Consumer Behavior on Choice of Specific Accommodation Facilities - Research Paper Example

Heading: Accommodation Your name: Course name: Professors’ name: Date Executive summary Choice of accommodation facilities among individuals is a complex affair influenced by consumer decision making processes and specific consumer behavior before and after making a choice of a specific facility at hand. Accommodation facilities are tangible commodities and the choice of any of them by a particular consumer depends largely on its distinctive features and the personal traits and tastes of individuals. The research paper seeks to analyze the competing factors among individuals that influence their choices of specific accommodation facilities. The competing factors may be internal for instance perception or external influence such as surrounding cultural practices and existing dominant age group within a locality. The factors are wide and varied spreading across individual consumers which in effect influences the choices they make in acquiring the accommodation facilities. Table of contents Introduction iv Creation of decision matrix v Analysis of choices viii Analysis of respondents’ choices xi Demographics xiii Personality xv Conclusion xvi References xvii Introduction The choice of accommodation facilities among individuals is strongly influenced by consumer behavior being indicative in his or her personal traits coupled with the surrounding environment. Consumers tend to evaluate a specific commodity based on their needs, tastes and prevailing economic situation. Consumers tend to have limited information about a given economic good and in this regard they will use existing manageable information to make choices through elimination process based on factors such as their economic strength versus price range and location of commodity if the good in question has a spatial connotation. Individuals normally have minimum standards of expectation and performance that dictate the nature of commodity they desire. Such standards may dictate strong choices of specific brand names known to perform at a level they desire. The choice of commodities will thus be influenced by factors within and without the spheres of the consumers. The research paper analyses consumer behavior on choice of specific accommodation facilities based on compensatory decision rule. The analysis is anchored on a decision based matrix that evaluates the factors that influence consumers to make certain decisions. The decision based matrix provides an opportunity and criteria to rank and weigh the various factors that influence consumer choices for a specific product. The compensatory decision rule uses the characteristics of the commodity to computationally analyze the scores of the attributes of the specific product. The decision rule is coined compensatory in the sense that a high score on a specific attribute is an opportunity cost for a lower score attribute on a different criteria. This is effect would mean a higher score compensates for a lower score on an attribute of a product. Creation of decision matrix Respondent A Accommodation facilities Evaluative Criteria (Rank 1-5) 1 Rent a 2 bedroomed beach house at Bondi 2 Rent a 2 bedroomed townhouse within CBD at Brisbane 3 Share a 2 bedroomed house with student at Brisbane 4 Buy a 2 bedroomed park house at Buderin 5 Buy a spacious villa at Bentley 6 Buy a 2bedroom single unit apartment at Bentleigh Rank (......) 5 Price 10 4 4 10 10 10 Rank (......) 4 Safety 8 6 5 8 4 3 Rank (......) 3 Access to amenities e.g. transport, shopping center 4 3 8 5 6 7 Rank (......) 2 Distance to work/university 4 8 8 1 1 1 Rank (......) 1 Gender 1 8 8 2 1 2 Respondent B Accommodation facilities Evaluative Criteria (Rank 1-5) 1 Rent a 2 bedroomed beach house at Bondi 2 Rent a 2 bedroomed townhouse within CBD at Brisbane 3 Share a 2 bedroomed house with student at Brisbane 4 Buy a 2 bedroomed park house at Buderin 5 Buy a spacious villa at Bentley 6 Buy a 2bedroom single unit apartment at Bentleigh Rank (......) 5 Price 8 5 5 8 10 9 Rank (......) 4 Safety 9 8 9 10 10 7 Rank (......) 3 Access to amenities e.g. transport, shopping center 4 9 8 8 7 8 Rank (......) 2 Distance to work/university 6 10 10 5 4 7 Rank (......) 1 Gender 1 2 9 1 1 1 Respondent C Accommodation facilities Evaluative Criteria (Rank 1-5) 1 Rent a 2 bedroomed beach house at Bondi 2 Rent a 2 bedroomed townhouse within CBD at Brisbane 3 Share a 2 bedroomed house with student at Brisbane 4 Buy a 2 bedroomed park house at Buderin 5 Buy a spacious villa at Bentley 6 Buy a 2bedroom single unit apartment at Bentleigh Rank (......) 5 Price 7 5 4 10 10 10 Rank (......) 4 Safety 10 7 7 8 9 7 Rank (......) 3 Access to amenities e.g. transport, shopping center 7 6 5 8 5 5 Rank (......) 2 Distance to work/university 9 8 8 4 2 2 Rank (......) 