Research Topics: Consumer Purchasing Behavior

Consumer Behavior

1.1 Objectives of This Report The objective of this report is to do research on 4 holidays I have chosen and interview total of six people and also choose out attributes from the first three people that I interview. After getting the attributes from the first three people, I interview another 3 person who have totally different personality, demographics and reference group theory. This report will also evaluate why the responder chooses this holiday as their preference holiday and will explain their personality, demographic and reference group theory. Finally, several suggestions and recommendations are also discussed to conclude this report.       2.1 Holiday Destination 2.1.1 Holiday 1 – Sailing Whitsundays   Overview: In the heart of the Great Barrier Reef, ascending from out of the rich blue tropical waters lies an archipelago of green islands and sandy atolls. It’s one of Australia’s most enticing destinations, where you can fulfill all your holiday dreams because in the Whitsundays the most amazing things happen. The Whitsundays is the perfect holiday destination choice for a group of fun seeking friends, a couple looking for a romantic break on a bareboat yacht or just a good old fashioned family sailing holiday. Whitsundays Islands are one of the best yacht charter sailing and cruising grounds  in the world. Sheltered from the ocean swells by the Great Barrier Reef, the area is classed as having partially smooth water which means safe and enjoyable sailing or cruising area for anyone. Sailing Adventures normally cruise for 3 days and 2 nights or 3 days and 3 nights and guest numbers aboard range from 8 to 20 depending on the size of the vessel. These trips are fully found – all meals, tea and coffee etc. included. Alcohol may be either BYO (bring your own) while several boats are fully licensed. Snorkelling equipment, bed linen and towels etc are usually included in the price which range from 5 to 0 per person per trip. The vessels are crewed by a fully certified skipper and crew/hostess/cook.     2.1.2 Weather The Whitsundays enjoy spectacular tropical weather nearly all year round. Temperatures are very rarely lower than 20 degrees Celsius during the day with average water temperatures at 26 degrees Celsius.   Summers are from December to February which are usually hot and balmy with occasional showers, but even tend these tend to be warm and refreshing. The trade wind are strongest between May and August but a good for sailing breeze can be enjoyed at anytime of the year.   2.1.3 Holiday Packages The Whitsundays offer holiday packages which includes Local Discovery Packages, Wedding and Honeymoon Packages, Budget Packages and special deals. Local Discovery packages also includes A Night on Hayman Island at 6 per person, 6 Nights Reefside Villas Apartments and Anaconda III at 3 per person twin share, 5 Nights Sunlit waters and Mango (Oz Sail) at 8 per person twin share, Oceanpro 3 Day/3 Night Dive Package at 7 per person, and 6 Nights Maritime Villas and Solway Lass at 5 per person twin share.     Wedding and Honeymoon Package includes 5 Night Island Resort Honeymoon Package at 8 per person twin share and 5 Night Airline Waterfront Honeymoon Package at 9 per person twin share.   Budget Package offers 6 choices of packages which is price ranging from 9 to 5.   2.2 Holiday 2 – Skiing at Mt Hotham 2.2.1 Skiing at Mt Hotham Mt Hotham is considered a serious skiers mountain, not just for the slopes but also due to the precarious nature of the roads leading into Hotham. Fortunately these roads have been greatly improved from both directions and sealed all the way to the village from Dinner Plain. Furthermore the addition of three new chairs has close to doubled the mountain’s terrain and opened up some challenging intermediate areas. Yet Mt Hotham still has the most variety of advanced and expert runs of any resort in Australia, close to 40% of its total skiable area and numerous double black diamond areas. Mt Hotham has undergone a transformation in recent years, a bridge to carry skiers/boarder across the access road, more snowmaking and lots of village developments. There is, of course, a good range of beginners and intermediate skiing/boarding as well, and night skiing is offered on the Big D area. Accommodation is available on the mountain or just nearby at Dinner Plain, Australia’s only village above the snowline but not in a national park. Dinner Plain boasts some of, if not the best accommodation of any ski resort. At Dinner Plain a family is able to rent a whole modern multi-story house complete with fire place, kitchen and all the trimings for a comparable price to staying in a cramped, shared facility lodge. It makes staying at the snow a most comfortable experience. Mt Hotham is located in the Bogong High Plains in close vicinity to its sister mountain Falls Creek to which helicopter flights can be charted. It is over 5 hours drive from Melbourne and 1.5 hours from Albury. With the latest addition of an Airport 10 Km’s from Dinner Plain, keen skiers can now access Mt Hotham from Melbourne or Sydney in under an hour2.2.2 Market Characteristics, Development and Trends The China sportswear industry is in an oligopoly market structure, where there are few large firms (e.g. Nike, Addidas, Reebok and etc) dominate a particular market or industry with a competitive fringe of smaller firms sharing the remaining portion of the market. These major players of the industry has already enter and developed the China sportswear market, which showing their succeed to smaller firms that China has a certain level of product demand as well as the readiness to accept this foreign brand and trends of sportswear.   