Consumer Behavior and Trends in Hospitality

This document discusses the different cultural, social, personal, and psychological factors that influence consumer behavior and attitudes in the hospitality industry. It also explores how consumer trends are changing due to the impact of digital technology. The document further analyzes the stages of the consumer decision-making journey and provides insights on mapping a path to purchase. Additionally, it discusses the emerging trends in consumer behavior and attitudes and compares the key differences in the hospitality decision-making process. Finally, it explores how marketers can influence the different stages of the hospitality decision-making process.

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Unit Title and Number: Hospitality Consumer Behaviour and Insight (Unit 19)
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Contents
INTRODUCTION...........................................................................................................................3
Activity A........................................................................................................................................3
The different cultural, social, personal and psychological factors that influence consumer
behavior and attitudes..................................................................................................................3
How consumer trends are changing due to the impact of digital technology..............................7
Analyze how cultural, social, personal and psychological factors that influence consumer
behavior and attitudes are changing and driving trends in hospitality........................................8
Critical analysis of the emerging trends in consumer behavior and attitudes.............................8
Activity B.........................................................................................................................................8
The stages of the consumer decision-making journey and map a path to the purchasing...........8
Important for marketers to map a path to purchase and understand consumer decision-making
...................................................................................................................................................10
Evaluation of how marketers respond to the decision-making process.....................................11
Theories, concepts, and models that influence the decision-making process of consumers.....11
Activity C.......................................................................................................................................12
Compare and contrast the key differences of the hospitality decision-making process............12
Different approaches to market research and methods of research used for understanding the
decision-making process............................................................................................................13
Evaluation of how different factors influence hospitality decision-making and buying behavior
...................................................................................................................................................14
Activity D......................................................................................................................................15
How marketers can influence the different stages of the hospitality decision-making process 15
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19
2

INTRODUCTION
Consumer behavior is the process through which marketers and management of companies such
as Marriott has been able to serve in market and meet up with their needs and wants. In order to
conduct it successfully they have conducted research and work as per the emerging trends so that
they launch services which match their perspective as well as their services. Marriott
International, Inc. is an American multinational diversified hotel chain company that franchises a
broad portfolio of hotels and related lodging facilities. It was founded by J. Willard Marriott,
currently their business is now led by his son, executive chairman Bill Marriott. This report
contains information such as different cultural, social, personal and psychological factors that
influence consumer behavior and attitudes. Consumer trends are changing due to the impact of
digital technology. Stages of the consumer decision-making journey and map a path to the
purchasing. It is Important for marketers to map a path to purchase and understand consumer
decision-making. Compare and contrast the key differences of the hospitality decision-making
process. Marketers can influence the different stages of the hospitality decision-making process
(Nusair, Butt and Nikhashemi, 2019).
Activity A
The different cultural, social, personal and psychological factors that influence consumer
behavior and attitudes
Psychological Factors are concerned with the approach and mindset of people and it means that
in order to satisfy them it is necessary to understand their mindset. Every consumer has a
different approach which is difficult for companies such as Marriott to analyze. If they assess
them in the right manner then they can convince them into buying their services. For instance it
is important to take decisions which meet the approaches of people so that they can achieve their
goals and objectives.
Motivation- In order to convince them they need to motivate them by making them assure of
their basic and security needs.
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Perception- It is the perception of customers that sets their behavior. It is set on the basis of
information they have heard from the outer market or promotional strategies used by the
company. If this is done in the right manner Marriott can get more customers.
Learning- Many customers learn about their services when they have bought it for the first time
this is why management of Marriott have to make their experience better and increase their
awareness.
Advantages- In order to gain loyalty they need to influence the perception of customers so that
they can attain long term goals.
Disadvantages- Approach and perception of some customers are orthodox which makes it hard
to influence or manipulate them.
Social Factors argue that human beings are social creatures and it is their need to meet up with
the status of people around them. For instance- Company needs to target those people who
believes that spending more money will improve their lifestyle and status.
Family- If the family of the individual has chosen to prefer stays in hotel like Marriott then he
will prefer the same.
Reference Groups- This group works in relation and association of each other which makes
their behavior of buying same that is why hotel use same strategy for them.
Roles and Status- The behavior of buying for people who maintains status depends on the
lifestyle they maintain and that is why Marriott needs to target people on the basis of that.
Advantages- They will find many high end customers which are suitable as per their targeted
audience.
Disadvantages- Even if the target audience is high end needs of every individual is not same and
that is difficult for them to fulfill it.
