Hospitality Consumer Behaviour and Insight Assignment

Hospitality Consumer
Behaviour and Insight

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1(Presentation)............................................................................................................................3
LO2..................................................................................................................................................5
P3 Examine the stages of the consumer decision- making journey and map a path to the
purchasing for a given hospitality service...................................................................................5
P4 Explore why it is important for marketers to map a path to purchase and understand
consumer decision- making in the hospitality sector..................................................................7
LO3..................................................................................................................................................7
P5 Compare and contrast the key differences of the hospitality decision- making process in
the context of B2C and B2B, using specific hospitality examples.............................................7
P6 Evaluate the different approaches to market research and methods of research used for
understanding the decision-making process................................................................................9
LO4..................................................................................................................................................9
P7 How marketers can influence different stages of decision-making process in hospitality
context by giving specific examples...........................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Consumer behaviours is examination of organisation and individual and how they buy,
select, use and dispose the services, goods, experiences or ideas to satisfy their wants and needs.
The present report will study about UK wide hospitality services of hotel Hilton. The head
quarter of Hilton are situated in McLean,Virginia, U.S. The report will examine the factors that
influence hospitality consumer behaviour and attitudes. The report will demonstrate the ability to
map a path to purchase in a hospitality context, including the decision-making process. The study
will be based on evaluation of appropriate forms of research to understand influences on the
hospitality consumer decision-making process. The discussion will be on how marketers
influence the different stages of the hospitality consumer decision-making process.
MAIN BODY
LO1(Presentation)
LO2
P3 Examine the stages of the consumer decision- making journey and map a path to the
purchasing for a given hospitality service
Consumers decision making process involves to gather information, identify the needs of
consumers and evolution of alternative buying decisions. Model of hospitality consumer
decision-making are
Economic: The model assumes that the consumers takes rational decision regarding the product
and services. As the consumers evaluate and compares the pros and cons of the product. And
rates according to their satisfaction. This model is considered as unrealistic because the people
have limited skills and ability to judge the product and services.
Passive: This models states that consumers take decision according to the promotional
techniques used by the hotel to influence the customers towards their hotels. This model has
unrealistic approach as the marker is incapable to collect correct information of the product and
services. The market require the skill to evaluate the data correctly (Chiu and et.al., 2019).
Emotional: This model states that consumers takes decision on the basis of their emotions as the
consumers purchase decision is impulsive and it takes very less time to take decision.

Cognitive: This model is best among the four models as the customer takes the decision
according to its understanding and theirs interest. As model states that every marketer must help
the consumer to make decision making process of the consumers short.
The value of mapping a path to purchase:
pre-purchase: The consumers when feel the urgency to satisfy the needs in the form to fulfil its
priority then marketer provide the required information about the product and services. With the
help of information the consumers gets to know which brand will give maximum satisfaction.
Purchase: While taking of the purchase decision the consumers need to eventuate the various
alternatives of the product. With the result of the evaluation of alternatives the consumers makes
final decision for purchasing of product.
Post-purchase: when the product is consumed consumers can show its satisfaction and the
marketer uses different strategy to attract user. With the help of different promotional mix
marketer can retain consumers.
Levels of hospitality consumer decision-making
Extensive problem-solving: Consumers gets highly involved in the product and services which
helps them critically evaluated product on the criteria of product establishment to satisfy need.
Limited problem-solving: the consumer does generals research for product from selection of
different brands.
Routine response behaviour: Less involvements of consumer in the product to fulfil their basic
needs.
Four views of hospitality consumer decision-making:
Economic: the decision making of consumer of Hilton hotels depends by evaluating of product
and services provided by the Hilton hotels and its rivals in hospitality industry. For example the
prices and facilities that Hilton provide are higher then rivals hotels.
Passive: Hilton hotel uses promotional strategy to increase the pool of customers towards the
hotels. The marketer uses advertisement through boards, banners, etc. which can define the
facilities of hotel in fine and detailed manner to influence the customers in their decision making
process.
Emotional: the negative emotion may affects purchasing decision of consumers to by the
product or services. The negatives reviews from the customers may affect the hotel reputation
(Bednarz and Foreman, 2019).

