Contiki Tours : Marketing Strategy Analysis Essay Example

price paid for the product by the consumer involves more than the nominal price (I. . The 'price tag'). As well as the money paid for the product, consumers endure time costs and must expend behavioral and cognitive effort. Cognitive effort may involve the customer dealing with some of the risks of purchase (ROSS, 1984).

There are a number of implications of this analysis for Contain. Firstly, the organization can manage the price that consumers pay by minimizing the time, behavioral and cognitive effort that is used purchasing the product. By decreasing the costs to the consumer, Contain is able to increase the perceived value of their product to consumers. Over-the-phone or internet information and booking services would decrease the time taken in actually purchasing the product, and therefore the cost of the product to the consumer.

Also, convenient agent locations would minimize the behavioral effort for consumers. Contain attempt to staff on product attributes (the distribution channel and its implications for pricing with be covered more thoroughly in a later section of this analysis). It should be recognized, however, that many consumers derive utility from extensive cognitive involvement in the purchase process. For example, some customers ay enjoy discussing at length with consultants, their itinerary and travel options.