This document discusses the stages of consumer decision making journey and its importance for marketers in the hospitality sector. It also compares the B2B and B2C decision making processes and evaluates different approaches to market research.
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Hospitality Consumer Behaviour and Insight
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Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 Task 1...............................................................................................................................................1 Covered in PPT.......................................................................................................................1 Task 2............................................................................................................................................1 P3. Examine the stages of consumer decision making journey and map to path of purchasing. ................................................................................................................................................1 P4. Explore why it is important for marketers to map of a path purchase and understand consumer decision making in hospitality sector.....................................................................3 Evaluate how marketers are responding to the decision-making process, applying relevant examples from the hospitality sector......................................................................................4 Task 3...............................................................................................................................................4 P5. Compare the contrast between B2B and B2C in process of decision making by assorting specific hospitality examples..................................................................................................4 P6. Evaluate different approaches to market research and method for understanding decision making process.............................................................................................................7 Provide a coherent and justified evaluation of how different factors influence hospitality decision-making and buying behaviour, supported by specific hospitality examples...........8 Task 4...............................................................................................................................................9 P7. Estimate how marketers can affect different stages of hospitality decision making process by giving examples...............................................................................................................9 Critically evaluate how marketers influence each stage of the decision-making process with reference to relevant methods and models applied...............................................................10 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................12
INTRODUCTION The description of hospitality is relationship between visitor and host, where host receive, greettoguestwhilereceivingthemalongwiththeirgoodwillinvolvingreceptionand entertainment of guests. It is a broad category of field within services industry that involves lodging, beverages and food items etc. Apart from it, Consumer behaviour is form of study as individual, group or organisation where all the activities associated utilised for goods and services. As in this following report the organisation selected Cosmos Holidays, its a British Independent United kingdom based offers different range of package holidays in overall UK market. It was founded 1928 which remains owns by headquarter in Bromley, United Kingdom. In report topics are discuss on culture,social, personal and psychological factors that influence consumer behaviour and attitudes. Impact of digital technology in customer trend, consumer decision making in purchase map-path. Difference between about hospitality industry of context between B2B and B2C by using examples. Different approach of market research apply to understand decision making process, Discuss about how marketer influence each other stage of decision making process with reference of relevant method and model implement. MAIN BODY. Task 1. Covered in PPT Task 2. P3. Examine the stages of consumer decision making journey and map to path of purchasing. The stages of consumer decision making which defines procedure to helps customer at thetimeofapproachingeffectiveorsuitableproductandservicesofdifferentchoices (Dewnarain., Ramkissoon and Mavondo., 2019). It consists of series about phases where a customer presumes in a way to accomplish their needs and wants . Some of factor of consumer decision making related with map to path purchasing that explains below: 1
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Need for Recognition: It is first process of decision making where consumer get to identify their actual needs or requirement as per situation. As per this stage product requirement occurs by customer through which they pursue to buy that particular product or not. Optimising information: On the basis of second stage of decision making process derives to searching for essential information about to related product and service through outside environment. Evaluation of alternatives:This is third stage of decision making process is helps to evaluate remaining alternatives of product and services in terms of benefits or mapping implication (Gibson and O’Rawe., 2018). As for consumer perspective they focuses towards price, quality, quantity, services to approach for suitable product and services. Purchase decision-maker: In this fourth stage, customer buying process is execute throughindividualconsumerdecisionintermsofwhattopurchaseforfulfilling expectation. Their decision making is implemented through review, recommendation, personal suggestion and experiences etc. 2 Illustration1: Consumer decision making process, 2019. Source: Consumer decision making process, 2019.