2.2.2 Climatic Conditions The snowline of Mt Hotham is approximately 1400 meters. Average annual precipitation at MT Hotham, including both snowfall and rainfall, is 1494 mm. snowfalls occur on an average of 74.4 days annually. The average maximum snow depth is 1500 mm at an elevation of 1845 meters. Snowfalls that create and maintain a persistent snow cover usually begins in mid June and continue intermittently until early September. South facing slopes are capable of retaining snow for an extended period. MT Hotham has a summer daily mean temperature of 11.1 degrees Celsius whilst in winter it is -1.0 degrees Celsius. The prevailing wind across the Bogong High Plains and Mt Hotham is from the north-west. South-easterly winds, often associated with fog and mist, are also common.             2.3 Holiday 3 2.3.1 Hong Kong Sight Seeing The images of Hong Kong are captivating in their contrast, old wooden boats bobbing beside huge ocean liners, squad alleys behind luxury hotels, tiny tenements next to skyscrapers, and market vendors selling chicken feet while talking on a cellular phone and many others forms. In addition, Hong has its excellent infrastructure, efficient subway system, superb international facilities with an entry to a Chinese world. Hong Kong offers visitors something unique, an experience of Chinese city with a combination of Western cultures.  Its mixture of East and West has created a unique culture. Chinese and English are the official languages and are widely spoken. Cantonese is the most common Chinese dialect, though Mandarin, Shanghainese and other Chinese dialects are also spoken. Many people especially in shops, hotels and service industries speak English.   2.3.2 Climate Hong Kong’s subtropical climate produces high temperatures throughout most of the year and a short, mild winter. Spring (March to mid-May) averages around 23 degrees Celsius and is extremely wet, often causing dangerous landslides and floods. Summer (late May to mid-September) is hot and humid with periodic rain fall. Temperatures may rise to 33 degrees Celsius. Autumn (late September to early December) is dry with clean sunny days and temperatures hovering around 23 degrees Celsius. Winter (late December to February) is cool with low humidity with an average temperature of 17 degrees Celsius. The most significant weather event is the typhoon season of late summer.   Typhoon season normally begins in June and ends in September. There are at least two or three annual typhoons that hit Hong Kong or at least affect the weather of the territory. The Royal Observatory of Hong Kong is responsible for informing the mass media when a typhoon alert is hoisted. An alert system ranging from 1 to 10 indicates the severity of a typhoon. Number 8 means stay indoors as most public transport services are suspended.           2.4 Holiday 4             2.4.1 Camping at Flora River Nature Park The principal attraction of the Park is the River with its springs, interesting tufa dams and associated riverine vegetation. Flora River Nature Park is located 122 km south-west of Katherine. The park protects 25 km of the Flora River and an adjacent area of floodplain and savannah woodland. The Park may become inaccessible at times after heavy rain. The most comfortable time of year to visit the Park is in the drier and slightly cooler months from May to October. Recreational opportunities along the River, such as fishing, canoeing and boating are possible. It also includes 4 x 4 Driving, Caravan, Fishing, picnic and hiking. There are also stories, ceremonies and songs linking the ten clans performed along a singing trail which traverses the Park. Senior custodians conduct ceremonies in and around the Park’s sacred sites.             2.4.2  Camping Fees   In Territory Parks where camping is permitted, fees vary according to the standard of the campground facilities. Commercial campgrounds are found in many parks.   ‘Category A’ campgrounds have a high degree of site maintenance. Campers will be provided with showers, toilets, rubbish bins, picnic tables, cooking facilities or services, barbecues and tap water. The overnight fee is: .60/adult, .30/child (5-15 years), .40/family (2 adults and 4 children).   ‘Category B’ camping areas have a basic to moderate degree of site maintenance that may include toilets, picnic tables, tap water and barbecues. The overnight fee is : .30/adult, .65/child (5-15 years), .70/family (2 adults and 4 children).   ‘Category C’ camping areas are youth or outdoor education camping areas. The overnight fee is: .30/adult, .65/child (5-15years), .70/family (2 adults and 4 children).   ‘Category D’ camping areas are managed commercially. The degree of site maintenance, facilities and fees will vary. As a guide use ‘Category A’ for overnight fees except at Nitmiluk National Park which has a higher level of service.   ‘Bushcamping’ – for all bushcamping, including overnight bushwalking, a permit is required from the Ranger at the Park or by applying to the Commission. The overnight fee is: .30/adult, .65/ child (5-15 years), .70/family (2 adults and 4 children).   