Cognitive: Hilton hotels tries to present the true face in front of consumer so that it can build
customer loyalty and helps the consumers to take decision in short run.
P4 Explore why it is important for marketers to map a path to purchase and understand consumer
decision- making in the hospitality sector
The influence of heuristics on decision-making through which the consumers are able to
solve the problems and take decision quickly. The influence of elements of the marketing mix on
decision-making will help the Hilton hotel to adopt various best strategy to attract the consumers
through which the organization can get competitive advantages. (Östberg and Askegaard, 2019)
The influence of new technologies like online transactions and purchasing, interactive
personalized services, media platforms for ratings and reviews will help the consumers to take
quick decision without much thinking as these tools will provide better decision-making to
consumers.
LO3
P5 Compare and contrast the key differences of the hospitality decision- making process in the
context of B2C and B2B, using specific hospitality examples
Researching different stages of the decision-making process:
Step 1: The consumers need to realise the need to take decision and clarify the nature dor taking
the decision.
Step 2: The information is required to take the decision.
Step 3: The consumers can identify different alternatives for taking decision.
Step 4: The evaluation of different alternative is done for making decision.
Step 5:Then choosing of the best option available in different alternatives.
Step 6: Taking of the final action by positively implementation of the decision.
Step 7: then the outcome of the decision is evaluated.
The differences between Business to Consumer (B2C) and Business to Business (B2B)
decision-making processes
Business to consumer – It refers to the process of offering goods or services by an organization
to customers. Under this, focus of hospitality business is on offering service to the clients.
Transaction occurred for short time period (Pangriya and Kumar, 2018).

Business to business – It can be defined as selling of products or services by one organization
operating in hospitality business to another. Under this, focus is on maintaining the relationship
with another business. Under this, transactions happen between two organization for long time
period.
How does market research differ between B2B and B2C? This covers skills sets, research
methodology, sample sizes, the importance of tele-depth interviews and applying the Pareto
principle.
According to the Pareto principle, there are various difference between the market
research under business to business and business to customer.
B2B requires skills at every stage from research director to telephone interviewer. Skills
are required for effective use of technology, social media platforms, communication skill etc.
Skills are also required for content marketing.
Under B2C market research, researcher must have skill to identify the demands of
customers in respect of hospitality business.
The size of sample required in business to business is small that s between 10 and 150. In
case of performing market research for B2C, large size sample is required.
Under B2B, practical methods are used like email surveys etc. In case of B2C, mixed methodies
are used (Golob and et.al., 2019).
Generally interviews of middle level managers are conducted for performing market
research for business to business transactions. Whereas, questionnaire are used under business to
customer market research.
P6 Evaluate the different approaches to market research and methods of research used for
understanding the decision-making process.
There are various factors that influences the decision-making process of customers.
Personality, self and motivation impact the process of buying products or availing the service.
Behaviour of individual is influenced by intrinsic and extrinsic motivation.
Measures of learning of clients includes recall and recognition, attitudinal and
behavioural aspects. Customers learning is affected by recalling and recognizing the images of
the product, style of processing, ability to evoke clear images etc. Organization conduct test to
evaluate whether customer remembers the ad and recall their purchase intention. Further, attitude

and behaviour also impact learning process. This can be understood through classical
conditioning theory of behaviour (Pham and et.al., 2019).
There are various aspects of consumer perception such as dynamics, imagery and
perceived risk. The risk is dependent on the situation, the product and culture. Customers also
perceive high level of risk on the basis of consumption situation. Dynamics of customer
perception depends upon physical stimuli.
LO4
P7 How marketers can influence different stages of decision-making process in hospitality
context by giving specific examples.
There are various approaches of consumer learning such as cognitive and behavioural.
Learning is continuous process that cover wide range of customers that are related with stimuli
like logo of the product and response of customers towards various cognitive activities. One of
the famous theory is cognitive theory. Behaviour is another learning approach. The theory of
behaviour focuses on learning.
Culture and sub-culture factor are considered as major factors that influence buying
process of customer. Culture offers rules and standards regarding what to eat. Further, it also
influence the views of customer towards luxury products. Culture also impact the attitude of
person towards the product or service. Culture and sub-culture not only impact behaviour of
clients but also reflect it. It is a mirror of both the possession and values of buyers. The process
of purchasing product or availing service is influenced by the culture of the country in which
buyer live (Wróblewski and Howaniec, 2018).
An opinion leader influence the attitude and actions of customers who are looking for an
expert opinion. These type of leaders will have an ability to influence the behaviour of buyers in
respect of products or services of hospitality industry. They help customers in taking decision
regarding whether to buy or not to buy a particular product.
The understanding of the factors that influence buyer behaviour helps the management of
organization like Hilton Hotel operating in hospitality industry in various ways. It helps to
marketer to conduct marketing activities in effective way to influence the process of decision-
making of customers. So that, buyer will purchase the product or service of the organization. It