1 Gender 1 2 8 2 2 2 Application of compensatory decision rule Respondent A Aac =∑ WacBac Accommodation 1 = (5*10 +4*8+ 3*4+2*4+1*1) =103 Accommodation 2 = (5*4+ 4*6+ 3*3+2*8+1*8) =77 Accommodation 3 = (5*4+4*5+3*8+2*8+1*8) =82 Accommodation 4 = (5*10+ 4*8+3*5+2*1+1*2) =101 Accommodation 5 = (5*10+4*3+3*7+2*1+1*2) =87 Respondent B Accommodation 1 = (5*8+4*9+3*4+2*6+1*1) =101 Accommodation 2= (5*5+4*8+3*9+2*10+1*2) =106 Accommodation 3= (5*5+4*9+3*8+2*10+4*9) =141 Accommodation 4 = (5*8+ 4*10+3*8+ 2*5+1*1) = 115 Accommodation 5= (5*9+4*7+3*8+2*7+1*1) =112 Respondent C Accommodation 1 = (5*7+4*10+3*7+2*9+1*1) =115 Accommodation 2 = (5*5+4*7+3*6+2*8+1*2) =89 Accommodation 3 = (5*4+4*7+3*5+2*5+1*8) =81 Accommodation 4= (5*10+4*8+3*8+2*4+1*2) =116 Accommodation 5 = (5*10+ 4*7+3*5+2*2+1*2) =99 Analysis of choices Consumer behavior is largely influenced by a number of factors. Personality is one of these factors, and it entails a person’s inner characteristics and behavior that influence how and what decisions they make (Chung & Chang 2005, pp. 17-21). This is what makes an individual unique from others, and it influences how individuals behave. In consumer behavior, personality greatly affects the decision making process in purchasing certain products. Some of the personal attributes that influenced decision making among consumers include lifestyle , gender, sex, age, extroversion, introversion, conservatism, reserved, generosity, warm, hospitable, quietness, cold, aloof, assertiveness, shyness, inhibition, easily distracted and artistic among others (Waller 2003, pp. 20-25). Notably, these attributes are categorized into various orders that include first-order traits; second-order traits; and social desirability. To begin with, Waller (2003, pp. 20-25) clarifies that first-order traits include relaxed versus tensed; conservative versus experimenting; self-assured versus apprehensive; emotionally stable versus emotionally unstable; self-sufficient versus group oriented; controlled versus undisciplined; tender versus tough; shy versus bold; trusting versus suspicious; imaginative versus practical; shrewd versus forthright; selfish versus generous. On the other hand, Chung & Chang (2005, pp. 17-21) say that the second-order traits include introversion versus extroversion; sensitivity versus tough poise; independent personality versus subdued personality; controlled and anxious personality. In terms of social desirability faking bad and faking good personality (Waller 2003, pp. 20-25). An independent consumer will prefer living into making decisions alone without enlisting anybody’s help in buying a house. Moreover, such a personality can decide to buy a house on his own and live independently. The aforementioned traits are instrumental in making appropriate choices in the consumer behaviors. For instance, an individual’s lifestyle determines the kind of accommodation that he or she chooses to buy. Moreover, if an individual’s personality trait is selfish; he is likely to choose a smaller house than a bigger one because he may not want to have many visitors in the house. Besides, an introvert cannot afford to share a room with another person; hence he might have to buy a house of his own. On the contrary, a generous person will prefer to buy a big house because he is likely to invite as many visitors as possible, or decide to share it with a friend or a relative. In addition, a consumer who is suspicious is most likely to choose accommodation that is hidden so as to avoid being located easily by the people he is suspicious about. On the contrary, a trusting personality is likely to buy a house in a more open place than a suspicious one because the former personality fears nobody; hence, he can freely buy accommodation located where many people reside. In addition, there is a possibility that an emotionally stable individual will share a room with a friend, while an emotionally unstable personality will choose a small house for himself as sharing it with other people is very inconveniencing. Lifestyle is another personal attribute that greatly influence a consumer’s accommodation choices (Waller 2003, pp. 20-25). If an individual is has a sophisticated lifestyle, he is likely to buy a house in a sophisticated estate or residential area that suits his lifestyle. On contrast, a person with a simple lifestyle will likely opt for a simple or less-sophisticated neighborhood that is suitable for his personality. Explicitly, an individual’s lifestyle is influenced by his social and economic status; so that an individual that is financially stable will go for expensive residential areas, while an unstable will prefer a cheaper residential location as well as living with friends so as to share the cost. Apart from lifestyle, age is another significant personality determining factor that influences an individual’s accommodation choices (Bunker & Bradley 2007, pp. 12-17). Old consumers have different tastes and preferences as compared to the young consumers. In terms of accommodation, old consumers are most likely to go for quiet and calm neighborhood as compared to the young ones. This is because young people enjoy lively residential areas with adequate entertainment as compared with old consumers. Additionally, young people would prefer to put up with friends; hence the need for a more spacious house located in a lively neighborhood. Analysis of respondents’ choices In this case, the three respondents selected in the study have different opinions, ranking and ratings. With the first respondent, there is a high rank for accommodation one as compared to others accommodations. This implies