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CHAPTER 3 TOURISTS BUYING BEHAVIOUR INTRODUCTION Definition: It is a branch of applied psychology concerned with the behavioural aspects of purchasing decisions of customers/tourists. They are attitudes that buyers exhibit in the process of interacting or consuming a given set of products (services). Why Do We Need To Understand Consumer Behaviour Marketing is all about offering what the customer regards as valuable at a profit. In this era of dynamic engagement, customers have become so complicated and sophisticated that what one may regard as value is a reject to another. In order to offer value to the customers, it is imperative that firms understand what customers regard as valuable. There are many products that are similar on the market, but what makes a customer prefer one brand to another? It is factors such as these which marketing firms are attempting to understand in order to design product and services offerings which will match the requirement of consumer accurately than those of their competitors. It is against this background that consumer behaviour has become a topical issue in marketing. Consumer Decision – Making Process (a) Need Identification – needs can be split into two;i.e, Functional needs and psychological needs. Functional needs can be expressed as a reaction to a situation where a positive need arises. Someone is hungry, therefore needs some food. Thus we need food (functional), but we may want rice and chicken (specific type) – thats psychological. b) Information gathering The need has now been identified but there is no pi pointed product (service) which will satisfy that need. For instance, the need is that of entertainment – we are feeling bored. The first step in the information gathering process might be to check the local paper to see where night – life is and what films are showing (which papers would you scan?) Depending with the need identified, there may be great necessity to approach relevant consultants to get information for travel and tourism we may need the assistance of Travel Agencies and Tour Operators. Tourism is a highly involving product which does not need haste decisions due to its being very expensive yet intangible. It is different from the decision needed to buy a pair of shoes which can be returned in case its oversize. c) Evaluation of Alternatives According to Behavioural scientists, evaluation is a four staged process and scholars generally agree on the four stages as depicted in the model below; i. Relevant Criteria ii. Personal beliefs and perceptions iii. Personal attitudes iv. Behavioural intentions We will discuss these stages in turns; Relevant Criteria These are the standards by which products are judged. Essentially, this is the area that advertisers should target. They have to impress on the factors that make the product perception great in the eyes/mind of the customer. In other words intelligent advertisers help consumers in their judgement of the products. Personal Beliefs and Perceptions The customer’s own beliefs regarding the degree to which each alternative possesses the characteristics deemed to be relevant criterion. Personal Attitudes These represent tendencies to respond either positively or negatively towards characteristics believed to be present in the product. While beliefs may imply knowledge or relative certainty, attitudes are more unsubstantiated and may even extend to prejudices. Behavioural Intentions While we can say that attitudes and perceptions can both influence and lead to certain types of behaviour, there is also a moderator here. While attitudes are not strong, or perceptions do not bolster those attitudes, the behaviour may be influenced most of all by the behaviour of others. Thus, following the lead of others is known as normative compliance. d) Selection of Best Solutions After rationalising according to information provided, attitudes and experiences and other people’s recommendations, the customer arrives at the 'best' solution. But is it necessarily the best?Perhaps what is a more accurate assessment is that it is the safest solution. e) Post Purchase Evaluation a) Product/service is a bundle of benefits that the customer seeks to enjoy by purchasing it. The prime idea is need satisfaction. At the end of the day, the customer has to evaluate whether the purchase has led to the intended satisfaction in order to determine whether to buy again from that organisation. The hospitality and tourism industry thrives on repeat visits in most cases. This therefore makes the issue of customer satisfaction of utmost importance. This is made especially critical during off-peak periods. Post purchase evaluations cannot be neglected if a sustainable competitive advantage is to be gained. Cognitive dissonance (Postulated by Leon A. Festnger) Is an uncomfortable feeling caused by holding conflicting ideas simultaneously? The theory of cognitive dissonance proposes that people have a motivational drive to reduce dissonance. They do this by changing their attitudes, beliefs, and actions. Dissonance is also reduced by justifying, blaming, and denying. It is one of the most influential and extensively studied theories in social psychology. Experience can clash with expectations, as, for example, with buyer's remorse following the purchase of an expensive item. In a state of dissonance, people may feel surprise,[1] dread, guilt, anger, or embarrassment. People are biased to think of their choices as correct, despite any contrary evidence. This bias gives dissonance theory its predictive power, shedding light on otherwise