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Do simple interview (different segments)

Each team member

Interview: -

Family - Friends - Relatives About their behavior towards leisure & tourism Create 5 minutes presentation about

your findings, present it on the next meeting

Consumer Behaviour in

Hospitality &

Tourism

Susan Horner and John Swarbrooke 2016.

purchase decision making process

Tourism Products Tourism Products (1)

Tourism product is something that can be offered to tourists to visit a

tourist destination. The products

which satisfy the leisure, pleasure,

religious or business needs at

places other than the normal place of

residence are known as tourism

products. Tourism products are

offered in the market with a cost.

Tourism product are the prime reason

for tourist to choose a destination. Tourism product helps in fetching revenue for the destination. So

they

should be properly marketed

and preserved.

Tourism Products (2)

The tourist product focuses on facilities and services designed to

It can

the needs of the tourist. be seen as a composite product, as

meet

the sum total

of

a country’s

tourist

attractions,

accommodation

transport,

and

and

of

entertainment which result in

the

components of a tourist product is

customer

Each

of

satisfaction.

supplied by individual

providers

of

services like hotel companies,

airlines, travel agencies, etc. The

tourist product can be analysed in

terms of its attraction, accessibility

and accommodation.

Tourism products are complex because they

exist

at two different

levels:

the package holiday which is a

combination of the

products of

individual sectors such as

accommodation, transport,

destinations and visitor attractions

• the products of these individual

sectors which can be

sold as

stand-alone products such as an air

ticket or a theme park visit as part of

a day trip

This chapter considers the purchase decision making process

Tourism Products and Services - Characteristics

• Intangibility

• Inseparability

• Heterogeneity

• Lack of ownership

Service cannot be possessed!

As Shostack (1982) observes: ‘The difference between goods and services

is

more than semantic. Goods are

tangible objects that exist in both time

and space; services consist solely of

acts or processes, and exist in time

only. Services are rendered, goods are

possessed. Services cannot be

possessed; they can only be

experienced, created or participated

This lack of ownership by

in.’

purchasers of services is also

emphasized by Kotler

(1994) who

suggests ‘Services encompass any

activity or benefit that one party can

offer to another that is essentially

intangible and does not result in the

Berry (1980)

ownership of anything’.

also follows this line of reasoning,

suggesting that services are

identified

as deeds, performances or efforts,

whereas goods are devices, things or

objects.

The Issues of Complexity

• Insecurity linked to intangibility

• Considerable emotional significance

• Strongly influenced by other people

• Long term decisions

• High level of information search

The stages of tourist behaviour

3 different stages:

• Pre-decision stage and decision process

• Post-purchase evaluation

• Future decision making

Moutinho (1987)

The Consumer

Decision

Process for Hospitality

Services

Factors Influencing

the

Holiday Decision

Models of Consumer Behaviour adapted for

Tourism

• One of the earliest models of consumer behaviour was proposed

by

Andreason (1965). This model is

shown in Figure 3.1. The model

recognizes the importance of

information in the consumer decision-

making process. It also emphasizes

the importance of consumer

attitudes although it fails to consider

attitudes in relation to repeat

purchase behaviour.

Astudes towards product substitutes, complements

Constraints Income budget priorities physical capacity household capacity

Direct Flows Feedbacks

Atitudes towards sources

Perceived balets, noms values of significant others HOLD

impersonal

OUTS

Personality

Information

Other

purchase Na decisions

Ownership

Independent impersonal

SOULCCS

Feelings

Intrinsic attributes

Search

FILTRATION

Extrinsic attributes

Wdrocale personal sources

Disposition

No action

Price wailability Independent / personal Sources Direct Etperience Wants want strength

Information storage

OTHER CUSTOMER DECISION-MAKERS

Figure 3.1 Andreason model of consumer behaviour Source: adapted from Andreason (1965).

Figure 3.3. This model is important

because it highlights the

importance

of inputs to the consumer buying

process and suggests ways in which

the consumer orders these inputs

before making a final decision. The Howard–Sheth model does have

limitations, and does not explain

all

buyer behaviour. However, it was a

comprehensive theory of buyer

behavior that was developed as a

result of empirical research (Horton,

1984).

• Insert Figure 3:3

Consumer buying behavior in tourism

Other models which attempt to explain consumer buying behaviour

in tourism have been advanced.

Wahab, Crampton and Rothfield

(1976) suggested a linear model of

the decision-making process in

tourism. This is shown in Figure 3.6.

Travel-buying

Behaviour

Mathieson and Wall (1982) suggested a linear five-stage model

of

travel buying behaviour, which is

shown in Figure 3.7.

Consumer decision-making in

tourism

• Gilbert (1991) suggested a model for consumer decision-making in

tourism, which is shown in Figure 3.8.

This model suggests that there are

two levels of factors which have an

effect on the consumer.

Socioeconomic influences

Cultural influences

Motivation energizers

Perception

Consumer or decision-maker

Learning

Personality attitude

Reference group influences

Family influences

Figure 3.8 Consumer decision-making framework Source adapted from Gilbert (1991).

• The first level of influences is close to the person and include

psychological influences such as

perception and learning.

• The second level of influences includes those which have been

developed during the socialization

process and include reference groups

and family influences.

All these models that have been

adapted for tourism offer some

insights into the consumer behaviour

process involved during the purchase

and post-purchase decision stages. The problem with the models is that little empirical research has been

conducted to test them against actual

consumer behaviour. This is an area

which requires further detailed

research.

Conclusions

• Most consumer behaviour models in

tourism seem to be linear

and rather

simplistic

• Consumer behaviour in tourism is

complex due to the diverse

characteristics of tourism

• There are many opportunities to

research tourist behaviour to

explore

these complexities

* Tourism product as a

service product - intangibility - inseparability - heterogeneity *

perishability

"Products can be sold

individually, e.g. airline seats or hotel beds *Products can be combined into

composite products, e-9-package holidays

* Destination products exist at a number of geographical levels: local, e.g.

Orlando - regional, e.g. Provence -national, e.g. Thailand continental,

e.g. Europe

2.

Tourism products representan infrequent but high-value

Customers can have very high expectations of the product, e.g. tourists

can hope it will put life into failing marriages or help them

find new partners - Produci only bestows on the purchaser: - temporary user rights, e.g.

right to use hotel for a week - Shared user rights, e-g. have to share the

hotel with ather people Organizations marketing the destination product do not own or control all

the elements of the product. For example, local authority tourist departments

do not usually own hotels or restaurants

TOURISM

"The identical product is sold simultaneously: - directly to customers - via

agents Distinction between consumers and customers. e.g. in business tourism. where companies pay the bills and are the customers, while the business

traveller uses the service and is the consumer The use of sophisticated brand loyalty schemes id retain customers in

competitive markets, e.g. airline frequent ther programme

* Price does not always refledi quality or the

cost of production - some elements of the tourism produci are free, e.g.

beaches and some museums - some products are priced below their

true value because af subsides, e.g. some theatres and museums Extemal influences have a major impact on purchase decisions, e.g. friends,

relatives, industry, literature and the media

Figure 3.9 Characteristics of tourism

Discussion points

• The purchase of a holiday does

not result in the consumer owning

any physical product. Discuss the

effect of this on consumer behaviour!

• Evaluate the reasons for a consumer choosing to buy a

composite

tourism product rather

than the individual components

• The media can have a major

influence on consumer choice in

tourism. Evaluate the ways in which a

tour operator can use this feature to

boost sales!

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Consumer Behavior in

Hospitality & Tourism