Tourisn and Hospitality Marketing PRELIMS

Chapter 1Iatroductin to Turim and toupitality Mankoting

Introduction
Tourism is one of the world's leading industries. The philippines gets substantial economic gains
from Tourism, which the government wants to further maximize
Tourism is not a single product it is acombination of products and services that results in a
holistic experience for a traveler

Unique characteristics of the Tourism Industry

1 Intangible This is the primary reason why standardization
of operations is crucial in the tourismindustry.
Chain and franchise establishments make it a
Tourism products cannot be fouched,
smelled, tasted, felt nor heard prior to point to standardize the way they provide
purchase. They cannot be subjected to prodvcts and services to address the variability
prior scrutiny. One cannot examine nor component of the industry.
fest them before purchase, unlike
consumer products. Adestination that 4. Perishable
promises fresh air from its beaches or
ascenic view of the mountains cannot The tourism product is one of the most highly
sent a sample. perishable of products. Perishability, as Use in
this context refers to not being able fo forward
Consumers rely on photographs of the inventory to the next day. It does not refer to
place, comments or reviews from those food being spoiled and thrown away products
who have visited the place or availed of become perishable when they can no longer be
the services, and promises consumed foday even when no one consumed
from the company itself. then the day before, unlike consumer products
such as a pen. If the pen was not sold today, it
can still be stored in warehouse to be available
2 Inseperatble for the sale the next day
The tourist product cannot be separated Revenue management addresses the
from the consumer. When fourists avail of perishability factor of the fourism product.
products and services, they must personally With the próper tools for forcasting price and
go where the products are. Since what is being occupancy yield can be maximized
sold is the experience, the product and the
consumer cannot be it fwo different places; 5.Seasonality
they must be in the same place.
It also refers to behavioral patfern of the travel
Products cannot be delivered towhere the market. The seasonality of the tourism product
consumer is. If is the consumer who goes To hinders
round
it from maximixing its profits dll year
where one product is to avail of the product.
Hence, intensified marketing during the lean
3. Variable season will help increase demand forthe
product his also the reason most fourist
The tourism experience is likely to be products, sUch as airlines and resorts, have
different depending on when the prodvct is different rates throughout the year. Such
availed, who one is with, how the service differences in rates help manage capacity
providers deliver the service at the fime of and yield to maximize profitability
consumption one may have gone fo The same
restaurant several times and have different
dining experience each time.
6.Substittable
Compeition in the tourism industry is intensifying. It is quite q challenge to establish loyalty among
clients since there isa wide range of produt offerings to choose from. With the many choices
available, thetourism product is highly substitutable. However, identifying one's competitive
advantage and a unique selling proposiion may help make atourism prõduct less substitutable
Marketing playan important role in the purchase of fourism product Amarketing strategy needs to
be developed to makethe product competitive in ahighly commercialized market place.
Tourism as a High Involvement Product
O Decision-making in the purchase of tourism products is considered fo be of high involvement.
Tourism producis of high involvement mean That there is a greater degree of Thought or study
involved prior to The purchase. Expensive, complex and unrepedtable are characteristics of
high involvement products
O Purchase of expensive products is likely to go Through a long and detailed process of
canvassing and comparing of brands, suppliers, and product features
O Consumers may find complex prodvdy difficult to purchase. The difficully may arise from The
need to understand the features or details of the product.
Jargon (technical word) used in explaining'some of These product
O The unrepeatable nafure of travel makes it a once in a lifetime" purchase. With the
noveliy-seeking behavior of most fourists and the high cost of fravel, travel purchase may not
be repeated oY may be infrequent. Hence, more careful scruiny is exercised prior to
purchase. Special évents such as weddings and debuts fall under this characteristic

O Low involvemenit products are inexpensive, simple and familiar, more detailed scruntiny of
alternatives, longer time for deliberation, and high expectafions for satisfaction happen when
consumers avail of fourism products and services that are of high involvement.
O Marketing plays avital role in he purchase of high involvement products IT leads consumers To
Think abou The produc and its features as well as to assure them of its quality. t helps clarify
doubts and lessen risks involved in the burchase of the products
High Involvement Low Involvement

