Vacation Decision Making - Research Paper Example

? holiday decision making al Affiliation) Key words: Purchase Decision Making, consumption The family market is continually growing as an important sect within the tourism industry, with children having a considerable influence on the decisions made by families as regards days out and family holidays. The paper herein considers the trends, characteristics, and demographics of the family market, going ahead to examine how various family members participate in the decision-making process and the factors that prompt such decisions. It investigates the consumer choices of families with children with a specific focus on holiday decisions. Background It is arguable that the largest intervening sub-sector in the decision-making process of consumers is family influence. Marketers exhibit interest in the relative influence and the roles that the wife, children, and husband have on how a large variety of services and products are purchased. A family tends to make joint decisions regarding its vacations and holidays. There has been a tendency for previous studies to focus on the making of decisions involving wife and husband, and spousal interpersonal conflict, instead of the family unit in entirety including children. Previous research conducted on holidays mentions a limitation in light of not considering what impact children can make on the decisions made by families, in addition to the great use they have in demographic segmentation. This is therefore an area of research that is particularly underexplored and requires some investigation. Research question What are the factors that influence a family’s decision about where to go on holiday, and what is the relative importance of these factors? Literature review Decision factor Individual family members regularly serve different decision roles that ultimately function to draw on shared family resources. Some of the individuals are information holders/gatherers, and see out information pertaining products that are of relevance to their family. Often, these individuals carry a great deal of power owing to the fact that they may ultimately pass on information that tends to favor the alternatives they have chosen. As such, influencers are one primal component that underpins the consumer decisions of the family regarding holiday decision making. It is not an ultimatum that influencers possess the power to make decisions between alternatives (Belch, Belch, & Ceresino 2005). They however make their wishes well known by requesting for specific products, or espousing embarrassing situations in the event that their demands are met. Decision makers possess the power of determining issues such as: Whether to purchase What product to purchase What brand to purchase When to purchase; and Where to purchase it It is however worth noting that the roles of the decision maker and the purchaser are separate. From the marketer’s point of view, this tends to introduce some problems in that the purchaser may be targeted by marketing efforts allied to the point of purchase (POP), which cannot be directed at the decision maker. It is also imperative to note that there might be a blurred distinction between the purchaser and the decision-maker: The decision maker can possibly specify the kind of product to purchase, but not the brand; There may be need for the purchaser to make a substitution in the event that the desired brand is out of stock; The purchaser might possibly disregard instructions (deliberately or by error). It is worth noting that decisions made by families are in most instances subject to a lot of conflict. The incumbent reality is that very few families possess sufficient wealth to avert strong tension between the demands pegged on a family’s resources. There is high likelihood of conflicting pressure in families that have children, or/and in the event that it is only one spouse who works outside the home (Chavda,, Haley, & Dunn 2005.). Most of the decisions are inherently associated with values, and an objective way of arbitrating differences is often lacking. One spouse may hold the belief that it is imperative to save for the future of the children; the other may believe in the value of spending now (on computer equipment and private schools) in a bid to prepare for the future of the children. The complexity of the situation grows with the involvement of additional parties like children and other relatives (Decrop, 2006). Socialization Agents Researchers of consumer socialization have propounded that children play a pertinent role in their parents’ socialization. The influence that children have on their parents’ consumption decisions varies with the product’s nature, the stage in the decision process, as well as the child’s nature. Parents often seek the decisions of adolescents when they strongly believe that their children are knowledgeable. Socialization agents can be expected to not only influence their own consumption and purchases, but also the decisions of their parents to a much a greater extent compared to previous generations. The consumer socialization of adults is alluded to as secondary consumer socialization. This is ascribed to the alteration and development of existent primary knowledge to help individuals adapt and function in new environments. Research suggests a high likelihood of parents being influenced in regard to products they possess limited knowledge of, as well as those in which their children exhibit more interest in. parents who have insufficient knowledge or are seeking knowledge probably have a higher willingness to be influenced (Ekstrom., 2006). Socialization agents have sound influence on the decision making process of the family for the purchase of service or product categories in whose consumption they are directly involved. Socialization agents are groups and individuals that influence changes in the attitudes, emotions, self-concepts and behavior of learners. Most of the research conducted on consumer socialization has placed focus on the family as the prime agent of socialization. A socialization agent is bound to have some level of control over punishments and rewards for the learner. What this means is that the learners adjust their knowledge, attitude and behavior with reference to the agent, basing their actions on punishments and rewards. However, for the learners to appreciate the importance of the agents, they must ascribe social expert power to the agent. Social expert power Social power is a phenomenon in which an individual has persuasion ability based on certain attributes like expertise, knowledge or social standing. In general, the strength of expert power shifts depending on how extensive the knowledge that the learner