Report on Understanding Customer Behavior in Tourism Sector

This report delves into the intricacies of consumer behavior within the tourism sector, examining both micro and macro aspects that influence individual and group decision-making. It highlights the crucial role of understanding consumer behavior for tourism organizations to maximize revenue and gain a competitive edge. Psychological factors like perception, personality, and attitudes, as well as sociological factors such as social networks and reference groups, are analyzed using theories like Maslow's hierarchy of needs and Durkheim's theory of social integration. Personal factors including income, age, and lifestyle, along with economic factors like personal income and consumer credit, are also discussed in relation to consumer buying patterns, referencing the Marshallian Model and economic models of consumer behavior. The report emphasizes the importance of marketers understanding these factors to develop effective strategies and cater to evolving consumer needs, ensuring sustainable growth in the tourism industry. Desklib offers this report as part of its collection of solved assignments for students.

Understanding Customers

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Consumer behaviour is essential to identify the needs of individuals, groups, organizations
at certain point of time so that goods can be sold in the market in appropriate manner(Li, Zhang,
Wang and Guo , 2018). The present report will identify certain macro and micro aspects that re
related to the consumer behaviour and will explain them in detail through various theories and
models.
Further, these theories will help any researcher to identify why individual acts in certain
way. Also, the importance of these factors in identifying the future trends and perception will
also be covered under this report. Furthermore, various examples will be presented in context of
tourism sector that is most successful in terms of building new communities and preserving
natural sources in any country or region. Lastly, in certain areas' role of marketers will also be
discussed so that consumers needs can be analysed in proper manner and thus better marketing
policies and strategies can be developed in the future.
MAIN BODY
Customers are main element of any tourism as they are responsible for buying various goods
and services that are made available to them through other companies. Also, understanding the
consumer behaviour is very crucial task for tourism sector so that maximum revenues can be
generated in the long run (Valeri and Katsoni, 2021). Further, in the context of macro aspect it
relates to companies, market, clients and competitors etc. that affect the tourism industry while
micro aspects consists of consumers, customers and suppliers that are part of the business cycle.
To understand the micro aspects that is related to individual can be linked to psychological
factors that includes the perception, personality, attitudes, values etc. that helps individual in
buying certain products that are according to their needs and wants (Kiš , Jovičić , Kalambura
and Guberac , 2021). For example: If a person is has good brand perception about particular
hotels or resorts than it would prefer booking those hotels even when ratings are not better than
others (Koc and Ayyildiz,2021). Moreover, motivation, perception, beliefs and learning are other
factors that define the individual personality and attitudes. Thus, through analysing these factors
closely the firm can introduce the products in the market accordingly. Moreover, if these factors
are not analysed (properly) than there are chances that customers might shift to other options that
are available in the market. Furthermore, a person carries certain values with him to decide good

or bad. For example: Some people love to spend and thus might be attracted towards those hotels
that have high value while others who wish to save might opt for hotel options that have only
basic foods and amenities. Also, in tourism industry psychological factors plays an important
role in identifying the travel motivations (Saenko and et.al., 2017). This can be either through
images of places, destination loyalty, preferences etc. Mas-low Motivation theory can be linked
with micro aspect where the needs of the consumers are based on the physiological, safety;
belonging, esteem and self-actualization needs and people fulfil lower needs and then gradually
move towards upper level in the pyramid to fulfil those needs (Moutinho and Vargas-Sanchez ,
2018). For example : If person needs of living and earning basic amenities of life has been
fulfilled than individual will look out for options that will provide comfort such as planning a trip
to favourite places for few days for enjoyment.
Other than this the macro aspect can be various sociological factors that affect the
individual decision-making on buying certain goods or availing different services. For example:
It depends purely on the social network of the individual that help them to suggest whether to
visit particular place or not. Also, status, role, relatives, family and friends also influence the
consumer behaviour on large scale. Reference groups help in easy comparison with others and
thus mould individual idea or thought (Thøgersen, 2021). Moreover, such groups already have
lot of knowledge about the place or services. Thus they provide certain recommendation
according to their experiences. This can be further linked to Durkheim theory that states society
plays an important role in social integration and influencing individual behaviour through
interaction among various social groups (Tropp and Beuthner, 2018). For example: A particular
friend group suggest a person not to visit a particular place or hotel due to high prices and no
enhanced customer experience. Thus, the person will look out for other options available in the
market other than one that is not recommended by that group. Hence, social status also defines
the behaviour as if more number of people is from lower income groups than they would prefer
spending less and individual is from upper middle class than would spend on luxurious items
(Rizvi and Popli, 2021). Social factors is also identified through various stages that individual
goes from such as bachelorhood where demands are different like mobile, cars etc., for married
and retirement age is totally different. Thus, in tourism industries people are likely to spread
more awareness to their family groups about the best customer experiences they have witnessed
(Fondevila-Gascón and et.al., 2020). Moreover, individual with same social class tends to have

