Consumer Behaviour and Insights in the Hospitality Sector

This report explores the stages of customer decision making and the path of purchasing in the hospitality sector. It discusses the theories, models, and concepts that influence consumer decision making process. The report also highlights the importance of mapping a path for marketers and compares the decision making process in B2B and B2C contexts. Additionally, it examines the approaches and methods of market research in the decision making process and analyzes the factors that affect decision making in the hospitality sector.

Hospitality
Consumers Behaviour
and
Insights

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 2............................................................................................................................................3
Stages of customer decision making & path of purchasing in context of a hospitality sector.3
Evaluate theories, models as well as concepts which influences the consumer decision making
process....................................................................................................................................5
Define why it is essential for marketers to map a path in order to purchase and to understand
the decision making process of consumer..............................................................................5
Comparison among hospitality decision-making process in reference to B2C and B2B.......6
Approaches for conducted market research as well as methods of research in the process of
decision making......................................................................................................................7
Factors which affect the process of decision-making.............................................................9
Evaluation how marketer influences various decision making stages...................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Consumer behaviour refers to a study of different groups, individuals as well as
organisation where all the functions are linked with purchase, disposal and consumption of
products and services. Along with this, it has been said that there are ample number of factors
which consist of culture, sub-culture as well as class where they are living. Therefore, it is quite
important for an organisation to examine what the buying behaviour of customer and develop
their strategies as well as policies accordingly according to the changing needs and wants to
customers (Szmigin and Piacentini, 2018). In the present report, Travelodgeis chosen as the base
organisation which was founded in the year 1939 and its headquarter is located in California, US.
It is the first motel chain in the marketplace of US. There are various sections, which are going to
be discussed in this report which consist of different stages of consumer decision making process
along with this it has also been going to be examined that why it is important for the marketers to
map a path. Comparison between B2B and B2C are also included in this report.
MAIN BODY
TASK 2
Stages of customer decision making and path of purchasing in context of a hospitality sector.
Consumer decision making define as a processwhich is adopted by customers for
examining the needs and requirements, assessing the alternatives, gathering data about available
substitutes and then take any kind of decision. This process might get influenced by various
elements such as social, emotional, psychological and so on. This will assist marketers in order
to place their goods and services at the marketplace in a successful manner after examining their
needs and wants in an effective manner (Nguyen, de Leeuw and Dullaert, 2018). In reference to
Travelodge, management team of the company requires to examine the attitude of consumers
before launching new services at the competitive environment. Different stages of decision
making process of consumers are going to be discussed as follows:

Source: Stages of Consumer Decision Making Process. 2016.
 RequirementRecognition:As per the first phase of customer decision making process, it
is required to identify the needs and wants of customers that what they really want to buy
in order to satisfy their demands. This as a result aid marketer for developing and
modifying their strategies as well as policies (Ismagilovaand et., 2020). In the present
context of Travelodge, managers of the hospitality organisation need to examine the
requirements of customers.
 Searching as well as collecting information: Once managers identify the requirements
of customers, it is essential for them to gather all the information related to the substitute
of goods and services available at the market. For this, management team of the company
adopt different sources which consist of personal contacts, digital media, print medium
and so on. In this context managers of Travelodge use personal data collection method
for gathering all the data and information.
 Evaluation of substitutes: After gathering all the data, it is required to evaluate all the
substitutes in an effective manner so that they can analyse whether it will satisfy their
Illustration 1: Stages of Consumer Decision Making Process

needs and requirements in an effective manner. In relation to Travelodge, it is said that
managers of the company examine the substitutes available at the marketplace and
formulate their strategies and policies accordingly. This will assist them in satisfying the
requirements of customers in an efficient manner.
 Actual Acquisition of product & services: This is the stage where customer actually
purchase the goods and consumer services. They take decision after examining all the
alternatives available at the marketplace (Bigneand et., 2018). In reference to Travelodge,
customers identify as well as evaluate all the substitutes in an effective manner and then
decide whether to buy the services or not.
 Post-purchase evaluation: This is the last phase of consumer decision making process
which comes only after consumer buy the goods and services. Customers evaluate the
offerings in an effective manner so that they can further make any sort of decisions. In
relation to Travelodge, managers of the company examine the post purchase services so
that they can identify whether their needs and requirements are fulfilled or not.
Evaluate theories, models as well as concepts which influences the consumer decision making
process.
It has been analysed that the decision making process is quite crucial which requires an
analysis of different models. All these models aid customers on the basis of which they can take
decisions in an effective manner.Some of these are models which influences the decision making
process of customers are going to be discussed as follows:
Economic Model:According to this model, users are rational human being &takes
rational decision. This hypothesis is preparedon the basis of general behavioural features of
customers, which is to examine as well as analyse the advantages of goods before taking any sort
of purchasing decision.
Cognitive Model:It is referring as one of the most effective model as decision making
process under this is done on the basis of requirements and needs of customers. In simple, it says
that decision making process of an individual person can be get influenced by any sort of
promotional activities which is used by different organisations (Boccia, Covino and
Sarnacchiaro, 2018).

