Approaches and Factors for Selecting Holiday Destination

Question: Write an essay on analysis of the consumer buying decision making approaches and factors for selecting holiday destination. Answer: Introduction Consumer decision making approaches and tendencies are the most significant factors for the marketing strategy and consumer offering development and innovation strategies in almost all kinds of business industries across the world. If a business organisation fails to realise the exact consumer decision making tendencies and approaches then it would be harder for the business to develop proper marketing strategies to attract the buying behaviour of the consumers (Grbac et al 2015). Thus, it essential for a business organisation to realise the proper buying behavior and tendencies of different consumer segments so that exact type of consumer could be offered with the exact type of product and service according to their needs. Hence the basic aim of the following research is to analyse the changing consumer behavior depending on various significant factors related to consumer decision making depending on various relevant theoretical aspects and responses of different consumers for choos ing different types holiday packages among 6 predefined holiday packages (Wang et al 2015). The required research data for this research has been collected from 5 different respondents who have provided their responses to a specific set of questionnaire suggesting 6 different holiday destinations respectively in 1 Spain France and Italy, 2 Las Vegas, 3 New Zealand, 4 Hong Kong, 5 Gold Coast and 6 - Barossa Valley. Among the 5 respondents only responses of the respondent 3, 4 and 5 have been considered for analysing the findings for this research. The analysis of the responses of the respondents have been discussed in the below segment of this research (Horner Swarbrooke, 2016). Analysis and Discussion The Consumer Buying Decision Process According to consumer buying decision and behavior model the three major factors depending which the buying behavior of different consumers varies from each other are mentioned below, Economic Model This model is largely based on quantitative aspects and perception of the consumer about rationality. In this type of model, consumer buying behaviour is generally assessed through realising their tendencies for maximizing the utility of their purchased goods or services (Du et al 2016). Psychological Model Psychological and cognitive process of consumer buying decision making process majorly relies on the motivation and need of the consumers for buying a certain product or service and it is majorly based on qualitative illustrations rather than quantitative approaches. It majorly considers the sociological factors like cultural, family and other influences on the buying decision making process of a buyer (Horner Swarbrooke, 2016). Consumer Behavior Model It is one of the most appropriate models for analysing the buying behaviour of consumers and mostly utilised by marketers due to the flexibility for blending both economic and psychological model (Wang et al 2015). Apart from that, Neuroscience could also be a significant tool for analysis the buying decision making process of the consumers. Depending on basic human tendencies it defines some certain stages and hierarchy which is the most common process for a buyer to buy a product or service and the process includes the following stages, (Grbac et al 2015) Recognition of the need or problem to buy any specific product or service. Searching the required and relevant information to the needed product or service. Evaluating the alternative options for selecting the most effective and suitable product or service according to the need. Purchase Decision making and purchasing to product or service. Post purchase behavior of the consumer towards the product or service and the providing authority or brand as well. Analysis According to the responses of the respondent 3 in the survey it could be observed that the person is the main income source of the family due to being a pharmacist and usually he goes on holidays with his spouse and children. The average pretax income of the family is around $151,900 among which he solely contributes around $83,700 (Horner Swarbrooke, 2016). Thus it could be said that the person and the concerned family belongs to medium socioeconomic level which makes the higher holiday packages like Option 1 (Spain, France and Italy) a bit expensive. Subsequently it could also be observed from the responses of the respondent 3 that he has provided the cost for the holiday packages with the greatest importance marks (35) which itself shows the concern of the person about the expenses (Wang et al 2015). It could also be observed from the survey data of the respondent 3 that he has given activities available in the holiday packages with the second greatest importance marks as he has agreed that the family preferences influences his buying decisions for holiday packages. Accordingly, it could be observed from the ranking of the holiday packages made by respondent 3 that he provided option 4 (Hong Kong), Option 3 (New Zealand) and Option 2 (Las Vegas) with the higher preferences for making his buying decisions as all these holiday packages are average at cost but contained with several joyful activities which could be satisfying for him and his family (Barls-Arizn et al 2013). In case of the