NGUYEN, Quynh Ly (11456385) Consumer Behavior

1. SUMMARY

The report will begin by briefly describing the Home Stay travel, the typical
services supplement and the target group which is international cultural visitors.
After that it will identify the specific situational elements which are
communication situation, purchase situation, and usage situation. Those
situational factors have a part in influencing the purchase decisions and helping
the marketers to maintain their target consumers. The opportunity of Home Stay
traveling is reflected by the market potential as displayed by the large number of
the international visitors arriving in Australia. However, because of its new
service, it faces a number of problems, take an example: the pioneering services,
including: hotels, resorts, motels.

Next, in order to recognize when the situations happen, the strength of its effect
and how it impact on tourists, the report will analyze and discuss situational
influences which physical surrounding, social surrounding and time influence.
Physical surrounding comprises services, facilities and location. Social
surrounding shows the target group in terms of their characteristic as well as their
status.

As a result of examining those influences, it provides marketer the marketing

strategies with the purpose of understanding those influences in order to act and
respond to them when the situations arise as well as encourage the purchase
decision of visitors.

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THE TABLE OF CONTENT

2. INTRODUCTION

2.1. BACKGROUND

Currently, tourism is one of the most important industries in Australian, which

accounted for 2.6% of total GDP (Tourism Australia. 2010). Since, Australia has
become an attracted destination for international visitors because of its plentiful
culture. However, Australia is still known as a fairly expensive country to spend
holidays. Therefore, the idea of Home Stay accommodation gives tourists an
opportunity to arrange the beneficial holiday. The advantages of choosing Home
Stay are much cheaper than selecting a hotel, safer and more convenient than
motels, as well as the easiest and the fastest way to learn the local lifestyle by
sharing the daily life with host families. What is more, tourists do not need to pay
more for tour guide services because their host seems to be a tour guide and they
will be able to know exactly what is contained in services directly. Nonetheless,
bringing Home Stay in to Australia Market is to have regard to a number of
research and examination the consumer behavior in more detail in order to
encourage the purchase decision of tourists.

2.2. THE OBJECTIVE

The purpose of this report is to investigate the impact of types of situations which
affect on tourists’ decision making to select Home Stay accommodation. As a
result marketers can design marketing strategies by which marketers can
encourage the possible purchase as well as act timely when situations arise

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3. HOME STAY TRAVELING

3.1. WHAT IS HOME STAY TRAVELING

Home Stay is a kind of tourism by which tourists are disposed to stay at the local
people’s houses, in this case, Australian houses. The idea of Home Stay travel in
Australia provides tourists the unique experience, also it is the easiest and the
fastest way to discover Australia by doing things the “Aussie” way. In order to
accomplish this aim, host families play a role as a tour guide service to bring the
lifestyle of local people to visitors directly, for example: living with Australian,
eating the traditional food of Australia. Overall, the purpose of Home Stay
tourism brings cultural activities into focus.

3.2. MARKET

The target group of Home Stay travel is the international market. According to
Department of Resources, Energy and tourism (2010, March), in 2009 despite of
the decrease of global tourism demand which was caused by the global financial
crisis, there was an unchanged trend of the quantity of oversea tourists coming to
Australia, which were approximately 5,256,763 appearances in the first three
months in 2010. Particularly, the major increase was led by the tourists who are
from New Zealand (about 1,010,963 arrivals), following by United Kingdom, the
United State and China which contributed to 628,097 arrivals, 458,568 arrivals
and 359,692 visitors respectively.

Furthermore, the Home Stay tourism will be more successful if the target groups
are people who are attracted by the Australian culture. It is clear that visitors
come to Australia with different purposes, including: holiday travel, business
travel or other purposes. It is indicated in the report of the Department of
Resources, Energy and Tourism (2010, June) that in 2009 the number of tourists
traveling by the purpose of business fell significantly (by 116,000 arrivals),
whereas the level of holiday tourists which is the widest segment decreased
slightly (by 7,300 arrivals). Moreover, the proportion of Australia’s international
cultural visitors accounted for approximately 51% of all international visitors. It

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was displayed that this figure has increased roughly 2% every year since 2000.
(Department of Resources, Energy and Tourism, 2010)

4. THE SITUATIONAL TYPES

4.1. COMMUNICATION SITUATION

Marketers apply communication as the way to attach the interest points of

customers in order to encourage they purchase more. It seems to be a bridge to
connect the marketers with consumers (Bednall & Knauk, 1997). However, in
order to design the persuasive communication, marketers need to understand
surrounding noise which are hotels, motels, etc.

