Transcript PPT Chapter 8

Chapter Eight
Understanding Individual
Customers
Principles of Consumer Behavior
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Consumer behavior is purposeful and goal
oriented
The consumer has free choice
Consumer behavior is a process
Consumer behavior can be influenced
There is a need for consumer education
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Characteristics of Customers
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Needs and wants
 Maslow’s hierarchy of needs
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People are motivated by different levels of
needs
Lower levels of needs must be satisfied before
higher level needs
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Exhibit 8-1: Maslow’s Hierarchy of Needs
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Characteristics of Customers
Application of theories
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Need-context relationship
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Consumers have different types of needs
Consumers have wants
Businesses must know both in order to provide
for customers
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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Exhibit 8-2; The Buying Decision Process
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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The Buying Decision Process
Needs, wants and problem recognition
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Sometimes starts as a response to a stimuli
The consumer thinks he has a problem and
begins to search for a solution
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The Buying Decision Process
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Needs, wants and problem recognition
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“I’m hungry” (problem)
“Let’s eat” (solution)
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
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The Buying Decision Process
Search process
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Search for a solution
The set of places that come to mind is the
evoked set
Marketing can begin to take an active role
Marketing can create a want and cause a
problem that needs a solution
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
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The Buying Decision Process
Stimuli selection
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Impact of stimulus depends on the level of
involvement with purchase decision
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High involvement
Low involvement
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
The Buying Decision Process
Selectivity
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The process of selective choice may depend
on a number of steps
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Selective
Selective
Selective
Selective
attention
comprehension
acceptance
retention
Much of what is directed at the consumer is
not processed by the consumer
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The Buying Decision Process
Perceptions
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Meanings we assign to what we see, hear
and sense around us
Perceptions are selective
Reference group are people who influence
our attitudes, opinions and values
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
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The Buying Decision Process
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Perceptions
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Perception is reality for the consumer
When perceptions do not match the product, it
is Gap 4
Initial perceptions rely on stimuli
If expectations are not filled, perceptions are
negative which can lead to dissatisfaction
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
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The Buying Decision Process
Alternative evaluation
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Multiple solutions are common
Marketing is most important for high
involvement purchases
Influenced by the target market’s choice
process
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Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
The Buying Decision Process
Beliefs
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What we think is fact which is derived from
perceptions
Belief-attitude-intention trilogy
Marketers can change or create beliefs of
targeted consumers
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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The Buying Decision Process
Attitudes
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How we judge and react to beliefs
Emotional feelings toward beliefs
Intention
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A consumer’s plan to make or not make a
purchase
Should be evaluated in the belief-attitudeintention context
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The Buying Decision Process
Barriers to purchase
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Marketers attempt to reduce the barriers
Cognitive dissonance
Advertising that supports the consumer’s
choice and wisdom of the choice has been
found to help reduce cognitive dissonance
and increase loyalty
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The Buying Decision Process
Outcomes-satisfaction or dissatisfaction
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Should have some idea of level of satisfaction
Service recovery for dissatisfied customers
Application to the hotel industry
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
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Types of Hospitality Customers
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Business travelers
Pleasure travelers
Package market
Mature travelers
International travelers
Free independent travelers (FIT)
Members of private clubs
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
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Business Travelers
A customer who purchases hospitality products
or services because of a need to conduct
business in a particular area
One of the most desirable market segments
for the hospitality marketer
The largest major segment and least price
sensitive
Business traveler needs
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Convenience, reputation, price
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
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Pleasure Travelers
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Customer who purchases hospitality products
or services for leisure or other non-business
purposes
Business and pleasure travelers combine both
in one trip
More relaxed and casual
Eat and socialize
High growth potential market
Major part is family travelers
People traveling to visit friends
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Package Market
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Customers who purchase a combination
of services for an all-inclusive price
Normally packages designed to boost
occupancy during low-demand periods
Not the same as discounting
Need to provide all aspects of the
promised package
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Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Mature Travelers
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Hospitality customer who is older than 55
Is increasing as people are living longer, have
resources and interest in travel
Like to visit new places and visit friends and
family
Not homogenous; age and physical limitations
play a role in needs
Some hotel chains aggressively pursue this
market
Restaurants cater to this segment
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Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
International Travelers
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A person who travels and visits outside his or
her own country for business, personal or
pleasure purposes
Most tourism to/from US is to/from Mexico and
Canada
400 million travel outside their country every
year
Marketing to this group is expensive and risky;
usually done via an intermediary
Overall marketing goals are the same for this
group as for other groups
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Free Independent Travelers
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Traveler not affiliated with an organized
travel group and does not fit into other
defined market segments
Includes wholesalers and retail agents
Normally willing to pay higher rates than
the group customers
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Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Members of Private Clubs
Includes
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Country
City
Yacht
Tennis
Military
Rely on word-of-mouth
Look for customization of their experience
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Discussion
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What types of hospitality customers would
you prefer to have on your property? Why?
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Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.