Abstract
The consumer decision journey is a complex and situation-dependent process. In highly competitive markets with diverse brands in the hospitality industry, it is important to understand how customers’ wallets are allocated to a particular brand among a set of competing brands. A review of the literature indicates that customers generally follow a previous purchasing experience and its evaluation (e.g., satisfaction, preference) but may change their former decisions at the purchasing moment through the dynamic process. This study builds upon the concept of brand categorization to understand complex choice behavior and the customer’s share of wallet. This study proposes a conceptual framework incorporating several recent theoretical developments in consumer research to better understand customers’ purchasing behavior in the hospitality industry. As such, it provides guidelines for designing a more effective marketing and communication strategy for hospitality entities.
Highlights
As market competition is getting fierce, consumers perceive brands within a product/service category increasingly similar to one another, and brand differentiation is weakened over time [1]
How much a consumer spends on a specific brand, i.e., the share of purchases in the certain product category as opposed to its competitors, has been getting much attention to understand consumer choice behavior [10]
This study aims to develop an advanced conceptual framework describing consumers’ dynamic choice behavior affecting customer share of wallet (SOW) in response to the recent theoretical development in consumer behavior
Summary
As market competition is getting fierce, consumers perceive brands within a product/service category increasingly similar to one another, and brand differentiation is weakened over time [1]. Lemon and Zeithaml [7] suggested a “more realistic scenario” in which consumers repeatedly evaluated their experience with a brand and a product or service over a period of time with a number of potential brands in mind; namely, they leave and return to build a relationship once, while being non-loyal at times [9] For this reason, how much a consumer spends on a specific brand, i.e., the share of purchases in the certain product category as opposed to its competitors, has been getting much attention to understand consumer choice behavior [10]. This research takes an initial step to examine the competition among brands and identify how competing brands are categorized In this regard, this study aims to develop an advanced conceptual framework describing consumers’ dynamic choice behavior affecting customer share of wallet (SOW) in response to the recent theoretical development in consumer behavior
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