Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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Consumer Markets and Consumer Buying
Behavior
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
2
• Consumer Buying Behavior Consumer Buying Behavior refers to the buying behavior of final consumers -individuals & households who buy goods and services for personal consumption.
• The central question for marketers is:
““How do consumers respond to various How do consumers respond to various marketing efforts the company might use?”marketing efforts the company might use?”
Consumer Buying Behavior
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
3
Model of Buyer Behavior
Marketing and Other Stimuli
MarketingProductPricePlacePromotionOtherEconomicTechnologicalPoliticalCultural
Buyer’s Black Box
Buyer CharacteristicsBuyer Decision Process
Buyer Responses
Product ChoiceBrand Choice
Purchase TimingPurchase Amount
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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Factors Influencing Consumer Behavior
Social
Referencegroups
Family
Rolesand
status
PersonalAge andlife-cycle
OccupationEconomicsituationLifestyle
Personalityand
self-concept
Psycho-logical
MotivationPerceptionLearning
Beliefs andattitudes
Buyer
Culture
Sub-culture
Socialclass
Culture
Sub-culture
Socialclass
Cultural
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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Factors Affecting Consumer Behavior: Culture
Subculture• Group of people with
shared value systems based on common life experiences.
• Hispanic Consumers
• African American Consumers
• Asian American Consumers
• Mature Consumers
Culture is the Most Basic Cause of a Person's Wants and Behavior.
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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Factors Affecting Consumer Behavior: Culture
Culture is the Set of Values, Perceptions, Wants & Behavior Learned by a Member of
Society from Family. Social Class• Society’s relatively
permanent & ordered divisions whose members share similar values, interests, and behaviors.
• Measured by: Occupation, Income, Education, Wealth and Other Variables.
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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• Cultures– The accumulation of values, knowledge,
beliefs, customs, objects, and concepts that a society uses to cope with its environment
• Subcultures– Groups of individuals who have similar value
and behavior patterns within the group but differ from those in other groups.
Culture & Subcultures
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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• Relatively homogenous, enduring divisions in a society, hierarchically ordered with members sharing similar values, interests, and behaviors
Social Class
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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Social Classes
Upper Upper• Lower Upper
• Upper Middle
Lower Middle
• Upper Lower• Lower Lower
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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Groups• Membership• Reference
Groups• Membership• Reference
Family (most important)• Husband, wife, kids• Influencer, buyer, user
Family (most important)• Husband, wife, kids• Influencer, buyer, user
Roles and StatusRoles and Status
Social FactorsSocial Factors
Factors Affecting Consumer Behavior: Social
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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Family Influence on Buying Behavior
• Husband-Dominant
• Wife-Dominant
• Equal
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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Personal InfluencesPersonal Influences
Age and Life Cycle Stage
Age and Life Cycle Stage OccupationOccupation Personality &
Self-ConceptPersonality & Self-Concept
Economic Situation
Economic Situation
ActivitiesActivities InterestsInterests
Lifestyle IdentificationLifestyle Identification
OpinionsOpinions
Factors Affecting Consumer Behavior: Personal
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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Stages in Family Life-Cycle
• Single
• Newly Married Couples
• Full Nest I
• Full Nest II
• Full Nest III
• Empty Nest I
• Empty Nest II
• Solitary Survivor
• Solitary Survivor, Retired
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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AchieversAchievers
ActualizersActualizers
StrugglersStrugglers
StriversStrivers
FulfilledsFulfilleds
BelieversBelievers
ExperiencersExperiencers
MakersMakers
Abundant ResourcesAbundant Resources
Minimal ResourcesMinimal Resources
VALS 2
Status Oriented Action OrientedPrinciple Oriented
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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Factors Affecting Consumer Behavior: Psychological
PsychologicalFactors
AffectingBuyers Choices
Motivation
Perception
Learning
Beliefs andAttitudes
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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Psychological - Motive
•A motive is a need that has a sufficient level of intensity. Creating a tension state that drives the person to act.
•Satisfying the need reduces the felt tension.
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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Psychological - Perception
The process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world.
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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Psychological - Learning
Changes in an individual’s behavior arising from experience.
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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Psychological - Attitude
An attitude describes a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea.
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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Physiological Needs(hunger, thirst)
Safety Needs(security, protection)
Social Needs (sense of belonging,
love)
Esteem Needs (self-esteem)
Self Actualization
Maslow’s Hierarchy of Needs
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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Buyer Decision Process
PostpurchaseBehavior
Purchase
Decision
Information
SearchNeed
Recognition
Evaluationof
Alternatives
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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Consumer Buying Decision Process
• Problem recognition
• Information Search
• Evaluation of Alternatives
• Purchase decision
• Post PurchaseEvaluation
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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Types of Buying Behavior
• Routine Response
• Limited Decision
• Extension Decision
• Impulse Buying
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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•Search qualities
•Experience qualities
•Credence qualities
Consumer Behavior and Services
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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When Search Qualities are Lacking
• Personal sources of information• More post-purchase evaluation than
pre-purchase evaluation• Price and physical qualities are major
tools• Evoked set is smaller
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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When Search Qualities are Lacking
• Innovations adopted more slowly• Perceive greater risks• Brand switching is less frequent• Self blame for dissatisfaction
– Source: Valarie Zeithaml, “How Consumer Evaluation Processes Differ Between Goods aand Services,” in Marketing Of Services, 1981, pp. 186-190.