accrues from the expert is. Children may therefore have a high potential of influencing their parents if the parents perceive them as experts within a particular area. Certain demographic variables may also function to influence expert power. For instance, research has demonstrated a difference in influence from child to parents with reference to the child’s gender (Quester, Pettigrew, & Hawkins 2010.). An example is the purchase decision of technology which is male-dominated. It is common for consumers to perceive men as being more knowledgeable about products of technology. Consequently, in light of technology product purchase in the family, sons may exhibit more expert power in comparison to daughters. When it comes to aspects of interior design, daughters are important as sources of information to their mothers. In light of holidays, there is a high level of difficulty in suggesting whether it is the daughters or sons who carry the greatest influence, or whether fathers are more likely to be influenced than mothers. Research methodology Primary sources of data Questionnaire A questionnaire carrying questions designed in a manner that sought to answer the research question was used to conduct this study. The results obtained from the research are intended to be put forward for consideration by holiday service and product marketers, in light of what family cues they should target to facilitate consumption of their products. Sampling procedure Purposive sampling was employed to obtain information from respondents within households in York. The sample sizes for different regions were determined by the formula below: n= N/ [1+N (e) 2] Where: n = required sample size N = population size e = level of precision The confidence interval is 90% and precision is 10% For this study, a total sample size of thirty respondents was used. Scale Reliability and Validity Measurement of variables within the questionnaire was carried out using a numerical scale. Data collection procedure The sample populace had the questionnaire administered to them physically. Physical administration was employed owing mainly to the fact that it is efficient and effective in that information is gathered immediately without delays, and the research tool is not misplaced by the respondents. Physical administration emerges as a reliable modus operandi in gathering feedback from respondents without costing them anything, and within a short frame of time. Merits of the questionnaire 1. Questionnaires tend to be quite practical 2. This research tool can be administered by the researcher in addition to any number of individuals, with limited ramifications for reliability and validity. 3. Software packages can quickly and easily quantify and analyze results obtained from the research tool. 4. Large quantities of information can be gathered from a large population in a cost-effective way and within a short time frame. 5. In comparison to other research avenues, the questionnaire can be analyzed in a more scientific and objective manner. Focus Group Discussions A focus group discussion tool was also employed for eight families, and engaged family members in a participatory discussion forum debating topical cues regarding consumption decisions as pertains holidays. Advantages of using F.G.D It is relatively cheap. It allows for in-depth discussion. It allows for flexibility. Disadvantages of using F.G.D Participants may influence one another’s opinions. There are limits to questions which can be asked. Groups can be difficult to assemble. Secondary data The research also employed several secondary sources to supplement and corroborate the primary data collected during the research process. Books and book chapters: references from textbooks were an important secondary information source on existent consumer decision-making models, hypotheses, and hypotheses. Library bibliographies: These were comprised of a list of sources categorically compiled to elucidate specific subjects. These sources supplemented the research immensely. Articles: newspapers, magazines, and journals were obtained from the undergraduate library via the academic search premier database (EBSCO). The articles gathered from the database espoused the analysis of data as well as referenced material. Reference works: specialized reference articles allied to specific topics were also employed in the research. Various free reference works existent on the web portal were made us of, for instance the encyclopedia Britannica. Advantages of using secondary sources 1. Information is convenient and easily accessible. 2. The cost involved is low. Disadvantages of using secondary sources 1. It is time consuming e.g. problems in internet connectivity. 2. Some of the information may lack the required degree of professionalism. 3. Information may at times be inadequate. Results and analysis Folowing administration of the questionaires and focussed group discusions, results elicited were exhibited and an anylisis of the resultant data from the study are presented herein. Table 1.0.How often do you go shopping? Response Frequency Valid Percent Cumulative Percent 1.Every 3days 5 16.7 16.7 2.Every week 10 33.3 50.0 3.Every 3weeks 4 13.3 63.3 4.Every month 11 36.7 100.0 Total 30 100.0 Majority of the respondents cited carrying out shopping ventures every month. Purchase decisions of families are mainly associated with the financial disposiion of each and every househeold. When making holliday decisions, the household makes choices based on their financial position, and those products that fit within their financial range are bound to gain favor over others, even if quality is at stake. Histogram Showing Frequency of shopping Response on number of shopping expeditions The research highlighted that children did have a lot of influence in decision-making, but majorly for those decisions revolving around collection of information, the type of commodity to be consumed and the amount of money to be sent. Vacations tend to have a lot of disagreements with regard to perceived influence over a decision, possibly owing to the fact that the child perceives relatively high influence levels over the decisions made. Since children are contemporarily being brought up in a ‘global village’, it is arguable that they are more informed on other courtiers compared to any previous generation. For this reason, children have become more aware of existent contrasts between different countries in terms of product and service quality and preferences (Sorce. Loomis, & Tyler, 2009). The research elicited that a considerable proportion of respondents purchased products from the international market, a fete influenced by knowledge accrued through fast-paced communications and online marketing. From