that he opts to renting a two bed-roomed beach house at Bondi or buying a two bed-roomed park house at Buderi as compared to other options. This respondent seems to be a welcoming and luxurious individual who wants a lot of comfort, but is limited by funds. The respondents’ choices indicate that he does not like residing at the Central Business District (CBD); sharing a house with a student as well as buying one in a single unit flats in Bentleigh. He also does not like the idea of buying a spacious villa, and this could be restricted by economic instability. In addition, some of the major factors affecting the respondent’s choice of accommodation include price, safety, and location to social amenities, such as, shopping centers and transport system. Although he has considered other factors like gender and distance to the university, he has lowly ranked them as minor factors influencing his accommodation choices. Besides, it is explicit that the first respondent prefers to live in a secure place that is closely located near social amenities to other places even if he has to pay a lot of money in buying or renting a house. For instance, he prefers renting a two-bed-roomed beach house that is safe rather than a buying a two bed-roomed single unit house at Bentleigh, which is less secure than the one at Bondi. On the other hand, the second respondent has totally different choices, ratings and rankings from the first one. This is evident in that he ranks the issues of security, price, gender and nearness to social amenities differently as compared to the first respondent. Besides, this individual has a preference for accommodation three, that is sharing a two bed-roomed house with a student at Brisbane and accommodation four, which is buying a two bed-roomed park house at Buderin, to buying a spacious villa, buying a single unit house at Bentleigh, or renting a two bed-roomed beach house at Bondi. Clearly, he rates accommodation three, four, five and six to be more expensive as compared to accommodation one and two. In terms of security, this individual says that accommodation four and five are more secured than the rest accommodations. In this case, his choice of accommodation criteria is based is largely based on price, the amount of security and access to transport and other amenities as compare to other factors. According to the criteria analysis, it is explicit that this respondent has higher ratings and rankings for all the accommodation types than the first respondent. Just like the second and the first respondents, the third respondent has a variety of choices, rankings and ratings. These choices are greatly influenced by his taste, preference and lifestyle. According to decision matrix, the third respondent prefers the fourth accommodation alternative and the first one as compared to the other available alternatives. Impliedly, this individual prefers renting a two bed-roomed beach house at Bondi or buying a two bed-roomed house park house at Buderin to other options. It is also clear that this respondent likes a lot of fun, comfort and luxury as he prefers a house located away from CBD. Additionally, the respondent has moderate ratings and rankings of the available accommodation alternatives as compared to the first and the second respondents. He ranked the fourth, fifth and sixth accommodation options to be more expensive than the other ones. Moreover, the respondent’s ratings on the houses safety are almost the same for all the available options. There is a clear difference among the aforementioned respondents in terms of their ratings and rankings of the accommodation alternatives. This difference is brought about by different perceptions, preferences, tastes, personality, motivational and economic, social and situational factors. In terms of personality, the respondents’ personalities strongly affected their accommodation preferences. Moreover, Dastidar and Datta (2008, pp. 10-16) maintain that perception is another factor in that each of the respondents perceives accommodation differently from the others. Economic and social factors also played a significant role in creating a difference in the respondents’ ranking and rating of accommodation (Otto, Payne, Parry and Hunt 2005, pp. 23-26). In addition, these individuals had distinct preferences, lifestyle and tastes for accommodation alternatives. This is because some people value luxury, comfort and convenience, while the others value security and cost in making decisions about their residential locations. Therefore, these factors are instrumental in the difference in their ratings, rankings and choices of the accommodation alternatives. Demographics Research indicates that demographics, such as age, ethnicity, gender, income, and family situation, largely affect consumer behavior (Bunker & Bradley 2007, pp. 12-17). For instance, there are some ethnic groups that are said to be more brand-loyal and cost-sensitive as compared to other groups, for instance, the Asian-American are more cost-sensitive and brand-loyal than the Hispanic people. In addition, Dastidar and Datta (2008, pp. 10-16) assert that age is another major determining factor in the decision making process of most of consumers. In most cases, the young