Expensive Inexpensine
complexe simple
unrepeatable familliar

Tourism Marketing Defined

O Philip Kotler ( 2017 )
The process by which companies create value for customers and build strong relationship in
order fo capture value from fhe customer in return
Kotler ( 2002 ) defines marketing as a social process where individvals and groups obtain what
they need and want Through creating and exchanging products and valve with others
O Kotler, Bowens, and Makens ( 2010 )

Define marketing as an art and science of "finding , retaining, and growing profitable
customers" his definition paves the way for concepts such as customer-centered marketing and
relationship marketing. which have become emerging trends in the study of marketing. Finding.
retaining, and growing profitable customersinvolve strategic planning to ensure customer
safisfacion and building of customer loyalfiy
O The American Marketing Association (2013 )
Approved a new definition marketing is the activity, set of institutions, and processes for creating.
communicting, delivering, and exhanging offerings that have valve for customers, clients,
partners, and sociely af large

Marketing as a Management process

1. Marketing Information system: enables 4. Marketing Operations: this process involves
the organization fo compile an updated set The challenging part of implementing The
of information about its customers, competitors, planned strategic and factical campaigns by
and The organization's capability and cOordinating with all stakeholders, finefuning the
effectiveness. market mix as they unfold, and ensuring the
activiies are condvcted as planned
2. Marketing planning: involves an analysis of
the marketing environment in relation to the 5.Monitoring and Control: involves the ongoing
potentials of one's bUsiness itinvolves the setfing process of evaluating sales data and financial
up of objectives and an evaluation of fhe performance versus marketing activities
milestones that the company has reached . conducted. Includes the handling of customer
feedback and complaints and cöordination with
3.Planning Tactical campaigns:this step what the staffhas to say about the marketing
ensures that the practical and realistic factical campaigns. Finally, if includes being aware of
campaigns are conducted in support of The wha the competitors are doing
comprehensive markefing strategy.
Core Marketing Functions
LMarketing Information Management entails 5.Product/service Management: involves
gathering information about cuUstomers to designing. developing maintaining, improving,
befer serve Their needs and improve and acquiring products and service to meet The
decision-making needs of the customer

2. Financing: involves planning to ensure that 6. Distribufions: involves bringing the products
resources are available to maintain and and services To the customers in the best way
improve The business possible

3. Pricing: ensures that the valve and cost of 7. Selling: is the uffimate measure of markefing
goods and services offered to customers will sUCcess. Strategies on following up the sale,
be af the level That customers are willing to pay. Closing The sale, and making a repeat sale are
crucial fasks of marketing
4. Promotions prepares the various promotional
strategies that will enable the products to be
introdvced and sold to the customers
The Marketing Mix
O Kotler (2010)

Marketing Facilitatesthe exchange process andThe development of relationships by carefully

examining the need and wants of consumers
1 Product or service: what The company is
offering to satisfy a consumer's want or need PRODUCT
2. Price: the
value that the seller puts on the
prodvct or service. This inclvdes the cost of the
product and the profit the seller wishes to make.
The amount a customer has to pay in exchange
for The product or service PLACE MARKETING PRICE
MIX
3. Place: the means by which the product or
service reaches The consumer

4. Promotiont is the strategic plan by which

consumers are informed about the product or
service PROMOTION
O Morrison (2019 )

There are several other Ps to represent relevant functions of fourism marketing such as people,
packaging., and programming
Integrated Marketing communications Approach
a The integrated marketing communications (IMC) approach was born from the need of
businesses to enhance the promofion of their products
O IMC is The process of using all forms of promotion to achieve maximum communicafions impacl
while mainaining a consistent image for the product or services
Factors fhat contributed to the Grouwth of IMC
O With the growth of technology, consumers have become less responsive totraditional advertising
O Business have shifted the compensation of adverfising agencies from fixed compensaion to
incenfive-based compensafion This poses a challenge for advertising agencies to come up with
an integrated approdch in mixing the different promotional tools to yield maximum value
because the more effective their marketing strátegy is the higher pay will be. Hence, the shift
to incenfive- based compensation is a win win strategy for both the business owner and the
adverfising agency.
O The growth and development of database marketing have also enhanced the use of the IMC
approach he behavior and needs of consumers are Tracked and customers are served more
efficiently through the management of a sound and updated dtabase
O Due to the advent of fechnological advancements, The IMC approach has become a popular
option in maximizing resource and optimizing results
O Combining traditional and digital promofional strategies gave rise to the integrated marketing
communicion approcah
Tourism and Hospitality Marketing PRELIMS

