Hospitality Consumer Behaviour & Insight

Hospitality Consumer
Behaviour and Insight

INTRODUCTION
The Hospitality industry is broad in nature which includes variety of field namely: food
and drinks service, event planning, theme parks, transportation, event planning and several other
additional services. This industry enormously depends on availability of leisure time and
disposable income. Furthermore, hospitality industry is essentially recognised as a section of
wider service industry which focus leisure rather than more basic needs. However, this report is
based on Radisson which is a worldwide upscale brand and is known for stylish design as well as
prime location. It came into existence since 1960. This report is going to cover several aspects
relating hospitality industry. Firstly investigation with regard to different culture and
behavioural factors which impacts the consumer attitude would be made. Reason behind change
in consumers trends would be evaluated. Furthermore, different stages of consumer decision-
making journey would be considered in order to effectively map path of decision-making. Lastly
consideration with regard to different approaches of market research shall be made.
TASK 1
(covered in ppt)
TASK 2
P3
A consumer decision-making process essentially follows a long chain of command
through which decision regarding purchase is made (Martin, Rosenbaum and Ham, 2015). The
buying behaviour is method which is used by marketers in order to decision making process of
customer. Following are the major stages:
 Need Recognition: This is the very first stage of decision-making journey wherein
determination with regard to consumers needs is made. This is considered as an important
step under hospitality sector.
 Information Search: This stage essentially have the ability to change the buyers decision.
Proper information search is initiated by consumers in order to full fill their desired
wants. Information for goods and services are essentially obtained through several
sources like public sources, internet, commercial sources and many other.
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 Evaluation of Alternatives: After proper attaining the required information. Consumer
tends to effectively compare the alternative options which are potentially available in the
market. This evaluation is based on quality price and many other factors.
 Purchases Decision: After carrying out the above stages a consumer usually reaches
towards a particular decision. At this stage evaluation of all the major factors are done
and consumers tends to arrive at a logical conclusion.
 Post Purchase Evaluation: This is the final stage of consumer decision-making process
wherein consumer tends to evaluate the purchased product effectively.
However, every time when a consumer tends to purchase a particular product he
effectively follows the process of consumer decision making process.
For example, there are variety of accommodation services which are essentially available
under hotel. Decision making of customers is essentially dependent upon the level of income and
purchasing power. Consumer essentially follows the full process of consumer decision-making
while purchasing.
P4
Marketers are the individuals who market or make efforts to market a particular product
or service of an organisation. In order to map a path to purchase, it is important to conduct a
relevant market research, so that perception and behaviour of consumer can be ascertained (Saw,
Goh and Isa, 2015). There are various reasons due to which it is important for marketers to map
a path to purchase and they are mentioned below:
 To ascertain consumer perception – In Radisson, marketers map a path of their
consumer to know their purchase patterns so that perception of those individuals can be
ascertained. This evaluation of consumer perception helps marketers to review
consumer’s behaviour which further assist them to know their choices, their likes and
dislikes, their preferences of brands over others and the time intervals in consumer buys a
particular product. All these attributes are then considered by marketers to implement
their organisational plans.
 To influence consumers by offerings – By mapping a path to purchase, marketers of
Radisson ascertain and analyse consumer perception and then implement it in their
offerings. For example: if marketers of Radisson ascertain that their consumers (visitors)
often tend to travel in summer season, so they can offer great discounts in the months of
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winter season so that balance of revenue can be maintained (Varkaris and Neuhofer,
2017).
 Fulfil their demand and enhance organisation’s market share – By mapping purchase
path, marketers of Radisson can analyse demand of their consumer and can make efforts
to fulfil them and this will ultimately enhance market share of this hotel. For example, if
by mapping their consumer’s path to purchase, marketers of this hotel ascertains that their
consumers enjoy early morning breakfasts then they will provide facility of early
morning meals for their visitors. This will satisfy their consumer and results in
enhancement of their market share.
Along with mapping a path to purchase, it is also important for marketers to understand
the consumer decision making as:
 It helps to ascertain that whether or not consumer will buy upcoming services offered by
Radisson. It assists marketers to develop schemes and offerings which will surely attract
their consumers.
 By understanding the consumer decision making will help marketers to develop strategies
and plans in such a way that will attract their consumers. For example, by understanding
a pattern of consumer decision making that consumer tends to avail those services which
can offer multiple offerings such as spa, salon, accommodation and food under one roof
for which they can even pay high prices. Then, marketers will ensure to provide services
with multiple offerings.
TASK 3
P5
Hospitality organisations have wide nature of operations serve to both customers and
businesses in different manner according to their need. Decision making is important aspect
varied according to the nature of party (Liu and et.al., 2017). B2B includes the interrelation of
the two businesses with each other for further expansion and proper regulation of business
activities. B2C involves the direct contact of customers with business personnel’s. There is huge
difference in both type of contacts on the basis of many aspects like scale of operations and other
associated beneficiaries. These become the base for the decision making by management of
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Radisson in respect to carry on their business activities. The same can be understand from the
example presented below:
B2B business includes all the transactions made in between the two businesses i.e.
Radisson and other associated companies of hospitality sector. For ex., Radisson have business
relation with Thomas Cook. Globally, Thomas Cook have large operations and customer base.
This interrelation always allows Radisson to provide accommodation services to consumers of
Thomas Cook in all over the world. This partnership agreement has huge impact over the
earnings of Radisson at worldwide level which influences its decision making process in respect
of the offerings of their services at differentiated price to the consumers of Thomas Cook in
comparison to other normal direct customers. This is so because of the scale of the operations or
business provided by Thomas Cook always in much high number in comparison to the B2C.
