Buyer behavior and purchasing decision patterns

Consumer Behavior

The transition of viewing travel marketing from a traditional marketing standpoint to one dominated by psychographics and its implications on managing expectations is revolutionizing this industry. This analysis interviewed three travelers with significantly different expectations, need and preferences, and used the concepts obtained from the research completed to define a framework of using an integrated marketing communications (IMC) strategy for addressing those requirements. Meeting and exceeding expectations of travelers' from psychographic standpoint matters more than targeting them based on demographics. That is a key lesson learned from this research.

The decision-making process consumers use to define which of several vacation alternatives are the most attractive to them is much more of a trade-off process than it appears to be from the surface. The intent of this analysis is to evaluate how consumers intermediate and make trade-offs between different alternatives for vacation destinations, relying on consumer behavior principles used as a conceptual framework. This is the first objective of the study, followed by evaluating the internal factors of perception, motivation, learning, attitude and personality characteristics that influence the behavior of consumers over the long-term. The role of emotions in purchase behavior and the suitability of the models discussed in this paper to practitioners devising and executing strategies is also evaluated. Putting all of these objectives into the context of purchasing decisions of three consumers and their decision making process with regard to six different vacation destinations has been completed as part of this analysis. The study concludes with a brief literature review and recommendations for travel holiday marketers seeking to gain greater effectiveness in their holiday marketing efforts. Ultimately the decision making process of which travel destination to visit, which specific travel provider to trust, how much to pay, and which family members are included (Nanda, Hu, Bai, 2006) all are predicated on how effective holiday travel companies are in positioning their unique experiences (Pine, Gilmore, 2008) over just competing on price. This vital link of consumer behavior to experiential expectations (Pine, Gilmore, 2008) and the motivations to choose to travel to one location over another form the foundation of this analysis. Segmentation therefore is more attuned to lifestyles and preferences (Murphy, Mascardo, Benckendorff, 2007) than being purely driven by demographics. This makes the task of creating effective marketing campaigns more nuanced and less cookie-cutter as is the case when demographic data is being used (Pine, Gilmore, 2008). Looking at the factors of why people choose to travel to exotic places (Correia, do Valle, Moco, 2007) and the extent to which traditional marketing campaigns are effective or not (Johnson, Messmer, 1991) is implicit in this analysis completed. The end result is a series of recommendations and framework for holiday travel marketers to rely on in creating their specific marketing strategies.

1.0-6 Holiday Destination Options

In devising a methodology to capture the wide variation in how consumers view different destinations, the following six locations have been chosen. These represent the wide variation in adventure, education, and leisure holidays people are most likely to consider as exceptional experiences and therefore worthy of investing a larger amount of spending on. Each of these experiences is briefly described below as they were to the three respondents who assisted with completing this research.

1.1 Cruise-Alaska Luxury

The underlying psychographic needs that motivate consumers to choose one travel experience over another have abundant evidence in the cruise industry globally (Ratcliffe, 2001). From those middle aged cruise enthusiasts who seek the cruising experience as an opportunity to kick back and relax from their hectic lifestyles, to the senior citizens who perceive cruises as a means to stay connected with other retirees and share companionship as they travel to fascinating areas and learn new things (Ratcliffe, 2001) cruising psychographics have become well aligned to specific age groups globally. The breakout success of the Disney Cruise Line and its efforts to attract younger families has been successful as the company has successfully defined the experience of being onboard as an extension of being in a Disney park. Psychographics-based research has been in place nearly a decade in the area of cruise vacations and experiences (Litvin, Kar, 2001). Results indicate that senior citizens dominate this sector due to the unmet needs they have for companionship and affiliation, needs which younger travelers have met daily in their careers and families. A secondary component of these cruises from a psychographic perspective is the opportunity that senior citizens seek rewards or relaxation after raising their children and getting them through college (Ratcliffe, 2001). Combined with the need for companionship and the opportunity to learn, cruising is considered to be one of the more socially oriented travel experiences people engage in and as a result often attract senior citizens and those outside of the daily pace of society.

