Holiday Decision Making

Name: Luong Thanh Long Class: FB3A CONSUMER BEHAVIOR AND HOLIDAY I- Holiday decision-making is different from the traditional problem-solving model of consumer decision-making: 1) The traditional problem-solving model of consumer decision-making: * Behind the visible act of making a purchase lies a decision process that must be investigated. * The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy. * Five Stages of Consumer Behavior: A. Problem Recognition: Perceiving a Need: Perceiving a difference between a person's ideal and actual situations big enough to trigger a decision. * Can be as simple as noticing an empty milk carton or it can be activated by marketing efforts. B. Information Search: Seeking Value Two steps of information search| Internal search| External search| * Scanning one’s memory to recall previous experiences with products or brands. * Often sufficient for frequently purchased products. * When past experience or knowledge is insufficient * The risk of making a wrong purchase decision is high * The cost of gathering information is low. * Personal sources, such as friends and family. * Public sources, including various product-rating organizations such as Consumer Reports. * Marketer-dominated sources, such as advertising, company websites, and salespeople| C. Alternative Evaluation: Assessing Value * The information search clarifies the problem for the consumer by: (1) Suggesting criteria to use for the purchase. (2) Yielding brand names that might meet the criteria. (3) Developing consumer value perception. * A consumer's evaluative criteria represent both The objective attributes of a brand (such as locate speed on a portable CD player) * The subjective factors (such as prestige). * These criteria establish a consumer's evoked set * The group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is a ware. D. Purchase Decision: Buying Value Three possibilities| From whom to buy| When to buy| Do not buy| which depends on such considerations * Terms of sale * Past experience buying from the seller * Return policy. which can be influenced by * Store atmosphere * Time pressure * a sale * Pleasantness of the shopping experience. | | E. Postpurchase Behavior: Value in Consumption or Use * After buying a product, the consumer compares it with expectations and is either satisfied or dissatisfied. * Satisfaction or dissatisfaction affects * Consumer value perceptions * Consumer communications * Repeat-purchase behavior. * Many firms work to produce positive postpurchase communications among consumers and contribute to relationship building between sellers and buyers. Cognitive Dissonance: The feelings of postpurchase psychological tension or anxiety a consumer often experiences * Firms often use ads or follow-up calls from salespeople in this postpurchase stage to try to convince buyers that they made the right decision. In short, in the traditional problem-solving model of consumer decision-making, people tend to consider and investigate all the needs and desires of a product carefully through a range of steps. There are both internal and external factors affect on the decision-making of consumer. ) Holiday decision-making, as described in the case: * The genetic decision about whether or not to go on holiday was not always the starting point; and sometimes this genetic decision was irrelevant. * â€Å"People have a limited capacity for analysis, and this leads them to break down complex decisions into hierarchical processes and take into consideration a small number of critical variables at each level to make the decision-making process more manageable†. * â€Å"When confronted by a complex problem, the human brain ‘satisfies’ more than it ‘optimises’,† explains Nicolau. In this situation, â€Å"the individual will try to choose an option that is sufficiently satisfying, regardless of whether or not it is the best choice†. 2 * Final decision and bookings are often made very late. * Informants often expressed post-decision regret, which people strove to reduce. * Searching for holiday information tends to be affected by external factors. II- Compare the information search process, as it is described here, with the search process that consumers might follow for one other product category: Holiday information search process| Consumer search process for one product| * Information collection for a holiday tends to be stopped when the holiday has been booked * Real information are collected during the holiday * Consumer will get more conflicted conscious of information. * People do not prepare their trip in much detail. In contrast, they want to discover unexpected things. * Incidental learning seems to play a bigger role than internal learning. * For only one product, consumer will take more time to collect information of a product and analysis in more details and intensive from lots of sources. * Information collection lasts till they ensure that this information is correct and they can make a comparison with other products. * Consumer tries to avoid unexpected situation. * Information search information tends to be stimulus-based (external)| III- The implications of the findings for managers marketing and promoting holidays: 4P principle plays important role in the man agers marketing. Holidaymaker should make a holiday that meets the needs of customer. If we don't provide a holiday special or offer that helps them with those goals, we are doing them and your business a grave disservice. We also need to survey clients and customers from the current year to see how they can improve in the future. Think about how your channels work together and which channels reach your target customer. Offer a free gift or holiday discount to customers who take the time to complete your survey and do not forget to keep contact with your customer. Customer surplus is a very important area in Marketing mix. Only the marginal consumer is willing to pay just the market price in typical supply and demand equilibrium. The consumers would be willing to pay more than the market price is what makes the demand curve slope downward. The amount that these consumers would be willing to pay, but do not have to pay is known as the consumer surplus. ——————————————– [ 1 ]. 2 The magazine Tourism Management, Juan Luis Nicolau and Francisco Mas analysed data from 2,491 people gathered by the CIS http://www-rohan. sdsu. edu/~renglish/370/notes/chapt05/