Critical Analysis of Consumer Decision-Making Process Model

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ABSTRACT
As the market place is changing, the purpose of this report is to critically analyse 2 chosen consumer decision process models, the KBM model by Kotler, Bowen and Makens (2006) and the BEM model by Blackwell, Miniard and Engel (2006) if they are vague or/ and all-encompassing in hospitality industry today with relevant industry examples. Secondary research is used to conduct data to support the author’s argument.

Consumer behaviour in hospitality industry today is changing by the impact of globalisation and post-modernism; consumers became more price-sensitive, and focus on psychological need more than physiological need. Therefore, two chosen model will be identified and critically analysed. However, for the result, both models are too vague and not all-encompassing in hospitality industry today.

TABLE OF CONTENT
ABSTRACTII
ACKNOWLEDGMENTIII
TABLE OF CONTENTIV
1.0 INTRODUCTION1
1.1 AIM AND OBJECTIVES8
2.0 METHODOLOGY9
3.0 FINDING AND ANALYSIS10
3.1 THE KBM CONSUMER DECISION MODEL10
3.1.1 Need Recognition11
3.1.2 Information Search13
3.1.3 Evaluation of Alternative14
3.1.4 Purchase Decision15
3.1.5 Post purchase Behaviour16
3.2 THE BEM CONSUMER DECISION MODEL18
3.1.1 Need Recognition18
3.1.2 Search20
3.1.3 Pre-purchase Evaluation of Alternative21
3.1.4 Purchase21
3.1.5 Consumption22
3.1.6 Post-consumption Evaluation22
3.1.7 Divestment23
4.0 CONCLUSION25
5.0 REFERENCE26
APPENDIX I – MASLOW’S HIERARCHY OF NEEDS29
APPENDIX II – 7 KEYS OF POST-MODERNISM30

1.0 INTRODUCTION
The purpose of this report is to critically analyse 2 chosen consumer decision process (CDP) models if they are vague or/ and all-encompassing in hospitality industry today under globalisation and postmodernism with relevant industry examples. An overview of consumer behaviour (CB) in hospitality industry today will be offered in the rest of this section.

On traditional view, CB is a process that involves different steps to satisfy needs and desires, includes selecting, purchasing, using and disposing products or service (Solomon, 2006). In general speaking, as desire is endless, so to understand CB is an endless process. Blackwell, Miniard and Engel (2006) indicated that consumers are recognised as the most valuable component by many organisations, and especially in the hospitality industry, organisations in hospitality always want to understand consumers’ need, motive and favourite in order to provide extraordinary service (Teare, 1998, cited in William, 2002). Therefore, to study CB in hospitality industry is important; by understanding CB, such as what, why and how consumers purchase or influence their purchasing behaviour, organisation could effectively gain favourable result.

CB could be influenced by individual differences and environmental influences, such as motivation, economic status and culture (Blackwell, et al., 2006). Motivation is the essential individual differences factors, which is defined as push factor to encourage ones action, such as ones needs and wants (Schiffman and Kanuk, 2007). Individual needs can be classified in five levels (Appendix 1); from satisfying physiological to fulfilling psychological needs (Schiffman and Kanuk, 2007). As mentioned above, the overall CB concept is based on satisfying needs and desires. Therefore, motivation is essential in influencing CB in all situations. For instance, a Swiss couple is feeling hungry; this physiological need encourages them to look for a restaurant. However, they are also starving for romantic and luxury dinning experience to celebrate their 3 anniversary; therefore, they might choose a French restaurant in a 5-star hotel; need of psychological forces them to behave in different way.

Otherwise, for environmental influences, economic status and culture could highly influence CB as they directly affect ones purchasing power, belief and value (Kotler, Bowen and Makens, 2006; Schiffman and Kanuk, 2007). For...
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