the number one position with the certified group. Other significant differences are noticed with Oceanic, TUSA, Henderson, Cressi-Sub and Ocean Edge between the two groups.

 

Q2.8 Have you ever purchased any dive equipment through the mail? Conclusions According to the above data, overall, almost 38% of all divers have purchased dive equipment through the mail. However, a significant difference is notices between the two groups, as only 26% of the certified groups has utilized direct-mail, compared to 55% for the active group.

Direct-Mail Crosstab Analysis Q2.8-1 Dive Equipment Expenditures by Direct-Mail Purchase Conclusions Overall, there are little differences in the total amount spent on dive equipment when direct-mail is considered. However, significant differences are noticed among the certified group, as those that utilize direct-mail spend, on average, over $540 more on dive equipment purchases.

Q2.9 Why did you purchase the above mentioned item(s) through the mail (refers to questions 2.8)? Conclusions Clearly, the number one reason for utilizing direct-mail is a product’s price, with the stoniest response appearing in the certified group. Additionally, convenience and availability are nearly the same overall for second.

Q2.9-1 Dive Equipment Expenditures by Direct-Mail Purchase Conclusions Overall, the largest equipment expenditures were from respondents that selected ‘Selection’ as the reason for purchasing through the mail. Second and third were ‘Price’ and ‘Availability’ for the highest expenditures.

Q2.10 On a scale from 1 to 9, with 1 being not important, and 9 being extremely important, how important are the following to you when considering a new equipment purchase? Conclusions This chart indicates attributes a consumer looks for when selecting a dive product. The most desired attributes for a product, as reported by both groups is Product Quality. As 5 is the midpoint on this scale, indicating neither a positive or negative attribute, this score of 8.8 is extremely positive. Dependability is extremely close to product quality, and given the error rates, statistically very close to product quality as the most desired attributes. Interestingly, little differences are noticeable between these two groups for these desired attributes. Also, price is located near the bottom as an important attribute, however, is significantly above the 5 or midpoint on the scale, so is important, just not nearly as important as the other listed attributes. This question will be compared to the equipment brand matrix in the next section.

 

Q1.b What was the date of your last scuba dive? Conclusions This question is to determine actual activity level. As indicated, 83% have participated in diving activities within the last three years. The most active divers appear to live in the eastern region, with the least active (by a narrow margin) living in the westerns region of the U.S.

Crosstabulations Based upon a Diver’s Perceived Activity Level Q1.b-1 Diver’s Perceived Activity Level by Time Since Last Scuba Dive Conclusions This table represents the first time a diver’s perceived activity level has actually been compared to their real dive activity. As indicated, the inactive diver has not made a dive, on average, for almost 3 1/2 years, the somewhat active for slightly over one year, the active within the last 5 months and very active within the last 3 months. It is interesting to note that the somewhat active diver has been diving as recent as a year ago, yet they still consider themselves somewhat active.

Q1.c How would you classify your current diving status? Conclusions As illustrated, nearly 62% of the respondents indicated that they felt they were inactive or somewhat active. This is a very interesting question and response, given the nature of the sample. Additionally, in the previous question, over 80% responded that they had dove in the last three years, yet in this questions, over 60% feel they are inactive or somewhat active. This question deals with a diver’s perception of their diver activity level, an important psychological consideration in marketing to inactive or somewhat active divers. Based on this question, several of the questions in this study are crosstabluated for further analysis.

Q1.d If your diver status in "inactive", do you plan to become somewhat active or active again in the future? Conclusions It is interesting to note that 96% of the respondents that responded to the previous question of feeling inactive, plan to become more active in diving in the future.

Crosstabulations Based upon a Diver’s Perceived Activity Level Q1.c-1 Diver’s Perceived Activity Level by Years Actively Scuba Diving Conclusions There is a clear relationship between the time a diver has been certified and their perceived activity level. As indicated, the less active a diver feels they are, the less number of years they have been actively diving. It is interesting to note that over half (54%) of those that identified themselves as inactive, have been actively diving for 3 years or less.

Q1.c-2 Diver’s Perceived Activity Level by Total Number of Dives Completed to Date Conclusions This table shows that there is a clear relationship between the number of dive completed and a diver’s perceived activity levels. As evident in the second chart, the less active a diver feels they are, the fewer total dives they have completed. It is also interesting to note that even an inactive diver, has actually, on average, made at least 40 dives.

Q1.c-3 Diver’s Perceived Activity Level by Average Number of Dives Completed Within the Last 12 Months Conclusions This response indicates actual diving activities by the various perceived active groups. As indicated, 84% of the inactive group made no dive within the last 12 months of this survey, yet 16% actually made 5 or more dives. This would seem to indicate that a person considers themselves inactive if they don’t dive within 12 months, a condition that in itself, does not qualify them as active.

Q1.c-4 Diver’s Perceived Activity Level by Number of Dive Vacations Taken Last Year Conclusions This question is an attempt to classify a divers perceived activity level by their actual dive travel activities. It is interesting to note, that again, 16% of the inactive group took vacations, yet they still consider themselves inactive. Also, a person only considered themselves active if they take a dive vacation each year (actually .8 times a year, or 2.5 times in three years). When the averages for each group are tabulated, even the inactive group still takes a dive vacation, on average, at least once in three years, a factor that would qualify them in the industry as active.

Q1.c-5 Diver’s Perceived Activity Level by Amount Spent on Dive Vacations Last Year Conclusions This table reflects the travel activity shown in the previous tables, but that 38% of the inactive group actually spent over $500 dollars on dive vacation activities. Clearly, the inactive and active group still take some dive vacations, although not at the same level as the active or above, yet still spend significant amounts on dive vacation activities.

