This activity is employed to sensitise student that there are different market segments, that the progress through the buyer decision process differently, that decisions may be autocratic or syncretic, and there are more than the decision makers involved in the process.
All of the images have been purchased [so this is all speculation] and they have been selected to represent different target markets. The purpose of the activity is try to determine a target market for each image and how the target market differs from other target markets.
There are 6 different groups of travellers in the above images.
A: A couple in their early thirties, no children, and have been in this relationship for 6 years, they enjoy traveling, careful how much they spend, although they like meeting people they rarely travel with friends, have a small apartment considering buying a home and starting a family.
B: A solo traveller in her late 40s, medical practitioner, not married, has many friends in different cities, likes the art and music, often takes small group tours with people of similar interests.
C: A group of independent travellers who joined a walking tour in Germany. They are of different ages, segmentation is based on what they value, their motivation is being outdoors with comfortable accommodation at the end of the day’s walking.
D: A couple in their early sixties they have children from previous relationships, their children are independent and have moved overseas, They enjoy river and ocean cruises with fine dining and enjoy a glass of fine wine with their meals, they search for epistemic dining experiences.
E: A couple with two young children, father a roof carpenter, mother a part-time shop assistant. Their holidays are dictated by the needs of their children, they look for value for money packages, generally holiday within Australia, as one child has asthma and the mother is concerned about the medical facilities overseas.
F: Friends from uni. No commitments. Now in full-time work, seeking fun and meeting new people their age with similar interests. Are on a Contiki holiday in the Greek islands.
The images in the previous slide demonstrate how consumers may vary by age, family life-cycle, interests, disposable income, and values. this suggests that organisations in the tourism industry design and develop products to suit the needs of different consumers.
When there is higher COMP involvement decision making becomes more complex.
Whilst the literature in more focused on goods dominant products, as marketing practitioners we should investigate the product components of all products, particularly as involvement increases to what people perceive as luxury products.
Consumer buying power: the ability and willingness to purchase will greatly influence decision making. Keep in mind some customers may exit or postpone the buyer decision making process if the current situational factors are not conducive to continuing.
Consider how different MARKET conditions [see CEMSTEEP in section 3] will influence demand and supply
Consider how the decision-making roles may vary according to different customers – note: autocratic and syncratic decisions, consider how values influence value.
activity: reducing the risks
The academic literature on risks is considerable and to study it in-depth would be beyond the time we have available. To assist learning and aid recall we have an in-class activity; we select a student to play the role of Adam and students to play the role of Adam’s mother [I tend to pick a male for this role] and father [I tend to pick a female for this role] . We ask each to assess the risks associated with backpacking in Europe and then make comparisons – between Adam and his parents. Sometimes we have to seek help from ‘aunts and uncles’.
What is enlightening about this activity is that within a few minutes, students are able to compile an extensive list of risks [one that spans many years of academic inquiry] and to identify risk management behaviour. In many classes all the risks are identified [listed in the e-book]. The one risk that is often overlooked is the risk of not going – this is interesting and suggests that the ‘no regrets’ campaign by a leading travel company catering for the 18-35 year age group conducted considerable research.
What is also interesting about this activity is it demonstrates that students know more about identifying and managing risks than they realise. There is also a general conclusion that marketing theory can provides templates to analyse most consumption activities.
This activity has to be handled carefully and warned not to be controversial just for the sake of it.
Scenario [part a]: Adam has recently graduated from University and is considering, prior to looking for full time employment, backpacking in Europe. He has been exposed to the social media content of his friends and from ‘marketing influencers’ who appear to travel the world for free. He has discussed his desire to backpack with his mother and father – his mum sees a number of risks. Adam also sees risks but also sees the benefits – many of his friends have backpacked. His mother is anxious, she has discussed her anxiety with Adam’s father who is also a little anxious but stated that he is less anxious than if it was Sarah their daughter. Being typical parents, they consider a number of scenarios:
- What happens if he loses his credit cards?
- What if he doesn’t make friends?
- What happens if he meets the wrong type of people?
- What happens if he doesn’t visit the best places?
- What happens if he encounters misery and suffering in the places he visits?
- What if his beliefs are questioned?
- Will he miss out on career opportunities?
- Will he encounter unpleasant conditions?
- After considering the types of risk
- What risks do you think Adam’s mother is considering?
- Given that there are risks why do you think people still go backpacking?
- Make a list of qualities [LHS] and try to align them with risks [RHS]
- From your own experiences as a consumer outline how consumers may manage risks
Scenario [part b]: After some soul searching and a cost-benefits-risks analysis, Adam’s parents make the joint decision to purchase a Contiki holiday for Adam.
- Given your knowledge of human nature could Adam’s parents be considering the future and what would be fair to both their children?
- How do you believe an organised tour could reduce the risks for Adam and his parents?
- It is often assumed that the purchaser is the consumer – in this case is this accurate?