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

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• 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

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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.