Chapter Eight Understanding Individual Customers

Chapter Eight

Understanding Individual Customers

Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw

© 2008 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.2

Principles of Consumer Behavior

Consumer behavior is purposeful and goal oriented

The consumer has free choice Consumer behavior is a process Consumer behavior can be influenced There is a need for consumer

education




Characteristics of Customers

Needs and wants Maslow’s hierarchy of needs

People are motivated by different levels of needs

Lower levels of needs must be satisfied before higher level needs




Exhibit 8-1: Maslow’s Hierarchy of Needs




Characteristics of Customers Application of theories

Need-context relationship Consumers have different types of needs Consumers have wants Businesses must know both in order to

provide for customers




Exhibit 8-2; The Buying Decision Process




The Buying Decision Process Needs, wants and problem

recognition Sometimes starts as a response to a

stimuli The consumer thinks he has a problem

and begins to search for a solution




The Buying Decision Process Needs, wants and problem recognition

“I’m hungry” (problem) “Let’s eat” (solution)




The Buying Decision Process Search process

Search for a solution The set of places that come to mind is

the evoked set Marketing can begin to take an active

role Marketing can create a want and cause

a problem that needs a solution




The Buying Decision Process

Stimuli selection Impact of stimulus depends on the

level of involvement with purchase decision

High involvement Low involvement




The Buying Decision Process Selectivity

The process of selective choice may depend on a number of steps

Selective attention Selective comprehension Selective acceptance Selective retention

Much of what is directed at the consumer is not processed by the consumer




The Buying Decision Process Perceptions

Meanings we assign to what we see, hear and sense around us

Perceptions are selective Reference group are people who

influence our attitudes, opinions and values




The Buying Decision Process Perceptions

Perception is reality for the consumer When perceptions do not match the

product, it is Gap 4 Initial perceptions rely on stimuli If expectations are not filled, perceptions

are negative which can lead to dissatisfaction





Alternative evaluation Multiple solutions are common Marketing is most important for high

involvement purchases Influenced by the target market’s

choice process





Beliefs What we think is fact which is derived

from perceptions Belief-attitude-intention trilogy Marketers can change or create beliefs

of targeted consumers




The Buying Decision Process Attitudes

How we judge and react to beliefs Emotional feelings toward beliefs

Intention A consumer’s plan to make or not

make a purchase Should be evaluated in the belief-

attitude-intention context




The Buying Decision Process Barriers to purchase

Marketers attempt to reduce the barriers

Cognitive dissonance Advertising that supports the

consumer’s choice and wisdom of the choice has been found to help reduce cognitive dissonance and increase loyalty





Outcomes-satisfaction or dissatisfaction Should have some idea of level of satisfaction Service recovery for dissatisfied customers Application to the hotel industry




Types of Hospitality Customers Business travelers Pleasure travelers Package market Mature travelers International travelers Free independent travelers (FIT) Members of private clubs




Business Travelers A customer who purchases hospitality

products or services because of a need to conduct business in a particular area

One of the most desirable market segments for the hospitality marketer

The largest major segment and least price sensitive

Business traveler needs Convenience, reputation, price




Pleasure Travelers Customer who purchases hospitality

products or services for leisure or other non-business purposes

Business and pleasure travelers combine both in one trip

More relaxed and casual Eat and socialize High growth potential market Major part is family travelers People traveling to visit friends




Package Market Customers who purchase a

combination of services for an all-inclusive price

Normally packages designed to boost occupancy during low-demand periods

Not the same as discounting Need to provide all aspects of the

promised package




Mature Travelers Hospitality customer who is older than 55 Is increasing as people are living longer,

have resources and interest in travel Like to visit new places and visit friends

and family Not homogenous; age and physical

limitations play a role in needs Some hotel chains aggressively pursue

this market Restaurants cater to this segment




International Travelers A person who travels and visits outside

his or her own country for business, personal or pleasure purposes

Most tourism to/from US is to/from Mexico and Canada

400 million travel outside their country every year

Marketing to this group is expensive and risky; usually done via an intermediary

Overall marketing goals are the same for this group as for other groups




Free Independent Travelers

Traveler not affiliated with an organized travel group and does not fit into other defined market segments

Includes wholesalers and retail agents Normally willing to pay higher rates

than the group customers




Members of Private Clubs Includes

Country City Yacht Tennis Military

Rely on word-of-mouth Look for customization of their

experience




Discussion What types of hospitality customers

would you prefer to have on your property? Why?

Documents

Chapter Eight Understanding Individual Customers