Abstract
The hospitality industry is one of the most dynamic and competitive industries. As such, hoteliers and other industry players are to offer products and services true to the consumer tastes. However, to achieve this effectively, they need techniques and tools that can model accurately such important process as a consumer’s choice making process.
With the available consumer’s choice making process models, these hospitality industry companies try to determine consumer behaviour and, as such, redefine their product mix based on the derived predictions. This study is intended to evaluate two models among various consumer decision process (CDP) ones to determine if they effectively represent consumer decision making process, especially within the hospitality industry.
The findings from the study illustrate that the models are rather general and, therefore, lack for the elements that are meant to define accurately consumer decision-making process, especially within the hospitality industry. The factors that make the consumer decision making process complex to model include postmodernism, fragmented experience, and market, and globalization. An attempt was made within this writing to expound on these factors in relation to the hospitality industry.
It can be concluded that these factors have resulted in the unpredictable consumer behaviour within the hospitality industry. Therefore, the general conclusion arrived at after the study had revealed the inadequacy inherent in the two models on consumer decision process (CDP).
A general recommendation involves the modification of existing frameworks to accommodate other factors that have been initially overlooked and yet remain pertinent to the consumer decision making process. Such models would be able to accurately represent the consumer decision process, especially within the hospitality industry.
Introduction
Understanding market dynamics has become the main focus for many industries today. The tourism and hospitality industry remains one of the most lucrative for any economy. As such, market dynamics cognizant of this field reconsiders important and collectively work toward understanding how best to balance different aspects to maximize profits.
There are tools and techniques available to enable a thorough analysis of the market dynamics. The consumer decision making process (CDP) model is one of such techniques that have gained popularity lately to help sales and marketing departments to critically study and underpin the company’s profitability to suitably identified parameters unique to that company.
As such, consumer decision making process models can be used to align company’s products and services to anticipated consumer preference (Antonides and Van Raaij 1999). This is intended to capture a market niche and gain competitive advantage. This study has been initiated with the intention to analyze two models among the several consumer decision making process (CDP) ones.
In this critical analysis, the researcher intends to identify typical areas of inadequacy when these models are used to model consumer behavior in the hospitality industry (Blythe 1997). The study will culminate in a review of a number of associated theories based on postmodernism and globalization and their impact on hospitality services consumer behaviour.
A study of consumer behavior highlights the way individuals make decisions. These decisions cover how they spend their available resources. The consumer behavior field encompasses many factors. Accordingly, consumer behavior includes the activities by individuals or groups to decide on, purchase, and consume products, and services intended to satisfy their needs and desires.
An authorized description of consumer behavior is a process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires. Behavior relates either to the individual, or in the context of a group, or an organization.
“Consumer behavior focuses on using and disposing products and a related study of the purchase process” (Blythe 1997, p.67). “Product use receives elaborate attention from the marketer” (Blythe 1997, p.67). This is because this use influences the product’s market position and how this can be used to encourage increased consumption.
Conventional consumer behaviour in the hospitality industry
Currently, the hospitality industry offers products and services that are both tangible and intangible (Kotler, Bowen and Maken 2006). Such services are categorized as travel and tourism, lodging assembly, restaurant, and managed services, as well as event management and recreation. Focus on consumer behaviour in such a setting determins how the consumer seeks to make a choice to purchase something, experiences, and evaluates the services.
This process encompasses six steps that cover an emerging need, an active consideration by the consumer, product or service research, short-listing, purchasing the product or service, and post purchase. An understanding of consumer behaviour based on these CDP models will enable hoteliers to define their product mix and determine their communication and sales strategy. A riotous consumption is common to the hospitality industry.
This phenomenon is largely unpredictable and, therefore, may not be effectively modeled although it promotes consumers to crave a perceived level of pleasure prior to the consumption. Inevitably market dynamics identify branding as an important factor influencing modern consumer behaviour.
According to Blackwell, Miniard and Engel (2006), brand preference is a vital consideration during consumer decision making process. At this point, it is imperative to note that consumer behavior is attributed to a number of influential factors. Primary among them, there are the characteristics of the consumer, the consumer’s environment, and the genetic composition of the consumer.
