Module code and title: |
MGBBT0UCT – Understanding Customers |
Module leader: |
Hamza Javaid |
Assignment No. and type: |
Essay 1,500 words |
Assessment weighting: |
50% |
Submission time and date: |
By: 2 pm Monday 18th April 2022 |
Target feedback time and date: |
3 weeks from final submission |
Introduction
A customer is referred to the person or entity who is ready to buy and consume goods and services for some specific cost. They are considered the final consumers of the products or services which are manufactured in the organisation. However, in order to understand the potential customers of the industry, the firms are implementing multiple strategies in the management, one such them is CRM. Customer Relationship Management or CRM is the set of methods where the firm identifies and evaluates the potential customers who are highly responsible for enhancing the economic output (Kumar and Reinartz, 2018). With the evolution of time, the change of the customer choice and preference is continuously changing. Hence Suwelack et al. (2022), stated that the customer experience is becoming one of the effective tools for every enterprise. Moreover, the travel agency are the most experienced entity in customer change and preferences during the Covid-19 pandemic period.
Body
Contemporary Perspectives on consumption refer to the concept through which it defines that consumption is highly related to personal values, identities and sentiments. Considering the consumer perspective, the firm produces the goods and services by efficiently meeting their needs and satisfaction. However, due to the covid pandemic situation, customer choices and preferences are highly affected by the change in the market demand. Not only the choice but also the consumption patterns have been changed. Due to the economic downturn, the financial condition of the people has been severely decreased, as a result, the customer has shifted their lifestyle patterns. People are more inclined toward the necessary items than the luxurious items and the travel and tour sector is mostly afforded by the customers for leisure purposes, therefore, the market demand for the travel agency has been highly mitigated. However, according to the views of Eger et al. (2021), the change in the consumer perspective is primarily dependent on fear. However, by removing the external factors and assumptions of the covid period, it can be determined that most of the firms are becoming customer-centric. As viewed by Dahl and Fridh (2019), with the increase in technological advancements, the activities of market segmentation and the target customers are highly reliant on individual needs and preferences. However, this concept is termed tourist preferences in the travel sector. It is considered as the actions which are identified by the potential travel agencies from the set of options that are enhanced by others’ motivation. Although, the covid has extremely changed the whole framework.
Individual decision-making and involvement are considered self-agreement, where an individual is making a choice between affording goods and services by analysing their utilisation in the current phase of life. The customer’s needs and choices influence other individuals or different entities in order to afford the goods and services. Hence, it can be determined that individual decision-making plays a significant role in enhancing the market demand. According to the views of Kahraman and Cebi (2020), in the current phase of digitalisation, consumers are highly aware of their external surroundings and have developed more organised, well-educated and demanding. As a result, the customers are passively involved in the decision-making process of producing goods and services, as their value and choices are highly considered. However, as mentioned in the article of Studyy.com (2022), customer involvement is referred to as the position of mind, which influence a customer to make an important decision in terms of purchasing. This has led to the generation of potential problems in the travel sector. With the economic downturn and the frequent change in the decision-making process, the travel sector is highly suffering. As mentioned in the article by the Office for National Statistics (2022) the rate of air passengers has been fell by 98.0% due to the increase in the covid restrictions, and lockdown. Moreover, the customer decision making also depends on their characteristics. As mentioned in the Week 2 module, the four types of consumers are chooser, explore, communicator and identify seeker, where each individual has its own distinct point of influence that guides them to make significant decisions.
The importance of perceptual processes in understanding individual consumers act as a stimulator for the customer in terms of consumption. As mentioned in the week 2 modules, the area and the environment act as a stimulator for the customers. The perceptual process is the method through which a firm recognises, organises and interprets customer data and information. However as mentioned in the article of the Perceptual Process 4 Marketing (2022), an individual passes through various stages before making the purchasing decision, Similarly, the tourist undergoes the process which includes exposure, attention, interpretation and knowledge. It defines that tourist identify the market condition and develop an awareness, then they analyse the tour before they are ready to purchase the tickets. However, due to the covid epidemic, the market conditions of the UK were not suitable for travelling, as a result, the demand for the goods and services of the agencies has extremely deteriorated. According to the view of Jain and Sharma (2021), the concept of sustainable tourism is emerging as it develops a positive impact on the environment which directly increase customer demand. It defines that the customer’s perceptual process plays an important role in understanding the customer’s needs. On the other hand, Haarhoff (2018), states that destination image actively develops a positive impact on the purchasing decisions of the customers by creating knowledge, feelings and attractiveness of the place. Therefore, it can be stated with the help of the perceptual process of understanding individual customers, the travel agency effectively, identifies the potential needs and demands of the customers.
Consumers in society refer to the activities of the customers which influence the wide communities with the efficient use of digital technology, social factors and others. However, with the understanding of the travel sector, the behaviour of individuals influences others. As viewed in the article of IGI Global (2022), a network that involves the active participation of social media, culture and advertisements is considered the consumer society. Tourism is more of an information-intensive sector, where the transmission of the data and knowledge of the industry to potential tourists is somewhat critical. However, Icoz et al. (2018), stated that the emergence of social media platforms and tools has made the process easier for travel agencies. The social media marketing tools like blogs, Instagram, Twitter, and Facebook have helped the customers to access all the significant information regarding the travel sector that has been accessed by the customer during the covid pandemic. However, in order to meet the necessary demands of the tourists after the pandemic, the firm can take the help of the McClelland motivation theory to analyse the needs of the social groups. As mentioned by Hopper (2020), McClelland’s theory of needs, in order to enhance effective management is very essential to meet individuals’ needs and it consists of self-actualisation, esteem, love and belonging, safety and physiological needs. With the efficient use of theory, the travel firm can potentially identify and align the stage with the products and services and can enhance productivity.
Future Trends in Consumer Behaviour are leading toward a flexible lifestyle, where the tourist can feel access transparency with nature. With the emergence of digitalisation, most firms are adopting new tools and technology like customer insights, SEO (Search Optimising Engine), data analytics and others. Consecutively, the travel agencies have also adopted these technologies in the management in order to analyse the customer demand more effectively. As mentioned in the article of Hays Travel (2022), the travel agency firm has accessed state-of-the-art technology in the organisational structure in order to update the process, tools, and techniques of the management. Hence, it can be determined that the firms are accessing modern technology in order to be advanced that the future trends of the customers. However as mentioned by Zarezadeh et al. (2018), the evolution of social media, creates a deep impact on the decision making of the travellers and their planning process trips. Hence, it can be determined that the future trends of the tourists are highly dependent on convenience especially after the pandemic when the tourism sector has been highly disturbed by the restriction policy.
Conclusion
Although the ultimate factor of influencing the customer’s choice and preferences is their need and satisfaction, due to the covid pandemic, it has shifted to convenience, quality and availability. Hence, it can be stated that the epidemic plays a significant role in influencing the customer’s choices and preferences. The paper has discussed the significance of the decision-making process and customer involvement in purchasing. It can be realised that the decision-making ability varies on the type and nature of the person. In addition, the decision of an individual also influences the purchasing decisions of other persons and entities. The paper has also analysed the change in the customer behaviour in the society and its impact on the wider community. Hence, it can be concluded that there are many factors that direct an individual to afford the products and services the intrinsic and extrinsic motivation.
Reference List
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