Perceived Needs That Based on Particular Value-Sets - Essay Example

Lecturer: Assignment number: Due Weighting: Number: Table of Contents Page Title Page i Executive Summary ii Table of Contents iii 1.0 Introduction 1 1.1 Background 1 1.2 Aim 1 1.3 Scope 1 2.0 Overview of respondents, rankings and summated discussion 1 2.1 Description of respondents 1 2.2 Rankings 2 2.3 Summated discussion 2 3.0 Analysis using the theory of motivation 3 4.0 Analysis using the theory of values 4 5.0 Analysis using the theory of self/self identity 5 5.1 Consumer behaviour and self-concept 5 5.2 The role of gender 5 6.0 Recommendations on marketing a luxury adventure holiday 6 6.1 Characteristics of a potential customer 6 6.2 Marketing strategy 6 7.0 Conclusion 7 Reference List 8 Appendices 9 Executive Summary The aim of the study is to analyse the choice of holiday destination of three individuals and analyse these decisions according to the theories of motivation, values and self-identity. The analysis showed that perceived needs, based on particular value-sets, motivates potential customers to make decisions. It showed that very often people put aside their desires in order to appease other people in their lives or due to responsibilities that they hold. 1.0 Introduction 1.1 Background Individuals make decisions based on choices. Some of these choices reflect personality, cultural beliefs or economic status (Strack, Werth & Deutsch 2006: 209). By analysing the factors that lead to decision making it is then possible to pre-empt the choices that people make in purchasing products or services. This information is vital for successful marketing. 1.2 Aim The aim of the study is to analyse the choice of holiday destination of three individuals and analyse these decisions according to the theories of motivation, values and self-identity. 1.3 Scope The study is confined to three respondents and to three theories of consumer decision making namely: motivation, values and self/self-identity. The three respondents were interviewed and then asked to complete an evaluation form where they ranked several holiday destinations based on a particular set of criteria. The theories used enable analysis of reasoning, 2.0 Overview of respondents, rankings and summated discussion 2.1 Description of respondents Respondent 1 is a 45-year-old female executive at a pharmaceutical company. She is married to an orthopaedic surgeon and has two children aged 12 and 15. Her job allows her to take two months of the year off, which coincides with school holidays. She enjoys spending time with her children and husband and because of her very demanding work-parenting schedule holidays are an essential part of her life (see Appendix A). Respondent 2 is a 25-year old female. She is unmarried and works as a PR account manager. She does not have any children but has a boyfriend who is working in Japan. They try to see each other at least four times a year. The rest of her family lives in Brazil - her country of origin. Annually, she receives 24 days of leave and often has to supplement with unpaid leave (see Appendix B). Respondent 3 is a 34 year old male computer engineer. He is married but does not have any children. His wife does not work, meaning they only live on his income. Currently, they are saving to purchase a house. Each year he receives 15 days of leave which is primarily spent vacationing (see Appendix C). 2.2 Rankings Six holiday option sets were given namely: domestic vs. international, backpacking vs. luxury, snow vs. tropical, adventure vs. relaxing, historic vs. contemporary, shopping vs. culinary. Respondents had to rank (6 was very important while 1 was least important) the following factors: cost constraints, time constraints, change in weather, family constraints, adventure and relaxation. Cost constraints related to how much one was willing to spend on a holiday. Time constraints pertained to decisions based on how much leave was available to the respondent to travel. Change in weather concerned how important it was to have a particular type of climate during one's vacation. Family constraints related to making decisions based the choices or demands of family, not just individual choices. Adventure was directed at the need to have an exciting, fun-filled perhaps thrilling holiday. Relaxation related to having a restful, peaceful holiday focused on physical or mental restoration. 