Hospitality Consumer Behaviour and Insight

This report analyses the crucial factors that impact consumer behaviour and attitudes in the hospitality industry. It discusses cultural, social, personal, and psychological factors that influence consumer behaviour. It also examines the impact of digital technology on customer behaviour and attitudes, the consumer decision-making journey, and the importance of understanding consumer decision-making paths for marketers. The report is based on Premier Inn, the largest hotel chain brand headquartered in the UK.

Unit Number and Title 19:
Hospitality Consumer
Behaviour and Insight

Table of Contents
Introduction:.....................................................................................................................................3
Analysing crucial factors influencing consumer behaviour and attitudes:.................................3
Impact of digital technology on customer behaviour and attitudes:...........................................5
Discussion of the consumer decision making journey:...............................................................6
Importance of understanding consumer decision making path for marketers:...........................7
Discussion of key difference between B2B and B2C in decision making process:....................9
Evaluation of different market research methods or approaches for understanding customer's
decision making process:..........................................................................................................11
Discussion of the influence of marketers in customer decision making process:.....................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

Introduction:
Consumer behaviour is the analysis of the actions of customers related to buying and
consuming of goods and services in order to identify and quench their needs and wants. This
study is basically performed by managers in order to know the expectation of customers with the
company. For this report Premier Inn is taken into consideration which is a premium and largest
hotel chain brand headquartered in UK. The report will highlight crucial factors that can impact
consumer attitude and behaviour and how digital technology puts an impact on changing
consumer trends. The report will further include the stages of the customer decision making
journey and developing path in order to understand the consumer decision making process. The
report will further involve the stages of decision making process done by marketers of hotel
industry.
Analysing crucial factors influencing consumer behaviour and attitudes:
The study of consumer behaviour helps the company to make product and services
according to the needs and wants of customers in order achieve satisfaction of their needs. In
context to Premier Inn hotel, the behaviour and attitude of consumers in hotel industry is
influence by different factors such as cultural, social and many more(Tyagi, A., 2018). The
behaviour of customer is influenced by numerous factors some of them are:
Cultural factors:
This factor posses an important influence on the behaviour and attitude of the consumers.
The factors which involves basic values, wants, needs and perceptions of customers that are

reflected from the influence of society in which they live. The different elements of cultural
factors that influence the behaviour of consumers in the hospital industry are: Religion: The religious community to which they belong is necessary factor that
influence the consumer behaviour and attitude. The consumers belongs to a particular
religion such as Islam, Hinduism or Christians and are bound with the rules of the
religion(Bigne and et.al., 2018). Caste: The cast to which customers belong is also crucial cultural factor that define the
behaviour and attitude of customers towards the hotel industry. The customers can belong
to low, medium or higher caste in which the demand of higher caste members is
considered luxurious as compared to lower or medium castes.
Social factors:
The buying behaviour of customers is greatly influenced from the social environment to
which they belong (Jain, 2019). The behaviour of costumers is impacted by other members of
society. The explanation of elements of social factors in context to hospital industry is : Family: The family members plays a significant role in impacting the behaviour and
needs of the customer. The consumer can choose the same service that is being chosen by
his/her family members for years. Friends circle: The group of individuals in which the customer belong can also influence
its behaviour to grate extent.
Personal factors:
The factors which are considered as personal to the customers also can greatly influence
the behaviour and attitude of consumers. The following elements of this factor are: Age: The age is key element of personal factor as the behaviour of young person can be
different from the behaviour of older person in selecting the service of the hotel. Income: The income level of customers can also impact its decision ability regarding
selection of the various class of services.
Psychological factors:

These factors are powerful determinant in the analysis of customer behaviour and attitude
(Gejke, 2018). These factors are difficult to measure as compared to other factors. The following
elements of psychological factors are: Motivation: The level of motivation greatly influences the deciosion of comsumers
regarding selection of hotel services.
 Perception: It is the process in which consumer analyse the information about service
and make self judgements about a particular service in order to know which service is
more suitable for him.
Impact of digital technology on customer behaviour and attitudes:
The emergence of new technology has empowered consumers to access and analyse
unlimited amount of information regarding products and services. In addition to this, it allowed
the consumers to compare and contrast different products and services in order to find the best
one that satisfy their needs and wants. In context to hotel industry, digital technologies provides
an opportunity for customers in determining and comparing different services and selecting best
exercises from the available services (Dasgupta and Grover, 2019). The following are the main
effects of technology on consumers of hotel industry are:
Customers are more interacted:
Newer digital technologies provides the customer to become more connected with the
hotel services. The usage of smartphones helped the customers to undertake proper research
regarding which hotel is better in terms of providing services, food and security by checking
reviews of their old customers. In addition to this, the introduction of social media platforms
such as LinkedIn ,Instagram and many more provides the customer to gain necessary information
about the hotel's new services at any time or any place. Moreover, improved technology allows
the customer to select best deal by contrasting the price structure of various hotels.
Usage of multiple devices:
Due to improvement in digital technology, now the customers use more than one device
in order to accomplish their online tasks relating to analysis of best and cost efficient services. In
this, the customer can make their purchasing judgements after analysing the information from the
advertisement's on TV or by using smartphone in order to grab the best service possible.
Furthermore, the presence of multiple devices provides an opportunity for the customer to

