CONSUMER MARKETS and CONSUMER BUYING BEHAVIOR

CHAPTER 6

Consumer Behavior/Market Response

How has the hotel industry responded to the increase in women travelers?http://www.youtube.com/watch?v=s_-zWMA6JsQhttp://www.womenontheirway.com/

A Model of Consumer Behavior

Factors Influencing Consumer Behavior

Cultural Factors Culture

Values, perceptions, wants and behaviors learned in society Determine what we eat, where we travel, where we stay,

what we buy during the trip Subculture

Groups of people with shared value systems based on life experiences (nationalities, religions, racial groups and geographic regions.)

Hispanic, African American, Asian Tipping, Hand Shakes, etc.

Social Class Upper uppers, lower uppers, upper middle, middle, working,

upper lowers, lower lowers Majority of people are consider to be in the middle (32%)

and working (38%) class Based on what?

International Consumer Behavior

Many things change when you go to another country

Values are different in different countries ex. Asian countries tend toward collectivism and Western countries tend toward individualism

In Saudi Arabia, should a Western woman shake hands with a man?

How about other cultures?

Social Factors 1. Consumers’ Groups

Membership groupsReference groupsAspirational groupsOpinion leaders

2. Family- most important consumer buying organization

-How are families changing? Who is most influential on you?http://www.youtube.com/watch?v=exZqqd8f87Ahttp://www.youtube.com/watch?v=maeXjey_FGA&list=PLC8470BC499E2CB2B

3. Roles/StatusRoles = Activities expected based on environment and peopleRoles include status and people often choose products that show their status in society.

4. Online Social NetworksHow has this changed how marketers interact with customers?

Personal InfluencesPersonal Influences

Age and Life Cycle Stage

Age and Life Cycle Stage OccupationOccupation Personality &

Self-ConceptPersonality & Self-ConceptEconomic

SituationEconomic Situation

ActivitiesActivities InterestsInterests

Lifestyle IdentificationLifestyle Identification

OpinionsOpinions

Personal Factors

Personal FactorsAge and Life-Cycle Stage

Preferences for leisure travel, destinations, food, etc.http://www.youtube.com/watch?v=oAdvZ_qi9Bkhttp://www.youtube.com/watch?v=vE3P_Tt490Ihttp://www.youtube.com/watch?v=p45Dj3HttFI

OccupationEconomic SituationLifestyle

A person’s pattern of living as expressed in his or her activities, interests, and opinions Values and Lifestyles (VALS) framework: 8 segments

http://www.strategicbusinessinsights.com/

Take the VALS survey and report your VALS type!

Lifestyle DimensionsActivities Interests OpinionsWork Family ThemselvesHobbies Home Social IssuesSocial Events Job PoliticsVacation Community BusinessEntertainment Recreation EconomicsClub Membership Fashion EducationCommunity Food ProductsShopping Media FutureSports Achievements Culture

Personal FactorsPersonality and Self-Concept

Personality is a person’s distinguishing psychological characteristics that lead to relatively consistent and lasting responses to his or her environment Self-Concept is the complex mental pictures people have of themselves, also known as self-image

http://www.youtube.com/watch?v=bRqFPAKQ7WUhttp://www.youtube.com/watch?v=2xvmNHTw9xs

Psychological FactorsMotivation Herzberg’s Theory

A two-factor theory that distinguishes dissatisfiers (factors that cause dissatisfaction) and satisfiers (factors that cause satisfaction)

Maslow’s Theory of Motivation Sought to explain why people are driven

by particular needs at particular times

Physiological Needs(hunger, thirst)

Safety Needs(security, protection)

Social Needs (sense of belonging, love)

Esteem Needs (self-esteem)

Self Actualization

Maslow’s Hierarchy of Needs

Psychological FactorsPerception

Selective Attention Consumers are constantly bombarded with

information and will screen out stimuli http://www.youtube.com/watch?v=vJG698U2Mvo Cocktail party effect – tune in one voice and tune out others

Selective Distortion People subconsciously try to make new

information fit their old ideas about something; to interpret information in a way that will support what they already believe

Messages do not always come across in the same way the sender intended.

Selective Retention People will forget much that they learn but

will tend to retain information that supports their attitudes and beliefs

Some Psychological terms- Perception (psychological factor) is reality – how

do consumers form perceptions? What happens if they are not accurate?

- more important than the reality, as it is perceptions that will affect consumers’ actual behavior

- Learning – describes changes in an individual’s behavior arising from experience

- - Beliefs -(what we think is fact) come from

perceptions. (Psychological factor)

- Attitudes – a person’s relatively consistent evaluations, feelings, and tendencies toward an object or an idea. It is subjective, emotional. Tendency to respond toward belief.

WHY DO PEOPLE BUY?Why do you travel to a destination or stay in a specific hotel?

What are the basic thing that you might expect from a hotel or destination?

Where do these things fall on Maslow’s hierarchy of needs and Herzberg’s Theory?

HOW DO PEOPLE BUY?

How would you choose a hotel in a city you have never been to before, or a place to vacation?Let’s follow the consumer buying decision process model (Figure 6-3).

Buyer Decision Process

PostpurchaseBehavior

Purchase

Decision

Information

SearchNeed Recognitio

n

Evaluationof

Alternatives

Purchase Decision

THE KEY TO SUCCESSKnow what the customer wants!

You need to position on those things that are meaningful.

How do consumers make their decision on what destination to select or what hotel to stay in?

What is unique about hospitality and tourism consumers?

Evaluating goods vs. services Price vs. quality Loyalty to good products/services Dissatisfaction vs. Complaint

ConclusionConsume behavior is purposeful and goal orientedThe consumer has free choiceConsumer behavior is a processConsumer behavior can be influenced There is a need for consumer education