MARKETING Essay Example

  • Category:
    Marketing
  • Document type:
    Essay
  • Level:
    High School
  • Page:
    3
  • Words:
    1964

Importance of consumer’s behavior to companies

Introduction

Today, societies are growing and developing at a high rate. There is diversification of resources left right and center. This makes the business world highly competitive for only the smart ones to survive. Consumers are then left to choose the best product and services from the competitive companies. For companies to fit in the competitive business world, they need to take note of the consumer’s behavior. The overall study of the demography of a place and the type of products and services required by the consumers is involved in the study of the consumer’s behavior. Consumer behavior deals with the way individuals think in choosing the type of product or services that will satisfy their wants and the effect of such decisions to future purchases. In this case, we shall deal with two types of entities that consume: the personal consumer who deals with goods and services for his own consumption and the organizational consumer who deals with goods and services that are useful in running of their businesses. The two types of consumers have behaviors that are useful to companies’ decision making. Globally, there is another form of international development known as the ‘traveller philanthropy’ which keeps on developing. To continue visiting places, travellers who are civil minded and travel businesses support the ‘traveller philanthropy’ through acts like providing resources of finance, their time and talent. The process where tourists or visitors provide money to be used in the conservation of the touring places is known as traveller philanthropy. This phenomenon gains from the process of giving and globalization is expected to develop greatly.

Importance of consumer behaviors to travel companies

The phenomenon initiative has great importance to the travel companies. The foundation of the theory of marketing is the consumer’s satisfaction. The marketer has three aspects that are related of the consumer behavior analysis which comprises of consumer motivations, consumer typologies and purchasing process of the consumer.Tourists’behavior can be described through typologies of tourists. These are referred to as allocentrics or psychocentrics according to Plog (1974). Allocentric travellers are those that prefer destinations that are exotic and also contain vacations that are unstructured. On the other hand, psychocentrics prefer destinations that are familiar and also tours that are known to be packaged. This theory has challenges in that; tourists always travel with motivations that are different with various occasions also. Several tourists may take allocentric destination during the break of winter and during summer vacation, they take psychocentric destination. Cohen’s typology (1972) came up with four different classifications of tourists. The first one was the mass tourist who is organized and purchases holidays that are packaged. The second was the mass tourist who is an individual that is autonomous and not specific. The third classification is the explorer who tends to venture into new places albeit he would decide at times to go back to his accommodation that is comfortable among others. The fourth tourist is the drifter. He does not engage in ‘tourist establishment’. The business traveller behavior is quite different from that of the leisure travellers. According to some experts, business travellers do not view their tour as leisure but another source of stress (Cohen, 2000). Having no balance between work and home, the business travellers suffer from relationship problems between their spouses and children. In another study, people whose spouses have frequent travel suffer from higher mental problems than those whose partners do not engage in these travels (Tong, 2002). Longer trips that are frequent have less impact than the shorter ones that it was recommended not to travel longer than 90 days in a year. The disadvantages of most travel companies is that they do not clearly have the perfect knowledge of what their customers would like but they follow the unclear pattern of the consumer behavior in the previous association so as to still fit in the competitive business world. Tourism is an important need that needs to be satisfied in the best way possible. Factors that can affect travelling include the pull factor-determinants that affect your destination and push factors-the reasons that contribute to their wanting to travel (Dann, 1977). The travel companies should strive at giving their best to trigger the travelling of people.

Importance of consumer behavior to the government

The knowledge of the consumer behavior will enable the marketers to be able to give better forms of tourism products (Swarbrook and Horner, 1999). The government works really hard to give tourists the best products they can offer through their various expense Act. The government explores the best ways in providing this service through previous consumer behavior patterns and the government’s previous evaluation. Through meeting the tourist need, the government is then able to collect more taxes from this operation. The revenue collected is also used in conserving and saving of resources. By maintaining the tourist site, the government expects future income from the maintained species. The government also benefits from tourism products like resorts, spas among several others. Thailand is an example of a nation that has managed to develop spas and other health facilities to meet the demand of tourists (circle of Asia, 2003).