1.2 Camping/Caravan

The adventure inherent in camping and caravan travel, in addition to the next two of Thailand diving, Japan skiing and European scenic travel all are aligned with a completely different series of psychographic needs compared to the Alaskan cruise. Often the psychographic needs of those that participate in camping and caravans are oriented towards making memories with their family (Phillip, 1983).

1.3 Thailand Diving

The ability to afford diving trips is seen by many peers in the travel community as a luxury, and with the costs of hotels, travel and the rental of a diving boat, it can be well over $5,000 U.S. To complete a trip. The affluence that is connoted by being able to travel to a remote region of the world, for example Thailand has psychographics that are comparable to being able to afford an Alaskan cruise as well (Ratcliffe, 2001).

1.4 Japan Skiing

Skiing in Japan is highly unique and requires an entirely different psychographic and mindset definition compared to other destinations. Skiing connotes mastery, skill and to be good at it, it often requires an extensive amount of time. Skiing in Japan also requires the traveler to be in reasonably good to excellent physical condition, therefore this activity is best aligned to younger, thrill-seeking travelers who may be constrained on their budgets but not on their desire to experience highly unique vacations. This is one destination that has exceptional experiential value as skiing in a nation which such a different culture is going to be an exceptional experience overall as well (Pine, Gilmore, 2008).

1.5 Europe -- Scenic

One of the most frequented destinations globally, Europe provides each member of the respondent base of this study with a unique travel experience and the flexibility to define their own travel itinerary based on their budget, timeframes, interest, needs of adventure, affiliation or companionship or solitude. Travel through Europe has also long had aspirational value for students and also for the retired who again see this type of travel as a reward for their raising families and working hard to support those (Buhalis, 2002). As a result the psychographics of this specific market are significantly different than all the rest as the location appeals across a broad spectrum of travelers.

1.6 Japan Shopping

Psychographics of aspirational shoppers and those that like to barter and seek out discounts are most drawn to this type of holiday (Martin, 2004). As a result this is often packaged as part of tours of entire shopping districts as is often the case with discount marts and locations throughout Tokyo and the larger metro areas.

These were the six locations included in the methodology and then compared across five attributes in the following matrix, insights are gained into how to best serve them and provide the best possible experience (Pine, Gilmore, 2008).

2.0 What the people looking for their holiday

The intent of the following table is to define the evaluative criteria used for deciding between each of the six vacation destinations included in this analysis. The constraints of time and cost are also included in this analysis.

Cruise-Alaska Luxury

Camping / caravan

Thailand diving

Japan skiing

Europe - scenic

Japan shopping

Weather

Temperate, summer or autumn preference; tolerance for slight cold in late Sept.

Widely varies from summer conditions and high humidity to sun; rain at times

Very warm and humid; makes the water temp great

Chilly to very cold; Northern Japan gets over 30 inches a snow a season

Mostly completed during the summer months; takes place all year long however

Deal shopping and also aspriational vacationing

Adventure

Moderate to low; nothing too strenuous or risky.

High; there are plenty of uncontrollable factors in camping including wildlife

Very high; can encounter sea animals and wildlife

High; skiing is a peed sport and requires skill to enjoy

Medium to Low; on tours all is pre-arranged.

Medium to Low; a little sightseeing but mostly in shops

Relaxation

High; time to watch the coastline of Alaska go by and hear naturalist seminars and programs

Moderate to low; for parents there is the constant focus on children's health and safety. Stressful for those not familiar with the outdoors

High; away from the many communications tools society relies on due to Thailand having sporadic Wi-Fi support and Ethernet connectivity. Support for global phones

Medium to High. Social events are pervasive during skiing season

Medium to High; on Tours there is much planned out and taken care of; a chance to enjoy the sites and visit historic places

High for shopaholics; boring for anyone who doesn't enjoy this type of activity

Cost

From $2,000 to over $10,000 per person

Less than $100 for camping out in a tent to over $2,000 for a cabin rental

From $3,000 to over $10,000 each depending on the package selected

$2,000 to $4,000 depending on the package selected

$650 to $1,000 for high traffic areas including London or Paris;

From $2,000 to over $10,000 per person

Time

A full week including flights up and back

From a weekend to over a week

A minimum of a week or more due to travel

From one week to a month

From one week to a month

From one week to a month

2.0 Interview 3 different people

The following three people were interviewed as part of this project. Their profile and results are provided below.