Cultural Factors have influence on the perception of people as many people follow values,
needs, preferences that are learned from nearby and belonging people (Sanchez-Franco, Cepeda-
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Carrion and Roldán, 2019). For instance company needs to take decisions as per their beliefs and
culture so that they do not hurt it and they can maintain smooth operations.
Culture- It is the factors of culture that have influence over buyers. It is concerned with values
that people follow and their state of mind which is what management of Marriott has to take care
of. People are born into different environments and that is why they think with a different
approach.
Subculture- It is a part of cultural groups as there are many of them and many of them has same
beliefs and approaches. It is considered for a specific segment of customers which can be divided
on the basis of caste, geographies etc. hotel has to target different group or age of people as
different people from different environment have different needs.
Social Class- Other than income this aspect is also looks after other factors such as occupation,
background, education etc. and on the basis of that they set their audience (Tung and Law, 2017).
Different castes of people are from different environment so that they can target to poor and all
of them are from different background such as rich, middle class and poor. That is why company
offers their services to people on the basis of that.
Advantages- It helps the company to adapt change as per the trends and serve on the basis of
that so that they can fulfill their needs.
Disadvantages- It creates difficulty to set up operations as per new trends or things that requires
adjusting to the culture of people because many decisions have to be made in order to maintain
their base of customers any wrong attempt will lead to lose them.
Personal Factors
These factors are concerned with activities, goals, aim that is set by the individual on his own
and that will determine his level of satisfaction.
Age- is a critical factor for hoteliers as young audience will tend to book normal hotels due to
their income level whereas middle age person will buy out luxury hotels. For instance they need
to target middle age groups if they want to increase their base of customers.
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Income- This is the main aspect that sets the behavior of consumer as the people whose income
is high will be able to book the services of Marriott. On the other hand if income is low then they
will have to consider other options.
Occupation- This is another aspect which management of hotel needs to look for as their
occupation determines the level of dealings they will have with hotel. People who travel for their
business mostly tends to get into this category or companies that book it for their meetings or
conference.
Advantages- If they are able to earn the loyalty of customers then they will be able to maintain
relationship on a long term basis. This way they can also meet up with the speculations made by
the customers.
Disadvantages- Different customers have different needs and the list goes beyond a number
which states that no company can come up with up anything that satisfies every need of different
customers.
How consumer trends are changing due to the impact of digital technology
Service Automation- consists things such as checking in to the hotels with the help of their apps
or complies with the recognition services of facial scanners so that guest can use that and unlock
their room on their own. After that they get additional services which are done in order to
improve their experience. People want hotels to have services and equipment such as these as
they enjoy these services and feel safer around them. They are working on the development of
AI so that their guest can get the treatment as per their preferences. This means that when they
book the services of hotel another time they will get the room temperature on the basis of that
and other services such as drinks in bar on the basis of that (Jauhari, 2017).
Fixed mobile convergence- Nowadays every hotel offers services of mobile pad, PCs,
entertainment hubs etc. but with the revolution in time and advancement in other factors they
will be able to set the changes in the process of in room phone. Their vision is to use one phone
to take calls, order room service, set the temperature or lightning through that. They can even
receive notifications which are personal or professional so that they remain up to date. These are
the trends that have changed due to the impact of digital technology (Smit and Melissen, 2018).
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Location based services- This is different from just looking after the duties of guests while
checking in and checking out. They have to increase their efficiency so that they can keep track
of activities which are happening in the hotel such as conference center and other locations of
hospitality. They believe that if they have an insight about the current position of guests they can
improve their efficiency. They believe that with the help of that they can improve their way of
marketing such as offer them coupons at the right time. Also they can greet them at the right
time. Apart from that with the help of this aspect hotels such as Marriot have insight about their
employees which helps them to respond in a quicker manner. This makes it easier for them to
deliver any service as they know on which floor they have to go to.
Analyze how cultural, social, personal and psychological factors that influence consumer
behavior and attitudes are changing and driving trends in hospitality
These different factors are changing the trends in sector of hospitality because it is a service
industry which works on the approach of customer oriented and that makes it necessary for them
to work with those measures which satisfies the needs and wants of people.
Critical analysis of the emerging trends in consumer behavior and attitudes
Due to the trends that are emerging in market which is changes in technological and cultural
factors keeps on changing the behavior of customers.
Activity B
The stages of the consumer decision-making journey and map a path to the purchasing
Need Recognition- The first step of the consumer decision making process is to analyze the
need that customer wants so that they can fulfill it. Until they have analyzed their need
management of Marriott puts their focus on external stimulus such as marketing so that they can
spread awareness of their brand and get their trust on them. for instance display their services as
fulfillment of their needs such as luxury rooms and spa.