2.4.3 – Climate From the north to the south of the Territory, the climate varies gradationally from relatively high rainfall monsoonal to arid. The Territory’s highest annual rainfall is about 1800 mm, on the Tiwi Islands. This falls to less than 100mmm median annual rainfall in the extreme south-east (the Simpson Desert). In the north, rainfall is strongly seasonal, with about 90% of annual rainfall falling within the 4 or so months of the wet season typically November to March. This is a time of heavy tropical downpours, and high temperatures and humidity. The “build-up” to the wet season (October-November) is characterized by a very high incidence of lightning strikes. Destructive cyclones are a recurring feature of the wet season. This extreme seasonality controls many features of the ecology of the Territory’s natural systems, including the timing of leaf fall, flowering and fruiting in plants, and of breeding, migration and activity patterns in animals. Many plants in the north of the Territory are deciduous in the late dry season. Many others are annuals, that appear only fleetingly during the wet season. The most seasonal environments are the extensive floodplains of the lower reaches of the large watercourses, which change from dry grasslands in the dry season to vast lakes, supporting hundreds of thousands of waterbirds, in the wet season. The lack of rain during the dry season cures the grass and other understorey vegetation, developing a highly flammable, dense and extensive fuel load; and, as a result, fire is a frequent and almost inevitable process. The most intense fires typically occur in the late dry season, when fuels are at their driest, and when the frequent lightning strikes are main ignition sources. In central Australia, climate is still highly seasonal, but rainfall patterning varies markedly between years. Drought is a feature of the history of this land, but heavy rainfalls, often associated with distant cyclonic activity, also occur and may result in sudden flood events in the desert. Temperatures in central Australia may become very hot (more than 40oC) in the summer months, and very cold (-10oC) in the winter. This climatic variation influences what wildlife you may see. For example, many reptiles are largely inactive in the central Australian winter, and hide underground during the heat of the day in the hot summer months. The Territory’s climate has been buffeted by some very marked and rapid oscillations over the last 20,000 years. These have purged some of the biotra, and left others with relict distributions in climatically sheltered areas. 3.1 Attributes Consumers before deciding on purchasing a product or services consider some attributes that would contribute to their decision making process. In here we have asked some people on what are the attributes they would consider in choosing for a holiday destination. Here are the following: <li class="MsoNormal" style="text-align: justify; line-height: 200%; text-autospace: none"> affordability</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%; text-autospace: none"> relaxing</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%; text-autospace: none"> convenience </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%; text-autospace: none"> accessibility</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%; text-autospace: none"> quality of services</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%; text-autospace: none"> accommodation </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%; text-autospace: none"> type of adventure</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%; text-autospace: none"> experience</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%; text-autospace: none"> closeness to nature</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%; text-autospace: none">  fun</li>                Respondent 1 Name: WEI CHEN                                                   Age: 22 Gender:         Male                                                   Status: SINGLE     Relative weighting of attribute Holiday 1 (Sailing Whitsundays)   rank 1-6 Holiday 2 (Skiing at Mt Hotham)   Holiday 3 (Hong Kong Sight Seeing) Holiday 4 (Camping at Flora River Nature Park) Attribute 1 (RELAXING) 10 3            (30) 4         (40) 4          (40) 5        (50) Attribute 2 (Affordable) 20 4             (80) 3         (60) 2          (40) 6       (120) Attribute 3 (Accessibility) 10 1             (10) 3         (30) 2          (20) 1         (10) Attribute 4 (closeness to nature) 10 2            (20) 3         (30) 2          (20) 6         (60) Attribute 5 (Accommodation) 20 5           (100) 5       (100) 5         (100) 4         (80) Attribute 6 (type of adventure) 30 6           (180) 6       (180) 5         (150) 2         (60) Preferred Holiday 100              (420) (440) (370) (380)       Respondent 2 Name: WAYNE LOUYI                                                       Age: 41 Gender:         Male                                                               Status: MARRIED     Relative weighting of attribute Holiday 1 (Sailing Whitsundays) Holiday 2 (Skiing at Mt Hotham) Holiday 3 (Hong Kong Sight Seeing) Holiday 4 (Camping at Flora River Nature Park) Attribute 1 (RELAXING) 20 4           (80) 2         (40) 3           (60) 5       (100) Attribute 2 (affordable) 30 4           (120) 4       (120) 2           (60) 6       (180) Attribute 3 (Accessibility) 10 3            (30) 3         (30) 2           (20) 3         (30) Attribute 4 (Closeness to nature) 10 4             (40) 4         (40) 3           (30) 6         (60) Attribute 5 (Accommodation) 10 5             (50) 5         (50) 5           (50) 4         (40) Attribute 6 (Type of Adventure) 20 4             (80) 3         (60) 4           (80) 4         (80) Preferred Holiday 100 (400) (340) (300) (490)         Respondent 3 Name:            FAYE                                                             Age:   25 Gender:         Female                                                          Status: PATNER     Relative weighting of attribute Holiday 1 (Sailing Whitsundays) Holiday 2 (Skiing at Mt Hotham) Holiday 3 (Hong Kong Sight Seeing) Holiday 4 (Camping at Flora River Nature Park) Attribute 1 (RELAXING) 30 5           (150) 4       (120) 4         (120) 5       (150) Attribute 2 (Affordable) 20 4             (80) 3         (60) 3           (60) 5       (100) Attribute 3 (Accessibility) 10 5             (50) 3         (30) 3           (30) 3        (30) Attribute 4 (Closeness to Nature) 10 5           (50) 4         (40) 3           (30) 5       (50) Attribute 5 (Accommodation) 20 5           (100) 4         (80) 4           (80) 3        (60) Attribute 6 (type of adventure) 10 6           (60) 3         (30) 5         (50) 4        (40) Preferred Holiday 100 (490 (360) (370) (430)               5.1 Responder 1 demographic, personality, reference group and explain y they choose this holiday and link to theory of textbook!   