Consumer Markets

and Consumer Buying

Behavior

Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. 1

Philip Kotler, John Bowen, James Makens 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 ©2003 Pearson Education, Inc. 2

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Model of Buyer Behavior

Marketing and Buyer’s Black Box Buyer Responses

Other Stimuli

Marketing Buyer Characteristics Product Choice

Product Buyer Decision Process Brand Choice
Price
Place
Promotion
Other Purchase Timing
Economic Purchase Amount
Technological
Political
Cultural
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. 3
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Factors Influencing
Consumer Behavior
Cultural
Social
Personal
Psycho-
Culture Reference Age and logical
Culture groups life-cycle
Occupation
Motivation
Perception Buyer
Sub-
Sub- Family Economic
culture situation Learning
culture
Lifestyle Beliefs and
Roles Personality attitudes
Social
Social and and
class status self-concept
class

Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. 4

Philip Kotler, John Bowen, James Makens 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 ©2003 Pearson Education, Inc. 5
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 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. 6

Philip Kotler, John Bowen, James Makens 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 ©2003 Pearson Education, Inc. 7
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Social Class
• Relatively homogenous, enduring divisions
in a society, hierarchically ordered with
members sharing similar values, interests,
and behaviors

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Philip Kotler, John Bowen, James Makens 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 ©2003 Pearson Education, Inc. 9

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Factors Affecting Consumer
Behavior: Social
Groups
Groups
••Membership
Membership
••Reference
Reference

Family
Family (most
(most important)
important)
••Husband,
Husband, wife,
wife, kids
kids Social
Social Factors
Factors
••Influencer,
Influencer, buyer,
buyer, user
user

Roles
Roles and
and Status
Status

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Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Family Influence on Buying
Behavior

• Husband-Dominant
• Wife-Dominant
• Equal

Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. 11

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Factors Affecting Consumer
Behavior: Personal
Personal
Personal Influences
Influences

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

Lifestyle
Lifestyle Identification
Identification

Activities
Activities Interests
Interests Opinions
Opinions

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Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 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. 13
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 VALS 2 Actualizers
Actualizers
Abundant
Abundant Resources
Resources

Principle Oriented Status Oriented Action Oriented

Fulfilleds
Fulfilleds Achievers Experiencers
Experiencers
Achievers

Believers
Believers Makers
Makers
Strivers
Strivers

Minimal
Minimal Resources
Resources Strugglers
Strugglers

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Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Factors Affecting Consumer
Behavior: Psychological
Motivation

Psychological
Factors
Beliefs and Affecting Perception
Attitudes Buyers
Choices

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

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Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Psychological - Perception

The process by which an individual

selects, organizes, and interprets
information inputs to create a meaningful
picture of the world.

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Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
Psychological - Learning

Changes in an individual’s
behavior arising from experience.

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Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Psychological - Attitude

An attitude describes a person’s

relatively consistent evaluations,
feelings, and tendencies toward
an object or idea.

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Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
Maslow’s Hierarchy of Needs

Self
Actualization
Esteem Needs
(self-esteem)

Social Needs
(sense of belonging, love)

Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)

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Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Buyer Decision Process
Purchase
Decision
Evaluation Postpurchase
of Alternatives Behavior
Information
Search
Need
Recognition
Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. 21
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 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. 22

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 Types of Buying Behavior

• Routine Response
• Limited Decision
• Extension Decision
• Impulse Buying

Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. 23

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
Consumer Behavior and Services

•Search qualities

•Experience qualities
•Credence qualities

Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. 24

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
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. 25

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
 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 ©2003 Pearson Education, Inc. 26

Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458