IHG Hotels: Analyzing Consumer Behavior and Decision-Making

This report provides a comprehensive analysis of consumer behavior within the hospitality sector, specifically focusing on IHG Hotels. It explores the impact of cultural, social, personal, and psychological factors on consumer attitudes and purchasing decisions, highlighting current trends and the influence of digital technology. The report examines the stages of the consumer decision-making journey, mapping them to the purchasing process, and emphasizes the importance of marketers understanding this path. It also compares and contrasts decision-making in B2B and B2C contexts, using relevant examples, and evaluates various market research approaches for understanding consumer behavior. Furthermore, the report assesses how marketers can influence different stages of the hospitality decision-making process to enhance customer satisfaction and profitability, underscoring the significance of adapting to evolving consumer preferences and technological advancements in the industry.

CONSUMER
BEHAVIOR

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1/M1 Investigating different cultural, social, personal and psychological factors impacting
consumer behaviour and attitudes and changing, driving trends in the hospitality:....................3
P2 Consumer trends changes and their impact on digital technology:........................................4
P3/M2 Stages of consumer decision-making journey and map to the purchasing:.....................5
P4 Importance of marketers to map a path to purchase and understand consumer decision-
making:........................................................................................................................................6
P5/M3 Comparison and contrasts between decision-making with respect to B2B and B2C
along with examples-...................................................................................................................7
P6 Evaluation of different approaches to market research and methods of research to
understand consumer decision-making........................................................................................9
P7/M4 Evaluation of the way marketers can influence different stages of hospitality decision-
making:......................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Consumer behaviour can
be articulated as the process of all those key stages which ultimately drive a consumer to make a
buy (Sangroya and Nayak, 2017) Over the time, it becomes highly rigours for organizations
since with better understanding of consumer behaviour they would be able to make their sales
higher. In this report for IHG hotels which is one of the most affluent organization engaged in
hospitality sector would be evaluated. For this sake, its cultural, social etc. dimensions are to be
evaluated along with consumer trends and their impact on digital technology. The report will be
evaluating number of factors such as perception, learning, social factors, family, reference
groups, psychological factors, motivations etc. changing consumer behaviour. A decision-
making journey and map of the path would be articulated along with importance of this map for
organizations in their decision-making pertaining to the customers.
MAIN BODY
P1/M1 Investigating different cultural, social, personal and psychological factors impacting
consumer behaviour and attitudes and changing, driving trends in the hospitality:
IHG is having its range of branches across the nation and even outside nation. So
consumer behaviour becomes quite rigours for the organization. There are different models
which are helpful to analyse different aspects of consumer behaviour.
Cultural factors
There are number of cultural factors such as needs, wants, perceptions, value of life etc.
Learning Model of consumer behaviour suggests that the behaviour of a consumer is driven by
its basic needs. So for such organization which is engaged in hospitality business there is need to
understand that its different customers are form different nations. For example- They have their
different cultures when it comes to food. It is comprehensively difficult since their cultural
dimensions are leading food preferences.
Personal factors
Social factors
When it comes to social factors then social supports, income, employment, community
safety etc. are there to impact consumer behaviour. as Psychoanalytical model suggests that all
the customers are having their motivations. Both social and personal dimensions are leading their
motivation. Now the entity is working in around 100 nations so different cultures and personal

attitude, aptitude, emotional intelligence is leading buying behaviour (Rungsrisawat,
Joemsittiprasert and Jermsittiparsert, 2019)
Personal factors
So it would be a fair statement to extend that different social, cultural, phycological
dimensions are having their great impact on the buying behaviour of a consumer. Income, ability
to spend, food culture, food preferences, health consciousness etc. are some key factors which
are having their great impact over buying behaviour.
Psychological factors
There are range of psychological factors such as image of brand, belief, product shape
and packaging, its marketing or advertisement etc. As Psychological model suggests that there
are number of psychological aspects which lead to consumer behaviour. In different nations the
customers are having their different buying behaviour due to prevailing psychological notions.
The attitude of customers is a fast moving notion since there are now wide number of
dimensions which are leading to drastic changes and ultimately will give proper shape of the
attitude of a customer. The trends of this industry are also taking sharp turn since some new
dimensions such as smart hotels, sustainability, chatbots, virtual reality etc. are paving the way
forward.
P2 Consumer trends changes and their impact on digital technology:
Digital technology is getting changed with the progress of time. It is also impacting
consumer behaviour since the consumer behaviour is a bigger phenomenon and the higher
interactions of the society is leading to experience bigger changes in term of consumer trends.
There are multiple technologies such as voice assistant device, automated door locks,
digital marketing tools, artificial intelligence, robotics etc. on the other hands with the use of big
data analysis tools some advance technologies in digital realm are also being used. These notions
are having their great impact on consumer behaviour (Veeragandham, and et. al. 2020) Earlier
it was not much simple for the organization to reach a wider audience but now digital technology
is making their task simpler. They are now able to drive their message in the most convenient
manner. It is impacting consumer behaviour and obliging them to make frequent buy.
Now consumer is able to experience virtual reality. For instance, in hospitality or food
realm they can now see the cooking method, used ingredients, some nutritious information etc.
This makes a person belief in availing certain product or services. Now it is handy for a person to

