It is important to understand timeshare consumers and the motives of people who buy into timeshare because the efforts of firms in the timeshare business can be better focused. Specifically, this chapter makes the distinction between customers and consumers because those who make the decision to purchase timeshares are consuming experiences rather than making one off-purchase decision. The whole timeshare experience involves continuity in the relationship, which differentiates it from a hotel stay. Even those who use their timeshare to trade in to different locations have an ongoing relationship with the operating company.

This chapter explores a number of models for describing the characteristics of timeshare customers, using their demographic characteristics and occasionality. These models are useful because they show that timeshare ownership is not evenly spread across the population and that the motives for making a timeshare purchase vary. Without doubt, perceptions of timeshare held by potential consumers are an important factor for timeshare operators. The negative publicity generated by unscrupulous operators, using high-pressure selling techniques, has created an unfortunate image even for the bigger resort operators (ARDA, 2002a). Consumer learning and the development of consumer attitudes can be employed to shape future markets and strategies for consumer firms.

Customer behavior studies help explain how customers make purchase decisions and give a better understanding of the key influencers in the decision-making process. Since many new customers have prior knowledge of unscrupulous trade practices and widely reported scandals in the news media, sales approaches must be sensitive to customer...