Understanding Customer Behaviors

Topics: Marketing, Buyer, Decision making Pages: 6 (791 words) Published: March 9, 2013
HTM 2304
Marketing in Hospitality and Tourism

Lecture 5
Understanding Consumer Behavior


• New Hotel Trend: _______________________
– Less than 1% of business travelers in 1970, women now account for about ______ of all business travelers

• Security • Room Amenities

• Executive Lounge
• Health Centre • Golf Lessons

Consumer Buying Behavior:
• The buying behavior of ______ customers – individual and households who buy goods and services for personal consumption

Different Types of Consumer:
• Age, income, education level, tastes, gender, occupation, family status – they buy variety of goods and services


A Model of Buying Behavior
• Globalization in hospitality & tourism industry
-> fiercely competitive international market

• Research to reveal:
– what customers want to buy, locations they prefer, amenities important to them – _____ they buy and _____ they buy •  Understanding -> a great advantage over its competitors regarding product features, prices & advertising 4

A Model of Buying Behavior

Figure 1 Model of Consumer Behavior

Marketers MUST: 1. Determine ________ is in the buyer’s black box 2. Understand _______ the stimuli are changed into responses inside the consumer’s black box 5

Personal Characteristics
Affecting Consumer Behavior

Figure 2 Factors Influencing Behavior

The Buyers Decision Process
• This model emphasizes that the buying process starts long before and continues long after the actual purchase – encouraging the marketer to focus on the ENTIRE buying process rather than just the purchase decision

FIVE Stages

Figure 3 Buyer Decision Process.

The Buyers Decision Process

1. Need Recognition
o Process starts when the buyer recognizes a problem/need o Buyer senses a difference between his/her actual state and a desired state o The need can be triggered by internal or external stimuli o Marketers must determine the factors and situations that trigger consumer problem recognition (by research)


The Buyers Decision Process

2. Information Search
o An aroused consumer may or may not search for more information o if consumer drive is strong & a satisfying product near at hand, the consumer is likely to buy it at that moment o if not, the consumer may simply store the need in memory and search for relevant information


The Buyers Decision Process

2. Information Search
o How much searching a consumer does depends on o strength of the drive o amount of initial information o ease of obtaining more information o value placed on additional information o satisfaction one gets from searching


The Buyers Decision Process

2. Information Search
Consumers obtain information from many sources: o Personal Sources: Family, friends, neighbors o Commercial Sources: Advertising, salespeople, dealers, packaging, displays o Public Sources: Restaurant reviews, editorials in the travel section, consumer-rating organizations o The Internet: The company Web site and comments from previous guests


The Buyers Decision Process

2. Information Search
o For hospitality & travel products, personal & public sources of information are more important than ads. o customers do not know what they are going to receive until they have received it o People often ask others for recommendations, so companies have a strong interest in building: “_____________________” sources o Satisfied customers are repeat buyers, and walking, talking billboards for your business


The Buyers Decision Process

2. Information Search
o Since a customer cannot try out an intangible product before purchase, these sources of information as ways can __________________ of purchasing a service: o seeking information from respected personal sources o relying on a firm with a good reputation, guarantees & warranties o visiting facilities or trying aspects of the service before purchasing, examining tangible...
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