1. The Analysis of Tourism Demand: Tourist / Buyer Behavior

2. Why is This Important? Understanding demand and factors that influence this is crucial for successfully implementing marketing plans and strategies 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 Understanding consumer behavior is essential for segmentation strategies, tailoring services, prices, promotions, distribution channels to fit customers’ needs

3. 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. 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. 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.

4. Main determinants of tourism demand Economic (e.g., prices, CPI) Economic (e.g., prices, CPI) Demographic (e.g., disposable income levels) Demographic (e.g., disposable income levels) Geographic Geographic Comparative prices Comparative prices Government/regulatory Government/regulatory Media communications Media communications Socio-cultural (the tastes, habits and preferences of potential buyers) 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

5. 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? What makes people engage in tourism-what are their motivations? How do people make their tourism choices and what influences them? How do people make their tourism choices and what influences them? What affects their perceptions and images of destinations, attractions and other tourism choices? What affects their perceptions and images of destinations, attractions and other tourism choices? *Job of the marketer

6. 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?

7. A Stimulus Response Model of Tourist/Consumer Behavior Marketing Stimuli Other Stimuli Buyer’s Black Box Motivation Response Tourism products Place/distribution Price Promotion Cultural and Social (reference groups Learning Perceptions Experience Demographic economic social position Psychographic characteristics Need wants goals Product or destination choice (Brand Choice) Attitudes Post consumption feelings Communication filters

8. A) Internal (individual) Influences  Perception  Motivation  Needs and Motives  Attitudes  Personality

9. Perception What is Perception? Perception is realityWhat is Perception? Perception is reality  is the process by which people select, organize, and interpret stimuli.

10. Customers are more likely to: Notice and retain information related to a need of which they are aware Notice and retain information related to a need of which they are aware Buy services that match their perceived images of themselves Buy services that match their perceived images of themselves Notice and retain things that stand out from the norm Notice and retain things that stand out from the norm See things that they anticipate seeing See things that they anticipate seeing Notice information from tourism organizations and destinations with which they have had successful previous experiences 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 Attach greater credibility to interpersonal rather than commercially generated information According to recent research findings:

11. Perceptions of Tourist Roles expectations to being waited or indulged expectations to being waited or indulged not having to speak the language not having to speak the language expectations of new social encounters with both hosts / providers of tourism and other travelers 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 distinctive or increased levels of drinking and eating out expectations of abnormal levels of sun expectations of abnormal levels of sun expectations of daily novelty (the “what-shall- we-do-today” syndrome) expectations of daily novelty (the “what-shall- we-do-today” syndrome)

12. Motivation What are Motives? What are Motives? Inner state that directs a person toward the goal of satisfying a need.Inner state that directs a person toward the goal of satisfying a need. Maslow’s Hierarchy of Needs Maslow’s Hierarchy of Needs

13. Stimulated Needs “lack of something necessary to the well-being of an individual (BELONGING) Aroused tensions “uncontrollable feeling activated by internal and/or external stimulus (SEARCH FOR LOVE) Goal-directed Behavior “action taken by an individual to reduce aroused tensions and satisfy stimulated needs” (TRAVEL TO CLUB MED) Motivation

14. Self Actualization Ego-needs Belonging/Social Safety Physiological Needs Self-fulfillment: doing what is best fitted for you (TOURISM) Self-respect, prestige, status (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

15. Self Actualization Ego-needs Belonging/Social Safety Physiological Needs “These Waters separate our islands from the coast. And you from your cares.” (North Carolina) Maslow’s Hierarchy of 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)

16. Attitudes What are 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.

17. Behavior component “How I respond Affective component “what I feel” Cognitive component “What I believe” Attitude

18. Personality Personality Traits ( outgoing, self- confident, quite, sociable, defensive etc.). Personality Traits ( outgoing, self- confident, quite, sociable, defensive etc.). –Http://www.2h.com/Tests/personality.html (take this test) Self-concept Self-concept Real Self Real Self Self-Image Self-Image Ideal Self Ideal Self Looking-Glass Self Looking-Glass Self

19. . Actualizers Achievers Strivers Strugglers Experiencers Makers Fulfilleds Believers Low Resources High Resources PrincipleStatusAction OrientationOrientation VALS

20. Self-concept Who are we? –Self concept has 4 parts Looking glass self Real-self the way you actually are Self-image Ideal Self How you think others see you how you see yourself How you would like to be

21. B) External Influences Personal Influences (Income, Family, Lifestyles) Personal Influences (Income, Family, Lifestyles) Social Influences Social Influences

22. Social Influences Define Social Influences Define Social Influences Culture and subculture Culture and subculture Social Class Social Class Reference Groups Reference Groups

23. Social Influences All Interactions with and influences resulting from both formal and informal group memberships other than the family are included. 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

24. Take-Home Exercise http://future.sri.com/VALS/vals2desc.shtml http://future.sri.com/VALS/vals2desc.shtml Complete the survey Complete the survey Submit survey and wait for response Submit survey and wait for response Your primary VALS type is Innovator, and your secondary type is Actualizer. Your primary VALS type is Innovator, and your secondary type is Actualizer. Print this page. Print this page. Click on primary type Click on primary type Read material and then print page Read material and then print page Back to survey response Back to survey response Click on secondary type - read material and print page. Click on secondary type - read material and print page.