Q1.c-6 Diver’s Perceived Activity Level by Amount Spent on Dive Equipment to Date Conclusions These tables appears to show relationship between the amount spent on dive equipment and perceived activity level. 56% of the inactive group indicated they spent $500 or less on dive equipment, whereas that percentage in the other groups is lower as the perceived activity level rises (15% for somewhat active, 19% for active and 11% for very active).

Q1.c-7 Diver’s Perceived Activity Level by Date of Last Dive Equipment Purchase of $100 or More Conclusions As displayed, almost 30% of those that responded as being inactive, actually spent $100 or more on dive equipment within the last 12 months. However, the averages indicate that 60% of the certified group had not purchased any dive equipment for at least 3 years. Interestingly, it appears the active group is the most recent to purchase dive gear, as they purchased within the last 1.3 years.

Q1.c-8 Diver’s Perceived Activity Level by Direct-Mail Purchases Conclusions This analysis indicates that the largest percentage of direct-mail purchases appear the be the active diver group, even more than the very active group.

Q1.c-9 Diver’s Perceived Activity Level by Respondent’s Gender Conclusions Without question, we see a drop off in the female diver population as the perceived activity level increases. As indicated, the female group goes from 36% in the inactive group to very little in the very active group. Note: due to the small sample, female divers were not recorded in the very active group. They obviously exist, just the percentage is smaller than the active group. This table presents a clear problem in female diver dropout in the industry, as illustrated by the shrinking female group in each perceived activity classification.

Q1.c-10 Diver’s Perceived Activity Level by Respondent’s Age Conclusions This analysis also points to the fact that the younger divers are dropping out faster than the older divers, as indicated by the raising median age for each perceived group. The 30 year old and younger groups go from 40% at the inactive stage, to 32% at the somewhat active stage, to 26% at the active stage, and finally to 22% at the very active stage. This points to a clear pattern of the industry loosing the younger divers. As a note, some of this dropout bay be attributed to normal demographic patterns at these various age levels, i.e. family, careers, income, etc. However, regardless of why the inactivity, at one time they were active, if only for the initial certification class.

Q1.c-11 Diver’s Perceived Activity Level by Respondent’s Profession Conclusions The most interesting profession to watch in this analysis is the student line. The student group starts out at the 24% mark for inactive, and drops some at the active stage, then to nothing at the very active group, indicating that perhaps a students are certified then no longer continue to participate.

Q1.c-12 Diver’s Perceived Activity Level by Respondent’s Household Income Conclusions Interestingly, the inactivity issue appears to have little to do with household income, as the inactive group is actually higher than the somewhat active group.

Q1.c-13 Diver’s Perceived Activity Level by Respondent’s Residency Conclusions It appears that the largest percentage of inactive divers live in the eastern regions of the U.S., as this regions represents over 50% of the inactive and somewhat inactive groups. However, given the error rates and small sampling, there is little deviation from the overall averages for each region.

Q1.e How many dives do you plan to make in the next 12 months? Conclusions As indicated, nearly 90% of the group plan to make a dive in the next 12 months.

Crosstabulations Based upon a Diver’s Perceived Activity Level Q1.e-1 Diver’s Perceived Activity Level by Planned Number of Dives to Make in Next 12 Months Conclusions Interestingly, 68% of the inactive group plan to make at least one dive in the next 12 months. This may not reflect actual conditions, by a large percentage of inactive divers have a desires to dive again.

Q1.f When was the last time you went on a dive vacation out of the U.S.? Conclusions As indicated, the average diver went on a dive vacation slightly over 1 1/2 years ago. The number of years climbs for the western regions to almost 3 years, and drops to slightly over 1 year for the eastern region. Clearly, the eastern region of the U.S. takes more dive vacations that the Midwest and west.

Crosstabulations Based upon a Diver’s Perceived Activity Level Q1.f-1 Diver’s Perceived Activity Level by Years Since Last Dive Vacation Conclusions This table indicates that 68% of inactive divers, still took a dive vacation once within the last three years. The average times generally declines for each perceived group, with the exception of a ‘spike’ in the data for the very active group. This spike may indicate a large response, but due to the small sample responding to as very active, large variations are possible in the data. However, if the 3 year point is where a diver is considered inactive, then 32% of the inactive group, 15% of the somewhat active group, 14% of the active group and 22% of the very active group are actually inactive from a dive travel standpoint.

Q1.g Where did you go on your last dive vacation out of the U.S.? Conclusions Due to the very small sample for this questions, only the top three two responses are accurate. All others are for exploratory purposes only. However, the averages for dive trip will remain accurate down to 4 responses. As indicated, the top destination was The Bahamas, in terms of number of dive vacations, but well below several other for average trip expenditure. It should also be noted that only one response separates the Bahamas and Cozumel, and there is another Mexico classification for unspecified locations in Mexico, so it is entirely possible that Cozumel is much higher than reported. It is interesting to note that both the Bahamas and Cozumel have a very similar dive trip expenditure level. However, Bonaire and Cayman are nearly twice the amount reported for the Bahamas or Cozumel.

Q1.h Which single publication (if any) is most influential in your decision to select a dive destination or resort for your dive vacations? Conclusions This question attempted to determine which publication was utilized for dive trip booking information. Again, due to the small sample sizes, only the top two responses are accurate, all others are for exploratory purposes only. As indicated, Skin Diver’s readers spend more on dive travel with the certified group, than Scuba Diving. However, Dive Training is rated very high for expenditure, although the sample is very low.

RETURN TO TABLE OF CONTENTS

XII. Appendix: Consumer Questionnaire U.S. Retailer Questionnaire - Telephone Script

           RETURN TO TABLE OF CONTENTS