Critical Analysis of Consumer Decision-Making Process Model

5350 WordsJun 8, 201122 Pages
ABSTRACT As the market place is changing, the purpose of this report is to critically analyse 2 chosen consumer decision process models, the KBM model by Kotler, Bowen and Makens (2006) and the BEM model by Blackwell, Miniard and Engel (2006) if they are vague or/ and all-encompassing in hospitality industry today with relevant industry examples. Secondary research is used to conduct data to support the author’s argument. Consumer behaviour in hospitality industry today is changing by the impact of globalisation and post-modernism; consumers became more price-sensitive, and focus on psychological need more than physiological need. Therefore, two chosen model will be identified and critically analysed. However, for the result, both models…show more content…
Moreover, even though they are price sensitive, due to their culture background, therefore, they might much prefer spending money on Cheese fondue than Chinese fondue. Accordingly, if ones are not affordable for the product, he or she could only look for another alternative, and their cultural background could influence its value which delivers to them, thus, economic status and culture are vital factors that largely influence CB in hospitality industry. However, CB has been changing in hospitality industry today; there are many new factors for environmental influences appeared, such as the growth of technology (William, 2002). For the past decade, the growth of internet, media and distribution channel connect different parts of the world as a whole. Therefore, globalisation became popular in market place. Globalisation is a new phenomenon that economy is linked and people tend to share same perspective from different countries (Roukis, 2006; Spich, 1995) and nowadays, this phenomenon has been focused in hospitality industry (William, 2002). Under globalisation, the impact of the financial crisis is interrelated to most of countries in the world. For example, according to a global survey taken by Nislsen Company in 2008; over 80% interviewees from 52 different districts indicated that due to the current financial crisis, they will spend longer time to
Open Document