Trends and Issues in Global Tourism 2007

Smart shopping in the European low cost flight market (p. 56-57)

Gerhild Abler, Michael Ehlting
1 The smart shopper consumer profile
Before concentrating on the issue to what extent smart shopping contributes to the success in the budget flight sector, the smart shopper consumer profile has to be defined and characterized. It is erroneous to put the smart shopper and the budget shopper on the same pedestal since they differ considerably in their consumption preferences, in particular in regard to quality and brand preference. Hence, in contrast to the budget shopper, the smart shopper is not fixated on low prices in terms of a low absolute amount. In fact, a smart shopper is more concerned with obtaining an optimal price performance rate. Equipped with welldefined quality awareness, often combined with a high brand orientation, the smart shopper aspires to acquire high quality products or services at bargain prices respective for these products and to gain price advantages, be they with the original price or compared to other customers.

The root of this consumer behavior does not lie in a shortage of money and thus an external necessity for saving, but in fact in the self-confidence of knowing the market and supply structure and taking advantage of it. The smart shopper knows what he wants and how to get it, he is well-educated, well-informed, socially successful and well aware of status and has an above-average income. He operates the Internet with ease, is willing to take time, but also enjoys analyzing offers and compiling price comparisons. Hence, he forms an exact idea of how much a product or a service should cost.

The principal benefit which a smart shopper can reap from his behavior is successfully using this market knowledge and cleverness as a personal advantage. The resulting feeling of success increases his self-confidence and thus stabilizes this consumer behavior. In addition, competitive comparison with others increases the satisfaction of attaining an attractive bargain on preferential terms, i.e. at a lower price than the others.

The smart shopper is proud of his successes and gains prestige accordingly. Success can result from either purchasing a premium product at a relatively low price as well as a medium quality product at an absolutely rock-bottom price. Last but not least, the smart shopper has the advantage that his successes contribute to easing the purse-strings and thus enable him to afford even more such positive shopping experiences – what is once again perpetuating this behavior. In summary, the smart shopper acts from a position of strength: he pays attention to the price performance ratio simply because he wants to, and not because he has to. Thus, the smart shopper represents a consumer profile, which can be encountered in increasing numbers and in many industries. In fact, this consumption behavior is already increasingly dominant in many industries. The smart shopper reflects the shift in market power from the supply-side to the demand-side, which particularly the Internet continues to accelerate.

2 Low cost flight users epitomize smart shoppers

If consumer behavior and target groups in the European low cost flight market are more closely examined, as is the case for the Low Cost Carrier Monitor (TNS Infratest), a comprehensive market research with over 11,000 interview in the five large European markets, it becomes obvious that low cost flight users exhibit many traits associated with the smart shopper consumer profile. Low cost flight users include consumers who have flown with genuine low cost carriers as well as consumers who have purchased low cost flight products from any airlines.