Post Purchase evaluation: According to this last stage consumer behaviour get assessed after purchasing product and services. By post evaluation practise helps to identify customer satisfaction level in positive nature or negative nature. As per above five stages of consumer decision making that derives forCosmos Holidays context that journey of buying product and services from company they usually promoted along with influence to customer for meeting up their needs and wants. Cosmos Holidays, hospitality and marketing team scrutinize overall tourism market to investigate needs and wants of customer. After analysing needs of their customer they must offer quality of service package and ensure it should better than competitors product which helps to engage the customer in decision making. As objective is driven of Cosmos Holidays is to accomplish their expectation and satisfied them effectively. P4. Explore why it is important for marketers to map of a path purchase and understand consumer decision making in hospitality sector. As per the concept of path to purchase that emphasis their customer which assorted to expose in order to purchase. By procuring information through Facebook, Email, Google and twitter through these channels overall way to interpretation to utilise information (Ivanov and Webster eds., 2019). There are five factors which relates to marketers to know about actual requirement which is needful to customer as well as it create influence to decision making process such as: Awareness: According to this stage customer tend to involve to aware about their seeking from different sources for collecting necessity information (Mariani, Fuchs and Höepken., 2018). As example driven on Cosmos Holidays where they promote their services information in market to maing people aware and attract. Engagement: To making proper awareness the next step defines to interact with people who are seeking for hospitality services that helps to engage customer. For example: Cosmos Holidays, their hospitality or marketing team to referring customer or references for effective interaction as well as they target their customer to provide more and more information. Interest: In this stage, it defines to making attract or obsessed to people by providing them unique aspect of feature of product and services that not offer by other hospitality company. As Cosmos Holidays, they enhance more creativity in their product that aspect 3
makes customer attractive weather it related to be pricing, quality product implement by Cosmos Holiday towards particular service. Retention: Through this process it helps to offering customer wide range of product in such a way where they can interact with organisation post purchase (Mejia., 2019). As Cosmos Holidays they can approach for advertising or promoting in social media of service related product and services which support to retain customer overall basis. Post Purchase: At it is consider last process of consumer buying decision making where customer make up their mind to finalise about buying particular product and services . The Cosmos Holidays, they team get to analysis after getting experience of their services as customer satisfied or not. They facilitates a feedback practise to their customer in which they share their suggestions, positive reviews and lack of improvement that helps to company for further development. Evaluate how marketers are responding to the decision-making process, applying relevant examples from the hospitality sector. Through marketers can approach their decision making by need to concerned the five factors of decision making process which helps to identify actual requirement of customer from product and services. Need of recognition helps to provides basic need that can fulfil the requirements. Searching for sources through which need can be classified after that evaluation that particular sources making optimum decision and then interpretation of purchasing product and services in term of satisfaction aspects. For Examplethis procedure helps to Cosmos Holiday company to read their customer expectation through practise of decision making process. Task 3. P5. Compare the contrast between B2B and B2C in process of decision making by assorting specific hospitality examples. BasicBusiness to Customer(B2C)Business to Business(B2B) MeaningThe process in which interchange or exchangeofgoodsandservices between buyers and sellers within customised the business in different Thisprocessderivesabout transication of goods and services related 4
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way.ThroughCognitiveand Behavioural learning to mapped bymarketersforcustomer suggestion, experiences and point ofviewalongwithreactto particular product from individual personalitythroughdifferent situationalbased.Different buyingpatternalsomattersfor marketers where they considered forcustomerperspectiveFor example Culture plays important roleofindividualbuyersthat examinethroughmarketersby considering different product and servicesallocatetovarious preferencesofcustomer. Customerbuyingpatternis crtically scrutinize by marketers as it is essentials through which theycanapproachtheirright customer.Alltheseabove evaluation is framed for Cosmos Holidayscompanywheretheir marketers presumes to do market researchtocollectedoverall informationabouttheirproduct related.withbusinessentities whichisknown to businessto business. ConsiderationAsCosmosHolidayscompanyThemainagendatofocusfor 5
focusestowardsofferingeffective qualityofservicestourism packaging which not provided by other travels venture. respective firms in terms of B2B is on making better relationship with tours and travels companies (Merli and et. al., 2019). ClientsAs per the organisation perspective theirmaincustomerarethose peoplewhostaysinhoteland experience service quality. In Business to business segment Tourismcompanyservestheir foods and other traits of services inorganisationofCosmos Holidays venture. RelationshipInBusinesstocustomer,every hospitality organisation marketers of Cosmos Holidays have focused to maintain their relationship between hotelsandcustomer(Min,and Jeong., 2019). Asinotherscenariohotels business must contribute to build healthyrelationshipwithother organisationwhohelpsserving customeraswellasto dealing businessinvestmenttoincrease credibility. Decisionmakingto Buying related Cosmos Holidays offers services in theirproductbypresentingthose aspectwhichmakesinfluenceto customereasilyorithittravel oriented people where it effects to their emotions. The system of decision making buyinginBusinesstobusiness thatplannedforprovidebasic requirement(Nusair.,Butt.and Nikhashemi.,2019).Customer comparetheproduct differentiation in terms of price, quality and quantity effectively. Theirmotiveistopurchase optimum product from different alternative. Target MarketMarketingteamofCosmos Holidays,theyfocusestothose customerwhoaretravelling Business to business marketer are measure the competitors in terms oftheirperformanceandhow 6
