Hospitality Consumer Behaviour and Insight

hi

Hospitality Consumer Behaviours and
Insight
Higher National Diploma in
HOSPITALITY
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
LO 2.................................................................................................................................................4
LO3..................................................................................................................................................7
LO 4...............................................................................................................................................10
CONCLUSION.............................................................................................................................12
REFERENCES............................................................................................................................13

INTRODUCTION
Consumer behaviour is the study of actions and patterns which influence
consumers to make purchase decisions regarding various goods and services. This
study is highly related to psychology, behaviour and instigations (Ariffin and et al.,
2018). It is essential for marketers to understand the behaviour of customers in the
marketplace in order to solve various queries of management regarding brands, goods,
services, organisations preferred by the individuals and their behaviour on shopping and
marketing campaigns. There are several technologies through which the marketing
manager can track and map the journeys of regular clients. For the purpose of this
report, Marriott Hotels International Ltd organisation is taken. It functions in luxury hotels
in London, the United Kingdom on a global level. This report consists of an assessment
of factors influencing consumer behaviour in the hospitality sector, mapping purchase
demeanour of population, types of research needed in understanding their behaviour
and Evaluation of Impact of marketers on their decision-making process. In this report,
consumer making decision process is also analysed along with its stages. These stages
help an organisation to study the pattern of their consumer behaviour by which they can
implement strategies so that their potential consumers will be inclined towards making a
positive decision about purchasing that organisation’s products and services.
LO 1
Covered in PPT
LO 2
There are several factors that influence a consumer in making a buying decision.
Consumer's decision-making process is driven by rational, irrational, emotion and
economy. It is the motivation, perception, knowledge, experience and personality of
individuals which extensively encourage or discourage customer in deciding what to
purchase and what to not (Di Foggia, 2015). Marriott Hotels International Ltd may make
assumptions about the client's spending through this process.
The decision-making process of the consumer goes through the following
stages:
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Need recognition- In this step, consumer establishes the need, issue or motive
for purchasing. The customer may be driven by internal and external information which
drives them to search for something that assists in satisfying the problem.
Searching and gathering information- Consumers start searching and
collecting information about particular goods and services when the need forces them to
attain the product. Data is gathered from known sources who are regular users of the
commodity and through internet, newspapers and radio communications.
Evaluating the alternatives- After gathering the necessary information from
different sources, consumer evaluates the merits and demerits of product and compares
it with similar goods available in the market (Bharwani, and Mathews, 2016).
Subsequently, establish choices related to commodity, its store and brand that
corresponds to requirement, taste, personality, preference and lifestyle.
Purchase- When specific products are assisting in satisfying the want and
provides the best possible solution to the problem, consumer approaches to accomplish
the final purchase. It alludes choosing the commodity, brand, dealer, price amount and
time of buying.
Post-purchase Evaluation- After purchasing the product consumer evaluates
whether the commodity is really solving the issue, providing satisfaction, investment
was done on a proper product or not, the quality is according to need.
Mapping a path to the purchasing for Marriott Hotels International Ltd.:
Levels of consumer decision-making: -
Consumer decision making is categorised into three parts. They are explained as
under-
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Extensive problem solving- Consumers invests their time in selecting the most
appropriate product by critically evaluating the information of commodity established in
the market through other consumer experiences.
Limited problem solving- Out of the several brands available in the market,
consumer researches and select product that solves a basic need in daily life.
Routine Response behaviour- The consumers who possess this type of
behaviour, purchases any kind of product or service regardless to its organisation and
its brand equity, until it is fulfilling their primary requirements (Del Chiappa, Gallarza and
Dall'Aglio, 2018). They do not spend much time on selecting the most appropriate
product.
Importance of mapping a path:
Customers are regarded as important in every stage of the marketing process
that assists an organisation in attaining consumer satisfaction (Lub and et al., 2016).
They influence the flow of demand and supply of products in the business environment.
For Marriott Hotels International Ltd, the service of luxurious rooms is considered a vital
asset for business management as it is utilised by clients daily. It is vital for marketers to
map and evaluate individual decision making to understand the needs of consumers in
the current global world. The information gathered about customer preferences in
selecting the company's product and avoiding the use of other services assists the
hospitality organisation to implement any changes required for improving the quality of
commodities. This buying behaviour is needed in framing effective marketing strategies
and developing mapping path to discover the stages of consumer decision making.
There are various reasons due to which mapping a path to purchase is important for
marketers of Marriott Hotels International Ltd.:
Identifying touchpoints – By mapping a path to purchase, marketers of selected
hospitality organisation can identify their touch points at which customers meet and
interact with their business. As seen in above developed path to purchase, all with the
stages of purchase journey path, relevant touchpoints are also identified. By this,
marketers can enhance their touchpoints so that this interaction between their business
and potential customers can be enhanced.
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Fill the gaps – By mapping a path to purchase, Marriott Hotels International Ltd.’s
marketers can identify the gaps due to which their services lack in quality and then try to
fill those gaps, so that quality of services given can be enhanced.
