Chapter 6: 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

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 marketing efforts the company might use?” Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

Model of Buyer Behavior Marketing and Other Stimuli Marketing Product Price Place Promotion Other Economic Technological Political Cultural Buyer’s Black Box Buyer Characteristics Buyer Decision Process Buyer Responses Product Choice Brand Choice Purchase Timing Purchase Amount Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

Factors Influencing Consumer Behavior Culture Sub- culture Social class Cultural Social Reference groups Family Roles and status Personal Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept Psycho- logical Motivation Perception Learning Beliefs and attitudes Buyer Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

Factors Affecting Consumer Behavior: Culture Culture is the Most Basic Cause of a Person's Wants and Behavior. Subculture Group of people with shared value systems based on common life experiences. Hispanic Consumers African American Consumers Asian American Consumers Mature Consumers Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

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

Factors Affecting Consumer Behavior: Social Groups Membership Reference Family (most important) Husband, wife, kids Influencer, buyer, user Social Factors Roles and Status Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

Factors Affecting Consumer Behavior: Personal Personal Influences Age and Life Cycle Stage Occupation Personality & Self-Concept Economic Situation Activities Interests Lifestyle Identification Opinions 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

VALS 2 Principle Oriented Status Oriented Action Oriented Abundant Resources VALS 2 VALS 2 Segments This CTR corresponds to Figure 5-3 on p. 144 and relates to the material on pp. 143-145. Actualizers Principle Oriented Status Oriented Action Oriented Fulfilleds Achievers Experiencers VALS 2 Segments The VALS 2 Segmentation by lifestyle incorporates both psychological aspects such as principles, status, and action orientations as well as resource-based orientations (abundant versus minimal). Descriptions of each area include: Fulfilleds. Fulfilleds are principles oriented individuals who are mature responsible well-educated professionals. Leisure centers around the home but they are also well-informed about the world. High income but practical, value-oriented consumers. Believers. Believers principles oriented individuals who have more modest incomes, are conservative and predictable consumers who favor American products. Achievers. Achievers are status oriented individuals who get satisfaction from jobs and families. Conservatives who respect authority. Products show off success. Strivers. Strivers are status oriented individuals who seek to emulate achievers but have fewer resources. Experiencers. Experiencers are action oriented individuals who like to affect the environment in tangible ways. This group is active and outgoing and likes new things. Makers. Makers are action oriented individuals who also like to affect their environment but in more practical ways. They value self-sufficiency, family, and have little interest in the larger world. Actualizers. Actualizers are resource oriented individuals with the highest incomes and so many resources that they can indulge any or all self-orientations. Image is an expression of taste, independence, and character. They can buy anything; need nothing. Strugglers. Strugglers are resource oriented individuals who have the lowest income and tend to be brand loyal. Strugglers are concerned with survival. Makers Believers Strivers Minimal Resources Strugglers Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

Factors Affecting Consumer Behavior: Psychological Motivation Psychological Factors Affecting Buyers Choices Beliefs and Attitudes Perception Learning Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

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

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

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

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

Maslow’s Hierarchy of Needs Self Actualization Esteem Needs (self-esteem) Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological Needs (hunger, thirst) Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

Buyer Decision Process Purchase Decision Evaluation of Alternatives Postpurchase Behavior Information Search Need Recognition Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

Consumer Behavior and Services Search qualities Experience qualities Credence qualities Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

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

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. Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458