Master of Marketing: Consumer Behavior Report on Tourism Australia

This report presents a comprehensive consumer behavior analysis of Tourism Australia, examining the company's market position, competitive landscape, and target market segments. It delves into the application of consumer behavior concepts, including market analysis, service positioning, and target market segmentation. The report identifies key trends such as ecotourism and experience-based tourism, while also evaluating the company's competitors. A detailed customer persona is developed, and the decision-making process of this persona is analyzed, including need recognition, information search, evaluation of alternatives, choice, and post-purchase behavior. Internal and external influences on consumer behavior are also considered, including needs, motivation, attitudes, perception, and group dynamics. Finally, the report provides strategic recommendations to enhance Tourism Australia's marketing efforts, with a focus on reaching untapped market segments and fostering customer loyalty. The report uses secondary data and focuses on applying consumer behavior concepts to create a marketing strategy for Tourism Australia.

Running head: CONSUMER BEHAVIOR
Consumer behavior
Name of the student
Name of the university
Author note

1CONSUMER BEHAVIOR
Table of Contents
Introduction......................................................................................................................................2
Market analysis................................................................................................................................2
Service positioning..........................................................................................................................4
Target market segmentation............................................................................................................4
Recommended target market segment.........................................................................................6
Selected customer persona...........................................................................................................7
Determination of the decision making process................................................................................7
Need recognition..........................................................................................................................7
Information search.......................................................................................................................8
Evaluation of alternatives............................................................................................................8
Choice..........................................................................................................................................8
Post purchase...............................................................................................................................9
Determination of the internal influences.........................................................................................9
Needs and motivation..................................................................................................................9
Attitudes and perception............................................................................................................10
Learning.....................................................................................................................................11
Determination of the external influences.......................................................................................11
Group and interpersonal influences...........................................................................................11
Role of situational influences....................................................................................................12

2CONSUMER BEHAVIOR
Culture and subculture...............................................................................................................13
Recommendations..........................................................................................................................14
Conclusion.....................................................................................................................................15
Reference.......................................................................................................................................16

3CONSUMER BEHAVIOR
Introduction
Tourism in Australia one of their most viable and contributing sectors in the national
gross production. This is mainly due to the broad opportunities for tourism activities across the
country. However, with the increase in the business opportunities in the tourism sector of
Australia, competition is also getting increased by the entry of more number of competitors.
Currently, international tourists consists a significant part of the entire output from the Australian
tourism sector. It is reported that as of 2017, tourism sector of Australia contributed for about 3.2
percent to the gross domestic production and provided more than 4.7 percent of employment in
the country. In terms of business revenue, Australian tourism sector generated $131 billion in
2017-2018 (Tra.gov.au 2019). Among these, the portion of the spending from the international
tourists is $42.5 billion. Hence, tourism sector of Australia is one of their major foreign reserve
generating streams. A huge inflow of more than 8 million international visitors noted in 2017,
which denotes the attractiveness that Australia enjoys in the global scenario. It is estimated that
the increasing trend of the tourists will be continued till 2026 and thus huge opportunity is
waiting for the current players in this sector (Tra.gov.au 2019).
This report will discuss about the key trends and competitors operating in this sector and
positioning of Tourism Australia among them. In addition, the target segments for Tourism
Australia will be identified and the most potential will be selected for further analysis. The
decision making process steps for this segment will be identified along with the internal and
external influences. On the basis of the identified factors, a few recommended steps and
strategies will be suggested.
Market analysis

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It is identified that in the recent time, ecotourism in Australia is picking up. This refers to
the fact that sustainable tourism is attracting a significant section on international tourists to the
country. In addition, tourists prefer authentic and real world conditions and experiences over the
cosmopolitan culture of the cities. Thus, local communities are getting economically benefitted.
Majority of the international tourists are seeking experience in authentic Aussie lifestyle. Hence,
experience based tourism is gaining momentum currently in the Australian tourism scenario. In
terms of the life cycle, the Australian tourism sector is currently positioned at the growth stage
because still the number is growing and the future estimation is also indicating towards
increasing trend (Ruhanen, Mclennan and Moyle 2013). Major competitors for Tourism
Australia are from both international and domestic sector. In terms of the international
competition, Malaysia Tourism Board and Tourism Canada is the major competition for Tourism
Australia and on the other hand, Intrepid and Adventures are the major domestic competitors for
Tourism Australia. Among these competitors, Intrepid and G-Adventures are positioned towards
the more affordable segments while Tourism Canada is offering diverse services. Domestic
players are catering to the adventure friendly tourists (Ruhanen and Shakeela 2013).