people have totally different preferences and tastes as compared to the old people. This difference is brought about modernity and fashion in that young consumers are attracted to the latest and fashionable trends of product types. On the other hand, most of the old people consider quality more than fashion whenever they are making decisions on certain products. Therefore, the respondent’s choices are, in the same way, affected by age, cultural and ethnic factors. Otto, Payne, Parry and Hunt (2005, pp. 23-26) note that income is another demographic element that greatly affects the consumer behavior. An individual’s choice of a certain product in the market is determined by the amount of income at his disposal. In terms of accommodation, an individual chooses a residential area that suits his income and ability to pay rent or buy a house (Davidow 2003, pp. 26-30). For instance, individuals whose earnings are above average can live in middle-class estates or residential areas because they can afford. Likewise, Soderlund and Ohman (2003, pp. 34-36) a person that earns less than the standard average income will be forced to look for accommodation in cheaper areas or out up with a friend so as to share the cost. The same case happens when an individual is purchasing a cloth, he goes for the one that is affordable. What is more, Hansen &Woolridge (2002, pp. 11-19) gender is a demographic element that affects consumer behavior a great deal. This is because women and men have different perceptions about various products. In addition, men have totally different preferences and taste from those of women. For instance, a majority of women are conscious about cost, fashion and brand, as compared to men who only care about the quality of products. In the market, most of the female consumers tend to buy more fashionable products than their male counterparts. Besides, Davidow (2003, pp. 26-30) says that men tend to concentrate on the quality of products rather than their trend and fashion. In fact, most of the male consumers are less-conscious of product prices as compared to the female ones. In this case, the respondents were also affected by gender factors in making decisions on accommodation choices. Education is also a significant demographic factor that determines consumer behavior (Chung & Chang 2005, pp. 17-21). This is influential in determining the kind and amount of information that an individual has on a certain product in the market. The same knowledge is instrumental in the process of making decisions that concern the choice of a particular product. For instance, in the case of accommodation choices made by the respondents, the kind and amount of information that each one of them possesses affect their decisions. Family situation also influences one’s choice in the market. This entails the size and nature of the family, as in single or both parents’ family (Dastidar & Datta 2008, pp. 10-16). Personality This is another highly significant factor that impacts on consumer behavior. According to Chih-Chung & Chang (2005, pp. 17-21), personality entails an individual’s behavior in given situation, and it also implies one’s attributes. Some of personal traits include generosity, selfishness, discipline, extroversion, introversion, anxiety, calm, aloof, and hospitality. In this case, the two personal traits that are noticeable in the individuals include introversion and selfishness. One of the respondents prefers living in a two bed-roomed beach house rather than share one with a student in town. This indicates that such an individual is an introvert who does not enjoy living with other people in one house. Notably, such an individual would rather live in an expensive house and secure house alone, rather than in a cheap house with another person. On the other hand, there is a respondent that prefers living with a student in a two bed-roomed house instead of renting a buying a spacious villa. This is an extrovert who does not keep to himself, but enjoys living with another person (Waller 2003, pp. 20-25). Another explicit personality trait that is influential in making accommodation choices is the selfishness versus generosity. In this case, a respondent that wants to live alone in a two bed-roomed beach house, rather than sharing a two bed-roomed house with a student is probably selfish. On contrast, the one that does not mind sharing with a student, but cannot buy a spacious villa is most likely generous. These attributes are central in shaping one’s personality, which in turn, vital in determining consumer behavior. Conclusion There are a number of factors that affect consumer behavior in choosing accommodation facilities. In this case, these factors are categorized into personality and demographic factors, and they are influential in the decision making on accommodation choices. In the decision based matrix, the respondents based their decisions on issues, such as, price, gender, nearness to university, access to amenities and security. Their ratings, rankings and choices differed because of the aforementioned factors. Therefore, it is evident that consumer behavior is greatly influenced by demographic and personality factors. 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