Consumer Behavior Involved in Obtaining, Consuming and Disposing of Products - Essay Example

Table of Contents Introduction 3 Background 3 Model of Travel-Buying Behavior Mathieson and Wall 5 Aims and objectives: 6 Scope: 6 Methodology: 6 Sample: 7 Questionnaire: 7 The Questionnaire 1: 7 The Questionnaire 2: 8 Analysis: 10 Analysis of Responses of Respondent 1: 10 Analysis of Respondent 3: 11 Comparisons of the Respondent’s Responses 12 Possible Reasons for the difference in the responses: 13 Difference in Values: 13 Difference in Demographics: 13 Difference in consumption specific personality traits: 13 Recommendation 14 Conclusion: 16 References 18 Heung, Vincent. Important Factors Affecting Hong Kong Consumers’ Choice of a Travel Agency for All-Inclusive Package Tours, Journal of Travel Research 39.1. 2000. Abstract accessed from http://jtr.sagepub.com/cgi/content/abstract/39/1/52 18 Weaver, Adam. Tourism and aesthetic design: enchantment, style, and commerce, Journal of Tourism and Cultural Change, 7.3.2009, Abstract accessed from http://www.informaworld.com/smpp/content~content=a915989477&db=all 18 Introduction Background The procedure that a consumer undertakes to choose or purchase and use a product or service is defined as the consumer behavior process. Consumer behavior is a very complex subject including many intricacies. Consumer behavior has been defined by Engel, Blackwell and Miniard (1995) as: Consumer behavior is those activities directly involved in obtaining, consuming and disposing of products and service including the decision processes that precedes and follows these actions (Horner and Swarbrooke 1999). The subject matter of consumer behavior is very interesting and fascinating but it is regarded difficult to research because many a qualitative factors comes in to play when a consumer is trying to make a purchase. The consume behavior with respect to tourism is particularly interesting because it involves many emotional factors. People tend to spend extravagantly on holidays and much goes in to contemplating and planning before making the actual choice of the holiday destination. Holidays tend to provide the consumers with a chance to escape and revitalize their spirits. The holiday are decided after much contemplation because of the expenses, wide array of choices and their potential to be the highlight of the consumer’s whole year. It is a very high involvement purchase for the consumers especially when it involves a high proportion of income. When the consumers are making their choice for a holiday, they are influenced by internal and external motivators and determinants in their decision-making processes. The correct measurement of these motivators and determinants can help determine the decision making process of the consumers. Consumers are affected by different motivators and determinants when they are making their choice of holidays and tourism. The experience of purchasing a holiday for example will be very different from the experience of purchasing an everyday food item in a supermarket. Tourism is defined as a short term movement of people to places some distance from their normal place of residence to indulge in pleasurable activities. (Horner and Swarbrooke 1999) The significance of the psychological process which the consumer goes through before making the choice (pre-purchase) and post purchase stages. Soloman (1996) incorporated the concept of consumer needs and wants in to his definition as follows Consumer behavior is the process involves when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and wants. The notion that holiday decisions are made in groups and not just as individuals is highlighted through this definition. The comprehensive understanding of the consumer behavior in the holiday choice context calls for studying various external and internal individual processes. The examination of the various complex influencing elements aids in the tourist choice of destination. The importance of culture, perceived risks, reference group influences cannot be under estimated in the holiday family decision process (Moutinho 1987) Schmoll (1977) quoted in Cooper et al. (1993), developed a model according to which the consumer decisions regarding the destination decision takes in to account the following aspects of travelling. Travel stimuli, including guide books, good word of mouth from other travelers and advertising and promotion which work to induce or revoke the need to travel. personal and social determinants of travel behavior including motivators, desires and expectations aid in making the choice. external variables, including destination images, confidence in travel trade intermediaries and constraints such as cost and time Characteristics and features of the service destination such as the perceived link between cost and value and the range of attractions and amenities offered. Model of Travel-Buying Behavior Mathieson and Wall Mathieson and Wall (1982) suggested a linear five-stage model of travel buying behavior, which is shown in the following Figure Model of Travel-Buying Behavior Aims and objectives: To determine how consumer behavior principles apply to the specific purchase intentions and decisions of the holiday choice. To critically evaluate the influence of the motivation, values and personal characteristics and personality in to molding the choice of the consumers in the purchase decision making process of the holiday destination. To present marketers with a conceptual framework, this will help them in devising more effective marketing campaigns and tackling many a marketing problems Scope: This study has wide scope as it will help the managers and marketers at the international level to get a glimpse in to the actual decision making process of the consumers of the tourist industry. Methodology: Two set of questions were formed regarding the six desired holiday destination and the attributes of the said holiday destination. The respondents were asked to rank the questionnaire their desired holiday destination according to their preferences (with 6 being the highly desired and 1 the least desired). They were further asked what they look for before opting for the said holiday destination. They were then briefly interviewed between their answers to get a broader perspective of their choices. Sample: Sample Size: Three individuals of varying demographics were chosen to interview. The demographics of the individuals are briefly elaborated in the given table. Characteristics Respondent1 Respondent2 Respondent3 Gender Male Female Male(Child) Age 22 35 11 Ethnicity American American African-American Occupation Student-part time job House wife (with 2 children) Student of Grade 5 Sampling Technique: Convenient Sampling was used to select the respondents to interview. Questionnaire: The Questionnaire 1: The respondents were asked to rank the attributes they consider and take in to account while deciding to go on a Holiday destination. The attributes are ranked below. 