Consumer Behaviour in Hospitality Industry

This report explores the stages of consumer decision-making in the hospitality industry, the importance of consumer path mapping, the differences between B2B and B2C decision-making, various methods of market research, and the influence of marketers on the decision-making process. It focuses on Rosewood London, a luxury 5-star hotel, and provides insights into understanding customer behavior and making effective marketing strategies.

CONSUMER BEHAVIOUR

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
LO2..................................................................................................................................................3
P3 Stages of consumer decision-making and path of map for purchasing hospitality services . 3
P4. Importance of Consumer Path Mapping ...............................................................................4
LO 3.................................................................................................................................................5
P5. Difference Between Key Differences in Decision making Process in B2B and B2C...........5
P6. Different Methods and Approaches of Market Research to Understand Decision-Making
Process.........................................................................................................................................6
P7. Influence of Marketers on Different Stages of Decision-Making Process............................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Consumer behaviour is study of individual behaviour about preference and want of
customers that influences it to make purchase of product and services in order to satisfy its
needs. This report is on Rosewood London that is a luxury 5 star hotels situated in London. It
analyses stages of consumer decision-making while choosing hospitality services. This report
also explains mapping path to purchase is important for marketer to understand behaviour of
consumer. It compares and contrast key differences of hospitality decision-making process in
context of B2C and B2B. It evaluates different approaches to market research and methods of
research that are important in understanding decision-making. At last, it describes the way
marketer influences different stages of hospitality decision-making.
LO2
P3 Stages of consumer decision-making and path of map for purchasing hospitality services
Consumer decision-making is a process of understanding and studying individual
behaviour while selecting and consumption of product or services. There are five stages in
consumer decision-making process of hospitality services that are as follows:
Need recognition: The most important and first step of consumer decision-making process is to
identify needs of customers as it influences individual to make purchase of product or services.
Due to rapid changes in hospitality industry customers have become more demanding and want
to effectively utilize their leisure time and money (How to Market at Each Stage of the Buying
Decision Process, 2020). Thus, Rosewood hotel providing unsurpassed hospitality services and
sophistication atmosphere to people effectively utilize their leisure time and money.
Searching and gathering information: It is second stage where customers after identifying its
needs search and gather information about positive and negative aspects of hotels where it wants
to stay (Lugosi, 2019). Due to development in technology and digitalization use of social sites
such as trivago and trip-advisor has increased for searching and gathering information regarding
the best hotels, restaurant and destinations. As Rosewood is a five star hotel in London so its
information can be gathered easily form various online sites that helps in quick decision-making
of customers to book hotel.
Evaluate the alternative: After identification of need and source of satisfaction customers tend
to evaluate various hotel, restaurant and destinations in terms of price, quality services facilities
and accommodation. It also uses review of previous customer to final purchase or choose a hotel,

restaurant and destinations (Bowen, 2017). Rosewood provides various facilities such as
rosewood spa, rosewood signature Spa, well-equipped fitness and restaurant and bar are type of
destinations that differentiate it from other.
Actual choosing or booking of hotel: At this stage customer has decided to book a particular
destination after evaluation of various factors. Customers induce to book Rosewood hotel as it
provide world-class facilities and renowned as 5 star hotels thereby effectively utilizing their
leisure time and money.
Post purchase evaluation: It last stage where customers have experienced various facilities and
services delivered by the company and the way it satisfies needs of customers. Rosewood Hotel
provide memorable experience to its customers because of quality services and accommodation
facilities of hotel thus able to retain customers loyalty.
P4. Importance of Consumer Path Mapping
It is very essential for every business marketer to map customer decision-making process
as it helps to understand customer behaviour to make effective products and services according
to needs and wants of customers to increase their satisfaction and provide them proper facilities.
This method also help businesses to increase customer retention to increase profit margins and
compete in market effectively (What is customer journey mapping and why is it important?,
2020). Rosewood London also need adopt marketers who analyse customer decision-making
process which help to increase quality of services and increase brand value practically. Market
research helps to innovate and attract new customer in Hotel to increase sales and productivity of
Hotel in the market. Every market has different consumer factors which helps to marketers to
formulate effective theory and market strategies to penetrate in market effectively and achieve
objectives of Hotel Rosewood. Customer decision process mapping helps to improve customer
engagement by improving all the strengths which are known as touchpoints of Hotel. Due to
rapid changes in hospitality industry is a result of globalization this also impacted the Decision
making process of Rosewood Hotel. As competition has increased which also increased buying
options of customer. This generated the need to improve the research and make effective changes
in services of Hotel which increase satisfaction level of customers and make them loyal to
increase customer base and profitability (Mandabach, 2017). Customer mapping helps marketers
to focus on increase experience of customers. By understanding the customer buying process is