Factors affecting consumer behaviors

There are various factors that affect consumer behaviors. They can be classified as motivators and determinants. Motivators are the factors that influence the tourists into purchasing a certain product whereas determinants are the factors that enable the tourists to obtain the products they need to a certain extent. The tourism product has both tangible and intangible components. The tangible products include food, hotel bed, hotel chairs among many other while the intangible are all the services offered including tour guide. Since the tourist is also involved in the process of production, certain attributes he will have will contribute to the success or failure of the whole process. Some of the motivating factors to tourism include personality- whether they have confidence or not, love adventure or too cautious. Motivations vary with different types of tourists and even some are shared. Determinants that affect consumer’s behavior include age whereby different ages need different attention. Security is another issue that determines the consumer’s behavior. A place that is insecure, that might be due to terrorism, ethnic wars, hostile communities among others will result to shun to visiting such places. Factors that also influence motivation and purchasing of tourism product include day to day lessons, various beliefs and attitudes and also perception to some things. People may visit places because of the past experience they had from another person. In tourism, consumers will also tend to have some beliefs on what to expect about the companies, the product it would offer and the quality of the services. The thoughts may either be positive or negative. These may include trust they have in certain hotels and even tour guide and at times negative thoughts such as insecurity during flight may boggle their mind. It is however hard to change the type of attitude one has since they are developed from a past experience. Perception on the other hand is the general picture one has in mind about things that is brought about by information gained from various places. Most people perceive offers that tourism brings in ways that will tend to complement them. A consumer’s behavior can also be affected by his culture. This is the various norms and beliefs that each person uniquely possesses. Another determinant is the life cycle. These are the various stages that people go through as they develop. It is based on the assumption that people’s way of living changes as they live together. Couples have different behavior from those who are single.

Benefits that travel companies get from consumer behavior

There are various benefits obtained from consumer behavior by the travel companies. The company will gain reduced advertising cost since when consumers feel that their needs have been satisfied, they will tend to share the experience with others who will also feel like having the same adventure. According to Gosling (2011), social media acts as an ideal middle-man for consumers and businesses through enhancing communication within consumers and also between the travel businesses and the consumers. In some cases, some of them experience distance separation that their issues would only be brought forward through the social media. The travel companies gain from this through increasing their adequacy hence increase sales. Consumers recognize the existence of a company brand and services through the experiences gained from the activities engaged and stimuli obtained (Schmitt, 1999). Consumer behavior provides vital information such as what consumers look for and the factors that facilitate their purchase in the future. This helps the travel companies in making of decisions. Tourist companies should strive to make their customers develop positive attitude towards their experiences by adhering to the above information. They would then develop instruments that are valid and reliable to enable managers of tourism as well as planners understand and plan more meaningful experiences obtained from the tourism (Ballantine, 2010).

Benefits of consumer behavior to the community

The consumer behavior enables the community identify the tourism consumption and also the significance of the environmental aspects such as diversification of local culture. They would also identify what to correct in terms the environment such as air, noise or even water pollution. Type of transportation locally would also be identified that the tourists prefer most. Some tourists such as British, French, Finnish, Swedish and Italian prefer transportation by rail (Schmidt, 2002). The type of entertainment the tourists required will be obtained from the information gathered from the consumer behavior. The measure for quality of services such as hairdressing and medical attendance would be known from the consumer behavior information.

Global trends

There are various global trends in the consumer behavior. One of these trends today is considering lessons from the vacation apart from the entertainment and leisure gained. Half of the North America in a recent study wishes to visit places with various lessons such as architectural or historical sites while another fraction considers learning of new activities and developing of new skills. The travellers also look forward to experiencing moments that would crop greater insight, widen their ability of understanding and create strong attachment to the places they tour. Responsible way of tourism is also another trend that is rising recently. Consumption of the products ethically has spread tourism as another trend.

Conclusion

In summary, consumer behavior is important for the travel companies, government and community at large. The travel companies gain lots of benefits from the research on consumer behavior. It is considered as a component of the economic environment and the human at large.

References

Ballantine, P. W. and Creery, S. (2010). The consumption and disposition behavior of voluntary simplifiers. Journal of consumer behavior. 9(1), 45-56.

Bamberg, S., Ajzen, I. & Schmidt, P. (2003) Choice of travel mode in the theory of planned behavior: the roles of past behavior, habit and reasoned action. Basic and Applied SocialPsychology. 25, 175-187

Circle of Asia, (2003). Thailand Spa Guide and Directory. Retrieved from http://www.Spainthailand.com

Cohen, E., (1972).Towards a Sociology of International Tourism. Social Research 39, pp 64- 82..

Dann, G.M.S. (1983) Comment on Iso-Ahola’s . Toward a social psychological theory of tourism motivation. Annal of Tourism Research, 10, 273-276.

Gosling, S. (2011). Online consumer behavior. New York: Routledge

Moutinho, L. (2013). Consumer behavior analysis. New York: Routledge

Plog, S.C., (1974). Why Destination Areas Rise and Fall in Popularity. The cornell Hotel and Restaurant Administration quarterly, 14(2) 55-58.

Steinbaure, A., Werthner, H. (2007). A content analysis of the past 10 years. Journal of information, technology and tourism 12(1) 3-16

Swarbrooke, J., and Horner, S., (1999). Consumer Behavior in Tourism, great Britain: Butterworth- Heinemann,

Swarbrooke, J., Horner, S. (2007). Business travel and tourism. New York: Routledge.