Postmodernism consumerism in the hospitality industry
The trend focuses on product introduction and development, advertising, and consumer behaviour (Ritzer 1999). The changing socio-cultural and psychological needs have resulted in new options for experiencing a self expression in consumption resulting in a new means of consumption.
The increased awareness and riotous consumption trends have spurred luxurious consumption, especially in the hospitality industry, typically seen in the hotels, cruise ships, and airlines. However, postmodernism has brought to the fore trends that embrace the richness and traditions, styles, products, and services from the past and present.
With this wide range to choose from, today’s consumer behavior remains unpredictable, especially considering that consumers have an eye to try new products and services and may not necessarily maintain loyalty. These trends in postmodernism are largely responsible for the social and technological changes. These changes result in fragmentation of market and experience, paradoxical juxtapositions of opposites, and a hyper-reality of products. It suffices to elaborate on each of these results of changes because of postmodernism.
Fragmentation of market and experience
The hospitality industry is currently realizing the need to categorize individual hospitality products and services because of consumers wanting more variety and personalized products and services. Under this classification, consumers are willing to pay more and repeat the experience if the products or services achieve desired personalized levels of satisfaction.
Toward this end, leading hotels in the industry, like Intercontinental Hotels Group, have successfully implemented the fragmented market and experience concept by introducing different brands to cover luxury and boutique accommodations and holiday inn and other related brands to fit consumer budget requirements. These hotels are also known to offer extended stay accommodation targeting at a particular niche of consumers.
Paradoxical juxtapositions of opposites
Some hospitality-oriented industries have facilities that have attracted impulse consumption secondary to their establishment. For example, hotels adorning theme parks have attracted a large number of consumers interested in the theme park but rarely using the other facilities of the hotel such as accommodation. Such hotels have encountered increased spending on maintenance of such parks as experience secondary to their primary reason of operation that is hospitality.
Hyper-reality of products and services
Currently, consumers are looking for fragmented experience and moments of excitement. This is especially true for consumers within the hospitality industry. In addressing this impulse, consumption trends simulations that are hyper-real have substituted the use of value commodities. This is aimed at achieving a world of simulation in which an illusion of experience substitutes a real experience.
At the advent of globalization, many other socio economical aspects have sprang up either directly or indirectly related to the globalization process. One such phenomenon is consumerism that defines the aspect of a particulate society systematically, adopting ever increasing desires to purchase goods and services even in greater numbers.
Consumer decision process (CDP) models
Gilbert suggests a model for consumer decision-making (Taewon and Ik-Whan 2002). This model depicts two levels or phases that have factors that affect the consumer. The first phase of influence lies in the proximity to the person and is related to the psychological influences, like perception and learning.
The subsequent phase of influences involves those that were developed during the socialization process. These may include reference groups and family influences. All the CDP models that have been used for various fields and tourism as well offer some insight into the consumer purchase process that covers the purchase and after purchase decision steps.
Consumer decision process theories presume that the consumer’s decision process follows various steps to accomplish a purchase. Generally, studying consumer organizations can improve their marketing strategy once they understand issues such as the following:
- Marketer’s adaptations aimed at improving their market campaigns and strategies.
- Consumer motivations and decision strategies that vary based on consumer interests and level of importance.
- Limitations in consumer knowledge that always affect their processing abilities and influence their decisions and outcomes.
- The psychological perception of the consumer and the effect on his or her environment.
- The consumer behaviour where they shop.
- The consumer’s psychology during their choice between different brands of products.
Generally, consumer behaviour studies focus on how individuals will make their choice to spend their effort, time, and money on consumption-related items. Baudrillard (1998), postulated one of the earliest CDP models. This model highlights the significance of information in a consumer’s purchase decision process.
The model also focuses on the consumer mind-set although it fails to model the repeat purchase behaviour. The Nicosia 1976 model is another CDP model that highlights the organization’s attempt to converse with the consumer. This model also covers the consumer’s intentions to act in a certain way.