LO3
B2B marketing consists of marketing practices used in and among various
businesses. On the other hand, B2C marketing refers to marketing practices used for
customers (Jauhari, 2017). Every marketer enters the marketplace with several
objectives, like capturing the large market with products and services of the
organisation. Few businesses are engaged in selling commodities Following is the
Comparison between Business to consumer and business to the business decision-
making process:
Decision-making process B2C B2B
Recognising need The consumer starts the
purchasing process by
identifying a need. The
requirements of customers
are practical in nature. For
example, purchase of
computer takes place when
people undergo learning
and education.
Business consumers start
purchasing process by
discovering the need. It may
be required to simplify
operation or increase stock.
For example, purchase of
computer parts in the
company to improve stock
ordering activity.
Collection of information In this stage, individual
consumers collect
information about the
business from their peers,
friends and information
given at their websites and
on other online sources.
Businesses collect
information about other
business by researching
over online sources and
through their business
contacts.
Identify the options Here customer discovers Enterprise identifies all the
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various sources which will
assist in satisfying the need
for a computer product.
options available in the
market to make an effective
purchase of computer parts.
Comparing alternatives In this stage, consumer
compares needs, costs,
benefits and quality of
computer product with
accessible options in the
market area. They carry out
this activity through online
reviews
Purchase manager in
business compares the
product computer
equipment suppliers with all
brands provided in the
market, and also considers
factors like cost, quality,
durability, the budget of the
company.
Select among various
alternatives
Here, the customer finally
selects the most
appropriate computer from
several alternatives.
On the other hand, in this
stage, business finally
chooses the equipment of
the computer that best suits
the stock ordering process.
Execute the purchase In this stage, consumer
finally decides to buy a
computer after discussing
with friends, family and
partners. Here, only one
person is involved in
making the final judgement
of purchasing.
Here, the business makes a
final decision about
purchasing computer
equipment. This stage is
time-consuming as a buying
decision is taken collectively
by the committee.
Evaluating the results Here, consumers provide
feedbacks only if their
expectations are not met.
They may directly complain
to the seller or make use of
In this stage, if businesses
face any issue in the
product, then they resolve
them by communicating
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social media to present their
dissatisfaction.
with the supplier.
Focus In B2C, focus is on the
satisfying the customers so
that their loyalty can be
gained.
In B2B, focus is on
satisfying other business by
providing them additional
services, so that long term
business relationship can
be build.
Relationship Relationship in business to
customer interaction is short
term relationship.
On the other hand, business
to business interaction is of
long period.
Different approaches to market research
Consumer decision making is a procedure by which they select the most relevant
product from several available alternatives (Consumer behaviour 2019). There are
various approaches which can be adopted for effective market research. Some of these
approaches are:
Customer feedback – Marketers of Marriott Hotels International Ltd can collect
the feedback of their consumers and then identify taste and preferences of their
consumers so that they can alter their services. By this, marketers can effective
research the market and can identify current trends.
Survey – This approach can be used at not only the existing customers, but at
potential customers as well. This approach can involve conducting a survey through
questionnaire by which all the required information can be gathered using this market
research approach.
In this competitive world it is essential for Marriott Hotels International Ltd to
understand the decision-making process of consumers in order to capture large market
areas and attract huge population to improve the selling of products. This is possible if
marketer apply appropriate methods and make use of following models in business
activities-
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Methods of research used for understanding the decision-making process:
Economic view model- It presumes that a customer is a rational person and
therefore, takes logical decisions while purchasing. They separate different products,
determines its advantages and disadvantages and finally comes to a conclusion after
analysing the collected information. Consumer possesses abilities to rank several
commodities according to their quality and price. Economic view model considers that
there is perfect competition in the world.
Cognitive view model- This is one of the best models from among several
models of consumer decision-making. It states that consumer takes decisions of
spending on a particular product as per their individual rational needs and not according
to advertisements published by the businesses. Cognitive view model assumes that
individuals plan goal and acts as per their goals to attain satisfaction in using
commodities. In every hospitality organisation, a marketer should be engaged in
enhancing the skills of the consumer in taking quick decisions regarding buying
products.
Passive view model- Passive view presumes that consumers buying behaviour
is influenced by the selling, marketing or promotional efforts of the businesses and they
drive by the sales appeals provided by marketers (Gibson and Parkman, 2018). This
model consists of contrasting viewpoints from the economic view model, which
assumes that consumers are first and final individuals in deciding the purchasing activity
of goods. It is relevant to apply in B2C marketing as here customers are not aware of
the goods and commodities and hence, can be easily manipulated by the business
organisations.
Emotional view model- This model states that every consumer has certain
emotions which are responsible for affecting their purchasing behaviour. They make
more spontaneous purchases after relating the commodity with their life. The customer
tends to take less time in deciding the need for the product and also generates positive
as well as negative emotions in the context of that product. Henceforth, goods that
develop negative emotions are totally avoided, and that of positive emotions are
selected and purchased by them. Emotional view model targets the emotional
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characteristic and impulse of purchasers in order to attain the sales objective of the
business concern.