Wei Chen is  single, 22 years old gentleman with extreme energy. He does different kinds of sports and enjoys adventures. He usually goes out with some of peer to search for some adventures.   The choice of holiday destination as seen in the table above, Wei Chen has placed more weight to the type of adventure in the attributes given in the table. Usually his decision of leisure activity is also affected with his peer since they usually go together on holidays.   According to(1989), peer group has a strong impact on the behavior. Since Wei Chen is still single, he spends more time with friends. Peer groups function as to provide information about leisure activities and experience.   5.2 Responder 2demographic, personality, reference group and explain y they choose this holiday and link to theory of textbook!     The second respondent, Wayne Louyi, is male, 41 years old and is married. He has 2 sons and 1 daughter. He works in an advertising company as a marketing consultant. He earns enough for his family. He has his own house and own car.   Since he is married, the choice of holidays destination is affected with the decision of his wife and his children. In addition, since they earn just enough for the family, affordability also is one of the factors in which he considers in choosing a holiday destination where the whole family could still enjoy.   Since Wayne Louyi and his wife is both nature lover, closeness to nature is also one attribute in which they consider. Camping is a good family activity for them where they could be close to nature and in which the family could bond.   5.3 Responder 3 demographic, personality, reference group and explain y they choose this holiday and link to theory of textbook!     The third respondent is Faye, 25 years old. She is working as an assistant HR in a shipping company. She is a hard working person.  She always does her job in her best. She is a quite person however she also loves some adventure.   Since she has spent more of her time on her work, she needs relaxation. To this, she has given more weight on the attribute of relaxing. She also considers the affordability of the holiday destination since she is considering practicality. According to her, you don’t need to spend much to enjoy and relax.     Personality research focuses on the total individual and individual differences (1989). Interest in the total individual centers on the complex relationships among various aspects (e.g., motivation, learning) related to how one functions in the world. Although recognizing that similarities among all people exist, the study of individual differences is concerned with how people vary. More specifically, individual differences are related to the tendency for the behaviors of different individuals to fall at different points along various behavioral dimensions (1986).   Similarly, in the choice of holiday destination, people differ on choice according to their interest and preferences. Some people are adventurous while others are not. People also differ in the value they perceived on the attributes given. (1973) argued that once learned, values are hierarchically ordered into a system that differentially weights individual values by their perceived importance. Individuals rely on their value systems to maintain self-esteem or consistency in those situations where one or more conflicting values are activated. For example, a conflict arising between the values of excitement and security in a decision to participate in sky-diving would be resolved based on the priority given to each of those values in the individual’s value system ( 1979). Gender has also been shown to be an important factor in much adult leisure experience (1990;  1989;  1988). For example, (1985) found that males had more weekend leisure time than females, although weekday gender differences were not significant.  and (1985) showed that females perceived more barriers to their leisure than men. Following a similar line of analysis,  (1988) found that females were not as likely as males to acknowledge free choice in their lives. However, most investigations of this kind have focused on gender-based inequalities in leisure and have not attempted to discuss race in any meaningful manner. Yet, studies of this kind do indicate the power of gender as a force of social stratification.       Recommendations   1.   2.   3. .         4.   5.       Table 1: Recommendations     Considering the data above, it has been covered that personal on holiday destination differ in different persons. There are many things to consider in the decision making process of consumers before actual purchasing the product or services.   In this survey, it has noted that demographics have an impact on the choice of the people. The perceived value also differs en every person.  Age, gender and status also affect the decision of purchasing. Perceived value on the attributes offered by the holiday destinations also differs. Every person is affected with some external and internal factors in the choice of purchasing products and services.         Credit:ivythesis.typepad.com