The model is subdivided into four parts each of which is named as a field. The organization process of communicating to the consumer falls under field one. Field two covers an evaluation process carried out by consumers. The purchase by the consumer can be included under field three. Finally, field four comprises the post-purchase feedback process. Perhaps, one of the most commonly quoted CDP model is the Howard-Sheth model depicting buyers’ behaviour formulated in 1969.
This model highlights the significance of inputs in the consumer purchase process highlighting the ways the consumer affects these inputs, prior to the final purchase or reject decision. Generally, all CDP models focus on the consumer and company sides with each contributing to the building of the decision process model.
The generic steps will highlight an emerging need, active consideration, researching, short-listing, purchase, and post-purchase. Since the decision process is fundamental to understanding how consumers behave, the various CDP models are based on a systematic theory and evaluations to determine the consumer’s behaviour. Researchers continue to point out the inadequacy related to these models when they are applied against consumer behaviour patterns.
As such, this study is intended to measure the inadequacy of two CDP models particulate to the hospitality industry. The Smith’s simple model depicting the buying process and the Teare’s CDP model for hospitality services have been chosen as case study models for this assignment.
The intended aim is to evaluate the suitability of these models in understanding the current consumer behaviour in the hospitality industry. It is imperative to note at this point that all other CDP models have their basis on the simple CDP model. As such, the study suffices to cover the Smith’s simple model of the buying process considered as the basic one.
Aim and objectives
Aim
The aim of this study is to exhaustively evaluate the Smith’s simple model of the buying process and Teare’s model for hospitality services in light to the hospitality industry.
Objectives
The main objectives of this study are:
- To carry out an empirical evaluation of the Smith’s simple model of the buying process and the Teare’s model for hospitality services.
- To justify the use of the two chosen models as suited to the hospitality industry
- To review existing literature covering other factors like globalization, postmodernism, and branding affecting consumer behaviour and their decision making process.
Methodology
Research philosophy
This research proceeds quantitatively with a relevant data specific to the hospitality industry, collected and evaluated against the two models to determine their credibility. A thorough review was used to identify and establish a theoretical framework, and data was collected to be tested to verify the study’s hypothesis. The CDP models create an objectively derived map showing all factors affecting purchase decisions. CDP models typically divide the decision making process into sequential steps.
Data collection
This study assumes an approach that collects data basing on two areas. These areas include relevant consumerism theories and practical hospitality strategies.
A secondary research was considered viable and focused on an evaluation of all the relevant theories and academically related materials including textbooks, journals, and reports. Other sources considered in this research were universe of discourse (UoD) databases and tertiary literature sources including Elsevier and Emerald. Financial and time constraints disqualify the scientists from conducting a primary research.
Finding and analysis
It will be necessary at this point to evaluate the two models selected for this case study. The process involves the analysis of the Smith’s simple model of the buying process and the Teare’s model for hospitality services.
Smith’s Simple Model of the Buying Process
The Smith’s simple model for the buying process consists of six definite steps. In postulating this model, Smith indicates that a routinized response behaviour (RRB) spends less time and effort prior to product or service purchase. Such a scenario where there is an impulse of buying while loyalty guests processes cannot be suitably applied to this model.
This model will be applied to modern hotel setup that also includes other additional package services, like scuba diving, casinos, and nature trails. The Smith’s simple buying process model progresses through a number of steps each of which is analyzed here below.
Problem recognition
According to Smith and Taylor (2004), the problem recognition by a consumer is a stage where a need is recognized. Perhaps this need is based on the context associated with the target product apart from a self or personal need.
The context associated with a target product is a part of the postmodernism nature of consumer behaviour. In order to remain competitive, the hotel industry endevours to personalize and customize their packages.
This is intended to cater for hyper-consumption trends exhibited by consumers today. This trend is particulate to the hospitality industry. As such, the Smith’s simple model of the buying process cannot adequately model the problem recognition stage within the hospitality industry.
Information search
This is the second stage within the Smith’s simple model of the buying process. This stage encompasses information search by the consumer. According to Smith and Taylor (2004), such information can be retrieved from advertisements, magazine editorials, visiting stores, and from friends.