also will Rosewood hotel to increase employability skills and knowledge to improve the
efficiency of business and provide better experience to customers effectively.
LO 3
P5. Difference Between Key Differences in Decision making Process in B2B and B2C
B2B B2C
Definition B2B are the business which
sell their products to other
legal businesses. For example,
suppliers of Rosewood Hotel
are doing B2B business as they
are selling their products to
other business which will be
further sold to end consumers.
B2C are the business which
sell their products directly to
market consumers to increase
their sales in hospitality
industry (Zlateva, 2018). For
example, Rosewood Hotel
providing its services and
products to customers.
Purchasing The process of purchasing is
decision is very lengthy
business to business
transactions involves large
capital investments which
needs to be discussed in the
board of directors to make
proper discussion by analysing
proper alternatives effectively.
Purchasing of products in B2C
is not very lengthy as the buyer
are consumers, and they
purchase only according to
their personal needs to
purchase any products or
services. For example,
Rosewood Consumer make
decision according to their
needs and wants which is very
less in amount and risk is also
low.

Relationship There is along term
relationship between
businesses which helps them
tom increase their sales and
transactions (Wood, 2017).
This also help business to gain
better reputation in market and
improve business size
effectively.
Business are more focused to
increase customer services
engagement to increase
relationships of consumers
which helps to increase sales
and profit margins. The focus
of B2C businesses is profit
maximization and consumer
relationships are not long term.
Marketing B2B do not focus on
marketing of products and do
not employee much work force
as main aim of these
companies is to innovate and
invent new products to
increase market share
effectively.
B2C uses different marketing
strategy to segment market
customers to increase sales
(Ma and Scott, 2017).
Companies also adopt
aggressive promotion
techniques to penetrate in
market and increase profit
margins and customer
experience effectively.
Competition Product quality is more
important to attract more
businesses, there is not high
competition in market.
Piece and product quality is
considered in B2C businesses
and due to high competition
retention power is also focused
to increase customer base.
P6. Different Methods and Approaches of Market Research to Understand Decision-Making
Process.
Marketing research is very essential as it helps Business to understand the decision-
making process of customers to make effective marketing strategies and increase potential of
products and services according to needs and wants of customers. This increase satisfaction of

customers and make them loyal to company. Rosewood uses some methods of market research
to gain better information about their target customer segments to increase sales of hotel
effectively. This also increases profit margins of hotel.
Online Surveys
Survey is the process of examining the behaviours of customers by providing them set of
questions related to products and services. This process helps business to understand the needs
and wants of customers effectively. Rosewood Hotel has implemented technology in market
research of customer decision-making process (Ladsawut and Nunkoo, 2017). As online survey
is more effective due to increase in use of internet usage in recent years. This method also reduce
cost of hotel and provide better information with bigger coverage region.
Personal Interviews
Personal interviews are the one-to-one in person conversation to customers which help
marketers to understand value, beliefs, attitude and provide interpersonal knowledge which
impact the decision-making process of customers in choosing different services in Hospitality
industry. This method of market research helps Rosewood hotel to develop effective
interpersonal skills in its marketing strategy to attract customers and increase their experiences.
P7. Influence of Marketers on Different Stages of Decision-Making Process
Need Recognition
Marketer can influence the need recognition of customers by increasing the awareness of
products and services which they are selling. This helps customers to understand the benefits
which can satisfy their needs. Marketer develops the need and wants of customers to make
decision to buy products.
Information search
By increasing the promotion of products on social media and other offline media
marketer can influence the search criteria of customers (Horner and Swarbrooke, 2016). As
marketers promote their services and products everywhere customer searches which increase
customers to think about that they want to buy that product and service to satisfy themselves.
Option Evaluation