the FGDs, it emerged that children as young as eight years of age made quite clear distinctions of countries that they would prefer taking holidays in and purchasing consumer products from. Owing to this change ascribed to the holiday environment, there is a high likelihood that young adults who reside at home with their parents emerge as a prime socialization agent for their parents who grew up in an epoch not marked by such an extensive level of globalization, with the internet and online marketing highly advanced. Table 2.0.When you are shopping, what is your preferred method payment? Payment Method Frequency Valid Percent Cumulative Percent 1.PayPal 5 16.7 16.7 2.Cash 9 30.0 46.7 3Payoneer 2 6.7 53.3 4.Card 10 33.3 86.7 5. Other 4 13.3 100.0 Total 30 100.0 Majority of dthe respondents cited making payment depositions for their consumer purchases using credit cards. This is mainly ascribed to the high level of portability and security associated with these credit cards, and the billing system associated wih them. With regard to mode shopping, most contemporary households make consumer purchases online through wire transfers and online credit transactions. Men emerge as the proportion of the populace that takes up tis approach most abundantly, with the goods they purchase emerging as electronics. Women on the other hand enjoy traditional shopping where they go the physical location to make purchases. This can be linked to loyalty to stores from which they acquire discounts and are sure of apt service. Graph showing preferred method of payment Payment Method Recent market changes and trends have impacted family purchase habits and decisions making in light of the influence those children have on their parents. The internet has the capacity to dramatically alter decision makers’ roles within the family. This could be ascribed to a high level of adoption of technology by the young adult populace and teenagers for means of browsing for information and communicating. This seems to promote the socialization process. Within a society in which services and products are often purchased online, the study therefore suggests that children might have considerable influence on the family’s holiday decisions (Flurry, 2007). Table 3.0.what is your main purchase when doing it in the traditional method? Commodity Frequency Valid Percent Cumulative Percent 1.Electronics 5 16.7 16.7 2.Food 10 33.3 50.0 3.Clothes 8 26.7 76.7 4.Cosmetics 7 23.3 100.0 Total 30 100.0 As noted, women like to go shopping in physical shopping locations, and tend to enjoy the shopping experience compared to their male counterparts. They tend to read a myriad of holiday brochures. Food and clothes emerged as the items mainly purchased at physical locations. A contributory facet for this phenomenon could be that these women mostly do not conduct their work outside the home environs, and therefore tend to have more time at their disposal to do this. From the focused group discussion, it was emergent that women are quite influential, and go out of their way to get information gather brochures, and even send follow-up e-mails with pertinent questions. Most of the female respondents echoed that they tend to make most of the household shopping decisions and plan for holiday shopping ventures, arguing that their partners simply go along with them. This argument is backed by a deposition that men who are in stable relationships are generally poor at social decisions, and as such, dinners, evenings and weekends that entail the consumer decision-making are organized by the females (Quester, Pettigrew, & Hawkins, 2010.). Graph showing main purchase when doing it in the traditional method Commodity Conclusion There are viable economic reasons for business enterprises to continue attracting the family market, owing to the fact that they are valuable as a source of secondary spending and are often in need of holiday products and services. Therefore, providing visually attractive gifts and food is mentionable as a good way of encouraging dad and mum meet their progeny’s constant demand. In spite of the financial strain faced by families, shopping and leisure time is still valued very highly, and parents are therefore willing to spend money to facilitate a good experience for the family. Attractions looking to appeal to the family market need to attract children in the family unit on an emotional level, and parents on the other hand on a practical level. There is a need to attract the decision agents with respect to different products and services, as well as increase the access to socialization agents who function to increase decision-making. There need to provide packages that benefit all members of the family in entirety, because each of them has a keen role in the purchasing decision of the family (Grossbart, Pryor, & Yost 2002) Recommendations -Entertainment; a major way for enterprises to appeal to make an appeal to the family market is place focus on providing interpretation of high quality to both parents and their children. -E-commerce; prioritize on online marketing as the contemporary generation communicates and focuses on technological avenues to make their consumption decisions. -concise market appeal; market products based on appeal to cogent decision makers. Different products and services appeal to different persona in the family,. Marketing should therefore aim at targeting socialization agents. References Belch, G. E., Belch, M. A., & Ceresino, G., 2005. Parental and teenage child influences infamily decision making. Journal of Business Research, 13(2), 163-176 Chavda, H., Haley, M., & Dunn, C., 2005. Adolescents’ influence on family decision-making. Young Consumers, 6(3), 68-78 Decrop, A. (2006). Vacation decision making. Wallingford, UK: CABI Pub.. Ekstrom, K. M., 2006. Consumer Socialization Revisited. In R. W. Belk (Ed.), Research inConsumer Behavior (Vol. 10, pp. 71-98). Oxford: UK: Elsevier Science Ltd. Flurry, L. A., 2007. Children's influence in family decision-making: Examining the impact of the changing American family. Journal of Business Research, 60(4), 322-330 Grossbart, S., Hughes, S. M., Pryor, S., & Yost, A., 2002. Socialization Aspects of Parents,Children, and the Internet. Advances in Consumer Research, 29(1), 66-70. Quester, P. G., Pettigrew, S., & Hawkins, D. I., 2010. Consumer Behaviour : Implications forMarketing Strategy (6 ed.). North Ryde, N.S.W.: McGraw-Hill Education Shoham, A., & Dalakas, V., 2003. Family consumer decision making in Israel: the role of teens and parents. Journal of Consumer Marketing, 20(3), 238-251 Sorce, P., Loomis, L., & Tyler, P. R., 2009. Intergenerational Influence on ConsumerDecision Making. Advances in Consumer Research, 16(1), 271-275. Read More