Define why it is essential for marketers to map a path in order to purchase and to understand the
decision making process of consumer.
It has been said that every business entity conducts their activities in such a manner that they
can fulfil the requirements of customers in an effective manner. By using decision making
process, it has been analysed that the marketers can easily identify all those elements which is
considered by the customers while purchasing goods and services. Importance of mapping a path
is going to be discussed as follows:
 Rising Return on Investment:It will help in enhance theunderstanding of individual
behind the intention and context of purchasing products and services. In this context,
marketers target capable clients and for this they position high quality products and
services at the marketplace. As a result, it will aid in increasing the sales of business
entity with ROI by providing personalised services to their customers (Mou and Shin,
2018).
 United Customer Data as well as continued engagement: Mapping help business entity
in arranging all the information of already have but are not in a system form. As a result,
it will help in maintaining all the required information in a proper manner and focus on
some specific customers.
It has also been identified that mapping a path help in identifying various stages of decision
making process. Below mentioned are some essential elements which need to be examined in an
effective manner.
 Wide Problem solving: It refers to the phase in which customers purchase those goods
and services from which they are unfamiliar, this make them consume too much time in
order to decide whether to buy it or not. In addition to this, it is required to have enough
information so that research can be done in an effective manner.
 Limited Problem solving:Another level says that buying all those products by consumers
which are familiar to them. For examining the difference, it is quite essential for the
customers to put some additional efforts so they can take effective decisions.
 Routine Problem solving: As per this level, it has been said that consumers buy products
and services on a daily basis and requires less time as well as information in order to take
decision. Such products and services are quite essential for the day to day business
activities (Yan and Ke, 2018).

Comparison among hospitality decision-making process in reference to B2C and B2B
There are mainly two main methods by which commercial transactions can be done
between organisation and customers. B2B refers to the transaction which is conducted among
business to business whereas B2C conduct business interactions between business entity and
customers. In context of hospitality sector, comparison isdone among B2B and B2C arediscussed
as follows:
Basis B2B B2C
Meaning It is the process where goods, services
and commodities mainly sold to
various business entities in order to
earn profitability. For instance, a small
restaurant manager purchase napkins
and tissue paper from different
distributions (Carter and Yeo, 2018).
In reference to business to customers
B2C, all the goods and services are
sold to the clients so that all their
requirements will be fulfilled. For
example, Travelodge serves food
items which is ordered by the people
directly serve by the staff members to
them.
Client In this context, clients are the other
organisations which requires goods
and services for doing their business
functions.
In reference to B2C all the end users
are the customers. In the present
context of hospitality sector,
customers are the one who order food
and buy services in order to satisfy
their needs.
Emphasis The primary emphasis is to develop
positive and healthy relationship with
different business entities. For
example, it is required by a hotel to
create positive relations with different
restaurants as they help them in
fulfilling their requirements in an
effective manner.
The main attention of this method is to
sold the offerings to their end users
which are customers. In reference to
Travelodge, management team of the
company focuses on satisfying the
requirements of customers.