2.3 Summated discussion The results of the interviews and rankings on the decision matrix showed that holiday choices were directly related to lifestyle (see Appendix A,B,C). Respondent 1, due to her affluent standard of living and the lengthy leave she receives each year was not concerned about cost or time but rather about ensuring that her two children enjoyed their holiday while she and her husband got enough time to relax. Her choices were therefore influenced by family constraints and relaxation (see Appendix A). Respondent 2 was not very concerned about cost because she only has to pay for her holiday and she is financially able to. Rather she was anxious about the amount of time she could spend on holiday. Another reason for her choices was family constraints, relating to seeing her family who live in another country. Furthermore, she also makes one trip to Japan every year to see her boyfriend while he makes three trips a year to see her. Her visits to Japan do not form part of her cost consideration because he pays for the ticket. Therefore her choices are largely influenced by her family constraints as well as time constraints (see Appendix B). Respondent 3 was largely concerned about cost. Living in a single income household and saving to buy a house mean that keeping costs low for vacations are a huge priority. Furthermore with only 2 weeks of leave, holidays have to be planned carefully and usually occur at the end of the year when there are other public holidays. Respondent 3 therefore makes choices largely based on cost and time constraints. The results therefore showed that the decisions made by these respondents were primarily unrelated to the holiday experience as it was to daily lifestyle (see Appendix C). 3.0 Analysis using the theory of motivation Schiffman, Bednall, Watson and Kanuk (1997:90) define motivation as a compelling force inherent in everyone that leads us to take some form of action. In the case of consumers this action is making a decision to purchase something that will satisfy a need. In this study, the "need" is a holiday. All three respondents viewed taking a holiday as an intrinsic part of their lives - a utilitarian need rather than a hedonistic one. It formed part of relaxing and taking time off from work which allowed for mental refreshment. However, making a decision on the type of holiday was motivated by other factors such as cost, time etc. Respondent 1 was motivated by the desire to have a relaxing holiday and the desire to make sure that her children had a fun holiday. Her decision-making process could lead to two desirable outcomes (Freestone & McGoldrick 2008:448). Needing to take her children's needs into consideration meant that she was not making an autonomous decision. Her needs would be met if she took a holiday where she and her husband had a relaxing time, while her children had an adventurous holiday. Respondent 2 was motivated by family constraints and time constraints. Though she realised that seeing her family annually is a costly expense and offers very little time to relax she still perceives her yearly holiday home as a need. This is a psychogenic need which fulfils her need to retain family ties (Dholakia 2001: 1341-1342). So when making a decision about a holiday she experiences some losses and some gains (Freestone & McGoldrick 2008:448). While going home does not fulfil her intrinsic need to recharge at the same time it caters for the need to reconnect with her family. Respondent 3 was motivated by the desire to keep costs low and his desire to save for a house. He was also motivated by the need to ensure that is holiday was in sync with the little time he had away from work. He experienced avoidance-avoidance conflict (Freestone & McGoldrick 2008:447). On the one side he wanted to keep costs as low as possible; while on the other side he wanted to avoid spending too many leave days on travelling for a holiday. 4.0 Analysis using the theory of values Values can be defined as a belief that some condition is preferable to its opposite, for example forgiveness vs. bearing a grudge. A value system is therefore a set of values that an individual upholds and generally lives their life according to. Value systems change according to experience and life changes (Freestone & McGoldrick 2008:447). Respondent 1 makes decisions based on the values of respect, devotion, finding a common ground and happiness (see Appendix A). Though as a parent she has the option of selecting a holiday destination based on her needs only, as a devoted mother and one who respects the happiness of her children, she strives to ensure that her choices are aligned with their needs. Ensuring that a consensus is reached in the family is critical to the final outcome. The values of loyalty, commitment and dedication are paramount in the decision making process of respondent 2 (see Appendix B). Each year, though she only has 24 days of leave, she ensures that a portion of this time is spent with her family and with a boyfriend. Trips to see the family do not fulfil the need of relaxation which is important to respondent 2 but it is still an integral part of her loyalty towards her family. Travels to see her family typically coincide with cultural celebrations which are testament to the dedication she shows for her heritage (see Appendix B). She is also committed to making her personal relationship develop and so views time travelling to