Chayter Tsor The Touist Manket andl Segmentaton

Definition of a Market
OAmarket is a set of actual and potential buyers of a productthe tourism productis not for all.
The tourism industry aims to Target a specific set of individuals. It is for a particular set of
buyers, a niche market

Market Segmentation
O Amarketis comprised of varied profiles and characteristics That can be further segregated
OMarket segmentalion is dividing The marketinto distinct groups thaf might require separate
prodvcts and / or marketing mixes (Kotler 2017)
a Amarket segment is asubgroup ofthe total consumer market that shares similar characteristics
and needs relevant fo the purchase of a product, service or experience (Hsu 2008)
Characteristics of a Market Segment
LIndentifiable: thepeople who comprise the 5.Substantial: segments should be large
segment can be located and identified sUch in order fo be substantial. If fhe segmen
That targeting them would be easy is small, it should have a high spending.
capability to make a signiticant impact
2. Cohesive: the consumers should be part of a on Tthe bussiness's bottom line
whole whose specific qualities are common
fo all 6. Actionable: the company has enough
resources and commitmenit to enable
3.Measurable the marketer should be able to effective penetraion of the identified
estimate the size and potential spending of segment fo ensure effective positioning
The member of The market segment
4Accessible the members ofthe segment
should be accessible byThe markefing efforts
and promotional activities to be conducted. If
they are difficult fo reach efforts to reach out
to The specific segmeni might be fuftile

Variables to segment consumer Markets

Behavioral
Geographic Demographic Psychographic
Nations States Special occasions Benefits
Age Life cycle Social class
Regions Countries Gender Income Sought usage Rate user status
Lifestyle
Cifies Neighborhoods Occupation Education
Loyalty status Buyer Readiness
Barangays Towns
Personaliy
Religion Race
 Variables for Segmentation
1. Geographic Newer forms of fourism such as adventure
fourism, cultural tourism, and ecofourism are
The oldest and simplest basis of types of tourism what the market has created
segmentation (Cook 2018) it divides the based on fhe market's personaliies
market into different geographic units such 4. Behavioral
as nations, states, regions countries, fowns
and etc. (Kother 20I). Some companies
decide to strengthena foot hold on' certain Refers to dividing groups based on their
geographic region, concentrating their knowledge, attitude and use or response to a
resources on ensuring penetration of a product or service. Ktler et al.(2017) identified
specific geographic location the behavioral variables

2.Demographic * Special occasion segmentations purchases

The basis most used for market
based on occasionssUch as mother's bay
segmentation (Cook 2018). Demographic Benefits they seek such as quality, ambiance,
segmentation refers to segmenting fhe menu variety and price
market based on variables such as age,
gender, income etc. (Kotler 2016). It is
good idea to segment the market based on User status refers to market segmented
based
demographic variables because consumers on usage of the product such as first-fime
Users, reqular users and etc.
would have similar like and possible
consumpfion pafferns and behavior
Loyalty status segmentation refers to the degree
The major developed markets of Europe, To which consumers are loyal To aThe brand
Americ, Japan and Australia are aging
in population, while India and China are Buyer Readiness pertains to the different
compardively young markets (Cooper 2004) stages buyers become ready fo purchase a
product
3 Psychographic
Was developed by marketing researcher 5. Technographic
trying to link personalitytoa product. Cooper (2006) suggests that there is a fiffh
Psychographic segmeni+ation divides variable for markef segmentation which he calls
consumers based on differet psychographic technographic segment. With the prevalence of
profiles fhe Internet and fhe world wide web, there is an
Sometimes, prychographic segmentation is
increasing divide between the Users and
called lifestyle segmentaion (Cook 2018). non-users of fechnology in searching for travel
information.
Lifestyle has an inflvence on what and how
consumers buy products and services
Market Targeting
OMarket segmentafion shows the various market segment opportunities available for a company.
Acareful assessment of these specific market segments willhelp the firm identify which ones
it should farget
OMarket targeting is evalvating each segments iltractiveness and selecting one or more of these
market segments in which to operdte one's busines( Kotler et al. 2017)
Factors in considering in evaluating which segment should
be fargeted
1 Segment sizes refers to the current sales volume, growth rate, and high-profit margin
2. Afiractiveness: refers to the pofential impact of the segment on the company, One that is not
saturated and has few aggressive competitors would be structurallyattracfive
3. Company objective and availability of resources: refers fo the main reasons for its
decisionmaking and the available resources the company will use to make its objectives a reality
Market Coverage Strategies
O In the selection of specific market segments, a company decides on a market coverage
strategy that is in line with its objectives and resources. Kotler et al (2017) suggest that îit can
adopf anyof fhree mar ket strategies

