Consumer Behavior - Research Paper Example

Author’s name Instructors’ name Course Date Table of Contents Table of Contents 2 Abstract 3 Introduction 4 Literature Review 5 Introduction 5 Definition of consumer behavior 5 Consumer behavior in tourism 6 Benefits of consumer behavior studies in marketing 6 Application of Consumer Behavior 7 A case study of consumer behavior in the tourism- a travel to Sydney 7 Introduction 8 A Brief overview of travel arrangements 8 Experience at the airport and in the plane 8 Arrival and stay in Sydney 9 Findings 10 Factors that lead to our choice of Sydney 10 Internal factors 10 External factors 10 Marketing decisions of Qantas airlines 11 Conclusion 11 References 13 Abstract The following research paper analysis the consumer behavior with an emphasis on tourism industry. In this case, a case study which is based on a tourist destination has been discussed. In line with this, literature review of the same has been briefly analyzed to cover some of the issues of concern. In addition, an extended description of the term ‘consumer behavior’, have been outlined and in relation to tourism, before discussion on the importance of the same is provided. Further, the paper has also covered the application of consumer behavior studies in different areas. It goes an extra mile to include the appreciation of marketing mix of Qantas airlines which has been the subject in the case study. Finally, a paragraph has been provided at the end to summarize the entire paper. Introduction Consumer behavior is a wide topic which has been discussed and debated by many scholars in different fields. According to Moutinho, (1985), the subject of the way consumers behave in different business scenarios and experiences depend on the field of study a researcher is basing his studies. On the same note, a lot of theories have therefore been developed, which try to come up with varying models on how customers make their decisions before consuming a service or purchasing a certain product of a business. In this regard, Decrop (2006), is on the view that for a customer to decide on whether to consume a certain service, there are several factors that are believed to influence him. These factors are either internal or external. In this paper, both external and external factors that influence consumer’s behavior have been discussed. A case study has been provided that explores the experience in a journey to Sydney in relation to consumer behavior. It offers an insight of consumer characteristics in such scenario. At the same time, the case study findings have been analyzed in connection to what other scholars have provided in the literature review. These findings are the core bases of the entire paper. Literature Review Introduction As mentioned earlier on, different scholars have made a lot of studies in relation to consumer behavior in different scholarly fields. However, in many of these works, a lot of studies have been based on factors that influence a consumer in making decisions on where to buy a product or not and also the marketing decisions of business owners (Ramesh Kumar, 2009).According to these studies, factors that influence consumer decisions are categorized into three. These include external and internal factors. However, more scholars have gone an extra mile to include situational factors in consumer decision making process. Definition of consumer behavior According to Robinson et al (2011), Consumer behavior has been described as the process of studying different groups, individuals or organizations and also the methods they use to secure, dispose or select products, experiences and services with an intention of satisfying their needs. It also involves the study of the impact of such decision to both the consumer and the society. This definition brings about different perspectives. The first is that behavior trend may occur at an individual, group or an organizational level. Wells et al (2012), explain that an individual can have internal factors that influence his decision when consuming a product. At the same time, groups such as friends also can influence one decision considerably as well as organizations. A good example is when an organization makes a decision on what kind of products it should use. These kinds of decisions also affect people working in such institutions. Ramesh (2009) argues that other inference from the definition includes the fact that the behavior of a consumer also involves the disposal of products and as well as studying how products and services are purchased. Therefore, a producer has lot to do in terms of understanding the behavior of how his product is being appreciated in the market. This helps him to also determine how a product is positioned, as well as its influence in the market among others. It should also be noted that consumer behavior also involves ideas, services and tangible products provided in the market. Finally, the study also should include the effects of consumer choices to both the use of the services and the society at large. For instance, if there is an aggressive marketing and usage of the tourism services, then it means that the user of these services will get pleasure and satisfaction. On the other hand, economic situation of a country could improve as well. The society can also be negatively affected if other considerations are not put in place such as environmental issues. Consumer behavior in tourism In the context of tourism industry, Consumer behavior becomes even more complicated. This is because the sector itself is composed of different players. This means that a consumer of this service will have to encounter varying experiences with all these groups. Selby (2004) contends that the complexity of the entire process is also exaggerated by the