see her boyfriend as important in strengthening their commitment to each other. Respondent 3 upholds the values of responsibility, stewardship and sacrifice. Due to the fact that there is only one income in his household, respondent one ascribes to the value of stewardship in ensuring that financial obligations are met first. Holidays are seen as a "luxury" and the costs must be kept to a minimum. It is therefore critical for him to make extremely responsible financial decisions when choosing a destination (see Appendix C). Because respondent one is saving for a house, any extra income is generally put aside for the house, a process that involves a level of sacrifice: instead of an optimum holiday, the maximum amount of money that can be saved is prioritised. In addition, there are severe time constraints which again require responsible planning of holidays (see Appendix C). 5.0 Analysis using the theory of self/self identity 5.1 Consumer behaviour and self-concept Some consumers are likely to purchase products that reflect qualities they would apply to themselves (Guiry, Magi & Lutz 2006:75). For example, a product that is described a "reliable" is likely to appeal to someone who thinks of themselves as a reliable person rather than someone who will consider themselves as undependable. Respondent 1 was likely to choose a tropical holiday that was family oriented, luxurious and relaxing for adults but adventurous for teenagers. The characteristics of the holiday reflected her personal conception of her self as a lover of luxury goods but someone who always puts her family first (see Appendix A). Respondent 2 ranked a tropical holiday as highest which reflected her concept of herself within the context of her heritage (as someone who comes from a tropical country). Respondent 3 was selected relaxing, cost effective options. These choices reflected his self-concept as a pragmatic, responsible individual (see Appendix C). 5.2 The role of gender Gender roles may also play an important part in the decision making process of consumers. Respondent 1 is a mother of two. She has the responsibility of looking after the home which includes making crucial family decisions. At the same time, she is a working executive which means that she has reached a point where she can afford to make independent high value commercial decisions. However, she makes the choice to ensure that her role as a mother is not compromised by her financial status (Dholakia 2001:1341), leading to the selection of a destination that is family oriented yet offers luxury. Respondent 2 is female and unmarried. She however has a boyfriend - a relationship which is very important to her as attested by the yearly international visits that are exchanged. While she pays for her trips to visit her family, she has allowed her boyfriend to take on the "male provider" role by allowing him to purchase her ticket to see him. Respondent 3 is male, married and earns the only income in his household. His decisions reflect that he has clearly taken on the role of being the head of the household and responsibility is crucial to his perception of this role and his choice of destination. Long-term vision is important rather than current gratification. 6.0 Recommendations on marketing a luxury adventure holiday 6.1 Characteristics of potential customer According to the results of the study, a customer who could potentially purchase a luxury adventure holiday is most likely to be affluent - having enough disposable income to warrant staying in luxury accommodation and partaking in expensive activities such as water sports and guided tours. The customer is also likely to be either in the 30-40 age group or be in the 40-50 age group but with teenage children who will be interested in the activities available (see Appendix A). Family holidays are also likely to be organised by parents, especially mothers so it is important that issues like safety and appropriateness are explained thoroughly. These will pertain to the values they uphold as caregivers. At the same time they also would want an experience that will ensure balance so that the whole family is satisfied. They are also likely to hold positions that have enough time available for them to go on holiday. On the other hand, potential customers could be people who may not have the money immediately but are willing to save for the holiday or perhaps have a partner that would be willing to pay on their behalf. These are also crucial customers because though indirect they still form a large potential pool. 6.2 Marketing strategy In order to persuade a potential customer to purchase this product, it will be important to highlight the combination of experiential factors (luxury and adventure) without focusing on price. Detailed description of the level of luxury is important as well as fine tuning and dramatically explaining the adventurous side of the holiday. The duality