Consumer Markets and Consumer Buying Behavior

Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc. 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 Philip Kotler, John Bowen, James Makens 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 2

Model of Buyer Behavior

Marketing and Other Stimuli
Marketing
Product Price Place Promotion

Buyers Black Box

Buyer Characteristics Buyer Decision Process

Buyer Responses
Product Choice Brand Choice

Other

Economic Technological Political Cultural

Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens

Purchase Timing Purchase Amount

2003 Pearson Education, Inc. Upper Saddle River, NJ 07458

Factors Influencing Consumer Behavior

Cultural Social
Culture Subculture Social class Reference groups Family

Personal
Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept

Psychological
Motivation Perception Learning Beliefs and attitudes

Buyer

Roles and status

Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc. 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 Philip Kotler, John Bowen, James Makens 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 5

Factors Affecting Consumer Behavior: Culture

Culture is the Set of Values, Perceptions, Wants & Behavior Learned by a Member of Society from Family.
Social Class
Societys 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 Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc. Upper Saddle River, NJ 07458

Culture & Subcultures

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.
Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 7

Social Class
Relatively homogenous, enduring divisions in a society, hierarchically ordered with members sharing similar values, interests, and behaviors

Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc. Upper Saddle River, NJ 07458

Social Classes
Upper Upper Lower Upper Upper Middle Lower Middle Upper Lower Lower Lower
Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 9

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 Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc. Upper Saddle River, NJ 07458

10

Family Influence on Buying Behavior

Husband-Dominant Wife-Dominant Equal

Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc. Upper Saddle River, NJ 07458

11

Factors Affecting Consumer Behavior: Personal

Personal Influences Personal Influences
Age and Life Age and Life Cycle Stage Cycle Stage Economic Economic Situation Situation Personality & Personality & Self-Concept Self-Concept

Occupation Occupation

Lifestyle Identification Lifestyle Identification

Activities Activities

Interests Interests

Opinions Opinions

Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc. Upper Saddle River, NJ 07458

12

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 Philip Kotler, John Bowen, James Makens 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 13

VALS 2
Principle Oriented

Actualizers Abundant Resources

Status Oriented

Action Oriented

Fulfilleds

Achievers

Experiencers

Believers

Strivers

Makers

Minimal Resources

Strugglers

Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc. Upper Saddle River, NJ 07458

14

Factors Affecting Consumer Behavior: Psychological

Motivation

Beliefs and Attitudes

Psychological Factors Affecting Buyers Choices

Perception

Learning
Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 15

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 Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc. Upper Saddle River, NJ 07458

16

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 Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc. Upper Saddle River, NJ 07458

17

Psychological - Learning

Changes in an individuals behavior arising from experience.

Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc. Upper Saddle River, NJ 07458

18

Psychological - Attitude
An attitude describes a persons relatively consistent evaluations, feelings, and tendencies toward an object or idea.

Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc. Upper Saddle River, NJ 07458

19

Maslows Hierarchy of Needs

Self Actualization

Esteem Needs (self-esteem)

(sense of belonging, love)

Social Needs

(security, protection)

Safety Needs

Physiological Needs
(hunger, thirst)

Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc. Upper Saddle River, NJ 07458

20

Buyer Decision Process

Purchase Decision Evaluation of Alternatives Information Search Need Recognition
Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 21

Postpurchase Behavior

Consumer Buying Decision Process

Problem recognition Information Search Evaluation of Alternatives Purchase decision Post PurchaseEvaluation

Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc. Upper Saddle River, NJ 07458

22

Types of Buying Behavior

Routine Response Limited Decision Extension Decision Impulse Buying

Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens 2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 23

Consumer Behavior and Services

Search Experience Credence

qualities

qualities

qualities

Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc. Upper Saddle River, NJ 07458

24

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 Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc. Upper Saddle River, NJ 07458

25

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 Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc. Upper Saddle River, NJ 07458

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