CHAPTER 6 MODELS OF THE PURCHASE DECISION-MAKING PROCESS

INTRODUCTION Tourism products are complex because they exist in 2 different levels: ▫The package holiday which is a combination of the products of individual sectors (accommodation, transport, destinations and visitor attractions) ▫The products of these individual sectors which can be sold as stand-alone products (air ticket & theme park visit)

TOURISM PRODUCT AND SERVICES They are largely services Marketers have attempted to clarify the differences by stating the characteristics of services: ▫Intangibility ▫Inseparability ▫Heterogeneity ▫Lack of ownership

CONVENIENCE VS. SHOPPING GOODS Convenience goodShopping good Typically has a low price and is bought frequently. Generally satisfy lower-order need in Maslow’s hierarchy of needs. Involved consumer routine problem-solving behaviour High brand loyalty Typically has a high price and is bought less frequently. Generally satisfy higher-order need in Maslow’s hierarchy of needs. Involved the consumer in extensive problem-solving (more difficult set of decision, lengthier decision time and higher level of commitment) Low brand loyalty

THE COMPLEXITY OF CONSUMER BEHAVIOUR IN TOURISM

High involvement in purchase decision and high consumer commitment ▫Because of the nature of the products and services ▫Non-routine ▫Every purchase occasion will show difference approaches ▫‘shop around’ before coming to a decision ▫Process will take longer time High levels of insecurity linked to intangibility ▫Because of the intangibility nature of the products and servicces ▫Looking for reassurance about choices ▫Process will involve many people and agencies

THE COMPLEXITY OF CONSUMER BEHAVIOUR IN TOURISM Considerable emotional significance ▫Major event in an individual’s life ▫Substitute products and services might be considered in place of a holiday Strongly influenced by other people ▫Member of family & other reference groups Long-term decisions ▫Plan made long way in advance High-level of information search ▫Carry out extensive information search before making their final choice

THE TOURIST DECISION-MAKING PROCESS The decision is an outcome of a complex process. Motivators and determinants are factors that affect the holiday purchase decision. Choosing a destination is not the last decision tourists have to make – further set of decisions about what to do/where to travel/where to eat when they arrive at the destination.

MODELS OF PURCHASE DECISION- MAKING IN TOURISM Moutinho (1987) published a vacation tourist behaviour model, which is different from the rest in 2 respects: ▫It recognized 3 distinctly different stages:  Pre-decision stage and decision process  Post-purchase evaluation  Future decision-making ▫It explicitly noted that purchase decisions are a result of 3 behavioural concepts:  Motivation  Cognition  Learning

A CRITIQUE OF PURCHASE DECISION MAKING IN TOURISM Common weaknesses: ▫Based on little/no empirical research – little evidence ▫Outdated – at least 15 years old & do not include factors such as the impact of the internet, LCC, all- inclusive resorts etc. ▫Originated from the US, Europe and Asutralia.

PURCHASE DECISION-MAKING AND MARKETING IN TOURISM Understanding of tourists’ decision making will help marketers: ▫When to attempt to influence consumers ▫The choice of advertising media ▫The selection of appropriate distribution channels

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