This document explores the factors that influence consumer behaviour and attitudes in the hospitality industry. It examines the decision-making process, the impact of digital technology, and the different research methods used. It also evaluates how marketers influence consumer decision-making at various stages.
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Hospitality Consumer Behaviour and Insight
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Table of Contents INTRODUCTION...........................................................................................................................3 LO1..................................................................................................................................................3 Examining the factors which influence hospitality consumer behaviour and attitudes -............3 LO2..................................................................................................................................................5 Demonstrating the ability for mapping a path to purchase in hospitality context including decision-making process -............................................................................................................5 LO3..................................................................................................................................................7 Evaluation of the forms of research which are appropriate in order to influence over the hospitality in the process of making decision..................................................................................7 LO4..................................................................................................................................................9 Evaluating how marketers influence various stages of hospitality consumer decision-making process -......................................................................................................................................9 CONCLUSION..............................................................................................................................11 REFERENCES................................................................................................................................1
INTRODUCTION Hospitality Consumer Behaviour Insight is the rendering several trends in behaviour of individual which aims for raising effectiveness of the goods and services across the hospitality industry to their customers. Marriott hotel & resort is the Marriott International flagship brand of full service hotel and resorts. It is also listed in the Forbes for the best company to work with. There are 567 hotels and resort operating under this brand. The report includes the determination of different factors which affect he hospitality consumer behaviour and attitudes. The report further carried forward with the demonstration of ability for mapping path for purchase in hospitality context including decision-making process. Evaluation of appropriate forms of research for understanding affects on the hospitality consumer decision-making process. The report ends with how marketers influence different stages of hospitality for consume decision-making process. LO1 Examining the factors which influence hospitality consumer behaviour and attitudes - Define consumer behaviour - It is the study of how individual organizations, consumer or group purchase, select, use or dispose the product and services, different ideas for satisfying wants and needs of customers. This is the referred as the action of consumer aiming the marketplace and underlay the motives for these actions (Martin, Rosenbaum and Ham, 2015). Various factors which influence consumer behaviour - There are several factors which affecting the behaviour of the consumers are as follows - Cultural- It is stated that an individual learn from the set of values, perception, beliefs and behaviours at the early life stage of the childhood. This can be learned from the parents, teachers, family member's and the various key institution which all are surrounded by the individual during the growth stage. So the cultural behaviour is being from where he or she belongs to. The cultural factors can be- Social class, culture, subculture etc., Social- Individual resides in the social environment where they are surrounded by different people who have various buying behaviour (Litvin, Goldsmith and Pan, 2018). The purchase
behaviour of the consumer is affected by this factor to a great extent. Some of these factors are role, family, status or reference group etc., Personal- There are several factors which influence the individual to personal for making a decision of purchasing the product and services. Some are age, income, lifestyle and occupation etc., Psychological- The individual psychology plays a major role in the consumer's preference which can be dislike or like for the specific product and services. Most of these can be motivation, perception, belief and attitudes and learning. Challenges of quality services delivered to meet consumer expectations - Selling product and services to the consumer and meeting the neds and demands of the consumer is not such easy. For this it needs, wisdom, patience and sharp intellectual for satisfying and navigating the customer's and fulfilling the needs and wants of consumers. The several challenges which are being faced by the Marriott hotel is serving multiple customer at same time on the regular basis. In this situation each and every customer must be treated widely and satisfactory services are being served to them (Mariani and et.al., 2018). Sometime there are many situations which is being faced by the Marriott that they couldn't understand the needs and demands of visitors and quick response is needed by customer which is the major challenge faced by them. Many times customers are being angry and rude which is always faced by the individual who tackle the customer service department in the hotel. It could also be happened that there is no solution provide to the visitors. Impact of digital technology on changing consumer behaviour and attitudes- Digital technology has affected the buying behaviour of consumer's in many ways. Millions of posts, blogs and videos which surfs on internet which attracts the wide range of consumers and also affects the buying behaviour of consumer and changing experience of them (Gursoy, 2018). So Marriott hotel should create their website and online promotion effective so that it is helpful in raising the sales of their services with the help of personalized experience for customers. As nowadays 74% of consumers feel frustrated with useless ads, promotions and offers which appears on website. This is helpful in attracting the wide range of consumers to the hotel and experience the services which is rendered by them.