B Market Coverage Strategies

L Undifferentiated
Ignores marketing: a
market seamentoionompany
goes affer 3.Concentrated marketing: practiced by
the entfire market with only one market offer companies with limited resources. if pursues
(Kotler et al 2017). This looks into what the getting a big share of a small market rather
market has in common and is designed To Than a small share of a large market.
Companies are able to allof their resources in
reach a huge number of buyers. This making their presence felt in a specific market
market coverage strategy can be used with greater impact. If the segment is well
effectively forofconsumer
LvcIs mainly
buvers chosen, it may yield high returns for company.
be
Decause alot need The same
product. Using economies of scale, consumer However, this' srategy risky, because it is like
goods such as shampoo and soap could ignorepuling all your eggs in one basket.
differentiation and go for the market with a
single product offer. This strategy may not be
effecrive for tourism product
2.Differentiated marketing: approaches the
market by fargeting several market segments
Using separate offers per segment. Companies
may offerseveral products for different
market segments fo capture a bigger chunk of
the market. For instance, Holiday Inn balleria
Suite and Crowne Plaza share a common
management groups but Crowne Plaza is more
upscale than Holliday Inn Gallaria Suites; hus,
giving clients an option of where to stay
depending on what their budget could áfford

Factors to be considered when choosing a market coverage

strategy
LCompany's Resources. refers to how much money and resources the company has which can be
allocated to markefing. If the company has limited resourc es, it is logical to use concentrated
marketing
2.Degree of product Homogeneity If products are standardized and identical, it is more advisable
To go for undifferentiated or concentrated marketing
3. Market Homogeneity If there is a diverse market, differentiated marketing is advisable. If the
market has alot of 'similarities, undifferentiated marketing may be used
4.Competitor's Strategy It is important to assess the strategy compelitors are using so fhat the
correct strategy can be implemented fo counfer their marketing efforts. If compelition is doing
undifferentiafed marketing, it would be advantageous to do differentiated or concentrated
markefing.- If competitors are doing segmentation, concentrafed marketing is a must.
OMicromarketing strategies used by many tourism marketing professionals to reach the various
market segments and niches thathave surfaced in the lighÉ of experiential tourism
OLocal marketing involves tailor fiffing brands and products to the needs and wants of different
market groups
OLocation-based marketing has also been on the rise
OSoLoMo Marketing stands for socialtlocaltmobile
Market Positioning
a Developing competitive positioning for The product and an appropriafe markefing mix
(Kotler et al 2017)

OPositioning has everything to do with the deliberate way by which marketers would want to
position their product in the consciousness of their prospective customers

3 Positioning concepts
1Unique Selling Position (USP. Aferm used to identify what makes the product or service
different from ofhers.
May occur due to the product's physical attributes added services, personnel, location or image
2. Competitive advantage. The product's advantage over its compeitors, which is gained by
offering greater value either by offering lower prices or providing more benefits to justify
higher prices
3.Top-of-mind awareness. the highest level of recall that a brand receives. It means that the
brand occupies the top spot in a consumer's mind.
Market positioning is a deliberae way of making sure that the product has a high recall in
the consumer's minds relative to its compelitors

new and Emerging Markets

O The stvdy of new and emerging markets in fourism is vital in the growth of destinafions
a Cooper et al. (2006) idenfified the grouwth of fourism markets as fueled by these factors on the
demand side:

1Economic growth in major source markets

2.Increase in disposable leisure timeand a longer life expectancy with round
health to travel
3.Changes in living conditions, especially city dwellers becoming more inclined to
engage in Tourism
4. Rising educafion levels and increased access to information, stimulating curiosity
5. Increasing international integration of life
O Furthermore, Cooper et al. see tourism's supply side growing Through:
1. the development of and investment in infrastructure;
2. continous tourism product development; and
3. the elimination of legal limitations on and practical obstacles to travel
OWTO: World Tourism Organization
a Mature marketers have not yet reached saturation while emerging markets continue to develop
 Generational Travel Markets
OGenerdtional segmentation is one of the easiest ways to segment the travel market
OTravel behavion differs significantly as Boomers travel to see" while millennials travel to do"
Generafion Xers willusually travel with their families and the Zennials, aside from being
Tech-savvy,are the most environmentally concerned travelers

Types of Markets
L. THE FAMILY MARKET
1.) Joint decision-making families: plan trips with the longest period of fime and make use of
The widestrange of informafion sources. This type of family participates in alot of leisure
activities

2.) Husband makes the decision: the vacation destination are characterized by spouses with
greater age differences. Promotional activities are directed to the male spouse,
emphasizing outdoor recreation Husband-dominant families spend The largest amount of
money on their vacations
3.)Wife-dominant Families form the smallest segment of the family market If the wife makes
the decision on vacafions, it is characterized by a short planning duration that uses the
fewest information sources for planning this type of family spends the least amount of
money andthe shortest duration of Time
O Aside from segmenting the family market using decision-makers as a standard s anoher way
is to use The concept of fhe family life cycle (FLC)
O The FLC refers to The progressive stages Through which individuals and families proceed over
fime. It describes The patterns of relafive want and prosperity experienced byy family members
Lawson (1991). FLC describes how one moves from being a member of his her nuclear family
into building his / her own family
O Travel behavior changes depending on the Family's stage in the life cycle mainly due to time
and budgetary contraints in raising a family.
2. THE SENIOR MARKET
O Also known as the silver market or third-age tourism. It also goes by other names such as the
mature market,refirees, or empty nesters.
O They have the time, money, and desire to travel.
O Limitaions and constraints tht need to be taken into account when traveling
safety and securily Health issues
Availability Costs
Family responsibilities Poor information abouî suitable options
and previous experiences
Characterized into Two: those with retirement benefits and
who rely on their children for sustenance
4. THE MICE MARKET AND BUSINESS TOURISM
The Meetings, Incentives, Conferences (conventions), and Exhibitions (MICE) industry is
extensively and rapidly growing (Ladkin 2006).
O This type of travel is connected but not limited to business travel.
O Allthese events need a conglomeraion of prodvcts and services such as transportation,
accommodations, food and beverage, banquet facilities, entertainment, and shopping
O Conference Tourism refer to all actives associfed with planning, travel to, and participation in
conferences and meetings, both domestic andinternational
O Additional benefit is that delegates extend their stay after the event for leisure purposes
OIncentive travel is the most lucrafive of the MICE market. Incentive travel comes in the form of
reward for employees or business partners; hence, luxury is a natural consequence.
O Elements in venue selection for the MICE
Location and accessibility Time and duration of fhe conference,
Technical requirements Size of the conference
Configuration of The rooms Destinafion image
Leisure opportunities
Business travel is considered the backbone or "bread and buffer" of the tourism industry
because business people are offen required to Travel as part of Their day-fo-day activities.
Also referred to as Professional Travel
Business people typically have fo travel on short nofice fo specific imes and destinations, thus,
They are willing to pay higher fares
5. THE SOLO TRAVEL MARKET
O Solo Travel is one of the fastest-growing markets for fourism as shiffs in social structure and
lifestyle
O This type of travel market is often confused with the free independent travelers (FIT) who are
known to travel with self-booked intineraries and do not join traditional guide Tours
O Solo travelers prefer freedom and flexibility but in a more stuctured and organized style
O This market were designed from a gender-and age-related perspective or from an adventure
and backpacking tourism approach. Solo travelers are largely either young or female and/
or have relaively high affinity foward adventure and backpacking tourism.
6. THE LGBTO+ MARKET
O According to the International LGBTQ+ Travel Associafion GLTA), LG8T Tourism refers to The
development and marketing of tourism products and services to lesbian, gay, bisexual, or
Transgender people.
O This market is recognized as a segment that fravels with greder frequency and
higher-ihanraverage spending paiterns ( UNWTO 2017)
7. THE BLEISURE MARKET (BUSINESS AND LEISURE)
OBleisure, coined by the Future laboratory in Europe, is the blending of business and leisure
Tourism as fravelers extend Their business visit with a leisure trip.
Two componenls:
1) spouses or children Tag along on trips for a few days of family fun
2.) lone leisure and sports activiies offen by younger travelers
O The leading factors in extending for bleisure depend on the destination's great entertainment
and its "bucket list or must-visit sites.
OBleasure travelers are drawn to arts and culture
 8. WELLNESS TOURISM
O The Global Wellness Institute de fines Wellness fourism as travel with the pursuit of maintaining
or enhancing one's personal holistic wellbeing-balance of The physical, mental, emotional,
and spiritual domains of human life.
O Offen merged with medical tourismby consumers and destination markeing organizaion alike
O Medical tourism involves the use of evidence-based medical healing services, both invasive
and non-invasive