3.1 Middle-Aged Asia Lady

This respondent spoken with has children in University and also helps to run the family's businesses in her hometown. She has a life of routine and responsibility and seeks to have a chance to relax and enjoy the natural beauty of Alaska at the same time. She also sees cruises as a worthy reward for her hard work on the families' businesses and also is interested in learning about Alaska's many natural wonders including the glaciers. Lastly she is interested to see what a cruise in Alaska is like, as there is often discussions she has with friends about the dinners, the social events and the incredible views of wildlife from the ship using binoculars. She sees the trip as an opportunity to unwind, reward herself, share companionship with people her own age and social status, and enjoy the trip.

This respondent is clearly passionate about wanting to experience as much of life as they can during their college years. Hitchhiking or taking the Eurail Pass through the Western European nations is a major priority as is the opportunity to do extreme skiing in Japan and also to hike the Rockies. They have little fear of the elements in fact welcome them as part of the experience. They also the most confident of the respondents spoken to in terms of their athletic ability and therefore has little fear of diving in Thailand or skiing in Japan. The issue for this respondent however is the budgetary concerns they have, as many are going to school on student loans.

3.3 Successful Business Man

Interviewing this respondent provided unique insights into traveling for holidays as a means to recharge through mildly to exceptionally risky activity that also provided a chance to glimpse part of the world they would never have a chance to see otherwise. Many of the successful businessmen who skin dive and also sky dive have a high level of risk tolerance, hence their success in business. The opportunities to skin dive in Thailand appears to this respondent because the vibrancy of undersea life, the opportunity to risk exploring entirely new coral reefs, and the encounters with fish and wildlife never seen before. The successful businessman says that these vacations sharpen his senses and make him feel more alive, and that the idea of sitting on a tour bus winding its way through Europe is exceptionally boring. He has to feel risk as part of his psychographic profile to feel alive, and exceptional risk of skin diving combined with its tranquility is very appealing to this respondent.

4.0 analysis and compare the responses of participants

The following is an analysis of each of the respondents along the dimensions of motivation, value, self and self-identity. There are an abundance of theories in these areas, and the following sections explore these theories and their results in greater detail as they pertain to the selection of travel destinations.

4.1 Motivation

All three respondents see the allure of travel as a means to learn more about the world while also getting their needs met. For the middle-aged woman the need for rewarding herself for working hard at the family businesses while raising her children is a powerful motivator to take a cruise. For the student, they want to immerse themselves in life and also have an element of risk in their travel lives as well. They are the most likely to take vacations where there are extreme sports including skiing for example. Of all respondents, the successful businessman sees travel as more of a means for gaining a refreshed sense of life by seeing things he would never see if he stayed in his normal routine without taking a vacation.

In each of these scenarios there is a common basis in motivation. Each of these travelers is motivated by a different needs value or perception of the ideal experience given the preferences. The need for self-actualization, consistent with applicability of Maslow's Hierarchy of needs to the travel industry as studies previously have successfully done (Huang, Hsu, 2009) illustrate how powerful the need for self-actualization and peak experiences are in differentiating one travel experience form another. Segmentation of travel alternatives by the layer of the Maslow Hierarchy of Needs Model is critical for travel providers to be effective marketers and speak in terms their clients can understand and act on. The provider of Alaskan cruises would be wise to discuss how the cruise is a "trip of a lifetime to reward the decades of service to others" as the Asian women has most likely given huge blocks of her time and effort to her family and the family business. The self-actualization and "grand experience" of the Alaskan cruise is exceptionally successful as a marketing and messaging strategy that aligns to the Maslow Hierarchy of Needs Model, hence the very high participation rates on these events from senior citizens who are empty nesters.