puzzling irrational and destructive behaviour. The effect of positive cognitive dissonance is a satisfied or even delighted buyer who is more likely to buy a product again (e.g., repeat destination visitation), become loyal to it, spread positive word of mouth, recommend it to others, spend more on it, and cherish it in a memory for a long time. Delighted customers are likely to be the best advertisements for products/destinations. The effect of negative cognitive dissonance is a dissatisfied buyer who may stop buying the product permanently or temporarily (e.g., stop traveling to the same destination). The dissatisfied buyer may also return the product to the seller e.g., return an airline ticket), complain to friends, families, reference groups, and associates,and discourage them from the same purchase. In addition, the unhappy buyer may ask for a refund or product exchange (e.g., change a hotel room), or decide to sell the product, (e.g., sell time share), or trade it. Some unhappy customers may give the product to someone else (e.g., unwanted gift), store it, or convert it into something else. In case of a high level of dissatisfaction buyers may also initiate a lawsuit. In order to avoid or decrease negative dissonance (the unfavorable gap between expectations and experience), buyers often take steps to reduce the uncertainty that they might have about their selection by (1)Trying to convince themselves that their decision was wise, (2)Seeking more supports the choice, information that reinforces the purchase and (3) Persuading friends to purchase the same product, or (4) Contacting other owners to reassure themselves of their decisions. Most tourism and hospitality organisations have an imperfect picture of theory customer, and few monitor patterns of consumer behavioural at a level of detail necessary to remain competitive (Hadson 2008) Some take comfort in the assumptions that they are close enough to their customers and there is no need to undertake a formal customers research. Others brush the idea aside as an expensive initiative. The majority of organisations are contend with analysing secondary data for decision making. In this raplex environment, secondary data can be out of date in no time making it obsolete. Customer data collected in 2005 may not apply today's environment. FACTORS INFLUENCING CONSUMER BEHAVIOUR The diagram below shows the seven key factors that influence a customer's behaviour. In most cases, motivation is seen as the main determinant, but cultural, personal, and social influences will also have an important effect on consumer purchases. Motivations Culture Reference groups BUYER Social class Age and Gender Life cycle Life style (Source : Hudson 2008) Motivations These are inner drives that cause people to take action to satisfy their needs. Understanding the key drivers that lead to one purchasing a tourism product is recognised as one of the main factors in the success of competitive organisations. To understand human motivation, it is necessary to discover what needs the people have and how they can be fulfilled. Maslow was the first to attempt to do so and today his hierarchy of needs is used by many management theorists. According to Mills and Morrison (1985), travel is a need or wants satisfier and this ogres well with Maslow's conceptualisation. Dann (1977)'s tourism motivators can be linked to Maslow's list of needs. He argues that there are two factors in a tourist's decision to travel: The push factors and pull factors. The push factors are those that make you want to travel while the pull factors helps you decide where to go. In agreement to Dann's ascertain Crompton (1979) identifies 9 motives, 7 classified as socio psychological or push factors and two classified as cultural or pull motives. The push factors are; escape from a perceived mundane environment; exploration, and evaluation of self; relaxation, prestige, and regression; enhancement of kinship relationships, and facilitation of social interaction. The pull motives are Novelty and Education According to Krippendorf (1987) there is something common in these theories of tourism motivation. First, travel is motivated by “going away from” rather than “going towards” something. Second; travellers’ motives and behaviours self oriented e.g. escape freedom, self realisation and broadening of mind. Motivation is also influenced by learning beliefs and attitudes and perceptions. According to Hudsons (2008) learning refers to how visitors receive and interpret a variety of stimuli. People get experience from listening to others, taking holidays, talking to friends, etc. It is from these experiences that one develops a mental inventory that builds expectations about places. Culture Culture plays a crucial role in influencing consumer buying behaviour. In Zimbabwe, and Africa at large, it was believed that only the highly placed in society can engage in tourism. The culture was that tourism was for the elite few and the whites and it took much time for most Africans to know that they are also eligible to travel. Research has shown that up to now, many still subscribe to the old philosophy. Some cultures take travelling as a way of promoting promiscuity and prostitution. Anyone associated with tourism is regarded as a morally loose person and few would want to associate with him. Age and Gender Age has been successfully used a basic for market segmentation. Today many tourism operators are targeting the senior market. This has been as a result of the fact that the old aged are not tied to weekly work commitments and are less seasonal. They are also interested in long