O Wellness tourist 2 classificafion:

1) Primary wellness traveler: a traveler whose choice is primarily motivated by wellness

2.) Secondary wellness traveler: traveler who seek to maintain wellness while traveling or
who participafes in wellness experiences while taking any
type of trip for leisure or business (GWI 2018)
Tourisn and Hospttality Marketing PRELIMS

Chapter Three Tourim and Conuner Behasier

Factors that Influence Consumer Behavior

Sel
1. MOTIVATIONS actualization

Mofivations are inner drives that make people take a specific Esteem/Status
plan of acion fo satisfy Their needs.
Hudson (2008) defines needs as the gap between what Belongingness
cUstomers have and what they would Tike to have: they are
seen as the forces tThat arouses motivation. Safety

Kotler et al (2010) state that a need becomes a motive

when if is arouse toasufficient level of intensity Physiological
that prompts aperson to fake action.
Maslow's Hierarchy of Needs
Maslow's hierarchy of needs is the most popular
theory of mofivation as it is able to outline the different needs of man and rank them based on the
degrée of importance in an easyto-understand manner.
PHYSIOLOGICAL : needs refer fo the basic needs for survival such as the need for food and water.
SAFETY:refers to The personal and perceived degree of safety and security.
BELONGINGNESS : refers to the acceptancein social groups.
ESTEEM/STATUS: refers to the desire for prestige and staus.
SELF-ACTUALIZATION: refers to the goal of self-fulfillment.
PUSH FACTOR: those that make you want to travel
PULL FACTOR: Those that affect where you would want to go
2. CULTURE
The impact of culture cannot be disregarded in the study of consumer behavior. Hofstede defines
culture as the collective mental programming of the human mind.
Hofstede discloses the five dimensions of culture: (1) power distance, (2) Individvalism/ collectivism,
(3) masculinity and femininity, (4) uncertainty avoidance, (5) longterm and short-term orientafion.
3. AGE AND GENDER
Age : market.
pertains fo The number of years a person has been living. Traditional way of segmenting The
Gender: also inflvences consumer behavior.
4. S0CIAL CLASS
The socioeconomic status of an individual is stillconsidered as one of the most important external
factors influencing consumer behavior.
Social class is one's position within the society determined by factors: income, wealth, education,
Occupalion etc.
5. LIFESTYLE
Aperson's patfern of livingas expressed in one's activities, interests, and opinions. It portrays the
whole person interacting with external forces.
 6. LIFE CY9CLE
The Family Life Cycle (FLC) Model (Pearce 1993) suggests that travel paterns and destintions differ
as people move on Through The life cycle.
Life cycle refers to the stages individual goes through their lifetime.
7. REFERENCE GROUPS
Known to be set of people who have a direct or indirect influence on other people's aitudes or
behavior.
word of mouth plays an important trigger for purchase decisions.
8. PERSONALITY AND SELF-CONCEPT
Personality: the distinguish psychological characteristics that lead to relatively consistent and enduring
responses to the environment.
Self-concept his/her personal mental picture
The Buyer Decision-Making Process
1. NEED RECOGNOTION Need/Problem
Needs are triggered either by internal or external
Recognition
stimuli. PronmoBonal straiegies are creafively developed
fo make people think that they need our products. Information Search
2. INFORMTION SEARCH Aiternative
Evaluation
Once a consumer recognizes a specific need, he/she may or may not
be prompfed to search for more information. Purchase Decision

Twoclassification of informattion search Post-purchase

1.) Internal information search: is nothing more than retrieving decision-relevant Evaluation
informafion stored in an individual's Tong-term memory
2.) External information search: focuses on acquiring informafion from oufside or
external source

3. EVALUATION OF ALTERNATIVES
This stage allows prospective customers to make detailed comparisons of different products or
service providers 'since they already have sufficient information.
4. PURCHASE DECISION
This stage is the most awaited by fourism marketers. This is when consumers actualy make the
purchase decision.