Consumer Behavior

1.1 Objectives of This Report The objective of this report is to do research on 4 holidays I have chosen and interview total of six...

Distribution strategies for Burswood Casino in Perth

Distribution Strategies   Burswood Entertainment Complex             Officially opened in 1985, Busrwood Entertainment complex is a fully integrated entertainment precinct that is renowned for its world-class facilities and luxury accommodation. Burswood Entertainment Complex boasts a 24-hour Casino, 413-room luxury InterContinental Perth Burswood hotel, 291-room mid-range Holiday Inn Burswood, seven restaurants, seven bars and a nightclub, a convention centre and meeting rooms, a 2,300-seat theatre, a 20,000-seat indoor stadium, expansive gardens and a host of recreation facilities, including an 18-hole public golf course, day spa, retail outlets and riverside cycling trails. The combined 704 hotel-room capacity and variety of offerings on one site also make Burswood Entertainment Complex one of the most desirable conference and exhibition destinations in Australia. As one of Western Australia’s leading entertainment destinations, Burswood Entertainment Complex is proud to play host to some of the world’s greatest artists in the Burswood Theatre and Burswood Dome (source: ).                 A distribution channel’s primary role is to make sure that those people who want a brand can actually get it, and get it in a better way than competitive products. In some cases, a particular distribution channel can provide an added dimension of relevance and appeal. Distribution costs can be significant but they may well be worth it. A too narrow look at distribution can cause problems; a brand marketing perspective is needed to reach an optimal mix for all segments (, 2003). The advantages of Direct Distribution are that it enables firms to exercise more control over marketing activities and it reduces the amount of time spent in the channel (, 2000).    Direct Online Distribution             Direct Online Distribution is a distribution strategy that uses Internet distribution channels, business models, e-marketing programs, and Internet brand exposure building techniques that all share the same collective goal – to draw in the Internet user to end up transacting on the casino’s website. It is all about benefiting from the Internet as the greatest direct-to-consumer distribution channel and positioning the casino at all possible “touch points” of interaction with the potential online customer (source: ). Getting visitors to the website is a challenge and should be a primary objective. But it’s just the beginning. Ideally, once they visit, they should get so much of value from the website that they can’s wait to come back and come back because you’ll invite them with an email offer (, 2002). Email Marketing             Inviting is one of simplest ways to get visitors to come back. To do this, the visitors email addresses must be acquired onto the prospect list (, 2002). Email marketing is a crucial component of direct eMarketing and online strategy. The shift toward online purchasing suggests that the website is becoming a key point of entry to establish interactive relationships with the customers and to capture client email profiles (source: ). Website Optimization Strategy             Direct online distribution starts and ends on the website. Performing a comprehensive evaluation and website optimization should become a top priority if the company wants to stay competitive and take full advantage of the Direct Online Channel. The casino’s website is the only chance to achieve significant growth and competitive advantage in difficult times, and steal market share from its sleepy competition. The website is an incremental revenue producing “virtual” 24/7 sale office. It is a “living organism” and should constantly evolve to better respond to the dynamics of online distribution and changing patterns of consumer purchasing behavior (source: ). Destination Web Strategy             Destination Web Strategy helps in capturing new lucrative markets, boosting direct distribution and decreasing the need for intermediaries. A destination web strategy means leveraging the popularity of the destination to the advantage of the company. The site becomes destination rich and highly relevant to Internet users and search engines. This strategy is one of the most effective means to market a local property or a cluster of properties within a particular destination. It allows the hotel or casino to leverage the richness of the destination and shape the local attributes of its environment with creative marketing initiatives that appeal to its online customer base (source: ). Link Popularity             Link popularity is an important criterion that most search engines use. Link popularity is being used in ranking websites. A website with a high link popularity and high link quality has a greater chance for top position in results of the search engine. Ideally, a website should aim to position itself at all direct “points of contact” with potential Internet bookers. Boost the company’s presence on directories, travel advisory sites, and demographic oriented services each with a loyal purchasing community. By leveraging their marketing dollars the, company can benefit from their traffic. An important by-product of this strategy is the “link popularity” of the casino website, a crucial criteria used by the search engines to determine how to rank the website.                            Bibliography:             Credit:ivythesis.typepad.com

Distribution strategies for Burswood Casino in Perth

Distribution Strategies Burswood Entertainment Complex Officially opened in 1985, Busrwood Entertainment complex is a fully...