similar attitude certain aspects. Also, reference groups can influence behaviour of groups through
prescribing a particular role in behaving certain way, modifying the behaviour according to
situations, through group communications or through word of mouth (Robinson, Martins, Solnet
and Baum , 2019). Thus, it can be said that individual behaviour is according to the surroundings
and environment that affect and thus it imitates others so that it can be socially accepted in the
society.
In relation to the micro aspect concerning the individual behaviour is personal factors in
which the income, age, occupation and lifestyle also affects the buying pattern of the consumers.
For example: The choices of places that are chosen by the young people in travelling are
different from those that are selected by old age people (Agarwal and Mehrotra, 2018). Income
on the other hand also affects the buying as those with higher income have extra purchasing
power than those who haven’t. For instance : A high income group will always select premium
brand hotel that will able to provide all luxurious of life. Also, person tends to buy all those
goods that are appropriate for his profession. Hence, it can be said that lifestyle also affects the
buying of those individuals who wishes to live healthy lifestyle than the others (Peck and Shu,
2018). This can be further linked to Marshallian Model of buying behaviour where consumers
have complete knowledge of their wants and thus they have all available means to fulfil them
whenever they require (Vu and Hartley, 2021). For e.g.: pool facilities, games and recreational
areas etc. in any resorts to attract more people and thus generate revenues. This model further
states that expenditures that are done by the consumers are in direct connection with the income.
Thus when income increases the consumer tends to avail more services and vice versa (Choi ,
Choi , Yoon and Joung, 2020). Marketers need to understand the current situations of any
country before making any product available to the customers so that there are no future losses in
the future. For example: If in any region the population of youth is more than adults than the
tourist sector need to develop those areas where holiday of youths can be spent nicely (Chen and
Pham, 2019). Moreover, if there are any self-concepts or notions that are developed by any
individual than the marketers need to identify it and address them quickly so that they may not
turn to other options that are available in the market (Coca-Stefaniak and Morrison , 2018).
Another aspect that influences consumer behaviour is economic factors that determine that
economy is stronger than there is greater supply of money in the market and thus consumers
have higher purchasing powers that will allow them to spend even on those things that are least

required or are less important (Daghfous, Belkhodja and Ahmad, 2018). For example: Giving
gifts to consumers when the firm had performed extraordinary well or earn lot of profits may
influence customers to visit again for the best customer experience. Thus, economic factors
consist of personal income, consumer credit, family income, savings etc. (De Mooij, 2019). Also,
consumers that have more liquid assets are likely to spend more on luxury and comforts. Further,
if in any country easy credit facilities are available than it is likely to choose or visit such places
in tourism context (Grech , Grech and Fabri , 2020). Thus, considering such factors to have
positive influence on consumer’s sellers is making it easy to open up for facilities so that more
people are attracted towards particular places. Economic factors can be linked to economic
model of consumer behaviour theory that states that buying decisions of consumers are totally
based on the utility. Thus, if individual is having certain amount of purchasing power than he/she
is likely to buy that good or service (Arcese and et.al. , 2020). Moreover, amount will be
allocated on various categories of goods in rational manner so that maximum benefits can be
derived out of it (Solomon and et.al., 2017). Also, certain levels of income expectation in future
by the person also influence the buying decision. For instance if person feels that income is
going to rise in (future) than more money would be spent on purchase of costly items and places
and on the contrary if income is expected to fall in future than expenditure on item also reduces
with the time (Löbler and Wloka, 2019). Thus, marketers also need understand the behaviour of
customers to target the right segment of group before offering any kind of services.
CONCLUSION
From the above report it can be summarized that consumers play an important role in
generating revenues for any type of tourism sector. Moreover, all the organizations are
established to fulfil certain needs of the consumers so that competitive advantage is gained.
However, before selling any goods in the market the marketers need to closely analyse the
consumer’s behaviours so that there are no problems in the future.
The present report had analysed various micro aspects such as consumer, supplier etc. and
macro aspect such as competition, market, competitors etc. that affect the decision-making of
individual or groups. Moreover, the study had analysed these factors on basis of some examples
that are related to tourist industries. Also, various models such as economic model, Mas-low
theory of motivation etc. had been applied so that consumer activities can be explained through

various aspects. Lastly, importance of such consumer behaviour in context of marketers had also
been identified so that better decisions can be made in the future.

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