Also, other associated beneficiaries which are gathered by the Radisson through this partnership
includes equal number of business opportunities in all over the world, attainment of the
competitiveness and edge over the other substitute organisations etc. This will allow the
management of Radisson to reduce the margin of profit in respect to deal with the consumers of
Thomas Cook because the above mentioned benefits always help to earn more from the direct
B2C business opportunities (Samoggia and Riedel, 2018).
Also, another aspect that derive Radisson to be more linnet towards B2B consumers is
that in partnership agreement they get benefited from some technological and IPR transfers too.
This will provide an opportunity to improve internal business activities along with global
presence in more dominant manner. Transfer of technology like Augmented reality allows
interface of the operations of these two organisation at one platform. It helps consumers and
organisational personnel’s to perform their actions appropriately and deliver their combines
services in more prominent and effective manner.
P6
There are variety of key approaches which marketers essentially adopts in order to carry
out business related activities effectively and this further impacts the decision-making process
enormously. Following are some methods of research which are essentially used for
understanding the decision-making process:
 Surveys: This is a very common method which marketers essentially adopts in order to
effective analyse targeted audience. Herein a straightforward questionnaire is made in
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order to know the views and response of targeted group. There are variety of method
through which surveys are conducted by marketers (Zaltman, Olson andForr, 2015). This
method of market research essentially aids to determine the wants and desire of targeted
group effectively and marketers are able to understand decision-making process.
 Focus Group: This is yet another kind of market research method wherein use of scripted
series of questions and topic is done among group of people. Such sessions take place
Saround neutral locations. Decision-making process of consumers is identified by
marketers effectively through interactions.
 Observation: This is yet another important method of market research. Sometimes
surveys and focus groups market research does not aid to provide necessary information.
Under such situation company tends to focus on observation consumers behaviour
through videotaping. This helps marketers in drawing a clear picture of consumers habits
and desired wants.
TASK 4
P7
There are variety of methods through which marketer’s aids to influence the overall
decision-making process of consumers effectively. Following are the stages of consumer
decision-making process within marketer’s influences:
 Need Recognition: This is the very first stage of consumer buying behaviour wherein the
need for purchasing a particular product arises. With regard to hospitality sector
marketers can effectively influence the consumers (Chan and Hsu, 2016). Herein proper
survey by marketers must be made in order to identify the exact wants and desire of
consumers. Methods shall be adopted by marketers in order to convince customers
effectively.
 Information Search: This stage enormously influences the overall process of consumer
decision-making process. However, with regard to hospitality sectors marketers shall
make use of several strategies through consumers are able to get all the necessary
business related. Marketers shall make use of social media marketing in order to attract
more and more consumers towards them.
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 Evaluation of Alternatives: Herein consumers usually tends to conduct a proper
comparison between the alternative options which are available in potential market.
Moreover, marketers can effectively influence the overall decision-making process by
implementing strategies through which customers can remain brand loyal (Stangl,
Inversini and Schegg, 2016). For example, in context to Radisson the hotel provides
luxurious services to its potential therefore the respective organisation shall give several
offers to its regular customers so that they remain brand loyal.
 Purchases Decision: This is the very curial stage wherein with regard to purchasing a
particular process is made. However, marketers under this stage plays a very important
role because it is their efforts which have motivated customers to make purchase.
 Post Purchase Evaluation: Herein markers are primarily responsible for solving
problems of customers and getting feedback with regard to product or service which they
have availed.
However, it can be observed that marketers play a very curial role in encouraging people
purchase a particular product
CONCLUSION
From the above report it can be concluded that Hospitality sector is considered as one of
the most important sector within an economy which aids to generate huge amount of profits.
However, there are variety of major factors which includes the overall decision-making of
customers with hospitality sector. Due to advancement in digital era customer buying trends are
highly influenced. Consumer usually follows a proper stage of decision-making while purchasing
a particular product and its very curial for marketers to map the journey of consumers. Lastly
consideration with regard to influence of marketers is made.
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REFERENCES
Books & Journals
Martin, D., Rosenbaum, M. and Ham, S., 2015. Marketing tourism and hospitality products
worldwide: Introduction to the special issue.
Saw, S.L., Goh, Y.N. and Isa, S.M., 2015. Exploring consumers’ intention toward online hotel
reservations: insights from Malaysia. Problems and Perspectives in Management. 13(2).
pp.249-257.
Varkaris, E. and Neuhofer, B., 2017. The influence of social media on the consumers’ hotel
decision journey. Journal of Hospitality and Tourism Technology. 8(1). pp.101-118.
Liu, Y. and et.al., 2017. Big data for big insights: Investigating language-specific drivers of hotel
satisfaction with 412,784 user-generated reviews. Tourism Management, 59, pp.554-
563.
Samoggia, A. and Riedel, B., 2018. Coffee consumption and purchasing behavior review:
Insights for further research. Appetite. 129. pp.70-81.
Zaltman, G., Olson, J. and Forr, J., 2015. Toward a new marketing science for hospitality
managers. Cornell Hospitality Quarterly, 56(4), pp.337-344.
Chan, E.S. and Hsu, C.H., 2016. Environmental management research in
hospitality. International Journal of Contemporary Hospitality Management. 28(5).
pp.886-923.
Stangl, B., Inversini, A. and Schegg, R., 2016. Hotels’ dependency on online intermediaries and
their chosen distribution channel portfolios: Three country insights. International
Journal of Hospitality Management. 52. pp.87-96.
Litvin, S.W., Goldsmith, R.E. and Pan, B., 2018. A retrospective view of electronic word-of-
mouth in hospitality and tourism management. International Journal of Contemporary
Hospitality Management. 30(1). pp.313-325.
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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