Buyer Behaviour

Introduction XYZ restaurant is a new restaurant that offers a fusion of Asian cuisines. The restaurant atmosphere and ambiance is stylish and modern; chic, simple but never boring. The food is authentic Asian foods with a touch of creativity. XYZ is more than a place to dine or eat. It offers a brief reprieve in a hectic day; a chance to relax and unwind. Among the establishment’s top priority is delivering consistently good experience through sumptuous meals and warm and friendly service. Currently the restaurant is strategically located inside a shopping mall in the business center of the city. The location is also accessible to young married couples who live nearby.   Market Segmentation According to  (2000), segmentation is a market technique which can help firms find ways of establishing a competitive advantage. A market segment is a section of a market which possesses one or more unique features that both give it an identity and set it apart from other segments. Market segmentation amounts to partitioning a market into a number of distinct sections, using criteria which reflect different and distinctive purchasing motives and behaviour of customers. Segmentation makes it easier for firms to produce goods or services that fit closely with what people want ().         Segmentation Variables More than one variable can be used when segmenting markets, and indeed, the more variables the better since it helps to focus on a tighter target market. Tighter targeting means less waste, more relevant offers to appropriate customers and higher customer satisfaction ( 2000). In order to segment a market, characteristics have to be identified which distinguish among customers according to their buying preferences. Profiles of market segments reflect different combinations of these characteristics then have to be constructed. To target the users, the financial appeal of all segments should be assed and segments that have the greatest appeal should be selected for targeting. Age A consumer’s age is often a strong determinant of their product choices and consumption practices. Age has an impact on purchasing decisions. Life cycle Stages Age and life cycle stages are often combined in order to study markets. Life cycle position is an important determination of buying behaviour. Marital Status Specific marital status groupings such as singles, single parents and dual-income married couples should be taken to consideration.       Income, education and occupation Income has long been an important variable for distinguishing market segments. Income is often considered to identify the capacity of the market segments to purchase a product or service. Occupation and economic circumstances influence consumption patterns. Educational achievement is another variable that explains purchasing decisions and is closely associated with occupation and income. Lifestyle Lifestyle is an important psychographic variable composed of a combination of factors such as activities and opinions. Lifestyle patterns are changing. Description of the Target Market The target markets of the restaurant are extensive in terms of age. The restaurant caters to all age groups. However, the focus of this report will be on young professionals, and young families. These market segments live a modern lifestyle and love to experiment with new taste of food. They love to munch and chat and relax in good atmosphere. They are willing to pay extra for fine food and service. Young professionals are well-educated college graduates interested in their personal fulfillment. They participate more in physical fitness activities, utilize convenience products and services, are interested in satisfying their personal needs regardless of price, and are emotionally secure relying on themselves. They tend to be materialistic and desire the best of everything. At the same time, they value home and family and have a strong concern for work and career. Consumer Needs and Motivation Maslow suggested that human needs are ordered in a hierarchy of importance. The most important needs are those to do with physiological needs, whereas the least important ones are to do with self actualization. Maslow contended that people would not seek to satisfy the less important needs until the more important ones were satisfied (2000). Maslow’s Hierarchy of Needs Abraham Maslow suggested that human needs can be divided into five basic categories: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Physiological – include hunger, thirst and sex</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Safety – range from security and protection</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Social Esteem – cover affection and a sense of belonging; include recognition, status, and self esteem</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Self Actualization – range from self development to self accomplishment</li> </ul> According to Maslow’s hierarchy of needs, after physiological and safety needs have been realized, social needs, esteem needs, and finally self-actualization needs take priority. Self-actualization is our highest need. There is overlap between each level since no need is ever completely satisfied. For this reason, the lowest needs remain as prime motivators that influence consumer behavior (2003).     The focus of the marketing efforts for the XYZ Restaurant is the consumers’ physiological needs (hunger). The restaurant is accessible to its targets markets who have busy and dynamic lifestyles. Another focus is the self-esteem needs of the consumers. The restaurant is not just a place to dine but also a place to relax and chat with friends and loved ones. The relaxing ambiance and friendly service make the dining experience at XYZ Restaurant enjoyable. <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Product/ Service – quality products and service that satisfies the consumers physiological and self esteem needs; positioning on benefits that create attractiveness and preferences</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Price – enhance intention to purchase by creating attractive value for customers</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Distribution/ Place – the location of the restaurant is easily accessible to the target markets, secondary markets and potential markets; adequate availability and service to facilitate purchase</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Promotion – the focus is on the benefits that the consumer will receive (e.g. sumptuous meals, quality service, chic and modern ambiance, relaxing and enjoyable experience; create awareness pf product and its benefits</li> </ul> The motive that will be on focus is physical survival. The food will be given emphasis in the marketing campaign of the XYZ Restaurant. According to (1996), food is one of the primary elements of the Physical Survival Motive. Along with the physical survival motive is the family values and spiritual motives. Experience is considered as a motivational factor for consumers to patronize XYZ Restaurant. Therefore, the consumer experience must be special, unique and different. Each consumer must be treated uniquely. Another motive that will be included in the marketing strategy of XYZ Restaurant is spiritual survival. Spiritual survival is a strong motive that carries consumer influence. When a dining experience is positioned at the spiritual level, it is postured as a romantic, ardent, loving, passionate, and amorous experience. The XYZ Restaurant offers a place for everyone to be with his or her family, friends and loved one.   