The Analysis of Tourism Demand: Tourist / Buyer Behavior
Homework: Read Chapter 4 & 5 Term Project: Become familiar with your destination country’s offerings
Learning Objectives Consumer Behavior
Become familiar with 2 domains of tourism behavior (micro and macro) Name the elements of the stimulus response model of consumer/tourist behavior Outline the major characteristics affecting tourist behavior and list some of the internal and external influences of consumer behavior Explain decision-making processes of tourists/customers
Why is This Important?
Understanding demand and factors that influence this is crucial for successfully implementing marketing plans and strategies
Understanding consumer behavior is essential for segmentation strategies, tailoring services, prices, promotions, distribution channels to fit customers’ needs
Part I. Macro-Analysis
(Economic Approach)
Macro analysis is concerned with examining collective tourism movements in terms of number of visitors, trips and revenue generated from them. Deals with data such as arrivals per country, attraction admission numbers, flight loadings, hotel occupancy rates, visitor spending and so on.
Macro demand data underlies all marketing planning.
Main determinants of tourism demand
Economic (e.g., prices, CPI) Demographic (e.g., disposable income levels) Geographic Comparative prices Government/regulatory Media communications Socio-cultural (the tastes, habits and preferences of potential buyers)
Note: these factors are external to any individual business and beyond direct control. Marketers (you) need to continuously monitor social and economic environments
Part II-MICRO-ANALYSIS
(Consumer Behavior)* Marketing approach
...Is concerned with the social and psychological factors that lie behind group and individual tourist choices. We ask questions such as: What makes people engage in tourism-what are their motivations? How do people make their tourism choices and what influences them? What affects their perceptions and images of destinations, attractions and other tourism choices?
*Job of the marketer
What does all this mean?
Micro-analysis is concerned with individual influences (internal) and external influences (social) (why and how questions?)
Macro-analysis is concerned with who, where, how much and how many?
A Stimulus Response Model of Tourist/Consumer Behavior
Marketing Stimuli
Buyer’s Black Box
Other Stimuli
Communication filters Motivation Demographic economic social position Psychographic characteristics
Response
Learning
•Tourism products •Place/distribution •Price •Promotion
Cultural and Social (reference groups
Perceptions
Need wants
Product or destination choice (Brand Choice)
goals
Experience Attitudes
Post consumption feelings
A) Internal (individual) Influences
Perception Motivation Needs and Motives Attitudes Personality
Perception
• What is Perception? Perception is reality
is the process by which people select, organize, and interpret stimuli.
According to recent research findings:
Customers are more likely to:
• Notice and retain information related to a need of which they are aware
• Buy services that match their perceived images of themselves
• Notice and retain things that stand out from the norm
• See things that they anticipate seeing
• Notice information from tourism organizations and destinations with which they have had successful previous experiences • Attach greater credibility to interpersonal rather than commercially generated information
Perceptions of Tourist Roles
• • •
•
•
•
expectations to being waited or indulged not having to speak the language expectations of new social encounters with both hosts / providers of tourism and other travelers expectations of distinctive or increased levels of drinking and eating out expectations of abnormal levels of sun expectations of daily novelty (the “what-shallwe-do-today” syndrome)
Motivation
What are Motives?
• Inner state that directs a person toward the goal of satisfying a need.
Maslow’s Hierarchy of Needs
Motivation
Stimulated Needs Aroused tensions Goal-directed Behavior
“lack of something necessary to the well-being of an individual (BELONGING)
“uncontrollable feeling activated by internal and/or external stimulus (SEARCH FOR LOVE)
“action taken by an individual to reduce aroused tensions and satisfy stimulated needs” (TRAVEL TO CLUB MED)
Self Actualization Ego-needs
Self-fulfillment: doing what is best fitted for you (TOURISM)
Self-respect, prestige, status
(TOURISM)
Belonging/Social Safety Physiological Needs
Affection, belonging to a group, being accepted (TOURISM) Savings, good wages, stability, personal security, insurance Food, drink, love Shelter
Maslow’s Hierarchy of Needs
Maslow’s Hierarchy of Needs
Self Actualization
“Our Courses are limited to 12 students, but our classrooms are quite large.” (Outward Bound) The Province of Beverly Hills
Ego-needs
Belonging/Social
Where Love Comes to Stay (Sandals)
Safety
There’s one Travelers Cheque for couples who have tied the knot, just not around each other (American Express)
“These Waters separate our islands from the coast. And you from your cares.” (North Carolina)
Physiological Needs
Attitudes
What are Attitudes?
–
a learned pre-disposition to respond favorably or unfavorably to stimuli, based on relatively enduring evaluations of people, objects, and issues.
Attitude
Affective component “what I feel” Behavior component “How I respond
Cognitive component “What I believe”
Personality
•
Personality Traits (outgoing, selfconfident, quite, sociable, defensive etc.).
– Http://www.2h.com/Tests/personality.html
(take this test)
•
Self-concept
•
Real Self • Self-Image • Ideal Self • Looking-Glass Self
VALS Actualizers
Principle O r i e n t a t i o n Status High Resources Action
Fulfilleds
Achievers Experiencers
Believers
Strivers
Makers
Strugglers
.
Low Resources
Self-concept
Who are we?
– Self concept has 4 parts
how you see yourself Self-image Ideal Self
Looking glass self
How you think others see you
Real-self the way you actually are
How you would like to be
B) External Influences
Personal
Influences (Income, Family, Lifestyles) Social Influences
Social Influences
Social Influences Culture and subculture Social Class Reference Groups
Define
Social Influences
All Interactions with and influences resulting from both formal and informal group memberships other than the family are included.
Cultural Influences
Definition of culture
sum total of learned beliefs, values, and customs that serve to direct the consumer behavior of members of a particular society
African-American Sub-culture
racial minority Portrayed as a single undifferentiated market; however, there are huge variations Value orientations are quite similar to the Caucasian population
Largest
Hispanic-Americans
younger
of large families more likely to live in an extended family household dominant minority in a number of cities
members
Some Characteristics of The Hispanic-American Travel Market
NEW RESEARCH INDICATES:
Tend to be impulse buyers while traveling Prefer well known or familiar brands/destinations Likely to buy what their parents bought Travel to well known destinations and places known to be more prestigious Dislike impersonal facilities Tend to be negative about marketing practices and government in business
Age Subcultures
of the Family life cycle Generation X, Busters, twenty somethings Baby boomers The 50-Plus market The Elderly Consumer
Stages
The Changing Age Structure Mature Consumers
39 million over age 54 Like to feel active, vital, romantic, attractive Census segments – 55-64 – 65-74 – 75-84 – 85+
The Changing Age Structure Mature Consumers
Why examine mature consumers?
Historically ignored Hold 72% of net worth ($8.5 trillion) More concerned with quality and service than price
The Changing Age Structure Teenagers
Kids - Teenagers
28 million Americans
‘Generation Y’
Substantial purchasing power and influence Generally conformist, narcissistic, and fickle
Take-Home Exercise
http://future.sri.com/VALS/vals2desc.shtml Complete the survey Submit survey and wait for response Your primary VALS type is Actualizer, and your secondary type is Fulfilled. Print this page. Click on primary type Read material and then print page Back to survey response Click on secondary type - read material and print page.
Part II-Consumer Search Behavior
Consumer Decision Process Recognition Information Search Evaluation of Alternatives Purchase Decision and Purchase Act Post-Purchase Evaluation
Problem