Consumer Behavior & Business Strategies In The Duty Free

Duty Free and luxury

The duty free business no a day’s more focus on luxury than before and Have more exclusive and limited addition items ,become more comfortable to buy from duty free because of the trust. Customers they feel more valuable and more luxuries experience and different level of service in the airport specially after passing the security and feel more relax.

Duty Free is targeting different customers: some if the passengers they don’t have enough time to buy or they don’t like to go to normal retail boutiques. So they prefer to buy from duty free. Duty Free is innovative place. Usually duty free is a good place for launching new products and high end products that’s why consumer trust more , and like to buy even new product and that make the task easy to have great atmosphere for innovation.

Consumer Behavior Theories

Theoretical approaches to the study of consumer behaviorA number of different approaches have been adopted in the study of decision making, drawing on differing traditions of psychology. Writers suggest different typological Classifications of these works with five major approaches emerging. Each of these five approaches posit alternate models of man, and emphasis the need to examine equity different variables (Foxall 1990); they will briefly be introduced in turn:

  • Economic Man
  • Psychodynamic
  • Behaviorist
  • Cognitive

Economic Man

In order to behave rationally in the economic sense, as this approach suggests, a consumer would have to be aware of all the available consumption options, be capable of correctly rating each alternative and be available to select the optimum course of action (Schiff man AND Kanuk 2007). These steps are no longer seen to be realistic account of human decision making, as consumers rarely have adequate information, motivation or time to make such a ‘perfect’ decision and are often acted upon by less rational influences such as social relationships and values (Simon 1997).Furthermore, individuals are often described as seeking satisfactory rather than optimum choices, as highlighted by Herbert Simons Satisficing Theory (Simon 1997),or Kahn man and Tversky’s Prospect Theory (Kahn man ANDT versky 1979) which embrace bounded rationality (Simon 1991).

Psychodynamic Approach

The psychodynamic tradition within psychology is widely attributed to the work of Sigmund Freud (1856-1939) (Stewart 1994). This view posits that behavior is subject to biological influence through ‘instinctive forces’ or ‘drives’ which act outside of conscious thought (Arnold, Robertson et al., 1991). While Freud identified Three facets of the psyche, namely the Id, the Ego and the Superego (Freud 1923), other theorists working within this tradition, most notably Jung, identified different drives (Ribeaux ANDPoppleton, 1978).

Behaviorist Approach

In 1920 John B. Watson published a landmark study into behavior which became known as ‘Little Albert’ (Watson ANDRayner 1920). This study involved teaching a Small child (Albert) to fear otherwise benign objects through repeated pairing with loud noises. The study proved that behavior can be learned by external events and thus largely discredited the Psychodynamic approach that was predominant at the Time.

Cognitive Approach

The Cognitive approach is derived in a large part from Cognitive Psychology which can trace its roots back to early philosophers such as Socrates who was interested in the origins of knowledge (Plato 360 B.C.), Aristotle who proposed the first theory of memory (Aristotle 350 B.C.) and Descartes who explored how knowledge is represented mentally in his Meditations (Descartes 1640) (Sternberg 1996). It was not until the middle of the 21st Century however, that Cognitive Psychology truly emerged as a mainstream and useful field of study with the development of the Stimulus-Organism-Response model by Hebb during the 1950’s (Cziko 2000) and the publication of the landmark text by Ulric Neisser in 1967 (Neisser 1967). From this point many writers suggested that Cognitivism had taken over from Behaviorism as the dominant paradigmatic approach to decision research (Furedy ANDRiley 1987).

The consumer behavior at luxury travel retail


The study on luxury consumers is always connected to their drives behind Consumption. Why people buy luxury products is an interesting question. Luxury consumption is not a new phenomenon, but in some countries, like China the luxury market is still growing since many brands are newly entering these markets. At the same time, new generations have become luxury consumers so these markets are quickly changing. An important factor that has great impact on consumer's buying is -motivation. Solomon (2007) defines motivation as "the forces that drive people to buy and Use products." Consumers can be motivated by many reasons to make purchases of luxury goods, and lot of researches has been done to explore these reasons. To know why consumers buy clothes, it is important to understand why they wear clothes.

Brand Equity

Brand equity is defined as "the incremental value added to a product by virtue of its brand" (Jung and Shen, 2011). Brand equity of a product varies across individual consumers. When consumers assign high added value to a product, they may have high brand equity towards this product and therefore have the intention to buy it. From a consumer perspective, it can also be defined as "the willingness for someone to continue to purchase a brand" (Rios and Riquelme, 2010). Therefore, brand equity is an important driving force behind consumption. According to Jung and Shen (2011), brand equity has four dimensions, including brand awareness, brand associations, perceived quality and brand loyalty. All these four dimensions influence luxury consumption.

Cultural Effects on Consumer Behavior

Based on Hofstede's idea of four cultural dimensions, Jung and Shen (2011) have constructed a model of four influencing cultural factors, including collectivism, uncertainty avoidance, power distance and the level of status consumption. First, collectivism refers to "the degree of which individuals are integrated into groups." (Jung and Shen, 2011) In collective culture, for example China, consumers tend to purchase luxury goods for social acceptance and comparison. On contrast, in individualistic society, for example Finland, consumers are more likely to buy luxuries for self-actualization.

01 April 2020
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