Hospitality Consumer Behaviour and Insight (Doc)

Hospitality Consumer Behaviour
and Insight

Table of Contents
INTRODUCTION...........................................................................................................................1
P1) Study various cultural, social, psychological and personal factors which influence
consumer behaviour in hospitality context. ..............................................................................1
P2) Discuss how consumer trends are changing due to impact of digital technology................4
P3) Throw-light on the various stages of decision making journey and map a path to
purchasing for Hilton..................................................................................................................5
P4) Focus why it is essential for marketers to map a path to purchase and understand
consumer decision making in hospitality sector.........................................................................6
P5) Focus on comparison between B2B and B2C .....................................................................7
P6) Examine distinguish approaches to market research and ways adopted for better
understanding decision-making process.....................................................................................8
P7) Examine the of role of marketers on hospitality decision-making process..........................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality industry is a broad concept within service industry. It covers theme parks,
transportation, restaurants, lodging and so on (Altinay and Taheri, 2019.). They study external
environment and make changes accordingly in order to satisfy emerging needs and wants of the
customers in intense competitive world. By providing quality services to the client positive
image is build in the mind of the consumers which push to visit the same place again and again.
This report is based on Hilton which is located in Tysons Corner, United States. This leading
company came into existence in the year May 31, 1919 by Conrad Hilton. This report covers
social, cultural, psychological factors impacting consumer behaviour and attitudes within
hospitality industry. Throw-light how consumer trends are fluctuating due to emerging digital
technology in positive or negative way. Numerous stages of decision making journey is studied
so that best results can be achieved accordingly. Deep analysis is done in context of marketers to
understand the importance of map a path to purchase and understand consumer decision making
in hospitality sector.
P1) Study various cultural, social, psychological and personal factors which influence consumer
behaviour in hospitality context.
Covered in PPT
P3) Throw-light on the various stages of decision making journey and map a path to purchasing
for Hilton.
In open market place Consumer decision making stages mentioned below:
Pre-purchase: For making a decision regarding pre purchase of goods customer undergo
different level which are as stated as under:
 Need recognition: Before purchasing the product from the market they investigate need
for the product in open market place. By doing the quarries related to the product can be
overcome and best decision can be taken.
 Searching and gathering information: Client take feedbacks from friends, relatives,
other customers review and make comparison study them deeply. All benefits and
disadvantages are studied and analyse weather it is standing on it's expectation level or
not.
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 Evaluating the alternatives: Before finalizing the product alternate sources present in
the market are evaluated with the decided one. It clears all the doubt why the chosen
product is more effective and beneficial in nature (Gibson and Parkman, 2018).
 Purchase: In this stage customer purchase the good and has paid value for the item. Now
the purchased product is ready to use so that it's actual results can be ascertained weather
it is justified with the value paid or not.
 Receive: In this consumer decision making stage good is finally with customer. Product
satisfied that customers create mouth publicity due to which set goals and objectives of
firm are meet in the set time frame.
 Post purchase evaluation: In this particular stage final conclusion is done whether the
value of the product is full-filling the expectation level or not. If outcomes is positive
then there are chances that further transaction raises. If not switching rate of potential
consumer to other top brand will uplift.
P4) Focus why it is essential for marketers to map a path to purchase and understand consumer
decision making in hospitality sector.
In neck to neck competitive world marketers mapping a path for consumer decision helps in
following ways : Increases ROI : Return on investment raises when the products and services are
successfully commercialized in intense competitive market place . It can be done by
understanding the purpose of customers and gradually stimulating them to make buy the
it (Jauhari, 2017).
 Unified customer data and continued engagement : Here, in this particular case it
directly asset in distinguishing the data of customers with similar needs and wants. Also,
unifying them so that tactic can be developed in order to attract target segment of
customers.
Mapping helps to identify the levels of efforts that are required for products or services :
 Extensive problem solving : In this case, extra efforts are made to motivate customers to
purchase unfamiliar product from market place.
 Limited problem solving : Familiar product less effort are made to stimulate consumer to
purchase the product . They automatically gets attracted to familiar product in the
market.
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 Routine response behaviour : Here, set of questions are asked from client so that
improvements in product can be done id needed.
Four views in hospitality decision-making : Economic view : Customer take decision by viewing all the terms and conditions.
However, customers select hotels depending on the price of hotels along with amenities
and facilities provided by them. According to their budget they select hotel. Passive view : in this case, customers select the hotel on promotion basis then it is called
as passive view. Cognitive view : On the basis of interest client purchase hospitality service that assist
marketers to make packages accordingly (Moro and Rita, 2018).
 Emotional view : Here, customer prefer or choose the services based on their emotional
attachments such as, choosing coastal side hotels.
Some factors that influence consumer decision-making are as follows :
 Influence of heuristics : Here, client take decision by getting influenced by their present-
day emotions.
Influence of elements of marketing-mix : Marketing-mix includes numerous factors like,
product, people, place, price, promotion, physical evidence and so on. All this directly impact
decisions of customers. The marketers in designing strategies in order to attract customers
towards their products and services served in cut throat competitive world. .
P5) Focus on comparison between B2B and B2C
The difference between B2B and B2c are as follows:
Basis B2B B2C
Meaning Here, selling and purchasing is
done between businesses
entity. For example any two
or more hotels are merging
together in order to form a
chain of hotels under same
brand name
This states that when
transactions are taking place to
fulfil the demand of customers.
For example: serving food in
the restaurants to their client
(Olya and Tümer, 2019.).