• Resorts

There are wonderful resorts in Australia. A range of facilities are provided, such
as swimming pools, bars, coffee, ski classes, etc. Therefore, the price is sheer
expensive. Especially, when the seasons are nearly coming, the price increases by
roughly $50 - $80 per night and it is difficult to find a couple room less than
approximately $ 130 per night ( Travel in Australia, 2010)

• Hotels and flats

These types of accommodation are usually available in urban center and the place
surrounding, so those suit for city tourism rather than cultural or aboriginal places.
The price depends on the level of hotels which can be cheap or quite expensive.
The average price is $ 162 ( Travel in Australia, 2010)

• Motels and motor lodges.

Motels and motor lodges were popular in 50s and 60s. It seems to be forgotten.
However, nowadays, some tourists still choose these types of accommodation for
traveling as a fast and not expensive accommodation in Australia. The price is
about $70 per night for 2 – 3 star motels. Nonetheless, compared to hotels, motels
and lodges are less comfortable and convenient because of lacking facilities
( Travel in Australia, 2010)

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Those types of accommodation are barriers which prevent the success of Home
Stay’s communication (Bednall & Knauk, 1997). According to Research
Department Tourism Queensland (2003), the majority of international visitors
preferred hotels, resort and motels (made up 64%). The rest accommodations
which are backpacker hostels and relative’s houses made up the equal percentage
(18%). It can be assumed that hotel is the strongest competitor that Home Stay
travel faces. However, Home Stay travel is significantly different from the hotel’s
service on various activities which for instance, are not only still supplied for
serving the tourists’ need, but also providing for visitors the real experience of the
local society. Furthermore, cultural activities of rural area and an alternative in
local market which was not a competitor of hotel and resort seem to attract the
tourists’ interest. Thus, marketers can use its strengths in order to reposition the
competitors which change the image of hotels or motels in the way of tourists
thinking.

4.2. PURCHASE SITUATION

Purchase situation is a circumstance in which consumers are influenced to buy

products or select service (Quester, Neal & Pettigrew, 2007). Recently, there are a
lot of people who desire to visit a far away place, however, they bother about the
quality of accommodation go along with the price. As be introduced above,
resorts and hotels can be able to provide a great accommodation with an
expensive price, whereas, tourists pay a cheap price for motels’ accommodation
in terms of insufficiency facilities. Home Stay is likely to meet both the standard
of accommodation and the price. Firstly, staying in Home Stay is cheaper than in
hotels or resorts. The price is various that is dependent on where Home Stay is
located. Furthermore, if visitors are willing to stay longer, the price can discount.
Secondly, although the price is not high as hotels, the quality still maintains and
all facilities are provided, so that tourists are freedom to use ( Travel Australia,
2010).

4.3. USAGE SITUATION

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The differences from Home Stay traveling and other type of accommodation are
identified by the usage situation. According to Quester, Neal & Pettigrew (2007)
the usage situation define a situation that consumers consume products or
services. As be mentioned before, Home Stay travel is the best way to experience
the Australian way of life and provides several chances to accomplish the taste of
local cuisine and sees the interesting places. During the time staying at Home
Stay’s families, the visitors have time to discover, they will be attracted by the
surrounding interest. Taking examples: visitors will be able to encourage host
families to do things together, such as: cooking, visiting the culture place and in
this case, host parents seems to be a tour guide. Tourists not only explore about
Australian culture but also learning English for interest and communication which
might be important for their future’s career. All of these things are considered,
Home Stay travel can produce a unique journey which can strongly affect the
connection on their memory between a Home Stay and a particular usage
situation, and they will start applying for Home Stay more frequently on holiday.