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High price
Low price
Specific service Diverse service
Tourism Australia
Intrepid
G-Adventures
Tourism Canada
Service positioning
The above positioning map shows that Tourism Australia is facing an intense competition
in the market in terms of both domestic and international competitors. However, their closest
competitor is the Tourism Canada due to the reason that they are also offering similar sets of
diverse services as Tourism Australia. However, on the other hand, it should also be noted that
the domestic players such as Intrepid are offering more affordable services and real world
experiences. This can also be concluded that the major competitive advantages for Tourism
Australia are the diverse service offerings targeting towards different tourists segments.
Target market segmentation

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Target market segment is important for Tourism Australia because it will help to identify
the most potential and beneficial target segment based on which, the further marketing strategies
can be evaluated. The following sections will discuss about the major target segments for
Tourism Australia on the basis of different segmentation variables.
Demographic
variables
In term of age groups, the target segment for Tourism Australia is the
customers aged between 28 and 55 as the primary target segment. In
addition, age groups below 28 and above 55 are the secondary target
segments. This is due to the reason that customers between the age
group of 28 and 55 are having the affordability for tourism. In addition,
these age groups are most aware about the current market trends. Age
below 28 and above 55 is secondary target customers because they are
also visiting Australia as tourists.
In terms of gender, both the male and female tourists are targeted as
there are no specific gender specific services are being offered by
Tourism Australia.
In terms of the income level, middle class, upper middle class and
upper class customers are targeted. This is due to the reason that
Tourism Australia is offering different levels of tourism packages
affordable across the price level.
Geographic variables International market segments are from the leading economies and
developing countries such as India and China. Tier I customers are
targeted because they are having the higher affordability for tourism
and more awareness about the tourism scenario of Australia. In terms

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of the domestic segments, customers across different locations are
targeted.
Behavioral variables In terms of the behavioral segments, customers seeking similar and
same level of services are targeted by Tourism Australia. In addition,
customers with active lifestyle are targeted as Australia is having ample
locations for adventures and thrill seeking peoples.
Psychographic
variables
In terms of the psychographic segmentation, customers seeking
premium and best value for money services are targeted. This is due to
the reason that Tourism Australia is offering the best value propositions
at any price points compared to their competitors.
Recommended target market segment
It is recommended that customers from the tier II cities and areas across the world should
also be targeted by Tourism Australia. This is due to the reason that customers from these
locations are having the affordability and can avail the cost of touring Australia but having lower
sets of facilities. In this case, if Tourism Australia can target them, then a huge untapped market
segment can get catered. The customer base should remain the same as well as the behavioral
factors.

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Name: Jerah Thompson
Profile summary: She is already is got 5 years of corporate experience. Earning handsome sala
Personality: friendly and personalized
Interests: adventures, thrill and vibrant lifestyles
Media: she is more active in social media and
Age: 31
Occupation: financer
Status: Upper middle class
Location: Beijing, China
Motivations: reliable services and authentic experiences for what are asked for. SustainFrustrations: fake promises and not the best value forInfluences: social and cause ba
Selected customer persona
Determination of the decision making process
Need recognition
Decision making process of the customers is having majorly five steps and the first step
is the need recognition. This refers to the need or desire of the customers. Needs for this target
segment can be generated both in terms of internal and external means. In terms of internal
needs, the difference between the actual state and desired state generates the need for the
customer. For instance, she travelled different parts across the world but not Australia and thus
she now prefers to visit Australia (Dredge and Jamal 2013). On the other hand, Tourism

