Consumer Behavior Audit - Salem, MA (USA)

by: Vita Bataityte

SS 2005

Table of Contents

Executive Summary 01

I Market Segmentation 02

A. External influences 02
B. Internal influences 07
C. Situational influences 10
D. Decision process influences 11

II Product Position 14

A. Internal influences 14
B. Decision process influences 15

III Pricing 15

A. External influences 15
B. Internal influences 19
C. Situational influences 20
D. Decision process factors 21

IV Distribution Strategy 21

A. External influences 21
B. Internal influences 23
C. Situational influences 23
D. Decision process factors 24

V Promotion Strategy 25

A. External factors 25
B. Internal Factors 27
C. Situational influences 29
D. Decision process influences 29

VI Product 31

A. External influences 31
B. Internal influences 32
C. Situational influences 32
D. Decision process influences 33

VII Customer Satisfaction and Commitment 33

Summary of Recommendations 34

Works Cited

Executive Summary

Salem is a destination for about 800,000 people each year.1 This city has a deep history, which goes back into the 17th century and is famous for its legendary witch trials. Most people know Salem from this perspective and associate it with a historical and cultural heritage. In addition to its historical events, Salem has much more to offer. In particular, the newly restored Peabody Essex Museum, the House of Seven Gables, an engaging seaport past, etc. are remarkable and unique places to visit. However, most tourists come during the Halloween events and stay away for the rest of the year. Nonetheless, Salem is also internationally a known city. It should only be promoted including its true values and real heritage. Its image should be enriched and revived in order to get more consumers over the whole year. The following consumer audit will determine potential target markets for Salem, and emphasize on particular one, which should be addressed during the next campaign. One particular target audience, which had been neglected over the years by most marketers will turn out to be the most attractive to choose. Its expenditure and consumption behavior will be studied and the decision process discussed. The product itself, its positioning, distribution, and post purchase factors will be emphasized and brought into an association with the selected target audience. Finally, a summary of recommendation will finish this paper.

I Market Segmentation

A. External influences

1. Are there cultures or subcultures whose value system is particularly consistent (or inconsistent) with the consumption of our product?

- Wicca community could be considered as a subculture, which is consistent with the value system of Salem. This subculture is steadily growing.2 There are an estimated of 50,000 Wiccans in the United States ³. Steve Wohlberg, in his book the Hour of the Witch, was the first to state the conclusion that Wicca would emerge as the third largest faith in America and would directly challenge Christian ideals of church and state.⁴ There is even a witch school online.⁵
- Harry Potter fan community could be considered as another subculture that has similar values to Salem. In particular, the witches tradition and atmosphere could serve Harry Potter fans for meetings. In fact, I have recently found that the second Harry Potter Symposium will take place in October 2005 in Salem, Massachusetts.⁶ In Massachusetts there is a Harry Potter fan community called Snitchseeker online community (www.snitchseeker.com), which includes over 50,000 members.
- International people are often interested in culture, architecture, history and entertainment. Salem could serve this segment very well, because it offers historical and cultural environment and adventure. In fact, Salem has a lot of international tourist, which probably come through the whole year.⁷

2. Is our product appropriate for male or female consumption? Will ongoing gender-role changes affect who consumes our product or how it is consumed?

- I don’t think there is a difference between male and female consumers for our product.
- The population in State Massachusetts consists of 48.2 percent male and 51.8 percent female habitants. This doesn’t show anything unusual.

3. Do ethnic, social, regional, or religious subcultures have different consumption patterns relevant to our product? In Massachusetts live:
- 84.5 percent White people
- 6.8 percent Hispanic or Latino
- 5.4 percent Black or African American
- 0.2 percent Asian
- 4.6 percent Two or more races
- 3.2 percent Some other race

Hispanic and Latino market have more children than the average American⁸ and therefore it is also a relevant and potential target market for Salem. Their lifestyle and consumption patterns are different, but behaves positively in regards to our product. In particular, this group is family-oriented, which would perfectly fit when promoting Salem as the “Family weekend destination”.

[...]

1 More than witches in Salem, Mass., 2004.

2 More than witches in Salem, Mass., 2004.

3 43,941 adherent statistic citations, 2005.

4 Michaels, 2005.

5 Your Online Wicca and Magical Education.

6 Harry Potter Symposium, 2005.

7 Oehlkers, P. during class discussion.

8 Bernstein, 2005.