Information Search- This stage is concerned with looking of customers for information in
different areas so that they can find things that can fulfill their wants. For this they may research
the market or search the reviews online. In order to serve at this stage Marriott needs to make
sure that they are able to help their potential customers out by giving them access to information
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they are looking for. This can be done with the help of funnel or word of mouth as with the help
of customer reviews they will be able to make a purchase (Murphy, Gretzel and Pesonen, 2019).
Alternatives Evaluation- Till this stage consumers of the business are certain with their
expectations which they want as a service. Now they evaluate the offerings of competitors to
assess which one is beneficial to them. They may find some of the alternatives that are low in
terms of price which has additional benefits (Rather and Camilleri, 2019). It is important that
management of Marriott have the knowledge of this aspect and they have information about this
so that they can be prepared to propose their offerings to customers.
Purchase Decision- After gathering all the information that suits and match their preference they
will book the service of hotel. This way they convince their guests to make a decision of
purchase to their services. It is up to the management of Marriott to make them feel that buying
their service was the right decision for them (Rather and Hollebeek, 2019).
Post Purchase Evaluation- This part involves the reaction of both parties about the service
offered and the level of satisfaction the customer got by using their service.
Path to purchase
Awareness- In order to convince customers it is important that they have spread awareness for it.
This is because if consumer is not aware of the brand they won’t consider it. This is why
Marriott invests in awareness of brand.
Consideration- Every consumer has a list in their mind when buying out a service of hotel. It is
the duty of management of Marriott to be in the list of their competitors and prove that their
offerings are superior and better than them (Mariani, Borghi and Kazakov, 2019).
Conversion- This is considered as a crucial aspect for businesses because at this stage
consumers decides to make a purchase and companies have to offer as various multiple methods
as they can so that they do not lose any of the consumer.
Evaluation- It is important that they offer superior service because that will help them to get
loyalty and purchases. This is not considered as important measure but still with the help of this
they can get repeat purchases.
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Important for marketers to map a path to purchase and understand consumer decision-making
It is important that marketers of Marriott must have the strategy for mapping it. It helps them to
analyze what the expectations of customers are from the business. It will help the business to
offer them the right amount of service at each stage. By assessing and understanding the
personas of their target audience they can offer those sources as per their needs and wants during
their journey. It is important that company understand the importance of persona and find out the
desire and their expectations. This way they will be able to increase their value in the eyes of
customers. Process of mapping helps them to assess the areas which matters to customers the
most which they believe they can make better by finding solutions to the detection of problems.
Management of Marriott initiates this step so that they can improve their experience and earn
their loyalty. This way they can get more money out of them by buying of their services or
through other measures (Litvin, Goldsmith and Pan, 2018).
There are different stages in the process of customer journey mapping such as travel idea,
research, booking, stay at hotel and post stay. Different stages have different level of
communication with the customers they want to target as they believe that every customer will
take them on to a different goal. It is important that they have an insight about the behavior and
thought process of customers. This is because it is not easy for them to maintain the level of
engagement or develop a relationship with their customers. The only constant relationship they
will have is when guest is checking in to the hotel and it will be like that till they are staying
there. At that moment customer has to map it and improve their relationships with customers
which will help them to offer amenities as per their convenience. If management of Marriott does
not comply with the process of mapping they won’t be able to maintain the communication as
well as meet the needs of customers which will make them lose their many of the loyal
customers (Viglia and Dolnicar, 2020).
Evaluation of how marketers respond to the decision-making process
Marketers of Marriott are facing difficulty in assessing the process of decision making as
competition in market has increased and thought process of customers is getting difficult to
predict and work on.
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Theories, concepts, and models that influence the decision-making process of consumers
Economic/ Marshalling Model- This theory states that if price asked for services are high then
demand will be low and vice versa. This states that prices of Marriott are high people will
consider it when it is low.
Advantages- This way they will be able to increase their productivity and improve their
strategies which will help them to serve as per the needs of customers.
Disadvantages- Needs of human resources cannot be solved easily.
Maslow’s Hierarchy of Needs- This theory divides needs on different aspects such as safety,
social, basic, esteem and self-actualization. This will not stop until they have achieved it all and
that is why Marriott tries to meet their every needs.
Advantages-Marriott will be able to keep their employees motivated through which they will get
better outcomes.
Disadvantages-Many needs are complex which cannot be understood and that is why they are
left out.
