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Understanding Customer Behavior

Understanding Customer Behavior. Chapter 4 HPR 322. Intro. The organization must base its service on knowledge of customer behavior as they influence decision-making Values, motives, lifestyle, personality Social influences – Family, Reference Group, Community

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Understanding Customer Behavior

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  1. Understanding Customer Behavior Chapter 4 HPR 322

  2. Intro • The organization must base its service on knowledge of customer behavior as they influence decision-making • Values, motives, lifestyle, personality • Social influences – Family, Reference Group, Community • These all affect motivation and decisions to participate in leisure experiences

  3. Labels impact relationship • Participant, Patron, Customer, Client, Member, User, Visitor, Guest, Consumer • Freedom, Dependence and Independence, Responsibility, Patterns of Communication, Privilege, Acknowledgement of expertise or value • Direct people vs. enable • Passive or helpless recipients vs. Capable of decision-making and independent judgment

  4. Types of Labels • Client – passively receives recommendations • Defer to expertise of programmer – Dependency • Programmer diagnoses needs and intervenes with services • Programmer exercises a discretionary risk • Typically clinical, therapeutic settings • Consumer – an individual who uses services • Someone who uses goods or services to meet their needs – exchange time and/or $ for service

  5. Consumers are free to choose – retain decision on participation • Consumerism - Protection from unsafe, unhealthy, poorly organized services • Two-way relationship – typically used in commercial settings • Can apply in TR/RT in the form of certification/licensure

  6. Customer – an individual who participates in a service on a regular basis • Mutually beneficial relationship – loyalty, trust, satisfaction develops • Evaluative Feedback - “Customer is always right” • Relationship based on needs of customer being central – Quality, Value, Convenience

  7. Guest – Individual treated courteously and respectfully, given special care and attention, made to feel welcome in an environment • Disney – Guest – Positive Guest relations • Member – Exclusivity – Individual has been given special privilege because they have paid dues and/or has been inducted into a group or organization (YMCA, Club, etc)

  8. In Leisure environments – access to facilities and services unavailable to others, associate with prescribed group of people, greater individual attention, care, service • Members embrace the philosophy, values, goals of the agency • 2-way communication & active involvement • Members influence/control types of services

  9. Participant – Individual actively engaging in the process • Cooperating, providing social or emotional support, teamwork, problem-solving, contribute ideas • Participation implies shared control – 2-way communication, decision-making, desire for positive outcome

  10. Patron – an individual who buys services on a consistent or regular basis from a leisure service organization (like a customer) • Provider wants 2-way communication and must provide high quality services that meet needs of patrons • Consistently meeting needs builds loyalty • Latin patronus– “person to be respected” • Patrons may support with time and money

  11. Involvement may be long and enduring • May not consume services may serve on a Board or committee or represent agency as a proponent • User – individuals who involve themselves actively in a program or service on a regular basis – consistent pattern of involvement • Relationship of need/dependence/dependability • User has needs and professional fills them

  12. Visitor – individual who visits an area or facility and participates in a program • May be invited or informal and spontaneously • Regular or infrequent visits – provider wants them to become regular customers • Similar to Guests – Valued, treated courteously, entertained, educated, enhanced • Relationship is mutual respect, positive interaction, support • Often comes to see or participate in geographic, cultural, historic activity or site

  13. Customer Decision Making in Leisure • Different levels and complexity • 75,000.00 RV for weekend and summer vacations • Changing traditional vacation spot • Purchasing same brand of golf balls • Extended/information search • Product, service or brand switching • Routine/repeat decision-making (habit) – meets their needs • See Model – Figure 4.1 on pg 105 • Customers use information to seek benefits

  14. Variables that Impact Decision-Making • Involvement – Reflects self-image, attitude, behaviors – exemplifies lifestyle – user finds relevance and interest • Differentiation – Subtle differences that separate available services or products - Choice • Time Pressure – Convenience or location

  15. Age Factors when planning Leisure Experiences • Lifespan is longer • 1900 (47.3 yrs) • Today 78 and 75 (women vs. men) • Those who reach 65 are expected to live 15 more • In 2028 more than ¼ of population will be over 65 • Cohorts – groups of individuals in same age range (5, 7, -10 years) • May have similar interests, values, attitudes based on their life experiences but they are individuals

  16. Major life events – Life Change Units • Experiential differences • Individual intelligence • Temperament and Personality • Social Class • Cultural influence • Level of Education • Job and income • Racial and ethnic differences • Cohorts and Generational Events – pg 113-115 • Life Change Units – Table 4.5 - pg 116

  17. Leisure Behavior • Intrinsic and Extrinsic • Influenced by competencies and availability • Socializing Acquisitive • Associative Competitive • Testing Risk-Taking • Explorative Vicarious • Sensory Stim Physical Expression • Creative Appreciative • Variety-Seeking Anticipatory and Recollective • Altruistic Spiritual Expression

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