Consumer Personality Consumer innovativeness – how receptive consumers are to new products, new services or new practices is quite important to both consumers and marketers for both can benefit from the right innovation. Consumer dogmatism – a personality trait that measure the degree of rigidity consumers display towards the unfamiliar or towards information that is contrary to their established beliefs. Consumer Social Character – inner-divested consumers tend to rely on their inner values or standards in evaluating new products and are likely consumer innovators. Other-directed consumers tend to look to others for direction on what is right or wrong, thus they are less likely to be consumer innovators. Need for uniqueness – people who seek to be unique avoid conformity to others’ expectations or standards, either in appearance or to their possessions.         Consumer personality influences consumption behaviour. Application of consumer personality concepts in the marketing mix will result to a more effective market segmentation and product or service communication. Consumer Personality can be applied in the product positioning, which is accomplished with the marketing mix variables. Product and service design and marketing communications is important. The whole of the marketing mix is important in developing effective positioning, as attributes of the offering must be closely in line with the targeted customers’ expectations and needs, as must be associated price points and channels of distribution. <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Product/ Service – the XYZ restaurant offers innovative products and dining experience. The restaurant is also a place for variety seeking consumers because of the wide product selection. The target markets of XYZ Restaurant are mostly inner-directed individuals and consumer innovators.</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Promotion – the personality of the consumers is important in formulating advertisement and promotion strategies. The target markets of XYZ Restaurant are Inner-directed individuals who tend to rely on their own inner values or standards in evaluating products. The promotional advertisements of XYZ Restaurant will stress the features of the products and the benefits since these type of consumers respond to these ads. </li> </ul> Studying the consumer personality is important in formulating a marketing mix for a product/ service. XYZ Restaurant is a new restaurant with quite an innovative concept and products. In order to achieve consumer acceptance it is important to understand the possible responses of consumers to XYZ Restaurant’s innovative product (food, service, ambiance, experience).   Consumer Perception Consumer perception is an important factor in positioning the product in the consumers’ minds. One of the goals of the marketing mix is to use the consumers’ perception to make a product and service attractive. The aim is to portray an image for the product or service that will match with how one wants the product to be visualized in people’s minds. Image is not only reflected in the promotional messages which are directed towards the market target but also in the pricing strategy, the mode of distribution and, the appearance of the product or service itself.   Consumer Perception and Product Positioning The position of a product in the market reflects the way consumers perceive it in relation to its competitors. The particular attributes of the product, and the way it is promoted, form the ingredients of the strategy a marketer will use in positioning it for its target segment of the market (2004).     <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Product/Service – Perception is important in the marketing mix of XYZ Restaurant’ marketing mix. In terms of Product, the “perceived quality” of the product/service affects consumer behaviour. Quality according to Proctor (2000), reflects differences among products or differences among services. Product differences are an important factor in marketing. Perceived quality differences affects how the consumers view a product or a service. Quality is a relative value that people attribute to things. It reflects people’s perceptions concerning a product or service and how well it will provide the various benefits they require from using it.  </li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Price – anything that can impact the perception of the product or service features can impact the price that potential consumers will be willing to pay. If the consumer perceives more than justifies the price, he will not purchase (2001).  The perceived value of the product or service affects the price. </li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Promotion – Insight about consumer perception is an important basis for developing effective promotional campaigns for XYZ Restaurant. The promotion of the products should focus on the perceived benefits that the consumers are expecting to get from the products. </li> </ul>           Conclusion Understanding consumer behavior and other issues such as consumer needs and motivation, consumer personality and perception is important in making an effective marketing strategy. Market segmentation requires a careful analysis of the market. Markets are segmented into a number of distinct sections, using different variables which reflect different and distinctive consumer motives and behaviors. In formulating a marketing strategy the consumer needs and motives must be thoroughly studied. Motivation, personality and perception affect consumer behaviour. The product’s marketing mix must be able to address these issues in order to make a favorable product position.                           Credit:ivythesis.typepad.com