enthusiastic as well as middle range ofpeople(Osman.andNelson., 2019). Because they provide high quality service in lower range that easily approach by customer. theyareattractingtoother business for high increase growth for more collaboration. Procedure of BuyersIn business to customer the buying processisveryflexiblewhere CosmosHolidayspresentstheir productaswellasservices. Customer can access for experience packagesthroughwebsitesand inquiry about service for booking hotelsandtoursbycheckin consuming services. AtthetimeofBusinessto business purchase is having wide conceptthatpresumesthrough various stages. By checking rates, reviewinginquiryabout professionalactivitiessuchas meetings, get together, occasional partyandothers(Pourfakhimi., Duncan and Coetzee., 2018). All thesearrangementarelooking forwardtobookingticketsand filling purpose of check in and out. P6. Evaluate different approaches to market research and method for understanding decision making process. Market Research approaches: Primary Research: According to this method is usually collect first trait data or influence to contribute by own efforts to scrutinize effectively. The objective of primary research for collecting data directly from previous information related collected. In perspective of Cosmos Holidays, this approach supports to investigate solutions by conduct online services, questionnaire and other surveys (Rai and Nayak , 2019). They assort for using observation by mapping behaviour and reaction of customer and test marketing which helps to conducts online survey. They can also assort to selling products and services within small business market. 7
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Secondary Research:It help to utilise by collecting data and information which is having existence already and presumesthrough various sources like research report of other documentation, internet, articles, books and Journals etc. The marketing team of CosmosHolidaysassortsecondaryapproachtoidentifytargetmarketforbetter understanding by assessing new trends and characteristics available in market (Rather and Hollebeek., 2019). Through this approach it helps to promoting more discounts and sponsors where it saves cost of organisation. Methods of Research in Marketing: Questionnaire:This is an written document where set of questions which related to topic.Marketresearcherassorttobetterunderstandsdecisionmakingprocessof consumer perspective. This is form of method that consists of series of questions that having aimed of collecting information through respondent. The Cosmos Holidays researcher team can enhance to visiting the customer by assessing their behaviour though practises of questionnaire influencing through offering. Survey:Thispractiseisanotheressentialmethodofevaluatingconsumerby implementingdecisionmakingprocessthrough survey method.Accordingto this method of market researcher where they applies for this method to collecting answers or analysing the majority factor that how many respondent are having different point of view towards particular topic (Strandberg and et. al., 2018). This survey method helps to mapping behaviour of consumer as well as attributes to attract for experiencing services. Provide a coherent and justified evaluation of how different factors influence hospitality decision-making and buying behaviour, supported by specific hospitality examples There are many factors which can change hospitality decision making as well as buying behaviour For example: Cosmos Holiday company decision making impact by market demand changes as product trend fluctuates in terms of specification, Quality, Quantity and clients behaviour matters that support of buying behaviour. When customer having buying issue such as not able to afford high quality of product, it can change the mind as well as also change perspective of buying behaviour. Experiences with other product or comparing with similar traits product but they belong from different brand can fluctuates people attitudes and behaviour. 8
Task 4. P7. Estimate how marketers can affect different stages of hospitality decision making process by giving examples. There are two different stages of hospitality to mapping individual consumer decision making process are: Cognitive Learning:According to this learning aspect it derives about to develop naturally enforcement that reflects unique trait of individual personality. By assessing personality in terms of suggestion, reaction and recommendation (Stumpf. and Califf, ., 2018). To influence the customer buying behaviour implements by excellence way of communication plays important role by making planning to target audience to provide different services by Cosmos Holidays company. Behavioural Learning:This learning of approach having used by Cosmos Holidays marketing team to measure behaviour of individual in different situational. It only use for product and services performance as well as how people is reacting while approaching that. Psychological plays important role in consumer which is analyse by marketers in different perspective for gaining maximum customer. There are some of the other factor which is essential for Cosmos Holiday marketing: Culture Factor: This factor plays an important role to assessing customer on the basis of their choices and preferences. According to Cosmos Holidays, they must considered customer culture as well as sub culture aspect that it create impact on customer decision making where they relates product with their culture suitability. Through Cognitive and Behavioural learning to mapped by marketers for customer suggestion, experiences and point of view along with react to particular product from individual personalitythroughdifferentsituationalbased.Differentbuyingpatternalsomattersfor marketers where they considered for customer perspective For example Culture plays important role of individual buyers that examine through marketers by considering different product and services allocate to various preferences of customer. Customer buying pattern is crtically scrutinize by marketers as it is essentials through which they can approach their right customer. All these above evaluation is framed for Cosmos Holidays company where their marketers presumes to do market research to collected overall information about their product related. 9
