Consumerbehavioranalysis.doc

Consumer behavior analysis: Consumers behavior is influenced by cultural, social, personal and psychological factors. And the key to analysis consumer buyer behavior is the Stimulus - reaction model. In this model, the stimulus is influenced by 4P(product price place and production). In this case, there were seven segments in the hotel and lodging industry: luxury, upscale, mid-market with food and beverage, mid-market without food and beverage, economy, budget and extended stay. McDonald has six segment choices.Upscale With an average rack rate of between US$150 and US$300, upscale hotels are full-service hotels with standard amenities.This brand project a luxurious but related image and target at both leisure and business travelers.Mid-market with food and beverage With an average rack of between $100 to $150, mid-market with food and beverage hotels are with lower service levels and amenities than the upscale segment.Mid-market without food and beverage With an average rack rate of between $45 and $70, these hotels offer limited service and comparable amenities to the mid-market with F&B segment. Economy With an average rack rate of between $40 and $65, economy hotels have limited service and few amenities.Budget With an average rack rate of between $30 and $60, budget hotels have limited service and basic amenities.Extended Stay With an average rack rate of between $60 and $90 and targeted to the extended-stay market, these hotels are designed for guests who required lodging for more than a few days.Consumer behavior Typical lodging customers are transient business travelers(28.4 per cent), convention attendees(25.3 per cent) and vacationers or those traveling for personal or family reasons for special events (46.4 per cent).The Business Customer The typical business room night is rented by a male (60 per cent), aged 35 to 54 (42 per cent), employed in a professional or managerial position (48 per cent), earning an average yearly household income of US$72,240. These guests usually travel alone (81 per cent), made reservations (91 per cent) and paid $91 per room night. Thirty-six per cent of all business travelers stayed one night, 25 per cent spent two nights, and 39 per cent spent three or more nights. Two-thirds of these stays were at rates negotiated between the guests employer and the hotel. The Convention Segment Comprising convention, conference and other meeting-related travel, this segment typically left the choice of hotel in the hands of a small number of professional conference organizers, usually employees, professional associations or major corporations. The convention segment had characteristics similar to the business segment except that two-thirds spent three or more nights. For an example of convention hotel product features.The Vacationer/Person Traveling for Other Reasons This segment is generally price-sensitive, often making its selections from packages of airline, car, tours and hotels assembled by wholesalers and tour organizers at discounted rates. The typical room night was generated by two adults (50 per cent), aged 35 to 54 (42 per cent), earning an average yearly household income of $64,386. The typical vacationer also traveled by car (75 per cent), made reservations (83 per cent), and paid $84 per night. Forty-three per cent spent one night, 28 per cent spent two nights, and 29 per cent spent three or more nights. The top five countries in terms of U.S. vacationer arrivals for 2002 were Canada (14.6 million), Mexico (10.3 million), Japan (5.1 million), United Kingdom (4.7 million) and Germany (1.8 million). A total of 21 million overseas t