intangibility of the services offered. Some of the elements in tourism industry include the service itself, service organizations and quality assurances people. These elements, in most cases are intangible and interdependent. It therefore makes it challenging to assess consumer behavior under all these stages before he gets his services. Benefits of consumer behavior studies in marketing It is paramount that consumer behavior studies cannot be wished away by businesses who want to meet high targets in their score cards. This study helps organizations and firms to make some improvements in their service provisions and general customer experiences. It amplifies their marketing strategies and reviews. The study is also able to reveal how a consumer is influenced by the environment such as the family, friends, media or even culture. The marketing team is also in a position to understand some of the limitations that affect consumer decision. This is because consumer decisions also depend on how fast a consumer is able to process information and also the availability of the same. To an extent, a marketer of a given product is also able to know the motivating factors behind the choices that consumers make as well as strategies they use in purchasing different products. Finally, an analysis of consumer behavior findings can be used to reach more customers through improved marketing campaigns. Application of Consumer Behavior According to different studies, there are four main applications of consumer behavior. Crouch (2004), suggests that these applications are either in marketing strategy, public policy, social marketing or in making a consumer more enlightened. In the marketing strategy, as described above, the marketing team can come up with more effective ways of marketing their products. For example if customers complain of the time they are delayed by an airline before taking their flight at an airport, then the marketing team need to work extra hard in coming up with strategies that will enhance customer experience by solving the problem. In many cases, consumer behavior studies are applied in public policies to sensitize the public on what the business is doing regarding a given issue. This way, the customers’ trust is worn back by the business. Social marketing involves getting ideas coming from the consumers themselves. It requires involvement of the public in coming up with opinions of how customers experience can be improved by the marketing team. Finally, consumer behavior studies are used to make the users of a certain product more effective in making their decisions. The marketing team of a given business can deliberately apply some strategies that will automatically ensure that a consumer can learn from any experience on how to make good decisions in future. A case study of consumer behavior in the tourism- a travel to Sydney Introduction As young London residents, in 2012, I arranged with my friends to make a holiday trip to Sydney for the first time. Among the group, there is no one who had visited Sydney previously. Therefore, this was our golden moment to experience the renowned Australian city. A Brief overview of travel arrangements The main aim of our decision was to have good time with our friends who were also in Sydney. There are several airlines that offer travel services from London to Australia Ramesh Kumar, D. (2009). However, we only heard of a few that provide excellent and first class services, though we already had our visas cleared by the ministry of immigration. One of the most famous airlines, we supposed, was the Qantas airlines. We expected to leave for Sydney in the month of August. Therefore, before the end of July, each member of the group had to do his own research about the Qantas airlines services. This was entirely based on the information we were being given by our friends in Sydney and also the information we were getting from online platform. Before the end of July, we were convinced that we had made the best decision and that we had enough information we wanted for our trip. Therefore, we all booked our tickets in London from the airline’s website. It was not cheap as we thought! Apart from this, we made a couple of calls to ensure that we were making good decisions at every step. We were certainly correct to choose this airline since its customer support team was so helpful at those initial stages. After having our tickets, all what was remaining was the arrangement of our luggage and other necessities including cameras and head to the airport for our flight. Experience at the airport and in the plane Upon reaching the airport, we were surprised by the level of security arrangements that the government together with the airline officials had put in place. We were requested to put everything that we had carried aside to be frisked. The manner in which this exercise was being carried out by the personnel was so encouraging. The handling of all materials was in a humane and respectful manner. All our documents were also verified before we were allowed into the plane. Inside the plane, we were offered first class services all through. The air hostess personnel were very professional including the way they talked with the travelers. Food and drinks combinations were very incredible. Arrival and stay in Sydney On our arrival, we were met with our three friends at the airport, who had stayed in Sydney for more than five years. We then took a taxi to Grand Central of Sydney where we could take another drive to Newtown where our two friends used to stay. The following morning our friends informed us about the X Media Labs in the Sydney Opera House. We also requested them to take us at the Museum of Contemporary Arts since we used to hear about it in London. All these were taking place