helps marketer to understand the reasons due to which client buys the product and understanding
of those reasons help Hilton hotel to influence decision-making process of customers.
Digital era will continue to change the decision-making process as well as demands of
people. Organizations are required to understand the effect of digital marketing on decision-
making process of buyers. Digital way of marketing helps hospitality organization to engage
with buyers and also assist them to improve relationship with customers by understanding
buying behaviour of buyers (Nguyen, Lobo and Nguyen, 2018). Social media platforms like
Instagram, Twitter, Facebook etc. help companies to understand the behaviour of consumers and
how this behaviour impact decision-making process. The performance of organization can be
measured with the help of click through rate, engagement rate and conversion rate etc. It helps
marketer of Hilton Hotel to influence the decisions of buyer by delivering better online
marketing experience that has combination of information related with services or products and
their functions. Digital tools help organization to improve customer engagement and also to
foster the relationship.
CONCLUSION
It has been concluded that there are different stages involved in decision-making process
of clients such as identification of needs, alternative decisions related with buying etc. There are
different models like economic model which says that customer rate the product according to the
satisfaction. Cognitive model which means that buyer take decision as per interest and
understanding. The mapping path involves various stages like pre purchase, post purchase etc.
New tools and technologies like interactive personalized services etc. also influence decision-
making process of buyers. Decision-making process involves various stages. B2B and B2C
varies from each other on the basis of time period of relationship. The Report has outlined that
sample size is small in case of business to business market research. Whereas, it is large in case
of business to customer market research. The Report has also described that, opinion leader plays
a major role in influencing the attitude and actions of customers. Culture and sub-culture are
important factors that influence the views of customers towards the product. Cognitive and
behavioural are important approaches of consumer learning. It has been concluded that, customer
learning is affected by the way in which buyer recognizes the product or service. The above
Report has also explained that the digital way of marketing helps to gain information regarding

behaviour of the customer and also help to develop marketing strategies for influencing the
consumer behaviour.

REFERENCES
Books and Journals -
Bednarz, J. and Foreman, J.R., 2019. TRENDS IN YOUNG CONSUMERS’BEHAVIOUR–
IMPLICATIONS FOR FAMILY ENTERPRISES. Sociology.12(3). pp.11-24.
Chiu, T.S. and et.al., 2019. Antecedents of consumers' citizenship behaviour towards organic
foods. Journal of Consumer Behaviour.18(4). pp.332-349.
Golob, U. and et.al., 2019. The importance of corporate social responsibility for responsible
consumption: Exploring moral motivations of consumers. Corporate Social
Responsibility and Environmental Management.26(2). pp.416-423.
Meydanoğlu, E.S.B. And et.al., 2018. QR code advertising: a cross–country comparison of
Turkish and German consumers. International Journal of Internet Marketing and
Advertising.12(1). pp.40-68.
Nguyen, T.N., Lobo, A. and Nguyen, B.K., 2018. Young consumers’ green purchase behaviour
in an emerging market. Journal of Strategic Marketing.26(7). pp.583-600.
Östberg, J. and Askegaard, S., 2019. Nordic Consumer Culture: State, Market and Consumers.
Pangriya, R. and Kumar, M.R., 2018. A Study of Consumers' Attitude Towards Online Private
Label Brands Using the Tri-Component Model. Indian Journal of Marketing.48(5).
pp.7-20.
Pham, T.H. And et.al., 2019. Evaluating the purchase behaviour of organic food by young
consumers in an emerging market economy. Journal of Strategic Marketing.27(6).
pp.540-556.
Wróblewski, Ł. and Howaniec, H., 2018. New trends in consumer behaviour in the market of
cultural services in Poland: Implications for marketing. Cultural Management. p.21.
Online -
Consumer decision making process.2019. [online]. Available
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