haul travel. The senior market is also less price sensitive, they are much more concerned with value than price. Usually the young and energetic prefer the more adventurous holidays while the old prefer more casual holidays which are less strenuous but still promote good health. The spurs have become more fashionable with the old age. Educational tourism is also very popular with the young and aspiring. Gender segmentation was previously common in hairdressing cosmetics and magazines (Hudson, 2008). Today it has become popular also in tourism. In recent years, women travellers have been on the increase especially for business purposes. This has called for hoteliers to have high quality soaps and lotions, better room service and high quality bathrooms. It is generally agreed that women travellers are more demanding compared to their male counterparts. Women are also much concerned about their safety, security and comfort. Social Class It is the portion that one occupies within society and is determined by such factors as education, wealthy, income, occupation, family prestige, etc According to Seaton and Bennet (2004) social class and occupational grading produce differentiated patterns of behaviour which have great impact on tourism consumption. In India, the caste system is one way of positioning someone in society. Anyone who has departed from traditional India culture was called an “untouchable” and anyone who would touch or glance at an untouchable was considered defiled in the Hindu religion. The society in most economies is divided into upper, middle and low classes. In recent years in Zimbabwe, the middle class has been dying out and the gap between the rich and the poor has been widening immensely. Tourism is still considered as the “Elite Business” and the rest despite the desire, feel unqualified to undertake it. There are places for highly placed in society e.g Pandari Lodge in Newlands Harare. It is generally believed that the more the disposible income, the more likely one is to travel. Lifestyle Lifestyle analysis examines the way people allocate time, energy and money. Researchers in marketing have combined demographic and psychographic variables into a concept called 'psychographics'. Psychographic analysis attempts to measure people’s activities, interests and opinions (Hudson, 2008). By profiting the way of living of groups of people, marketers are able to predict their travel motivations and patterns. The VALS typology framework divides the population into 8 lifestyle groups, defined according to factors such as self – image, aspirations, values and products used (www.sric- bi.com/vals/) Life Cycle The family life cycle concept is based on the premise that when people live together, they behave differently. These are the stages through which families might pass as they mature. Single people are likely to behave different from couples. Those with children will obviously have different spending patterns from those who do not have children. Today most coups are DINKs (Double Income No kids). These have a greater prosperity to spend eating out and are generally more outgoing. According to Pearce (1993), travel patterns and destinations vary as people move through their life cycle. Tourists may also change their behaviour patterns over time, so if the life cycle model is used to predict behaviour, then trends in consumer behaviour need to be monitored. Reference Groups (groups that have a direct or indirect enhance on a person's attitude or behaviour) People learn through sharing ideas and experiences with others in their different reference groups; these include families, university, workplace or church. Experienced travellers, who have been exposed to other cultures and to people who are less fortunate, are influencing the new trend of volunteer tourism (Philanthropy). The UNWTO has recognised that there is a tendency among tourists to view travel as a means for enhancing the quality of their own lives on a philosophy of doing well while doing something good for society. Demand for such developing niche markets as educational tourism, ecotourism, agritourism, and cultural tourism have been mainly driven by the growing number of well – heeled, well – educated older travellers. Travellers can take a 'volunteer vacation' and give their time and expertise to help in projects in developing countries. These trips aren’t free but they're often cheaper than conventional tours. TOURIST TYPOLOGIES Tourism researchers have tried to explain tourist behaviour by developing typologies of the tourists themselves. Plog (1974) has proposed what is referred to as allocentrics or psychocentrics. Allocentrics are those travellers who prefer pristine exotic destinations, unstructured and independent vacations compared to package group tours. They also want an experience with the local cultures. Psychocentrics, to the contrary prefer the tried and tested destinations which are more familiar. They also prefer packages tours to areas that are 'touristy'. One class that is said to be neither Allocentric nor psychocentric the, midcentric’ was seen to exist. Critics have argued that Plog's theory is difficult to apply due to the fact that people travel for different reasons and with different motivations on different occasions. Another scholar Cohen (1972) has a different classification of tourists. He classifies them as; 1.Organised Mass tourists – dependent on all - inclusive tours. 2.Individual mass tourists – more acrimonious and free than those in the previous group. 3.The Explorer – who seeks new areas? 4.The drifter – avoids any kind of 'tourist establishment.'