Consumer Decision-Making Stages in Hospitality Industry

HOSPITALITY
CONSUMER BEHAVIOR

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO2..................................................................................................................................................3
P3 Consumer decision-making stages.........................................................................................3
P4 Importance for marketers to understand process of consumer-decision making...................4
LO 3.................................................................................................................................................6
P5 Decision-making in B2B & B2C...........................................................................................6
P6 Various approaches of market research.................................................................................7
LO4..................................................................................................................................................9
P7 Analysis of marketer's influence on decision-making process of consumer.........................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Consumer behaviour is basically the study which tells the markers about various factors
through which consumers makes their decision for purchasing the particular product and how
they spend their money. Hotel Hilton is basically the full-service hotel being established by
Conard Hilton and headquartered in Virginia, U.S. It is currently present in more than 85
countries and six continents.
This report gives a brief about Consumer decision-making stages, Importance for
marketers to understand process of consumer-decision making, decision-making in B2B & B2C,
Various approaches of market research and analysis of marketer's influence on decision-making
process of consumer.
MAIN BODY
LO1 covered in ppt
LO2
P3 Consumer decision-making stages
Problem recognition
This is the very foremost stage in consumer decision making where the individual first
come across the need and problem to fulfil their demands. In this, consumer finds that something
is missing out and need to be addressed promptly for overcoming the problem. Here the
consumers feels that they are encountering some problem and this is can generate either
internally or externally. In order to fulfil this need, they need a product or service (Kotler and
et.al.,2017).
Information gathering
This is the second stage in consumer decision making where they incest their time in
gathering all the information about that product. Once the consumers come across the need or the
problem, they look out for the product which will fulfil their need. In this stage, consumer
collects various information about that product form different resources like internet, magazines,
online websites etc.
Evaluating alternatives
After gaining the appropriate information about the product, consumers tend to compare
the different organizations providing same product. Here the customers mainly compares price,
feature, quality and other attributes of the product which different firms are offering. For

example one hotel is providing services at low price and the other hotel is providing same
services at high price. Thus, in this they compare the various attributes and then take decision.
Purchases
This is the final stage in consumer decision making where after gathering all the
information and comparing the alternatives, consumer finally takes the decision to purchase the
product. Here, the customers decide what to purchase and from where to purchase. After
assessing all the factors and facts, consumer finally comes to final decision (Rita and et.al.,2018).
Map a path
The consumer journey of purchasing the product is imperative. The main service which
the hotels provide is the room booking. The entire decision making of consumers for booking
room is important to understand for marketers. The customers first come across the problem of
booking room while planning for holiday or business meeting. To fulfil this need, consumers will
gather the information about the prices of various rooms like premium rooms, normal room, ultra
premium room. After gathering information, consumer will compare the prices of rooms offered
by hotel Hilton with other hotels for taking the effective decision. Like the prices of room of
Hilton is somewhat cheaper than the hotels along with the best quality. Once the information is
gathered and comparison is made, consumers will finally decide to book the room in Hilton and
will make the necessary transactions. After staying in the Hilton, the post purchase behaviour in
which where if consumer had great experience with the hotel and was beyond their expectation
then they will give positive feedback to the hotel and thus will want to visit hotel frequently.
P4 Importance for marketers to understand process of consumer-decision making
In this technology-driven world, it has become important for the marketers of Hilton to
understand the consumer decision making process. This is also important from the competition
point of view as it will help them to achieve competitive advantage.
Heuristics
Heuristics is basically the approach in decision making which people use for gathering
the information and taking effective decision. Thus, in order to understand the metal connection
of consumers with hospitality industry, it is very important for the Hilton to have deep-insight of
consumer decision making process. This process gives will give them the ideas as on what basis
the consumers base their decision and what they consider the most while choosing the specific
hotel like price, quality, services etc. (Gursoy, 2017).