Marketers provide better information about the company's size and efficiency to increase
satisfaction. This help customers to make better options and attract to the products and services
of marketers.
Purchase Decision
Marketer provide discount offers and additional benefits to customers to make attract
them to Hotel and increase their satisfaction. Marketer also provide low priced products and
services as compared to competitors (Hindley and Smith, 2017). For example, Marketers of
Rosewood hotel provide better quality of rooms and beds which have electric heating which
helps to add additional value to attract customers to hotel effectively.
Post Purchase decisions
Marketer provides effective discount coupons for next visits and also provides the
products and services which are promised to customer to increase the satisfaction and experience
of customers marketer also provide family environment according to the mood of customers.
This helps to increase the customer loyalty of Rosewood hotel (Dixit, 2017).
CONCLUSION
This report concludes that it is very important for businesses to understand buying
decision-making process of customers. It helped Rosewood to make effective adaptations in the
business to increase touchpoints and customer service engagement to increase sales and market
share effectively. Report also discussed different methods and approaches which provide
effective market research in understanding decision-making process of buyers.

REFERENCES
Books and Journals
Bowen, J., 2017. Consumer loyalty trends in the hotel industry. In The Routledge Handbook of
Consumer Behaviour in Hospitality and Tourism (pp. 297-304). Routledge.
Dixit, S.K. ed., 2017. The Routledge Handbook of consumer behaviour in hospitality and
tourism. Taylor & Francis.
Hindley, C. and Smith, M.K., 2017. Cross-cultural issues of consumer behaviour in hospitality
and tourism. In The Routledge Handbook of Consumer Behaviour in Hospitality and
Tourism (pp. 86-95). Routledge.
Horner, S. and Swarbrooke, J., 2016. Consumer behaviour in tourism. Routledge.
Ladsawut, J. and Nunkoo, R., 2017. Developing a consumer loyalty model. In The Routledge
Handbook of Consumer Behaviour in Hospitality and Tourism (pp. 277-285).
Routledge.
Lugosi, P., 2019. Deviance, deviant behaviour and hospitality management: Sources, forms and
drivers. Tourism Management, 74, pp.81-98.
Ma, J. and Scott, N., 2017. Customer delight from hospitality and tourism experience. In The
Routledge Handbook of Consumer Behaviour in Hospitality and Tourism (pp. 218-230).
Routledge.
Mandabach, K.H., 2017. Customer engagement in building consumer loyalty. In The Routledge
Handbook of Consumer Behaviour in Hospitality and Tourism (pp. 286-296).
Routledge.
Wood, R.C., 2017. Now and when: Reflecting on some realities of consumer behaviour in the
hospitality industry. In The Routledge Handbook of Consumer Behaviour in Hospitality
and Tourism (pp. 69-77). Routledge.
Zlateva, N., 2018. The Routledge Handbook of Consumer Behaviour in Hospitality and
Tourism. European Journal of Tourism Research, 19, pp.149-153.
Online
How to Market at Each Stage of the Buying Decision Process. 2020. [Online]. Available
Through:<https://blog.alexa.com/market-each-stage-buying-decision-process/>.
What is customer journey mapping and why is it important?. 2020. [Online]. Available
Through:<https://www.hypeinsight.com/what-is-customer-journey-mapping-and-why-
is-it-important/>.