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The Analysis of Tourism Demand: Tourist / Buyer Behavior Why is This Important? Understanding demand and factors that influence this is crucial for successfully implementing marketing plans and strategies Understanding consumer behavior is essential for segmentation strategies, tailoring services, prices, promotions, distribution channels to fit customers’ needs Part I. Macro-Analysis (Economic Approach) Macro analysis is concerned with examining collective tourism movements in terms of number of visitors, trips and revenue generated from them. Deals with data such as arrivals per country, attraction admission numbers, flight loadings, hotel occupancy rates, visitor spending and so on. Macro demand data underlies all marketing planning. Main determinants of tourism demand Economic (e.g., prices, CPI) Demographic (e.g., disposable income levels) Geographic Comparative prices Government/regulatory Media communications Socio-cultural (the tastes, habits and preferences of potential buyers) Note: these factors are external to any individual business and beyond direct control. Marketers (you) need to continuously monitor social and economic environments Part II-MICRO-ANALYSIS (Consumer Behavior)* Marketing approach ...Is concerned with the social and psychological factors that lie behind group and individual tourist choices. We ask questions such as: What makes people engage in tourism-what are their motivations? How do people make their tourism choices and what influences them? What affects their perceptions and images of destinations, attractions and other tourism choices? *Job of the marketer What does all this mean? Micro-analysis is concerned with individual influences (internal) and external influences (social) (why and how questions?) Macro-analysis is concerned with who, where, how much and how many? A Stimulus Response Model of Tourist/Consumer Behavior Marketing Stimuli Buyer’s Black Box Other Stimuli Communication filters Learning •Tourism products •Place/distribution •Price •Promotion Cultural and Social (reference groups Perceptions Motivation Demographic economic social position Psychographic characteristics Need wants goals Experience Attitudes Post consumption feelings Response Product or destination choice (Brand Choice) A) Internal (individual) Influences Perception Motivation Needs and Motives Attitudes Personality Perception • What is Perception? Perception is reality is the process by which people select, organize, and interpret stimuli. According to recent research findings: Customers are more likely to: • Notice and retain information related to a need of • • • • • which they are aware Buy services that match their perceived images of themselves Notice and retain things that stand out from the norm See things that they anticipate seeing Notice information from tourism organizations and destinations with which they have had successful previous experiences Attach greater credibility to interpersonal rather than commercially generated information Perceptions of Tourist Roles • • • • • • expectations to being waited or indulged not having to speak the language expectations of new social encounters with both hosts / providers of tourism and other travelers expectations of distinctive or increased levels of drinking and eating out expectations of abnormal levels of sun expectations of daily novelty (the “what-shallwe-do-today” syndrome) Motivation What are Motives? • Inner state that directs a person toward the goal of satisfying a need. Maslow’s Hierarchy of Needs Motivation Stimulated Needs Aroused tensions Goal-directed Behavior “lack of something necessary to the well-being of an individual (BELONGING) “uncontrollable feeling activated by internal and/or external stimulus (SEARCH FOR LOVE) “action taken by an individual to reduce aroused tensions and satisfy stimulated needs” (TRAVEL TO CLUB MED) Self Actualization Self-fulfillment: doing what is best fitted for you (TOURISM) Self-respect, prestige, status Ego-needs Belonging/Social Safety Physiological Needs (TOURISM) Affection, belonging to a group, being accepted (TOURISM) Savings, good wages, stability, personal security, insurance Food, drink, love Shelter Maslow’s Hierarchy of Needs Maslow’s Hierarchy of Needs Self Actualization Ego-needs Belonging/Social Safety Physiological Needs “Our Courses are limited to 12 students, but our classrooms are quite large.” (Outward Bound) The Province of Beverly Hills Where Love Comes to Stay (Sandals) There’s one Travelers Cheque for couples who have tied the knot, just not around each other (American Express) “These Waters separate our islands from the coast. And you from your cares.” (North Carolina) Attitudes What are Attitudes? – a learned pre-disposition to respond favorably or unfavorably to stimuli, based on relatively enduring evaluations of people, objects, and issues. Attitude Affective component “what I feel” Cognitive component “What I believe” Behavior component “How I respond Personality • Personality Traits (outgoing, selfconfident, quite, sociable, defensive etc.). – Http://www.2h.com/Tests/personality.html • Self-concept • Real Self • Self-Image • Ideal Self • Looking-Glass Self (take this test) VALS Actualizers Principle O r i e n t a t i o n Fulfilleds Believers Status Action Achievers Experiencers Strivers Strugglers . High Resources Makers Low Resources Self-concept Who are we? – Self concept has 4 parts how you see yourself Looking glass self Self-image Ideal Self How you think others see you Real-self the way you actually are How you would like to be B) External Influences Personal Influences (Income, Family, Lifestyles) Social Influences Social Influences Define Social Influences Culture and subculture Social Class Reference Groups Social Influences All Interactions with and influences resulting from both formal and informal group memberships other than the family are included. Cultural Influences Definition of culture sum total of learned beliefs, values, and customs that serve to direct the consumer behavior of members of a particular society Take-Home Exercise http://future.sri.com/VALS/vals2desc.shtml Complete the survey Submit survey and wait for response Your primary VALS type is Innovator, and your secondary type is Actualizer. Print this page. Click on primary type Read material and then print page Back to survey response Click on secondary type - read material and print page.