LO 4
Factors of impacting hospitality consumer buying decision making:
An individual consumer has the power to make decisions in the market area. The
decisions like what services to be purchased from hospitality organisation, whether to
get influenced or not through marketing strategy of marketer and select which brand
bestows upon customers (Gbadamosi, 2017). Therefore, businesses should work on
adapting techniques that assist in controlling the behavioural feature of the customer.
There are various factors through which marketers can affect the stages of the decision-
making process of the purchaser. Marriott Hotels International Ltd can make use of the
following models and methods to influence the decision-making process of consumers.
There are various factors by which Marriott Hotels International Ltd.’s marketers
can influence the different stages of hospitality consumer buying decision making.
These factors are:
Cognitive learning- In cognitive learning, marketers get an idea about recent
trends in the behaviour of customers. Through this data, companies can frame
strategies in order to pull potential customers and develop a positive brand image of the
product in the market. It will aid in gaining competitive advantage and survive in the
environment for a longer time period. Businesses should focus on determining the
mental condition of the targeted population so as to introduce commodity in the area,
which delivers sales growth and higher profitability.
Perception- In the international market, several customers have different
perception related to various goods. In the hospitality industry marketers are engaged in
activities which establish a positive image for the products and services of the
organisation (Moutinho and Vargas-Sanchez, 2018). Perception performs a significant
role in getting the attention of important customers and encouraging them to purchase
the commodities of the business. It will assist in improving the profits margins and
accomplishing sales target within the specified time period. In the marketplace,
consumers are pulled by those items which have unique features and quality. This is a
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common perception of consumers engaged in buying and selling activity in the market
area.
Behavioural theory- This theory enhances purchasing behaviour as well as
influences the decision-making ability of customers because it is related to an
individual's attitude, characteristics and behaviour in the market area. It alludes
conditioning elements that discover the interaction of customers with the surroundings
and commodities present in the market in order to satisfy their wants and interests.
Behavioural theory recommends businesses to adopt flexible nature in operations to
deal with change in the consumer's tastes and trends.
CONCLUSION
From the above report, it is concluded that consumer behaviour is responsible for
affecting the sales and purchase activity in the marketplace. The study of consumer
behaviour involves an understanding of how consumers buy, where and how they buy.
It is significant for the hospitality industry to make products according to demand
generated by customers in order to grow and improve overall productivity. The
behaviour and perception of consumers are affected by several factors like
psychological, cultural and social being. Digital technology has increased the spending,
expectations and qualitative demands of consumers in the industry.
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REFERENCES
Books & Journals
Ariffin, A. A. M. and et al., 2018. Exploring the influence of hospitality on guest
satisfaction in luxury hotel services. e-Review of Tourism Research. 15(1).
Bharwani, S. and Mathews, D., 2016. Customer service innovations in the Indian
hospitality industry. Worldwide Hospitality and Tourism Themes. 8(4).
pp.416-431.
Bowie, D. and et al., 2016. Hospitality marketing. Routledge.
Canziani, B. F. and Welsh, D. H., 2016. Website quality for SME wineries: Measurement
insights. Journal of Hospitality and Tourism Technology. 7(3). pp.266-280.
DA Tasci, A., 2017. Consumer demand for sustainability benchmarks in tourism and
hospitality. Tourism Review. 72(4). pp.375-391.
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.
Di Foggia, G., 2015. Governance, Strategy and Innovation of Utilities controlled by
Urban Governing Bodies: Insights for Industrial Policy. Management
Research and Practice. 7(3). pp.5-20.
Gbadamosi, A. ed., 2017. Young Consumer Behaviour: A Research Companion.
Routledge.
Gibson, P. and Parkman, R., 2018. Cruise operations management: Hospitality
perspectives. Routledge.
Howison, S., Finger, G. and Hauschka, C., 2015. Insights into the Web presence, online
marketing, and the use of social media by tourism operators in Dunedin,
New Zealand. Anatolia. 26(2). pp.269-283.
Jauhari, V. ed., 2017. Hospitality Marketing and Consumer Behavior: Creating
Memorable Experiences. CRC Press.
Lub, X. D. and et al., 2016. The future of hotels: The Lifestyle Hub. A design-thinking
approach for developing future hospitality concepts. Journal of Vacation
Marketing. 22(3) pp.249-264.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism,
CABI Tourism Texts. Cabi.
Osman, M. and Nelson, W., 2019. How can food futures insight promote change in
consumers' choices, are behavioural interventions (e.g. nudges) the
answer?. Futures.
Ro, H., 2015. Customer dissatisfaction responses to restaurant service failures: Insights
into non-complainers from a relational perspective. Journal of Hospitality
Marketing & Management. 24(4). pp.435-456.
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Online
Consumer behaviour, 2019. [Online]. Available
Through:<https://www.kbmanage.com/concept/consumer-behaviour/>.
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