1. Fun Factor 2. Relaxation 3. Cost 4. get away opportunity 5. Family time 6. Change in weather The respondents ranked the particular characteristics of the holiday that they keep in mind while deciding on a venue. They ranked the attribute they consider the most as 6 and ranked 1 the attribute they are least likely to take in to account. The Questionnaire 2: The respondents were asked to rank their preference of the following six holiday destination. Skiing the Disney Land Spa Holidays Luxury Hotels Fly Drive Holiday Beach Holidays Analysis: Analysis of Responses of Respondent 1: The respondent 1 rated the ski holiday as his top priority and luxury hotel as his last choice. This particular choice can be amply explained with the help of Murrays Theory of Psychogenic Needs of consumers. According to this theory of Murray the consumer behavior is driven by a need at the un-conscious level of an individual and the way we behave is basically the reflection of our needs. This stands true for the choice of our Respondent 1 who has put his ‘need of Autonomy’ and ‘need of play’ in the choice of his holiday resort. The respondent 1, being a 22 year old gentleman who is currently enrolled in college, when thinks of a holiday the first thing that comes to his mind is independence and fun. His top three priorities namely; ski trip, fly drive holiday, Disney land and a beach holiday are the testimony of the core values of his personality as well. His particular choice is governed by the LOV scale by (Kahle, 1983) too which states that a person’s behavior is driven by nice stated vales which are ‘fun, enjoyment and excitement’ in our respondent 1’s case. The theory of Ideal Self Congruity can be applied to the 22 year old respondent 1. The is a possibility that he might want to come across as an interesting and adventurous when he was opting for skiing, beach and road trip holiday (Wanke 2007). There are certain products and services in the market that are regarded as feminine and masculine. Gender type products may be matched with the consumer’s gender-role orientation. The advertisement with mostly a male skiing against a giant wave greatly appeals to men and they see their ideal self-strong and adventurous reflected in it (Baqozzi, Canli and Priester 2002) Analysis of Responses of Respondent 2: The respondent 2 rated the Luxury hotel and the spa hotel as her number 1 priority. The Maslow’s hierarchy of needs is applicable in this regard that this particular woman is driven by her need to self actualize. She is a married woman in her thirties and has a particular prestige and status related to her being a mother of two. She is on a look out to gain experience and insight by going places where she can relax, learn and take in beautiful scenic views. She is, it seems seeking refuge from the hustle and bustle that naturally comes with raising two kids. The house wives tend to seek refuge from the busy lifestyle. By opting for a luxury hotel where they can get pampered or a spa holiday and relax, the women achieve Actual Self Congruity’. This means that the brand’s (spa’s or luxury hotel) user image is matching with the consumer’s actual self image Analysis of Respondent 3: The third respondent being a child very understandably opted for a holiday at Disney land or beach and skiing and he was quite neutral about a road trip, spa and luxury hotel holidays. This particular behavior of the child can be well explained through his core values to have fun and enjoy. The child had little regard for the cost and time constraints and, change in weather. Comparisons of the Respondent’s Responses Possible Reasons for the difference in the responses: Difference in Values: The diverse sample of the research has stark difference in the consideration of their core values while opting for a holiday destination. The respondent 1 was a man of age 22 considered the fun factor the most while ranking the various attributes of the holiday while the woman of 35 relaxation and well spent family time in mind and the child only considered the fun factor. Our findings are confirmed by the empirical findings of the study of Gnoth (2005). According to Gnoth (2005) the personal values are a more efficient measure of driving a particular person towards a purchase choice than demographic and psychographic. The measurement of the core values have been used for the purposes of cross-cultural comparison and in tourism behavior research. The results of the Gnoth’s study proved the differences in cross cultural values and value difference amongst varying age groups determine the tourism selection. (Gnoth 2005) Difference in Demographics: The stark difference in the demographics can be one reason of the dire differences in the responses of the three interviewees. Difference in consumption specific personality traits: A consumption specific personality trait affects the consumer only in situations relating to consumption and does not extent its influence in to non consumption situation (Woodside 2008). A difference in the personalities of the three interviewees was perceived. The mother of two came across as introvert, affect intensive and impulsive, perhaps that is the reason why she chose to holiday in a luxury hotel or a spa. The man of 