Approaches for conducted market research as well as methods of research in the process of
decision making.
For every business entity it is required by the management team to conduct effective
market research so that they can identify the current requirements and needs of customers.
Market research help marketers as well as organisations to examine the present market
situation and need of customers so that they can develop strategies accordingly (Di Talia,
Simeone and Scarpato, 2019). With the help of gathered information, managers of the company
develop services so that they can satisfy their requirements in an effective manner. therefore, it is
required by the manager to conduct market research on a daily basis in order to beat the level of
competition. There are different methods and approaches for conducting an effective research
which are going to be discussed as follows:
Research approaches in Business 2Business: It refers to the business which is
associated with other business entities so the only source for them in order to collect the
information is secondary sources. In this method, information is being collected by different
organisations and not are the fresh and raw information. These data are collected by the
researcher as a reference which assist them in examining different factors which influences the
business relationship (Mydockand et., 2018). Some sources used by the management team of
Travelodge are going to be discussed as follows:
 Government agencies: These are the organisation as well as agencies which assist in
gathering all the information which might affect the overall business functionality. While
doing business operations in the field of hospitality sector, it is required by the owner to
provide all the details as well as information to the government and get licences to
operate their business. all these information assist in examining the market trends in an
effective manner.
 Publications:With the help of publishing information and data in different magazine,
newspaper and other sources, marketers will be able to identify the current trends and
develop their strategies accordingly.
Research approaches in Business 2Consumer: It refers to an organisation which is associated
with the users and requires primary method of gathering information. This will aid them in
develop policies in an effective manner as per the requirements and necessity. for this,

questionnaire is going to be used by the marketers so that they can examine the requirements of
customers in an effective way and produce goods to satisfy their needs. In addition to this, it will
aid them in order to examine the elements which affect the overall decision making process of
the customers (Szmiginand Piacentini, 2018).
Therefore, it has been identified that the managers of Travelodge adopt primary method
for gathering information so they can effectively fulfil all the requirements of customers at the
competitive marketplace.
Factors which affect the process of decision-making
The elements which affect the process of decision making of customers are highly based
on the changing trends and needs as well as requirements of customers which is continuously
changing on a regular basis. Some of the most essential factors which are going to influence the
process of decision making are going to be discussed as follows:
Personal factors: It refers to the element which are related with the age, colour, sexuality
and many more of the customers (Nguyen, de Leeuw and Dullaert, 2018). Therefore, it has been
analysed that the personal elements affect the process of decision making as the dynamic trends
directly influence the personal factor.
Cultural factors: It is the another factor which have influential power over the process
of decision making. It includes all those factors of an individual which is related with the values,
customs, beliefs, religions, tradition as well asethics. All these elements highly affect the
decision making process.
Therefore, it has been concluded that all these factors highly affect the decision making
of users in both positive as well as negative manner. Hence, it is required by the management
team of Travelodge to offer services to their customers according to their needs and wants.
Evaluation how marketer influences various decision making stages
For each and every organisation, it has been said that customers are very important element
in order to earn more money. In the present context of hospitality sector, it has very necessary for
the management team of an organisation that they must consider all the requirements. Whereas,
marketers are the another crucial factor which influences consumers in order to purchase goods
and services & gain experience in an effective manner. For increasing the knowledge and
understanding, some of the key examples are going to be discussed as follows:

For example, a marketer among hospitality industry focuses on executing new, unique
and innovative services with the help of which they can affect the overall decision making
process of consumers. Along with this, it is very essential for a marketer to create effective
strategies and policies so that they can easily provide customised services according to the needs
and wants of customers. As if a person wants to conduct a board meeting in a hotel, it is
necessary for the management team of Travelodge to provide them a sound proof conference
room and satisfy all their requirements effectively. As a result, it will influence the whole
process of decision making in a positive manner (Ismagilovaand et., 2020).
Apart from this, another unique examplewhich might influence the whole decision
making of the consumers. It is very essential that there must be an effective manner in which
company provide pick and drop facility to their customers. This might create positive impact
over the mind of individuals. In reference to Travelodge, managers of the company provide all
such services to their clients and as a result it affects the whole decision making process of
customers in a positive manner.
Therefore, it is required by the marketers that they must highlight all the aspects in such
manner that it will provide positive outcome.
CONCLUSION
With the help of above mentioned report, it has been said that consumer behaviour plays
very essential role in the overall success and growth of the company at the competitive
marketplace. Apart from this, the attitude as well as behaviour of customers need to examined by
the management team so that they can satisfy all the needs and requirements. It has also been
identified that there are various factors arise at the marketplace which might influence the overall
decision making procedure of customers. In addition to this, there are some methods for
gathering information so that effective decisions can be taken by the management team of the
company and beat the competition level effectively.

REFERENCES
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