5. THE SITUATIONAL INFLUENCES

5.1. PHYSICAL SURROUNDING

• Accommodation and services: as be introduced above, Home Stay travel

supplies the comfortable accommodation, the sufficient facilities. These facilities
are, for example: security, internet connection, Wi-Fi, televisions, laundry service,
garden and airport pick – up service, etc. Certainly, rooms are supported a private
bathroom, As well this, Home Stay travel provides the best home meals which
include breakfast, lunch and dinner. Also, it also very convenient and effective if
tourists want to cook by themselves with the convenience of kitchen. Therefore,
tourists are easy to have a wide range of experience, such as: getting
communication, experiencing the cozy hearts and welcoming family feeling,
specially learning about Australian culture.

• Location: on the base of Home Stay benefits and the desire of international
cultural tourists, Home Stay travel is available in the cultural destinations. The
research shows New South Wales, Queensland and Victoria were the most

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popular destinations for both domestic visitors and international tourists,

nonetheless the vast number of international tourists arrived the Northern
Territory, the Australian Capital Territory and Tasmania with purpose of
participating in cultural activities (Department of Resources, Energy and
Tourism, 2010).

5.2. SOCIAL SURROUNDING

Type of customers in service: it can be assumed that Home Stay is likely to be a

type of cultural and heritage tourism. Therefore, the target customers are focusing
on tourists from overseas who are in the age of 25 to 44 and interest in seeing and
learning about Aboriginal arts and Australia culture. The tables below will show
the information about tourists who participate in cultural activities in Australia
and explain the reason for selecting the target customers of Home Stay
accommodation. These tables include: age, gender, marital status and working
status.

• Age:

15 – 24 11%

25 – 34 12%

35 – 44 22%

55 – 64 15%

65 + 18%

(Department of Resources, Energy and Tourism, 2010)

visitors who are in the age of 35 – 44 seem to be attracted by cultural activities, so

they are willing to pay for Home Stay accommodation because Home Stay is one
of the best way to learn and experience culture and heritage activities

• Gender

Male 45%

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Female 55%

(Department of Resources, Energy and Tourism, 2010)

As can be seen, cultural tourism attracted females than males. Hence, females can
be brought in to focus as the target group of Home Stay.

• Marital Status

Single 23%

Part of couple 77%

(Department of Resources, Energy and Tourism, 2010)

Part of couple contributed to the majority of cultural tourists.

• Working Status

Working full time 44%

Working part time 16%

Unemployed and looking for work 2%

Retired or on a pension 24%

Studying 5%

Other 10%

(Department of Resources, Energy and Tourism, 2010)

With regards to marital status, part of couple contributed to the majority of

cultural tourists. It does mean this group seems to be motivated by

5.3. TASK DEFINITION

It is clear that tourists choose the various types of accommodations because of the
differences of the interesting points, perspective and the purpose of traveling. The
goals of Home Stay travel is to combine between the relaxation and participate in
Australia’s cultural activities. Apart from that because the length of traveling is

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not enough to well understand and feel the Australian lifestyle, so Home Stay is
the best choice and the easiest and fastest way to travel without hassle.

6. SITUATIONAL INFLUENCES AND MARKETING

STRATEGY

6.1. MARKETING STRATEGY RELATIVE TO COMMUNICATION

SITUATION

6.1.1. THE MESSAGES

The objective of the messages is to convince visitors to purchase, for example: the
message can be exploring Australian culture with out hassle. For this aim, the
messages are designed by word, pictures, symbols, spokespeople and special
channels through several ways, such as: mass media which is newspapers,
magazines or television program, and electronic media which is computers or the
Internet. However, because customers are oversea, it is strongly recommended
using the Internet to advertise in order to minimize the fee.

6.1.2. THE RECEIVERS

According to Bednall & Knauk (1997), the messages are analyzed by customers’
personality and their own knowledge. Hence, the messages not only deliver
sufficiently the benefits of Home Stay travel, but also need to meet the needs and
motivations of international cultural tourists. Researchers found that the
international visitors are motivated by the desire to experience Australian things,
visit the special place, or spend time on educational experience, as well as a
genuine experience (Research Department Tourism Queensland. 2003).
Particularly, the inspiration to visit attracting places differs from tourists’
nationality. Take the case of tourists who come from Asian desire to visit
interesting culture including in package holiday. Visitors are from New Zealand
who wish for participating a performance, while European and North American
tourists want to experience something Australia.