make a search and knowing all the information on a single tip of their finger which appeals them
to believe in certain idea.
IHG company is well-known for the food items it provides to its customers. Now they are
not having need to be in line and waiting for such products. For example- Even as per their
preferences they may order, they can get the entire price list on a single tip, they can even make
payment using online platforms so ultimately it is driving them to get greater experiences which
should e cited as the best driving force to the customers (Anesbury, et. al. 2018)
Hospitality sector is smoothly becoming quite vibrant. The reverberation can be heard
form the ongoing trends. Since with the progress of time, digitalization is making soft place for
itself and guiding hyper outcomes. The organizations engaged in hospitality are driven to use
such soft interaction in attempt to carry out their operations. For example- it would be highly fair
argument to extend that these new digitalization, robotics, artificial intelligence, big data
analytics are making such hospitality organizations highly lucrative.
But the fact can not be denied that these notions are not affordable to all, and their higher
prices are overburdening customers itself. So ensuring their balanced use is another key area to
work then only higher satisfaction can be driven.
P3/M2 Stages of consumer decision-making journey and map to the purchasing:
IHG is engaged in hospitality the organization is offering intensive number of services so
there are quite mammoth number of customers too (Qazzafi, 2019). These are the stages of
decision-making journey which leads a customer to make its final decision. It is entirely a
process which ultimately leads to make final purchasing decision.
Recognition of problem
This is the first stage where a customer looks for its problem and becomes aware that
what actual problem it is going with. This is the prime stage where a customer gets awareness of
the product or services it leads to make its understanding about certain thing. As IHS is engaged
in hospitality business so if it comes up with new product or food item then by promoting or
using digital media tools it can extend information to its customers. This stage is quite necessary
since this is the first time a customer gets basic understanding of its problems which ultimately
leads to make final buying decision.
Information Search

This stage is the second phase where customers gather information and make comparison
between the product offered by one company with its competitor so can reach to any conclusion.
For example- IHG is having some key competitors such as Hyatt, Marriott, Westin etc. These
organizations are also offering kind of same product so the need of understanding consumer
behaviour is must. In this phase they make comparison to draw conclusions.
Evaluation of alternatives
At this stage a customer weights the choices so may reach to the best alternative. In this
phase a customer looks up different alternatives. It leads him to make rational decision. This
stage is highly prominent since all the given set of alternatives are examined by using rationality
notions so may wipe out non-feasible factors. For example- If the same facilities are offered by
other hotel then will go with that.
Purchase decision
Specially after knowing certain product, and getting its comparison with other available
products the consumer strives to make buy. This stage is essential since at this point the buying
process or exchange process is being carried out. Here, a customer makes image of the
organization and its products. For example- in food type of items where customers generally do
not compromise they make their decisions with greater involvement.
Post purchase evaluation
This stage of journey leads a customer to decide whether it wants to stay with certain
organization or not. If the level of satisfaction is higher than the customer would stay connected
and becomes loyal. At the same time, there may be adverse outcomes if the product does not
fetch that satisfaction. For example- If food items are good then the customer would make
frequent visit.
P4 Importance of marketers to map a path to purchase and understand consumer decision-
making:
The path of purchase is an essential thing since marketers are now supposed to drive their efforts
in its best form so can augment their outcomes. As hospitality sector is growing the competition
is also becoming mammoth. In such predicaments, this path to purchase is quite significant. A
better and deeper understanding of such path would lead the organization and marketers to make
strong and appropriate decision (Kumar, 2017)