Activity C
Compare and contrast the key differences of the hospitality decision-making process
Basis B2B B2C
Decision making
process
The decision making process in this
model of business is open so that
both customer as well as hotel can
remain satisfied. Marketers of the
company have to understand the
audience and then apply it (Khoo-
Lattimore and Yang, 2018).
This process of making decision
is done by focusing fully with the
intention of increasing their ROI.
On the top of that decisions in this
matter are also taken for
advertisements that are able to
influence consumers.
Targeting audience Hotels applying B2B model sets
their business in niche areas so that
they can assess the demographics
With the help of this method
businesses are able to cover up
large audience which increases
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by attracting them and working on
data in an accurate manner. In order
to do that they have to look for both
qualitative as well as quantitative
methods of research.
their target. Marketers of the
company have one focus and that
is to acquire more customers with
the help of marketing funnel.
Similarities between hospitality decision-making process in B2B and B2C
Basis B2B B2C
Customer service This model also focus on
offering best service to
customers.
B2C also focuses on offering
better customer service so
that they can retain them for
long.
Sales This model is customer
centric (Chang and Cheng,
2021).
As per the customer oriented
models they are able to drive
their sales.
Engagement They are engaged with their
customers.
They are authentic and
believes in engaging with
customers.
buyers Buyers are knowledgeable
and smart.
Same is in the area of B2C
sector.
Different approaches to market research and methods of research used for understanding the
decision-making process
There are two main methods through which businesses such as Marriott conducts their research.
Primary Research- This form of research will be conducted by marketers of Marriott or they
can hire third party business in order to do that. This is done by directly going to their target
audience so that they can get the viable information which is helpful to them. Methods that are
part of these aspect are interviews, surveys, questionnaires, focus groups etc. this research is
general and open ended and most of the time they have to interview them in a small group which
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is also known to be exploratory form of research. On the other hand one other way to work with
this form of research is to be more precise and is used to solve a problem that can be better than
exploratory research. The nature of this research is to be structured and work with interviews that
are formal. Management of Marriott needs to assess that cost of this method is more and the time
it takes to complete is also more but the results through this method are latest and reliable
(Buhalis and Sinarta, 2019).
Secondary Research- This form of research is not latest as it is taken from sources which have
already been published before management or marketers of Marriott considers this research
when they need to take it out urgently. Sources in this measure include agencies of government,
associations of trade or institutions. Usually business that maintains their operations on small
scale comply with this measure as they do not have the resource to afford primary research. They
can take the data through online platforms, journals, articles. One thing that needs to be keeping
in mind is that data taken from private companies will be charged but from government agencies
it will be free (Varkaris and Neuhofer, 2017).
Methods of research to understand the decision making process
Qualitative Marketing Research- This research involves do not dealing with numerical data.
This helps them to understand the figures that were valuable for them and the wastage of
investment in areas which were not able to achieve growth for them. In order to conduct research
with qualitative data there are different sources available such as interviews, focus groups,
observations etc.
Advantages of ethnographic research helps them to get better sources through which they get
easy visual through which they set their relationship with their candidates. On the other hand, its
disadvantages are spending too much time so that they can collect the data which creates
difficulty in selecting the data. Advantage for experimental research is that research done, and
data obtained from it is excellent, but it is a time-consuming process (Yaqub and Halim, 2018).
Quantitative Marketing Research- This research involves dealing with mathematics and
numerical data. With the help of this method they figure out the evaluation of funds in right and
areas that helped them to achieve growth. Also with this they can compare present and past
performance. Sources for this method are surveys and questionnaire.
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Evaluation of how different factors influence hospitality decision-making and buying behavior
Product- Offering of Marriott’s products must be better than their competitors so that customers
feel the money they are paying is worth it.
Price- It is the most important factor and it must be set as per the condition of market or the
audience they are targeting so that they survive in market (Amatulli De Angelis and Stoppani,
2019).
Promotion- Marriott is using both old and new mediums of promotion in order to spread the
awareness.
Place- Marriott has hotels across world and they have been successful in maintain their chain of
supply and distribution efficiently.
Process- They have to form up a process which includes the buying exposure. It relates with the
path of contact which is usually website or distribution of goods or service. Apart from that
company has to look after other processes as well such as post sales service or forming up
relations with others.
People- are the most important aspect in this sector as without them they cannot succeed. It is the
services offered by staff of Marriott that has helped them to achieve their goals. It is important to
provide them with proper training in order to do that (Tuomi, Tussyadiah and Hanna, 2021).
Physical Evidence- This aspect involves risk which is why Marriott experience it on some
customers and then if positive reviews are observed then they offer it to everyone. In order to get
the review potential customers can talk to existing customers and then make a decision of
purchase.