As well as this, the message comprehension and the type of message should be
addressed in order to perform effectively. It involves the ability of receivers to

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process the message and its motivation. In addition, it is easy to understand that
tourists vary from each other in the level of attention that they decode the
messages. Proof of this can be seen visitors who desire to see Aboriginal culture
seem to be affected by movies, documentaries and books. Tourists who prefer to
visit artwork or museum are more likely to be motivated by travel brochures,
travel agencies and word of mouth. What is more, visitors who want to experience
art performance, shows or concerts are likely to be influenced by advertisement
and word of mouth.

6.2. MARKETING STRATEGY RELATIVE TO USAGE SITUATION

In order to provide sufficiently choices for all types of international cultural

tourists, such as: a couple adult, young males and adult females, etc, marketers
attempt to encourage all of the potential tourists. On the based of understanding
the impact of particular situation, there are two options in which visitors can
select depending on their lifestyle and their characteristic :

• Guests will become a part of family. It does mean that both hosts and guest
share all of facilities together and the guests are provided some or all of meals
which depend on their requirements.

• Guests and hosts just share facilities, kitchen or bathroom. The guests have to
prepare their food and cook by themselves. In this case the price can be lower.

6.3. MARKETING STRATEGY RELATIVE TO PHYSICAL

SURROUNDING

The location is very an important factor which contributes to stimulate tourist’s

satisfaction. Therefore, the accommodation and the destination visiting are
addressed. It should be located in the cultural and heritage places which can meet
the interesting points of the international cultural tourists. Also, the host families
need to understand the visitors’ needs in order to make them satisfactory, for
example: providing an adequate facility without restricting time using,
comfortable beds or the great meals of Australian cuisine, etc.

6.4. MARKETING STRATEGY RELATIVE TO THE TARGET GROUP

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Understanding people’s motivation is significantly important that would affect the

consumer decision to purchase or use service (Bednall & Knauk, 1997).
According to Lee Mei (1998), people are stimulated to travel by several factors
which involve the requirement to avoid the daily routine, the demand of social
interaction that visit visitors’ friends or relatives or the desire of discovering
Australia culture. What is more, according to Bednall & Knauk (1997), the “pull”
and “push” factors have a part in developing motivations. Particularly, the “pull”
elements of Home Stay traveling are concerned as the attractions of the host
families’ environment and the physical benefits around host families related to the
cultural places to visit. The “push” factors describe the tourists’ needs which
impact their decision to choose specific accommodation or services. In this case,
the international cultural tourists select home stay’s accommodation with regards
to the demand of relaxation, experiencing something news and unique, exploring
themselves as well as the destinations they visit and getting an opportunities to
discover the Australian society.

7. CONCLUSION

All things are considered, the international cultural visitors is the potential market
that suit for Home Stay accommodation. However, Home Stay accommodation
needs to focus on developing its service as well as its wide range of advantages in
order to influence the tourist decision of selecting Home Stay. The report
attempted to cover and discuss all types of situations and how strong those
situations can affect on choosing Home Stay accommodation. As a result,
realizing the relationship between cultural tourists and Home Stay
accommodation, Home Stay plays a role in cultural tourism as the fastest and
easiest way to experience Australian things. In addition,

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REFERENCES

1. Department of Resources, Energy and Tourism (2010). Cultural and heritage

tourism in Australia. Retrieved from

2. Research Department Tourism Queensland (2003). Cultural tourism.

Retrieved from

3. Department of Resources, Energy and Tourism (2010). Tourism forecasting

committee. Retrieved from www.ret.gov.au/tourism.

Lee Mei. F (1998, February). Cultural tourism in Australia: characteristics and

motivations. Retrieved from …

4. Bednall. S & Knauk. W (1997). Consumer behaviour. Sydney: Prentice Hall

5. Quester. P, Neal. C & Pettigrew. S (2007). Consumer behaviour:Iimplications

for marketing strategy (5th ed.). North Ryde NSW: McGraw – Hill

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