Buyer Behaviour

Introduction XYZ restaurant is a new restaurant that offers a fusion of Asian cuisines. The restaurant atmosphere and ambiance is stylis...

Consumer decision-making

1.    Discuss the rationale for utilizing segmentation as a basis for the National Alcohol Campaign.   It is basic principle in research to define the target audience in which the study is directed. In marketing, segmentation fully recognizes that buyers of any product or service category need, desire, want and expect different performance characteristics from products or services in the category. It helps the company to position the product properly and prepare marketing strategies to satisfy a more focused range of consumer needs and wants (1988). Furthermore, it is also a factor in effectively using limited marketing resources, identifying unique market niches, improving profitability and helping to retain consumer loyalty. The basis for the market categorizations of clients and customers include the (1) demographic characteristics, (2) the geographical location, (3) consumer behavior, and (4) psychographic characterizations (2002). To these authors, segments represent geographic groupings or groups of individuals and consist of prospective consumers who are likely to exhibit similar responses to marketing efforts. Furthermore, segmentation is as simple as grouping of people in terms of a single variable.   In this case, segmentation was used to deliberately define certain group of individuals as targets of the campaign. The overall intent of segmentation is to identify groups of similar consumers and potential consumers; to prioritize the groups to address; to understand their behavior; and to respond with appropriate strategies that satisfy the different preferences of each chosen segment. Improved segmentation facilitates higher level of accuracy and significantly affects effectiveness of the implementing processes. With the right segmentation, results can be improved and approval can be increased. Thus, the main rationale of segmentation in this campaign is the need to define a particular segment of people in which the campaign will be focused with the hopes of getting the most appropriate and reliable responses to the given population.     2.    This campaign utilised demographic segmentation, on what other basis could the campaign have been segmented.   In undertaking an investigation or campaign like this, sometimes that target population is to large that it is more practical to use the responses of the sub-group in estimating the responses of the overall group. It should be more convenient for a researcher to use a sample or sub-group rather than the totality of the population. However, there are survey researches in education, psychology and in other fields of discipline that sampling is not needed anymore because of the small size of the population. Thus, there is just a requirement of identifying the segment of the population aside from its demographic variables such as age, gender, sexual orientation, family size, family life cycle, education, income, occupation, education, socioeconomic status, religion, nationality/race, and language.   This campaign can also be based on consumer behavior, psychographic as well as behavioral segmentation. Psychographic segmentation includes the following variables: personality, lifestyle, value and attitude. Meanwhile, behavioral variable are benefit sought, product usage rate, brand loyalty, product end use, readiness-to-buy stage, and decision making unit. It is acknowledge that when numerous variables are included and combined with the aims of having an in0depth understanding of a segment, it is called depth segmentation. A statistical technique that can be used in these types of segmentation is cluster analysis.   Consumer behavior enumerates the customers’ product knowledge, usage, attitudes and responses to a particular commercial item or service (2002). In this regard, the familiarity with, function, and purpose of commercial goods or services are distinguished depending on the consumers’ needs and use. For example, an educated and computer literate individual has a more tendency to buy technological gadgets that people who are not exposed to technological innovations that are available today. According to  (2001), consumer buying behavior refers to the buying behavior of the individuals and households who buy the goods and services for personal consumption. Consumers around the world are different in various factors such as age, income, education level and preferences which may affect the way they avail of goods and services. This behavior then impacts how products and services are presented to the different consumer markets. There are many components which influence consumer behavior namely: cultural, social, personal and psychological ( 2001).   Psychographic characterizations of the clients and customers are their lifestyles, values, and personality (2001). These factors dictate their purchasing behavior upon exposure to commercial items. Take the example of a Muslim and a Christian buying preference of food. Since their lives are governed in one way or another by their respective religious belief, their choices on commercial items are affected. The food choices of the Muslim are more limited compared to the appetite that a Christian can indulge in.    All in all, these segmentation strategies are dependent on the objectives of the research process or campaign. Given the opportunity to use any of the three presented segmentation strategies, it can pave way to another area of research in which correlation is related. Here, the researcher can relate the findings of the former studies to the concurrent investigation.       3.    Applying the criteria for effective targeting of marketing segments discussed in this chapter, would you say these criteria are satisfied?   Applying the criteria for effective targeting of marketing segments, it could be concluded that these criteria are satisfied. Oftentimes, segmentation in research particularly in marketing is unavoidable and always premeditated (2000). This is because of the fact that the overall process involves a lot of time, money and effort. As long as the segment used is a representative portion of the overall population in which any endeavor is directed, there is no significant question of inaccuracy unless proven so. Using these criteria, he researcher is able to generalize with complete confidence and describe the population from which segments are taken. The findings and conclusions obtained from the segment are valid.   Regardless of the specific technique used in selecting a segment, the steps used should include the identification of the population, the determination of the required sample as well as segment, and the selection of the sample or segment. Aside from the innate characteristics of the sample, it is recommended that the criteria for effective targeting of marketing segments, when used in any application, should be connected to the concept, studied carefully by the researcher, and proven to be applicable and effective in eliciting satisfactory and factual results.     4.    What segmentation implementation strategy was used for this campaign and was it effective?   Market segmentation is the identification of subgroups within the total market that the company wants to target. This fully recognizes that buyers of any product or service category need, desire, want and expect different performance characteristics from products or services in the category (1998). It helps the company to position the product properly and prepare marketing strategies to satisfy a more focused range of consumer needs and wants. Furthermore, it is also a factor in effectively using limited marketing resources, identifying unique market niches, improving profitability and helping to retain consumer loyalty.   Specifically for this campaign, demographic segmentation was used. It is proven to be effective because it is interconnected with the objectives of the campaign. For the campaign needs straightforward responses to a chosen population, this segmentation strategy is the most relevant and appropriate. However, there is a need for a researcher to minimize the perceived disadvantages of demographic segmentation. The limitation of basing the findings and conclusions to the demographic profiles of respondents is not enough. Thus, a recommended follow-up focusing on the deeper and more scientific perspectives such as psychographic segmentation or consumer behavior is needed.       Credit:ivythesis.typepad.com

Consumer decision-making

1. Discuss the rationale for utilizing segmentation as a basis for the National Alcohol Campaign. It is basic principle in researc...