5. POST-PURCHASE EVALUATION
It is extrenmely important for product and service providers To ensure The customers have a good
experience with the product.
Kotler (2000) defines safisfacion as aperson's feeling of pleasure or disappointment resufing from
comparing a product'sperceived performance.
Customer Satisfaction through Service Quality
OService Quality: defined in businessdictionary.com, is an assessment of how well a delivereed
service conforms to The client's expectations.
O Benefits of servive quality:
LCustomer Retention Service quality builds loyalty among customers and makes this customers
speak positively about The service provider.
2. Avoidance of Price Competition Providing high-quality service helps in maximizing potential
revenue and veers The company away from a price war.
3. Retention of Good Employees When an operion is well run and produces high-quality
prodvcts, recruitment, training, and retenition of employees are easy.
4. Reduction of Costs. Costs are minimized if there are repeat customers, absence of a
price war, and low turnover rate of employees

Repeat Purchase
Service Quality Satisfaction
Referral to
Friends

Organizational Buyer Behavior

a The organizaional buying process is a more formal version of The consumer buying process.
OOrganizaions are more complex because more people are involved in The decision-making process.
Orgabizafions buy in bulk for group consumplion
O Kotler (2010) Purchase decision process:
1. Problem recognifion. 5. Proposal solicitafion
2. General need specification 6. Supplier selection
3. Product specification 7. Order roufine specification
4. Supplier serach 8. Performance review

Groups are the most lucrative markets.Includes meefings, smerfs, events, incentive travel.
ARR: Average Room Rate
O ACC: Average Cost per Cover
Typology of Tourists
L)PLOGS TOURIST MOTIVATION MODEL
Classifies travelers as allocentric or psychocentrics. Plog adds "energy" as determinant of (high
low ) levels of activity.
Allocentrics: prefer what is new, unstructured, exofic, or unuSual in term of trips or destination
choice
Psychocentrics: are those who prefer the structured and familiar.
Midcentric: fourist could portray characteristices of both allocentric and psychocentric
2.)COHENS MODEL
Cohen (1972) propoesed four classification of tourist:
L The organized mass Tourist: the type of tourist who buys all-inclusive tour packages and
ensures That everything goes as planned.
 2. The individual mass fourist: more autonomous than the omt preferring to travel
independenitly, but stillchooses popular destinaions and activities.
3.The explorer: seeks new areas buf would sometimes opt for the comfort of familiar
accommodations

4.The drifter the free spirit who avoids any kind of traditional Tourist establishments.
3.) STEWART'S MODEL
Based on the study of United Kingdom Holiday makers conducted by the Henly Centre of
Stewart in 1993. This model is büit in the conceopt that people become more affluent, they
fend to travel more and travel experience is cumulative. They also tendto be adventurous and
confident as their level of afflvence and travel experience increases. Stewart distinguishes the
following four phases of holoday taking.
1. Bubble Travelers: have low affluence, low travel experience, and observe foreign culture
from a bubble. This qives them basic confidence to travel.
2.ldealized-experience seekerse have more affluence and a base of overseas travel
experience, which gives them more confidence.
3. Wide-horizon travelers: have more afflvence, greater confidence, and more travel
experience; now ready for more individually oriented travel to a wider
range of destinafions.

4. Total immersers: do not seek to merely observe but fo be exposed fully to another culture's
language, food heritage and lifestyle.

The Non- Users

Successful marketing efforts should cover the different segments of the market. While relationship
marketing, which focuses on customer retenfion, has become a popular marketing alternafive,
marketers should continue fo make efforts to acquire new customers. The best way to do this would
be to Tarqet the non-Users. Non -users can be classified as;
(1) ex-users who stopped using the products/services for various reasons.
(2) Costumers who are aware of the product or services but need to be persuaded to
purchased, and
(3) those who are not aware of the product or service's existence