Postmodern consumers have been known to invest more time at this stage (Taewon and Ik-Whan 2002). It is true that information search in the consumer’s purchase decision process is important because of the diversification and globalization effects, especially in the hospitality industry.
Since the current hospitality trend is hinged on diversified personalized packages, many consumers in the industry can enjoy an all inclusive consumption albeit any information research. The Internet has brought with it technology that further delinks this stage from the process. Presently, travel blog sites and searches are the most popular for acquiring destination information (Pan, MacLaurin and Crotts 2007).
Evaluation
This is the process carried out by the consumer to access services or products’ features, guarantees, and performance based on the information searched. The hospitality industry is laden with intangible products in form of services. These are complicated to evaluate.
Typically, as a consumer books a stay in at a hotel that offers casino services, the consumer purchases more than a bed in the guest room. However, the service here cannot be determined and evaluated prior to the purchase. Since hospitality industry is fragmented in market and experience, the Smith’s simple model of the buying process fails to consider customer’s perceptions although these beliefs, attitudes, and intentions are fundamental to the decision making process.
Decision
This is the stage at which a consumer chooses a particular product or service. Crotts, Abraham and Mansfield (1999) assert that there are three other types of decisions typical to consumer hospitality service.
As such, in addition, the financial allocation, location patronage, brand, and style decisions are considered by the consumer in the hospitality industry. Accordingly, the decision may not be as simple as it has been presented in the Smith’s simple model of the buying process. There are also other sub-decisions involved based on the method of payment, the time, and place (Foxall 1992).
Buy
This is the activity of purchasing the product or service by the consumer. According to Smith and Taylor (2004), there are exceptions likely to appear during this stage that include an out of stock situation. Williams (2002) suggests a number of factors that cause a purchase delay by a consumer.
These could be a lack of time, emotional response, or even insufficient resources. As seen, the Smith’s simple model of the buying process is inadequate in modeling such a scenario.
Post purchase
A consumer enters the post purchase stage after a purchase. This is related to the satisfaction or dissatisfaction derived from the purchase. This process is related to the information search stage where the consumer evaluates if the purchased product or service meets the expectations according to the advertisement or information initially gained.
A satisfied consumer becomes a repeat customer, and as such, the Smith simple model for a buying process turns to be a cycle. It is important to note at this point that postmodern nature of consumers allows them to remain disloyal even if they experience high satisfaction from a service or a product.
This study also focuses on analyzing the Teare’s model of consumer decision process for hospitality. While considering the psychological and physiological rules in hospitality service delivery, Teare postulated a three stage model highlighting pre-purchase, purchase, and post purchase behaviour.
Teare’s model for hospitality services
The researcher mapped this model to evaluate the consumer behaviour in the airline product consumption a research initially carried out by the International Travel Research Institute (INTRAWAR).
Pre-purchase
This stage illustrates how branding affects the pre-purchase stage. Branding also results in increased product knowledge, consumption preference structure, and research extension.
According to Kotler, Bowen and Makens (2006), consumers gain confidence on acquisition of product or service information even when that information is not intended to help them at that time to make a decision, they can use these information to evaluate the alternatives available.
However, typical to the airline product consumption, perceived risks like delayed flights and accidents also affect consumer decisions. Whereas the Teare CDP model emphasizes the importance of branding, other influences are not considered in this model.
Such influencing factors as fragmented market and experience, postmodernism consumerism, and globalized development are not adequately considered within the Teare model making, it iss inadequate in modeling postmodern consumer behaviour.
As such, the pre-purchase stage of the Teare model of the consumer decision process for hospitality is inadequate and must be more elaborate to model consumer behaviour in the hospitality industry.
Purchase
According to Blackwell, Miniard and Engel (2006), there are five consumer-oriented dimensions during the purchase of the hospitality products and services. These include assurance, empathy, tangibility, responsiveness, and reliability.