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Australia promoted the tourist places in Australia in such as way that Jerah got motivated to visit
the places.
Information search
Jerah majorly opts for online mediums in searching for information regarding the
available alternatives. She is comfortable and active in different social media platforms and thus
she watches ratings and reviews regarding different tourist destinations and operators. Upon
shortlisted from the online mediums, she consults with her acquaintances regarding the same.
There are number of colleagues and friends of her who have visited Australia before and thus
their opinions are important for Jerah. On the basis of the personal opinions, preferences and
external reviews and ratings, information for the different alternatives is being collected.
Evaluation of alternatives
Jerah evaluates the available alternatives on the basis of few criterions preferable to her.
In terms of the tourist planning agency, she first looks out for the cost due to the reason that even
though she is earning much but is not willing to have super premium travel packages. Rather she
is willing to have the best value for money packages. Secondly, she looks out for the service
quality. For example, for her, agencies covering the major parts of Australia under their packages
will be preferable to Jerah. She wants to cover as much as possible of the areas of Australia by
one go. She selects the alternatives on the basis of quality and type of accommodation as she
prefers home stays over the star rated hotels (Moyle et al. 2014). This is due to the reason that
Jerah prefers to have the most real world and authentic experiences in touring. Hence, the
packages offering home stays the most will be first preferred by Jerah.
Choice

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On deciding over the alternatives, Jerah will continue with the purchase decision through
selecting proper channel. Online mediums will be preferable for her as she can pay from her
convenience and plan her entire tour plan in Australia. In this step, she prefers to have the
reliability and transparency to further encourage in the purchase decision process.
Post purchase
It is highly likely that post purchase dissonance can get emerged for Jerah due to the on
fulfillment of the desired expectations. For instance, the difference between the desired state of
Jerah and the actual services provided by Tourism Australia will create the conflict. In this case,
it is important for Tourism Australia to come up with loyalty benefits. The first step will be to
identify the areas of dissonance by gathering her feedback and should be followed by different
benefits such as discounts or added services.
Determination of the internal influences
Needs and motivation
Availing the services of Tourism Australia will meet different levels of needs for Jerah
and it is the fulfillment of the needs of Jerah that will create her satisfaction or dissatisfaction. In
this case, the Maslow theory of needs will be used to relate the different needs of Jerah with that
of the service propositions of Tourism Australia. According to the Maslow’s need theory, there
are majorly five types of needs to be fulfilled but in the case of expectations of Jerah towards
Tourism Australia, only the love and belonging, esteem and self actualization needs can be
fulfilled (Ruhanen, Whitford and McLennan 2015). Love and belonging refers to the sense of
connection to be gained by Jerah along with the touch of friendship and intimacy. In the above
persona, it is identified that Jerah is more inclined friendly behavior. Services of Tourism

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Australia are being designed in a way that they will provide the most personalized offerings to
the tourists. Thus, the love and belonging needs of Jerah will be fulfilled. Next, according to the
esteem needs, Jerah expects to have the recognition and respect and status from availing the tour
packages from Tourism Australia. The services of Tourism Australia are offered as the most
value for money propositions and tourists are cocooned with premium experiences, which will
create the recognition for Jerah. Lastly, as per the self actualization needs, Jerah is expecting to
achieve her goal and in this case, her goal is to tour the entire Australian region (Moyle, Weiler
and Croy 2013). The coverage of countrywide destinations by Tourism Australia will also fulfill
this need of Jerah.
Attitudes and perception
Attitudes and perceptions of Jerah will have both positive and negative implications over
the business potentiality of Tourism Australia. This is due to the reason that perceptions of Jerah
will determine her purchase behavior and revenue generation for Tourism Australia. There are
majorly four steps of perception being followed, which are selection, organization, interpretation
and negotiation. In the selection step, Jerah will prefer the service, which is stand out for her
among the rest (Filep 2014). Thus, if the services of Tourism Australia cannot be distinctive
from others, then the positive perception of Jerah will not be with Tourism Australia and she
cannot be targeted. The next step is organization, which states the prior information regarding
Tourism Australia stored with Jerah. In this case, if the prior information regarding Tourism
Australia is positive, then Jerah will prefer them or vice versa. This will also determine the
loyalty level of Jerah with Tourism Australia. The next step is interpretation that refers to how
Jerah is interpreting the services and communication of Tourism Australia. In this case, Tourism
Australia is having advantages because their communicated value and actual value is having no