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Emerging consumer trends which affects the Hospitality industry - From last twodecades the hospitality industry is going through the tremendous changes. There are various emerging trends in this industry which affects the consumers are – Social networks and different website that can be trip advisor had a wide effect on the buying behaviour of consumer. It has created transparency within the customers and quality of services has been improved which is provided by the companies under hospitality industry(Wood, 2017). Channels are distributed by online travel agents across hospitality industry and strong bond is being developed among travellers. The services are managed by the hotels and controlled within many aspects of guest cycle and amazing experience of digitalization which has made easy for the guest so that they can operate and manage all the hotel service with the help of their phone b installing the application of hotel. LO2 Demonstrating the ability for mapping a path to purchase in hospitality context including decision-making process - Define consumer decision-making - The decision-making of consumer involves the customer for identifying needs and wants, collecting information, evaluation of alternative and then the buying decision is being made. Model of hospitality consumer decision-making - The hospitality consumer decision-making model involves five stage model that initially proposed by Cox. It is common model for the decision-making process which includes the decision-making at five stage. The stages consist of the need or problem recognition, information searching, comparison of alternative purchase and evaluation of post-purchase (Chathoth and et.al., 2016). This model clearly illustrate and explains that how a customer can form decision for buying the product and services. Value of forming path for purchasing – Journey of consumer decision-making involves- Recognition of problem or need– The first stage involves recognition of the wants and needs that what product and services is going to be spruced and for what reason and the product selection is on the basis of the want, preference and taste etc., Searching information- the other stage is searching the complete information about the product and service. This can be easily done with the help of internet as the complete
information of any product and service can easily available at the internet (Varkaris and Neuhofer, 2017). Comparing alternatives –While getting the complete information about the product and service the individual can go through various alternative for the product and service on the internet then the appropriate alternative must be selected by compared so that the best alternative can be selected. Purchase Decision-It is the stage where purchase decision is to be taken after evaluation of product and services and then the final chosen product is considered for purchasing and thus final de scion is been taken. Post-purchase evaluation- It is the final stage of consumer decision-making process it vital as, it affects future decision-making process of consumer for similar products. This includes the purchase of products and services for consumers (Sasmita and Mohd Suki, 2015). Differentlevelsofhospitalityconsumerdecision-making,limitedproblem-solving, extensive problem-solving and routine response behaviour - Extensive Problem-solving-At this level consumers are highly involved in good and services & evaluation of product is done on the basis of their establishment criteria which fulfils the needs and demands of consumers. Limited Problem-solving-General searching is to be conducted by customer for good and services which satisfy the general criteria of product and services from selected group of brand. Routine Problem-solving-In this stage involvement of customer is very less in consumer decision-making. The brand and product can be selected which fulfils the needs and demand of company. Four views of hospitality consumer's decision-making that are -Economic-It states that consumer is rational individual so rational decision is being taken by the customer (Chan and Hsu, 2016). Various product comparison, evaluation of their advantages and disadvantages & after that developing a decision for purchasing the product and services on the basis of information which is being collected.Passive-This view state that the customer can take decision according to promotional efforts which are taken by marketers and responding to the advertisement and appeals of
sales which are offered by them (Mohammed, Guillet and Law, 2015). It is opposite of economic model.Emotional-This assumes that all customers are emotional and can instantly act upon the sentiments while taking the purchase decision. When a consumer related themselves with the product it is the most impulsive purchase is being taken by customer for buying the product. Cognitive–It is the best model from other four models of consumer decision-making as it assumes that consumer take decision on their own understanding and their interest in purchasing the product rather than to rational efforts which are made by marketers for promoting the product and services (Gibson and O’Rawe, 2018). Factors which influence decision-making - Influence of heuristics on decision-making-It is the mental shortcut which renders individual for making judgement and solving problems quickly and efficiently. The influence of different elements of the marketing mix on decision-making-The various elements of marketing mix directly influence decision-making of consumers. These elements are Price,Product,PlaceandPromotionwhichhaveinfluencedthedecision-makingofthe consumer. The influence of new technologies -The online shopping and transaction recently had a major effect decision-making of customer and attracts more & more consumers towards them. LO3 Evaluation of the forms of research which are appropriate in order to influence over the hospitality in the process of making decision. Difference in B2C and B2B in process of decision-making B2B There is a commercial purpose in B2B for selling the product and services to the other business. It generally happens from whole seller to retailers. It includes large amount of investment of time and money. In order to make B2B decision the following things are: Low spending and low importance of strategic formation, which involves low focus on the customer which is doing low spending and more focus towards the customer who is purchasing more (Rai. and Lin, 2019.).The strategic formation is complex then the B2C business.B2B focuses on selling large quantities or quantities in bulk at lower prices.