Identification of the gaps- With the help of this analysis better articulation is possible. The gaps
can be identified and the way customer is working can also be perceived. Such as IHG is
rigorously dynamic and have wider diaspora. If it wants to sell out its food times with greater
profitability, then addressing gaps is a must need.
Cost reduction- If the gaps are addressed then cost reduction is also possible. Deeper
understanding of consumer buying behaviour leads to fabricate appropriate policy to sell out
products. For instance- If IHG offers a new product then having idea of customer buying process
would lead to reduce the cost element.
Hiking sales- As it is known that if the trend and inclination of consumer behaviour is
understood then possibility to control that would be higher. Often it is seen that on the basis of
consumer behaviour an organization may make appropriate policy. For a marketer it is
significant due to possibility it comes up with (Sharma, Ahuja and Alavi, 2020)
Higher customer satisfaction- Better knowledge of consumer buying behaviour and decision-
making would lead to decipher the way they think and how they actually perceive different
notions. Different phases where a customer goes through can be managed with best grip only if
deeper understanding is there. So higher satisfaction can be reverted with this map.
On the basis of the above arguments it would be fair to articulate that for IHG it becomes
comprehensive to decode this path to purchase so can check out the nerves of customers and may
take exact actions to be remained highly lucrative and prolific in this competitive market
(Ashraf, et. al. 2017)
P5/M3 Comparison and contrasts between decision-making with respect to B2B and B2C along
with examples-
In hospitality sector when it comes to decision making process it goes in drastic manner. The
clear distinctions can be seen in case of both B2B and B2C. Which can be perceived form the
below justifications-
 In general in case of B2B the focus is kept on logical process so may reach to the
maximum number and recognition of their problems. In contrast, it gives accentuations to
emotion driven method so can make them get services and addressing their problmes. For
instance- the hyper marketing is used for B2C by IHG so can grab a bigger share
(Szmigin and Piacentini, 2018)

 Making lucrative relationship is first priority in case of B2B but in case of B2C long term
relationship becomes more important. For example- IHG is offering range of hospitality
services along with some augmentative services in attempt to make long lasting
relationship.
 In case of B2B specification and quality needs are known by direct interactions. The
proposals and selections are also carried out with direct interactions. The order routine
and feedbacks are given higher and strategic priority. For example- If an organization is
giving services to another hotel then for any issue they will directly meet and will decide
the way forward.
 In case of B2C the problems are recognised by indirect feedbacks in general, purchase
decisions are made by direct demand of customers, they make post purchase evaluation
with their direct experience of that particular product or services. For instance- If Hotel
wants to know the insights of customers then may use their feedback via online or kind of
indirect way.
 The sector pays severe attention to advertisement in case of B2C since the only way to
make customers aware is by hiking marketing efforts. On other hand, in the case of B2B
there is no such need to have kind of radical advertisement efforts. Moreover, with better
negotiation skills the collaborative practises can be carried out. For example- IHG is
having its intensive number of collaboratives who are going hand in hand. The
organization is affluently dealing with them using better negotiation skills.
There are some common notions too which can not be rejected. Since in both the cases either
B2B and B2C some convictions are common as-
 The decision-making process in both the cases is driven by profitability. So it would be a
fair argument to raise that both B2B and B2C give attention to how lucrative the deal
may be for them. It leads their decision-making process. For instance- IHG is having
collaboration with hundreds of other hotels and also thousands of its loyal customers.
They all are driven by benefits it drives to them (Santos, et. al. 2021)
 Giving relative advantage is inevitably important. Since either in case of B2B and in case
of B2C the organization is having need to offer them relative advantages. It is the biggest
factor which works in consumer behaviour. A consumer is affected by such notions so
this can be cited as the biggest similarities.

 Purchase decision is also having sort of similarities such as when both B2B or B2C are
making this decision they are quite prolific of satisfaction of demand. Either their self or
may be of last customer but this motivation is same.
There are number of aspects which brings shift to the behaviour of a consumer. Such as its
earning, income level, ability to spend, needs, social status, ability to understand technicality of
certain goods or services etc.
On the other side, it also get affected by some notions such as advertisement, marketing and
appeal made by an organization. For instance- in case of hospitality the radical marketing efforts
can be made then only greater inclination can be presumed (Sharma, 2019)
P6 Evaluation of different approaches to market research and methods of research to understand
consumer decision-making
There are range of such approaches which can be used to make a strong market research
since it gives ability to fabricate better policy to an organization. The approaches of market
research are as-
1) Survey- This is the best method since such hospitality organization may conduct a survey
via both online and offline platforms in attempt to know the reflections of respondents.
For this method there is the best way to deliver questionnaire where multiple questions
are asked and responses are gathered. The main aim is to decode their opinions over
different issues.
2) Interviews- This concept can only be used when the study group is smaller since it is
highly costly for an entity to carry out interview on a large population. This method is
primary source and if the study group is smaller than has been proven the best alternative.
As per the needs of organization interview can be structured and responses can be
gathered. For instance- The hospitality sector is having kind of educated customers so the
method becomes feasible (Šerić and Ljubica, 2018)
3) Focus group- This form is also getting appreciation over the passing years. With the help
of study on certain focus group better insights can be grabbed and an entity may go to
make strong decisions. This method is famous due to viability it comes up with. Since
study of entire group is not feasible and even out of cost benefit notion too. In such
predicament this method gives upper hand to drive better outcomes.