during the Vivid Sydney which is a usually festival of lights, ideas and music at the Circular Quay. The organizers of the event had done a lot to make that occasion a memorable one. One could tell that much has been spent on the even including time and other investments. The staff at the venue was also so welcoming. They had ushered in visitors from all walks of life. They knew this in advance, thus they had different food types to make everyone comfortable. Findings Factors that lead to our choice of Sydney Internal factors It is evident that there are internal factors that influence a consumer’s choice on the usage of a product or a service. According to Solomon (2009), internal factors are the strongest when it comes to making choices at an individual level. He argues that, though this is the case, it also depends on the personality and cognitive strength. In our trip to Sydney, One of the main driving factors was the kind of lifestyle in London and perception we already had. The four of us used to enjoy or try to find anything that could make life more interesting. Sydney was our next choice. Our emotions and attitudes were so strong to refuse the urge of visiting Sydney. External factors In words of Dierks (2005), external factors are there to encourage any internal motive when deciding on something. Krishna et al (1999), suggest that these factors also depend on how individualistic a person is, in making decisions in life. In our case, we must say that external factors played a great role in our choices. As mentioned above, the choice of using Qantas airlines was influenced by the information and the news we had about the services offered by the airline. In their book, Robinson et al (2011), contend that the fact that one may be strong to be able to object any external factor in making decision, some of them are so strong that an individual is left with no choice . In the connection, our friend in Sydney played a vital role in convincing us about the good things in the city and also the airline that we would use. Ramesh (2009) observes that a consumer should take precaution in believing any strong external factor. This point is also emphasized by Wells et al (2012), when he said that some external factors are misleading to consumers. Another factor that cannot go without mentioning is demographic. We used to study these realities in geography. Besides this, all the four of us were financially and economically able to make our trip to Sydney without any financial problem. All these factors played part in our choices as consumers. Marketing decisions of Qantas airlines As mentioned above, Qantas is known in the whole world for its first class services in the travel industry. According to Selby (2004), the scope of influence of services offered by a given company is more effective if proper marketing strategies are in place. He goes ahead to allude that if a company want to have great reputation from the public, it only need to offer the best and leave the public to judge. The above premise is applicable in Qantas airlines. The management has done proper market segmentation of its customers worldwide. This was observed during our trip to Sydney. The personnel seem to understand the likes and the probable culture of its clients. The airline has employed staff members who speak fluent English and who are therefore able to relate with most of the travelers. The application Qantas marketing mix is excellent. Their service product is of high quality as witnessed in the case study. They have been able to offer services that are unique and only provided by few airlines in the world. This has made the airline be comfortable to apply premium pricing strategy when setting prices on this vital product Crouch, G. I. (2004). This means that consumers are ready to pay as much as the airline charges provided the services are good.This was observed when we visited the company’s website. There are also many promotional efforts such as discounts it offers to clients. Besides these three marketing mix elements, Qantas has also made sure that its presence is felt in almost every continent in the world. This has ensured that potential and existing consumers are able to access the airlines services at any particular place. Conclusion Consumer behavior study should be emphasized by all business entities. It gives insight on what is required to be done in improving services to consumers. Organizations should work fast in solving customers’ problems so that they can earn their trust. A lot of effort should however be emphasized on understanding the factors that influence consumers decision making in various economic sectors. If this is done and decisive actions taken, then consumers will always be appreciative and loyal. References Crouch, G. I. (2004). Consumer psychology of tourism, hospitality and leisure, volume 3. Wallingford, CABI. Decrop, A. (2006). Vacation Decision-Making. Wallingford, CAB International. Dierks, L. H. (2005). Trust as a determinant of consumer behaviour under uncertainty: Göttingen, Cuvillier. Krishna Naik, C. N., & Reddy, L. V. (1999). Consumer behaviour. New Delhi, Discovery Publ. House. Moutinho, L. (1985). Consumer behaviour in tourism. Bradford, England, MCB University Press. Ramesh Kumar, D. (2009). Consumer behaviour and branding: concepts, readings and cases. New Delhi, Pearson Education. Robinson, P., Heitmann, S., & Dieke, P. U. C. (2011). Research themes for tourism. Wallingford, Oxfordshire, CABI. Selby, M. (2004). Understanding urban tourism: image, culture and experience. London [u.a.], Tauris. Solomon, M. R. (2009). Consumer behaviour. Harlow, Financial Times Prentice Hall. Wells, V., & Foxall, G. R. (2012). Handbook of developments in consumer behaviour. Cheltenham, Edward Elgar Publishing. Read More