Looking at the Teare model and based on the hospitality industry with particular reference to the results of the INTRAWAR research, this stage is clear, though, limited when applied to the hospitality industry. Typically, consumers attach value to the in-flight service as much as the type of aircraft (Hodel 1991).
Post consumption
The Teare model relates the consumer’s ultimate evaluation to increased product knowledge. However, this basis is theoretical derived from the belief that increased product knowledge can reduce post-consumption insecurity. Nevertheless, according to Bettencourt and Gwinner (1996), guest satisfaction, an important index in consumption evaluation in the hospitality industry, is not defined in the model.
This points out its inadequacy to model consumer behaviour in the hospitality industry. As such, consumers carry out an assessment of various factors consisting of all the consumption process based on their expectations after the purchase process. This means of a total evaluation of the consumer decision process does not rely only on product knowledge. This understanding shows that the post-consumption stage is inadequate to model consumer behaviour in the hospitality industry.
Conclusion
It is necessary to understand at this point that consumer behaviour, especially in the hospitality industry, may not be a process that can be accurately modeled. From this study, it can be inferred that the two models on which the research was focused have been found to be inadequate in a number of stages within each model. The Smith’s simple model of the buying process is vague at each of the four stages of the model.
This is the unpredictable consumer behaviour. The hospitality industry, while trying to satisfy this need, is attempting to customize and personalize the services to encourage consumption and, perhaps, attain loyalty.
However, a review of the literature is indicative that consumer satisfaction may not always translate to product or service loyalty as each of the CDP models indicates. As such, the models are considered vague and not all-encompassing while other factors are cited in the review showing that the consumer decisions are influenced by other environmental factors that may be external to the models.
One typical situation highlighted that makes the models vague would relate to a lack of service or product in stock. The model seems obscured from such a scenario and, therefore, is inadequate in representing consumer behaviour, especially in hospitality industry. Other factors affecting behaviour have been also cited and include globalization and postmodernism.
These have made consumer behaviour even more unpredictable as the consumer out of diversity has a growing concern for newer experience. Therefore, the assumption that the consumer decision process will be sequential may not be the case. As such and based on this assumption, the Smith’s simple model of the buying process is inadequate and vague in accurately modeling the consumer behaviour, especially in the hospitality industry.
For the Teare model of consumer decision process for hospitality, an emphasis on branding may not be sufficient in representing and evaluating consumer behaviour. There are other factors apart from branding that influence the decision making process. As such, the study reveals that the other factors besides branding can determine the consumer decision-making process.
Such factors have been identified as fragmented market and experience, postmodernism consumerism, and globalization. Thus, determining consumer behavior, it becomes a complex process, especially within the hospitality industry.
Characteristic of this industry is competitiveness. As such, the industry can only be profitable if consideration is put to satisfy the unique consumer trends through fragmented experience and market that caters for customized and personalized consumption packages. However, the consideration will include other factors supplementary to the actual decision making process.
In this light, the CDP models remain vague and inadequate to model the consumer decision making process in the hospitality industry particularly because of the intricate nature of the industry and the many factors that directly or otherwise define the satisfaction index. A study of other consumer decision process models reveals inadequacies in their representation of the consumer purchase process.
Therefore, it can be concluded that the CDP models are vague and not all encompassing as far as modeling the consumer purchase process is concerned and, especially as it relates to the hospitality industry.
Recommendation
The empirical evaluation of the Smith’s simple model of the buying process and the Teare model for hospitality services has generally highlights that both models are inadequate or vague in modeling consumer behaviour in the hospitality industry (Baudrillard 1998). Although, in general, the consumer decision making process follows the steps highlighted by both models, a number of important factors that are fundamental as input in the consumer’s decision making process have been omitted.
It is imperative to note that failure to consider and include these factors results in an inadequate representation or model vague, and, therefore, cannot accurately represent the actual consumer decision making process within the hospitality industry.
Therefore, in order to effectively evaluate and model contemporary consumer decision making process in the hospitality industry, other factors like postmodernism consumerism, fragmented experience, and market, and globalization must be incorporated into the models. Including these factors will result in a model that can accurately represent the consumer decision making process within the hospitality industry.
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