of the product must be highlighted to crystallize the fact that different members of the family will all be catered for an the experience will be wholly enjoyable. Customers opting for luxury holidays are also likely to be discerning travellers and knowledgeable about the places where they would like to go. Some may also have locations they frequent so it would be important to find out the type of services they are used to in order to determine their needs and wants. It would also be critical to have recommendations from other people especially those with families because many people tend to be more convinced by people who have similar characteristics to themselves. Also having audio-visual materials to support the product is critical because it gives a clearer picture of the experience that will be gained. 7.0 Conclusion Three individuals were interviewed in this study in order to determine the reasons for their decisions concerning the type of holiday they would opt for. Each respondent ranked several holiday options according to a list of evaluative criteria which included among other factors, cost, time and family constraints. Their decisions where then analysed according the decision-making theories of motivation, values and self/self identity. The analysis showed that perceived needs, based on particular value-sets, motivates potential customers to make decisions. It showed that very often people put aside their desires in order to appease other people in their lives or due to responsibilities that they hold. So the individual is not always the primary factor in decision-making but very often the other people in that individuals' life contribute greatly to the final outcome of a decision. Reference List Dholakia, UM. 2001. A motivational process model of product involvement and consumer risk perception. European Journal of Marketing, 35( 11/12) 1340-1362. Freestone, O & McGoldrick, P. 2007. Motivations of the ethical consumer. Journal of Business Ethics, (79) 445-467. Guiry,M, Mgi, A & Lutz, R,2006. Defining and Measuring Recreational Shopper Identity.Journal of the Academy of Marketing Science, 34(1) 74-83. Schiffman, LG, Bednall D, Watson, J & Kanuk, LL. 1997. Consumer Behaviour. Sydney: Prentice Hall. Strack, F, Werth, L & Deutsch, R. 2006. Reflective & Impulsive Determinants of Consumer Behaviour, Journal of Consumer Psychology, 16(3) 205-216. Appendices 1. Appendix A - Respondent 1 Characteristics; 45, female, married with two teenage children aged 14 and 16, company executive, able to take the whole summer holiday. Husband is a lawyer. Holiday Options Cost constraints Time restriction Change in weather Family constraints Adventure Relaxation Domestic vs. international 1 2 3 6 4 5 Luxury vs. Backpacking 2 1 3 6 4 5 Snow vs. Tropical 2 1 3 6 4 5 Adventure vs. relaxing 1 2 3 6 4 5 Historic vs. contemporary 3 1 2 6 4 5 Shopping vs. culinary 2 1 3 6 4 5 Respondent 1 was likely to travel overseas to a warm destination. Relaxation was a huge priority for her (and her husband) but also ensuring that her two teenage children had a good time was equally important in deciding on a holiday destination. Time was not important fact because she does not work during the school summer holiday which is when the family usually take holidays. 2. Appendix B - Respondent 2 Second person: 25, female, unmarried, no children, PR account executive, 24 days of holiday, has boyfriend living in Japan, family living in US. Holiday Options Cost constraints Time restriction Change in weather Family constraints Adventure Relaxation Domestic vs. international 4 6 2 5 1 3 Luxury vs. Backpacking 6 5 4 2 1 3 Snow vs. Tropical 3 4 5 6 2 1 Adventure vs. relaxing 6 3 2 4 1 5 Historic vs. contemporary 6 3 5 4 1 2 Shopping vs. culinary 4 6 5 2 1 3 Respondent 2 was likely to travel to a warm destination. Cost was likely to determine the type of holiday destination she settled for. Being unmarried, but having family and a boyfriend living overseas, influenced her choice of domestic or international travel. Her busy job meant that relaxation compared to adventure was a huge priority for any holiday. 3. Appendix C - Respondent 3 Third person: 34, male, married, no children, computer engineer, 15 days of holiday, saving for a house, wife does not work. Holiday Options Cost constraints Time restriction Change in weather Family constraints Adventure Relaxation Domestic vs. international 6 5 2 3 1 4 Luxury vs. Backpacking 6 5 2 3 1 4 Snow vs. Tropical 6 5 2 3 1 4 Adventure vs. relaxing 6 5 2 3 1 4 Historic vs. contemporary 6 5 2 3 1 4 Shopping vs. culinary 6 5 2 3 1 4 Respondent 3 was likely to go for a domestic holiday destination that was warm and relaxing. Being the only income earner in his home, he felt the need to focus on saving to buy a house rather than taking holidays. His job also only gives 2 weeks of annual leave which means that holidays are short and must be relaxing. Read More