22 year of age was confident and aggressive which also reflects in his choice of holiday destination. The child was a regular fun loving child and that also showed in his holiday preferences. Recommendation There are various ways in which the holiday destination choice can be facilitated for the female market with family orientation. The understanding of consumer behavior is vital if the marketing activity carried out by organization is to be effective. Marketing is concerned with the relationship between consumer or buyer and seller. Marketing relies on the idea that organization should put the central focus on the consumer for all their activities. (Kardes 2005) Develop Effective Communication Design: The choice of holiday is a service that requires a lot of information search on the part of the consumer. The marketer should be well-aware of this fact and should make the desired information readily available for the consumer to evaluate. The marketing of tourism services includes a number of features distinct from the marketing of other services. For the consumer of tourism services such distinctions may include: shorter length of exposure to the service, emotional motives for the purchase, the importance of personal sources of information prior to purchase and the importance of image in the selection of tourism destination or tourism service. For the provider of tourism services such distinction may include: the types of distribution channels used, dependence on complimentary organizations, and the need to consider people, packaging and partnership in the marketing mix (Morroson 1989). Present a Perfect match of Performance and Expectation: The marketer should always promise what they can deliver otherwise the high expectation can lead to dissatisfied customers who would eventually readily switch. The performance should excel the expectation in an ideal scenario, this way consumers are delighted instead of only being satisfied. It will also lead repeat utilization of the service. Access Purchase Probability: The marketer can access the purchase probability of the potential buyer and act accordingly. For example a customer who scored high on the purchase probability might not need as much of convincing as those who score low on it and requires a lot of benefits. Ample Explicit Holiday Service Promises through attractive colorful brochures: Women are aesthetically visual beings. They are drawn to colorful brochures and other well-written written publication. In a world of today with increasing consumption and commerce based on the commercialism, the place of aesthetics is more complex than mere decoration. The attractive and aesthetic appearance of hotels can be highlighted to create novelty, surprise, enchant and excitement (Weaver 2009). Ace the consumer through Purchase Process: For marketers whose products the customers are about to buy, there are no benefit in lengthy deliberation. The marketer should aim at shortening the buying process. This can be done by many traffic building techniques. A study in Hong Kong revealed that many key attribute including the word-of-mouth communication and staff attitude and the travel agency outlook plays a important role in its selection (Vincent 2000). Reduce the perception of associated risks: Women associate many risks with their purchase of holiday destination. They constantly reevaluate their choice in fear of opportunity risks. Additionally there are psychological risks that the particular purchased destination would not fit the individual self concept. The choice of the holiday destination is highly epistemic and emotional in nature so the psychological risks associated with it are also great (Michaela 2007). The service firms can work to greatly reduce these risks by decreasing the perceived probability of the holiday as not being as much fun as the customer’s expectation and hopes. The advertising and promotional activities can be undertaken to incorporate this fact and the reviews of the delighted customers can be highlighted to reinforce the post-purchase satisfaction (Arch 2008). These strategies can be undertaken to increase the level of post purchase evaluation which can result in good word of mouth and repeat utilization of the service. Conclusion: The study was undertaken to understand the diverse difference in the consumption behavior related to the choice of holiday destination. We learned that the difference can be associated with motivation scale, difference in values and the way different people perceive themselves. The sample was very diverse, so that a better understanding of consumer behavior could be achieved. Various limitation including time, cost and experience has kept the study from being more focused, however it has the potential to be carried forward and be used to study the effect of one variable at a time (motivation, value, Personality) at consumer behavior. References Horner and Swarbrooke, Consumer Behavior in Tourism, Butterworth-Heinemann, 1999 Moutinho, Luiz, “Consumer Behavior in Tourism”, European Journal of Marketing. 21.10 Baqozzi, Canli and Priester, The social Psychology of Consumer behavior, Open University Press Open, 2002 Gnoth, Juergen. “Methodological issues in using Kahles list of values scale for Japanese tourism behaviour” Journal of Vacation Marketing, 11.3.2005 Woodside, Arch. Advances in Culture, Tourism and Hospitality Research. JAI Press, 2008 Kardes, Frank. Applying Social Cognition to Consumer-focused Strategy (Advertising and Consumer Psychology Series) Lawrence Erlbaum Associates, 2005 Wanke, Michaela. Social Psychology of Consumer Behavior Psychology Press, 2007 Heung, Vincent. Important Factors Affecting Hong Kong Consumers’ Choice of a Travel Agency for All-Inclusive Package Tours, Journal of Travel Research 39.1. 2000. Abstract accessed from http://jtr.sagepub.com/cgi/content/abstract/39/1/52 Weaver, Adam. Tourism and aesthetic design: enchantment, style, and commerce, Journal of Tourism and Cultural Change, 7.3.2009, Abstract accessed from http://www.informaworld.com/smpp/content~content=a915989477&db=all Mathieson and Wall (1982), p95 Read More