"The advantage for the business owner," she added, "is now that I know what is important to the customer I can allocate my resources, my strategy and the systems I put in place to enhance that total experience. And that's your competitive advantage."
The study was conducted on the hotel industry but cuts across many business sectors, Knutson said. For example, during down economic times a national coffee chain may choose to focus on convenience, the second most important factor. While it may close some free-standing stores to control costs, it may also open kiosks in grocery stores or malls in an effort to offer customers the convenience they expect, she said.
Consumers' desire for the total experience does not change in a recession, Knutson added, although they may modify one or more of the factors – such as buying their daily latte from a fast-food restaurant or a convenience store.
Source: Michigan State University
Bonnie Knutson, professor of hospitality business at Michigan State University, discusses her new research on consumer behavior.
(Photo Credit: Michigan State University)