Buying Pattern:After analysing customer's culture properly, it is must to understand about what is buying pattern which carries by customer effective way. Norms, ethics and religion are three major factor which decides buying pattern of consumer, because different customer having various kind of culture as well as background that depicts their styles (Rai and Nayak., 2019). Cosmos Holidays, need to examine their existing and new customer buying specification as in price negotiation level or differ from culture to culture can effect in product and service growth. Critically evaluate how marketers influence each stage of the decision-making process with reference to relevant methods and models applied. Through Cognitive and Behavioural learning to mapped by marketers for customer suggestion, experiences and point of view along with react to particular product from individual personalitythroughdifferentsituationalbased.Differentbuyingpatternalsomattersfor marketers where they considered for customer perspective For example Culture plays important role of individual buyers that examine through marketers by considering different product and services allocate to various preferences of customer. Customer buying pattern is crtically scrutinize by marketers as it is essentials through which they can approach their right customer. All these above evaluation is framed for Cosmos Holidays company where their marketers presumes to do market research to collected overall information about their product related. CONCLUSION From above report hospitality consumer behaviour and insight as come for conclude that different factor of culture, social, personal and psychological influence to consumer behaviour in terms of taste, preferences and choices which indicates towards hospitality context. Influences which driven through digital technology which implies it effect to changing trends of customer in terms of social media, mobiles, internet and e-commerce business. Customer changing their behaviour and attitude on the basis of social, culture and personal aspect as per accordingly. The resulting which generated outcomes by approaching formal decision making at the time of buying products and services through from customer in terms of quality, quantity related. By method of research are assorted to understand B2B and B2C decision making by collecting through survey, interview and questionnaire for measuring interpretation. At last, evaluation of 10
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consumer buying style from company by considering with understanding culture, purchasing pattern and leader influence where customer gets obsessed to buy products and services. 11
REFERENCES Books and Journals Aydin, G., 2020. Social media engagement and organic post effectiveness: A roadmap for increasing the effectiveness of social media use in hospitality industry.Journal of Hospitality Marketing & Management.29(1). pp.1-21. Cheng and et. al., 2019. An investigation on online reviews in sharing economy driven hospitality platforms: A viewpoint of trust.Tourism Management,71, pp.366-377. Dann, D., Teubner, T. and Weinhardt, C., 2019. Poster child and guinea pig–insights from a structuredliteraturereviewonAirbnb.InternationalJournalofContemporary Hospitality Management. Del Chiappa, G., Gallarza, M.G. and Dall'Aglio, S., 2018. A relativistic value-based approach to interpreting e-rating and e-complaining behaviour in the hospitality sector.European Journal of Tourism Research.18.pp.13-32. Dewnarain,S.,Ramkissoon,H.andMavondo,F.,2019.Socialcustomerrelationship management: An integrated conceptual framework.Journal of Hospitality Marketing & Management.28(2). pp.172-188. Gibson, A. and O’Rawe, M., 2018. Virtual reality as a travel promotional tool: Insights from a consumer travel fair. InAugmented reality and virtual reality(pp. 93-107). Springer, Cham. Ivanov, S. and Webster, C. eds., 2019.Robots, artificial intelligence and service automation in travel, tourism and hospitality. Emerald Publishing Limited. Mariani, M., Baggio, R., Fuchs, M. and Höepken, W., 2018. Business intelligence and big data in hospitalityandtourism:asystematicliteraturereview.InternationalJournalof Contemporary Hospitality Management. Mejia, C., 2019. Influencing green technology use behavior in the hospitality industry and the role of the “green champion”.Journal of Hospitality Marketing & Management.28(5). pp.538-557. Merli and et. al., 2019. Why should hotels go green? Insights from guests experience in green hotels.International Journal of Hospitality Management.81.pp.169-179. 12
Min, S., So, K.K.F. and Jeong, M., 2019. Consumer adoption of the Uber mobile application: Insights from diffusion of innovation theory and technology acceptance model.Journal of Travel & Tourism Marketing.36(7). pp.770-783. Nusair, K., Butt, I. and Nikhashemi, S.R., 2019. A bibliometric analysis of social media in hospitality and tourism research.International Journal of Contemporary Hospitality Management. Osman, M. and Nelson, W., 2019. How can food futures insight promote change in consumers’ choices, are behavioural interventions (eg nudges) the answer?.Futures.111.pp.116- 122. Pourfakhimi, S., Duncan, T. and Coetzee, W., 2018. A synthesis of technology acceptance research in tourism & hospitality. InInformation and communication technologies in tourism2018(pp. 143-155). Springer, Cham. Rai,S.andNayak,J.K.,2019.Hospitalitybrandinginemergingeconomies:anIndian perspective.Journal of Tourism Futures. Rather, R.A. and Hollebeek, L.D., 2019. Exploring and validating social identification and social exchange-baseddriversofhospitalitycustomerloyalty.InternationalJournalof Contemporary Hospitality Management. Strandberg and et. al., 2018. Tourism research in the new millennium: A bibliometric review of literature in Tourism and Hospitality Research.Tourism and Hospitality Research.18(3). pp.269-285. Stumpf, T.S. and Califf, C.B., 2018. On the use of meta-theory in grounded investigations: in principle and practice in hospitality and tourism research. InHandbook of Research Methods for Tourism and Hospitality Management. Edward Elgar Publishing. 13