respondent 4 the buying decision has been made by the respondent in a different manner due to several of different factors compared to the former respondent (respondent 3). The respondent 4 is a younger female of 24 years old with lesser family responsibilities (Jin et al 2012). Younger people are much conscious about their experiences for choosing a holiday destination and subsequently it could be observed from the responses of the respondent 4 that she has provided the activities with the greatest importance marks (50) in the survey questionnaire. She selected Option 3 (New Zealand) and option 4 (Hong Kong) as her most preferable holiday destinations as these packages are economic in nature and comparatively offer a wider range of activities (Wang et al 2015). Although the respondent 4 has provided the cost for the packages with second largest importance marks (20) due to the belonging of her family to medium socioeconomic level with an average household income of $1 26,000 she choose Option 1 (Spain, France and Italy) as the respondent earns around $51,000 and young enough to have the desire for experiencing the wider range of activities contained in Option 1 holiday package (Grbac et al 2015). In case of the responses of the respondent 5 it could be observed from the demographic data of the respondent that it is a lady of 59 years old belonging to weaker economic condition with an average pretax income of $71,100. However, the buying decision making tendencies of the respondent differs from respondent 3 and 4 due to her family status and some other significant demographic factors. It could be observed that the respondent is divorced and the sole member and earner of the family (Horner Swarbrooke, 2016). She goes on holiday for her own entertainment needs and relaxation which rather focusing on cost for the holidays attracted her interest in the available activities in the holiday packages and subsequently she has provided activities with the highest importance marks (30). However, due to limited income abilities she has to give the costs for holiday package options with second highest importance marks (20). Thus it could be said that the person goes on holidays all alone which prioritize the available activities rather than the price for her decision making approaches and that is the reason option 3 and 6 are her most preferred holiday packages as they are medium at cost but full with activities (Mariani, 2013). Discussion It could be observed from the above analysis of the collected research data from the respondent 3, 4 and 5 in the survey that buying decision of consumers for tourism factors is majorly dependent on various significant socioeconomic and demographic factors. That is why in almost all the cases price and activities for the holiday packages have been prioritised by the respondents for making their buying decisions for the available package options (Liasidou, 2013). However, the demographic factors make the differences among the included respondents. Respondent 3 having the highest income capacity prioritised the price for the packages as he have to bear the expenses for his entire family and but respondent 4 prioritised the available activities due to her younger age and adventure instincts (Decrop Kozak, 2014). However, respondent 3 has chosen the medium price packages even after having the lowest income capacity as she goes on holiday all alone due to being an old aged and divorced p erson. Thus, it could be said that combination of socioeconomic and demographic factors for realising the buying decision making tendencies of the consumers could be the most effective process for the marketers in travel and tourism industry to design consumer offerings (Du et al 2016). Recommendations It could be observed from the analysis that holiday package marketer for option 1 (Spain, France and Italy) mostly got the least priority by the respondents due to comparatively higher package pricing ($10,990). Thus, the most effective recommendations which could be suggested for the market of this holiday package depending on the above analysis are provided below, Segmentation of the holiday trip based on different nations among the included 3 (Spain, France and Italy) or based on overall 10 cities so that consumers with lower affordability and income capacity with be offered with choice options for shorter and limited period holiday (Anderson, 2013). The organisation kept the pricing higher at higher range ($10,990) which makes the package mostly unaffordable to common people with average income capacities. Thus, it is essential for the marketer for prioritising the cities with wider range of activities among the included 10 cities so that package prices could be lowered through excluding some of the cities with lesser activity (Han Hwang, 2013). Offering discount for consumers with greater number of family members so that the overall expense must not go beyond their affordability (Satit et al 2012). References Barls-Arizn, M. J., Fraj-Andrs, E., Martnez-Salinas, E. (2013). Family vacation decision making: The role of woman. Journal of Travel Tourism Marketing, 30(8), 873-890. Jin, L., He, Y., Song, H. (2012). Service customization: To upgrade or to downgrade? An investigation of how option framing affects tourists choice of package-tour services. Tourism Management, 33(2), 266-275. Wang, Y., Weaver, D. B., Kwek, A. (2015). 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