Technological Factors-
Marriott has to take decisions in regards of advancement in this field as the changes
brought by them increases the satisfaction level offered to them which is why it is necessary to
facilitate in their hotels.
Heuristic-
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By taking decisions through this approach management of company will be able to judge
issues in most relatable area which will help to come up with quick solution.
Activity D
How marketers can influence the different stages of the hospitality decision-making process
B2C
Problem Recognition- Most of the decisions involve problems. Marketers of Marriott have to
work ahead of their customers as they have to find out what things is missing in the mind of
consumers so that they can make changes in their promotional strategies and make them aware.
For instance a personalized mini bar which is in the room of the guests (Sthapit and Jimenez-
Barreto, 2018).
Search Process- Marketers of business know that their potential customers will search for
alternatives that is providing them features and amenities such as personalize mini bar so that
they can have their needs fulfilled. In order to influence their mind marketers of Marriott needs
to make sure that their customers are highly satisfied so that they can earn the benefit of positive
word of mouth as this will add their name into recommendation list of many customers and
develop a urge in their mind to consider it. For instance, keep the customers satisfied so that they
do not look for their competitors.
Evaluating Alternatives- Marketers have to make sure that when consumers are evaluating their
alternatives they must promote their brand on the basis of price, quality and superiority in
comparison with other companies so that when they read out their option and compare it with
others they can remain ahead of other brands. For instance marketers of company needs to be
aware about this so that they can show off only good features of their hotel.
Selection Stage- After matching up they take the decision for buying the service. At this stage
marketer cannot do anything as they just have to wait for their decision and see to it which brand
is they choosing. Marketers of company needs to be dealt with patience so that no wrong
impression is passed to customers at this stage.
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Evaluation of decision- After they have chosen Marriott marketers have to make sure that if or
not they were satisfied with their service and in what ways they need to make changes in their
culture so that they can retain them for a long period of time and keep on maintaining the image
of the brand by satisfying their needs (Altinay and Taheri, 2019).
B2B
Problem Recognition- It is important that marketing team make efforts to convince the
customers that their issues can be solved at Marriott. For instance, finding their problem and
invite them with the specific solution.
Need Description- Company needs to form up their website so that customers can easily
understand the aspect of competition and make a decision on the basis of that. For instance, due
to increase and growth of online channel it is important to offer services through that such as
booking or cancelling a reservation with easily.
Product Specification- There are different alternatives in this sector but if marketers work with
efforts they can bring in more customers. Right information will be described by them which will
be selected by higher management of business. For example, they need to compare their services
with that of competitors in order to show off how they are offering a better deal.
Supplier Search- Management serve them with right information as organizations have to cater
the needs of different people which keeps on changing everyday that is why they do not try to
manipulate everyone.
Proposal solicitation- Marketers of Marriott will study their market and from the data collected
they will be able to assess and compare their alternatives. For instance, a detailed research will
be conducted by assessing the past activities of their own and their competitors so that they can
assess and develop their working.
Supplier selection- It is necessary to improve their sales process as that way they will be able to
entice their customers. Company will make sure which process is the best so that they can select
the suitable supplier (Tseng and Wei, 2020).
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Order Routine Specification- It is necessary that marketers of business review and update their
process of sales and purchase on a timely basis so that necessary changes are not left out. Any
update that has done in the hotel must be promoted and bring into the eyes of their customers.
Performance Review- Business customers get motivated in dealing with those who have
positive review about their work and dealings. This involves that if or not business is meeting
their operations in a smooth manner. For example, they need to take use of tools for monitoring
such as KPI so that they can stay at top.
CONCLUSION
From the above studies it has been concluded that management of Marriott needs to understand
the decision making process of consumers as market is vast and competition is high which makes
it difficult to maintain their operations. The perception and behavior of consumers keeps on
changing as per the trends in market due to the rapid revolution. Marketers of company have to
match with that pace so that they can get the expected results to management and achieve
growth. There are different factors that they need to undertake in order to evaluate the forces of
market such as Marketing Mix etc. through which they will be able to have an ample amount of
insight about the behavior of customers and serve them as per their needs and wants. This way
they will be able to retain them and can earn their loyalty which will beneficial to the hotel.
Marriott have to keep touch with these activities and offer them additional benefits at the right
price which must not be more than their competitors as every consumer check the review as well
as prices of their services. If they are not set up rightly then they may lose their potential
audience.
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Tseng, C.H. and Wei, L.F., (2020). The Efficiency of Mobile Media Richness Across Different
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