4) Customer observations- There are number of online tools which are enhancing
organizational capability to make observations on customers. Since it gives them ability
to plan something appropriate in attempt to decipher better outcomes. Nowadays some
modern tools such as Big data analytics, real time interface, artifice intelligence etc. are
guiding to make this task handy (Erickson, 2017)
P7/M4 Evaluation of the way marketers can influence different stages of hospitality decision-
making:
B2B
It is crucial for hospitality industry to understand needs and demands of customer as well
as changes they need to do while designing products since if it is not up to date then other
businesses who are potential buyers would restrain so it gives boom to B2B relationship. Along
with this, understanding buyers journey is also essential part of coming up with new product or
service as it creates highly tailored offerings for buyer’s journey and guide organization in order
to meet the needs of buyer. Moreover, it can be anything from insight who their customers are
and what they do during searching for products whether they read reviews before making
decision regarding products. In the hospitality industry it is very common that consumer before
entering hotel look for online review in order to know what is good or bad in the services.
IHG can make use of digital audience research development as it is one of the most
common trend from last two years. It is famous as it allows company in understanding about the
factors which influence behaviour of customer on social media. Another benefit of digital
audience is it help in figure out customer services issues and other strategic initiatives related to
online behavior (Hamdani, Muladi and Maulani, 2022). This aids other businesses to get the
services of that particular hotel in attempt to reduce their cost. It leads to make greater
relationship between B2B chain.
Although it is on IHG hotel to make use of the company strategically to maintains a
strong standing among its customer which leads other businesses to avail their services. It would
be intensively helpful for hiking B2B relationship. Marketer role is to place information
regarding their brands in way consumer can find it necessary. Affiliated marketing and social
media can be used by IHG to provide company information to consume as well as brochures and
sales call are also effective ways to provide information. For example- in stage of consumer
buying cycle customer evaluate data and compare brands in terms of their features, services and

price. In order to deal with this stage marketer can make use of marketing mix factors in order to
attract customer and be their priority. This helps those Businesses who are dealing with hotels as
indirect buyers.
B2C
In B2C case marketers in promotion can present details regarding product and
competitive pricing. The last stage of customer buying cycle is making purchase so it is on
marketers to make the process easy like payment methods should be flexible such as online
booking and pay. This stage is basically an opportunity for the marketers to strengthen their
relationships with their customer. Also, it is duty of marketers to solve problem of customer and
to handle their issues in effective manner. Thus, by solving their problems loyalty can be
developed in dissatisfied customer. Communication really impact the decision making of the
customer like using casual language with business professionals will make customer feel
unfamiliar or disconnected (Mishra, Singh and Koles, 2021).
It is important for hospitality industry marketers to advertise about their services as the
competition is very high and content regarding hotel attracts customer frequently. In addition to
this, it is duty of hospitality sector to provide information they are looking for and give consumer
a sense of buying services. Moreover, technology play important role in this industry from
automating routine management task to make use of advance kitchen equipment to attract
customer plays an important role in hospitality sector. There has been rapid change in taste and
preference of the consumer. Hence, it is necessary for the marketers to make use of social media
in order to make effective decision. For example- If marketing efforts are higher than a customer
would be able to meet its needs which were identified by its problem recognition procedure, will
get service description, performance review of the hotel etc.
CONCLUSION
From the above report it can be twigged that there are range of factors which are having
their great influence over consumer behaviour. This report has elaborated these notions with
respect to hospitality sector organization in attempt to bring better understanding. For fulfilment
of this aim some key models and theories were applied. A consumer behaviour path was
articulated within hospitality sector. On the other side, difference in decision-making was
articulated in context of both B2B and B2C buyers. Different approaches used by markets in

attempt to drive better outcomes had been deciphered. It would be fair enough to decipher that
the report presented deeper insights of consumer behaviour.