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Focus They build good relations with
other businesses in order to
gain benefit in the up-coming
years.
They mainly focus on
providing best quality service
to customers.
P6) Examine distinguish approaches to market research and ways adopted for better
understanding decision-making process.
Market research approach for B2B : Secondary data is used which is already gathered from
the firm in order to build healthy relations. Some of the sources of this data are explained as
under: Government agencies : on government sites this data are available easily. It will assist
businesses in designing tactics which will help hospitality industry to cut down the
impact of economic conditions on trade.
 Publications : There are some other sources through which information and data can be
accumulated about business (Samoggia and Riedel, 2018). Newspapers, articles and
magazines help in assembling data regarding businesses so that strong relations can
bebuild.
Market research approaches for B2C : From Primary data information is gathered for this
research. The information is gathered from various sources which are stated as: Questionnaire : Here, set of questions are framed and are randomly asked to the
respondents. Theses questions mainly focus on studying the factors which impact their
decisions in hospitality industry either in positive or negative way.
 Customer feedback : It is important to take feedbacks from customers after receiving the
service. By examining the feedbacks necessary changes can be done in order to satisfy
the customer expectation level.
P7) Examine the of role of marketers on hospitality decision-making process
In intense competitive world marketer play an essential role in influencing the decision-
making process of customers. They are held liable for making strategies and policies in order to
attract consumer and conveyancing them to buy their products and services. By doing so it can
satisfy their needs and demands in cut throat competitive world.
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The several stages of decision-making which can be influenced by marketers are explained
as follows: Need recognition : In the hospitality sector by surveying about the demands of customers
can be done by taking clients review. By evaluating the feedbacks management can work
on the loop holes for better outcomes as compare to competitors. For example: Providing
pick-up and drop facilities to the customers from airport (Sthapit and Jiménez-Barreto,
2018). Search for information : Hotel can make their official websites where all the mandatory
information can be uploaded and client can visit as and when needed. It will aid them to
pull large section customer for the service as well as motivate them to take best decision. Evaluation of alternatives : To bind customers for longer time period marketer can
provide special discount rate on hotels so that best alternative option of hotels can be
selected by customers.
 Purchase decision : In order to raise the sales volume of the hotel marketers can
influence purchases of the hotel by giving them complete details. It will directly or
indirectly increses productivity level (Sthapit and Jiménez-Barreto, 2018).
CONCLUSION
From the above it can be summarized that there are various factors like, social, cultural,
personal etc. influencing decision making process. Strategies are framed to overcome this factors
in order to run the business smoothly. How digital technology is impacting consumer trend are
studied so that accordingly firm can implement them to satisfy the customers needs. Consumer
decision making stages are studied deeply in order to make further improvements for better
outcomes. Differentiation between B2C (Business to consumer)and B2B (Business to business)
is done to better understand the concept if each one. Along with this importance of marketer to
map a path to purchase is examined effectively so as to understand consumer decision-making
in hospitality sector. Marketer scan the dynamic environment so to make make changes in
internal working style. By doing so set goals and objectives can be attained in cut throat
competitive world.
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REFERENCES
Books and Journals
Altinay, L. and Taheri, B., 2019. Emerging themes and theories in the sharing economy: a
critical note for hospitality and tourism. International Journal of Contemporary
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Bharwani, S. and Jauhari, V., 2017. An exploratory study of competencies required to cocreate
memorable customer experiences in the hospitality industry. In Hospitality Marketing
and Consumer Behavior (pp. 159-185). Apple Academic Press.
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Gibson, A. and O’Rawe, M., 2018. Virtual reality as a travel promotional tool: Insights from a
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Gibson, P. and Parkman, R., 2018. Cruise operations management: Hospitality perspectives.
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Jauhari, V. ed., 2017. Hospitality Marketing and Consumer Behavior: Creating Memorable
Experiences. CRC Press.
Moro, S. and Rita, P., 2018. Brand strategies in social media in hospitality and
tourism. International Journal of Contemporary Hospitality Management.30(1).
pp.343-364.
Olya, H.G., Bagheri, P. and Tümer, M., 2019. Decoding behavioural responses of green hotel
guests: A deeper insight into the application of the theory of planned
behaviour. International Journal of Contemporary Hospitality Management.
Olya, H. G., Bagheri, P. and Tümer, M., 2019. Decoding behavioural responses of green hotel
guests: A deeper insight into the application of the theory of planned
behaviour. International Journal of Contemporary Hospitality Management.
Samoggia, A. and Riedel, B., 2018. Coffee consumption and purchasing behavior review:
Insights for further research. Appetite, 129, pp.70-81.
Sthapit, E. and Jiménez-Barreto, J., 2018. Exploring tourists' memorable hospitality experiences:
An Airbnb perspective. Tourism Management Perspectives. 28. pp.83-92.
Verma, V.K. and Chandra, B., 2018. An application of theory of planned behavior to predict
young Indian consumers' green hotel visit intention. Journal of Cleaner Production.
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Wan, L. and Chan, E., 2019. Failure is Not Fatal: Actionable Insights on Service Failure and
Recovery for the Hospitality Industry. Boston Hospitality Review. 7(1).
Online:
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Cultural factor. 2018. [Online] Available Through:<https://businessjargons.com/cultural-factors-
influencing-consumer-behavior.html/>.
Personal factor. 2018. [Online] Available Through:<https://businessjargons.com/promotional-
planning-process.html/>.
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