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B2C The sale made is not rational and impulse, it involves short term process and decision-making is done under the B2C is as follows. Not as complex as B2B. Low spending high importance, as it is individual based which means each customer is important. Focuses on selling small quantities at higher price. Difference between the research of the market between B2B and B2C. B2B The market size is small so it is necessary to collect data which is in enough about the detail of the customers and also needed to verify the data in order to achieve better results. B2C The mixed research methodologyisbest suitedfor the B2C business. There isa large geographical disperse in the B2C business. Decision-making process influence. Influence over personality Consumers with different personality will like the products as per their personality (Pourhejazy, Sarkis. and Zhu, 2019). If there are more products and services than it means that there are more choices for the products and services for the customers this will directly influence decision-making. Influence due to motivation also plays a important role in which the customers are attracted by trends prevailing in the market. The customers get motivated by the fashion and then invest in the company. Measures used in learning of customers. The dual goal should include share in the market and customers which are loyal. Market share is provided by the customers which are loyal. A large unit of the loyal purchasers is gained by the large share in the market. Promotional budget is more focused towards teaching the customers that the brand is good and can be trusted for the investment and purchase. Aspect of perception of consumer Dynamic perspective, consumers takes into account references for both internal and external prices and chose the best price for the purchase of the product and delivery of the product it includes dynamic factor in purchasing the product (Greenberg. and Hershfield. 2019). Imaginary products are the products which are imaged on the basis of image of the products assuming premium quality of the product. Consumer used to perceive the risk which is based on
uncertainty of the result of the purchase. The risk includes financial risk, functional risk, social risk and physiological risk. LO4 Evaluating how marketers influence various stages of hospitality consumer decision- making process - Influence of culture and sub-culture on consumer behavior The culture and sub culture affects the purchasing behavior of customers and impact it up to the great extent. Culture is the interpretation of society's character which involves knowledge and language etc., This affects consumer decision behavior which can be high status of consumer generally can spend the hue amount of money in traveling and exploring for which the lavish hotel is book which provides them top class services (Gao, Mattila and Lee, 2016). Besides all this people also travel from one place to another for exploring various culture. This is beneficial for Marriott Hotel to attract wide range of consumer from high to medium class travelers by fluctuating their price and rendering quality services to consumers. This can be a advantage to the hotel as visitors who visit various destination needs hotel for staying, and so they can go through policy of respecting the all religions. Role of opinion leaders The opinion leader have a major role in influencing the buying decision and behavior of individual. These leaders can encourage the individual with their word of mouth and conveys their thought and opinion regarding the product and services. In this industry the main opinion leaders are friends, relatives, travel agents as well as celebrities. Each of them is helpful in attracting the customer in the different ways. The friends and relatives communicate with customers and share their thoughts regarding peculiar hotel, restaurant or destination (Gursoy, 2019). The travel agent plays a major role in this as they had tied up with the hotels and become the opinion leaders who render the best hotels to consumers with their experience. Many celebrities also become brand ambassador for the hotels and shapes consumer behavior. People are highly influence by them as they are endorsing the hotel as it provides the great services to their customers. This will help the Marriott Hotel in the great extent that they can promote and advertise their services on large scale so that wide range of consumer can be attracted to the hotel. As the more opinion leaders means more consumers.
Understanding of buyer behavior for influencing decision-making process- It is very important for marketers to understand the buying behavior of consumers which is helpful for fulfilling the needs and demands of the consumers. The process of decision-making includes a series of different steps in which consumer firstly identify need for peculiar product. Then after the complete information is being gained by the consumer from different sources. After the information is collected then the comparison of product is done and then finally purchase decision is being done for purchasing the product and services. So understanding the buying behavior of the consumer is necessary for Marriott Hotel is important so that they can get to know what their consumer wants from hotel, quality of services they want (Altinay and Taheri, 2019). This helps the in modifying their products and services. It is also important from the revenue point of view as more and more visitors are visiting the hotel the greater revenue will be generated by them and the profitability ratio of hotel can be raised. Useofdigitalaudienceresearchdevelopmentsforunderstandingandinfluencing behaviour of the consumer - Digital audience is also referred as target audience which ca be used by the marketers for product and services. It is the group of people which is targets by company for selling their products and services. Wide range of digitaltechnologiesare used by the company for understanding the behaviour of consumer and influence them. Marriott hotel uses the online survey for knowing the purchasing behaviour of their targeted consumers. With the help of these they can avail to the needs and wants which are wanted by consumer from the hotel and on where they are lacking. They can also get to know about how much of the amount is being spent by the hotel on which services. They also use the e-mail marketing and online marketing for influencing the behaviour of consumer (Xiang, Magnini and Fesenmaier, 2015). Hotel uses personalized email for targeting customers which includes the different offers and deals which can be taken by consumer while visiting the hotel. This is helpful in attracting the consumer to the hotel which provides the exciting deals and offers & world-class quality to them.
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CONCLUSION From the above study it is concluded that the consumer behaviour and insight plays a major role in the hospitality industry. The consumer behaviour is helpful for company for knowing the needs and wants of the consumer so that they can go through that and develop their product and services according to that. So wide range of consumer can be attracted to the hotel which is helpful for them in satisfying the consumer with the high quality services and rendering the best services to the customers. This all directly implicit the profit and revenue of these companies, and they can raise their profit by knowing the behaviour of consumers and develop their policies and strategies according to that. The consumer decision-making plays a major role in raising the company's profit.
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