identify best pricing by comparing the price structure of selected hotels(Tueanrat, Papagiannidis
and Alamanos, 2021).
Higher customer expectations:
The digital technology has influenced the expectation of consumers from the hotels to the
greater extent. New technologies has provided an opportunity for customers to analyse the best
services in no time. The social media platforms has raised the bar of their expectation level as
the consumers can know about new offerings from hotels by seeing posts on Facebook, linked-in
or Instagram. In addition to this, the presence of technology has motivated the customers to
expect more relevant and targeted services from the hotel in order to improve their experience.
Privacy concerns:
The emergence of digital technology has also created the customers more aware of their
security because of various types of cyber threats and attacks on internet. This lead the consumer
to demand better and more security of their confidential data such as bank account details.
Hence, the privacy threats has transformed the attitude of consumers in relation to purchasing
services online(Pop and et.al., 2021).
Discussion of the consumer decision making journey:
The consumer undertakes basic steps while making the purchase of goods and services.
The process of decision making in purchasing of products and services helps the consumer to
determine which product or service will best leads to satisfaction of their needs. The following
are the basic five stages involved in customer decision making process while selecting the
service of Premier Inn are:
Problem recognition:
This is the foundation step taken by the customer in purchasing decisions as it involves
recognising first the need for a service. The customers needs to analyse that “ why they want to
use service” in order to purchase services from the hotel. After recognising the want or need for
purchasing, the customer try to gather vital information about ways required to full-fill wants or
desire of having services of the hotel. The customer can gather information by using multiple
devices such as watching the hotel advertisements on TV and while using different social media
platforms in order to find necessary information about various services of the hotel.
Information search:

In this stage, the customers gather vital information from internal or external factors as
well as from their past experience with the services that can be positive or negative. The
consumer can search for necessary information about hotel service by going to the hotel location
or can search information with the help of internet search engines. In addition to this, the
consumer can also gather vital data about hotel service by comparing and critically analysing the
customer reviews of the hotel in order to find the best information available which supports the
consumer to define its purchasing decisions(Vakulenko and et.al., 2019).
Alternative evaluation:
After understanding what they want in a service the customers tries to evaluate the large
number of choices available in order to buy best hotel services. The customer analyse different
alternative for making a decision to buy particular service of the hotel. Customer can compare
the price structure of hotel with their competitors in order to find a best deal. In addition to this,
the customer can construct their choice to buy service by focusing on the discounts or gift
rewards given by hotels. Moreover, the customer can also evaluate from where to buy through
considering feedback from previous customers of the hotel(Gupta, 2019).
Purchase decision:
This is the stage where customer successfully shape their mind to purchase services of the
hotel after gathering all the required information and after giving importance to the feedbacks
given by the old customers of the hotel.
Post purchase evaluation:
In this, the customer make evaluations about their experience after utilising services of
the hotel. The consumer can give positive or negative feedback on social media platforms or in
company's website regarding the quality of service, its food or attitude of staff members.
Importance of understanding consumer decision making path for marketers:
The marketers needs to consider decision making process of customers in order to
formulate marketing strategies for the hotel. It is important for marketer to lay its focus on the
factors that strongly influence the decision making power of customers in order to enhance
customer market base and performance. The points that identify the importance of following
customer's decision making path for marketers in relation to Premier Inn are:
 In order to build trust among customer the marketer needs to adopt aggressive marketing
strategies such as creating comprehensive brand campaign to create brand awareness and

recognition of hotel in the mind of its customers. In relation to this, it is important for
marketer to timely recognise needs and wants of customer and provide timely solution
for their problems by undertaking strategic analysis of customer trends in market. This
helps the marketer to attract new customers(Ulaga, 2018).
 It is crucial for the marketer to provide access to valuable information relating to new
hotel services, pricing structure of the hotel or wide range of foods in order to satisfy
information needs of the customers. In addition to this, the marketer should make
customer friendly content in order to draw attention of the potential customers.
Furthermore, By giving attention on including customer reviews to their website the
marketer can increase goodwill of hotel in the eye of customer.
 It is important for the marketer to analyse pricing strategy and service quality of their
competitors to give correct answers when asked by customers in order to frame
purchasing decision. The marketer should be able to answer about why there service is
better than their competitors which can help the marketer to convince customers in order
to buy their service(S0afari and Albaum, 2019).
 It is crucial for marketer to motivate the consumers to purchase their services by
providing exciting new offers such as welcome gifts , gift coupons and discounts. The
marketer needs to update reviews of their old customers in website or social media
platforms in order to convince the customers that their service is better than other
competitors in hotel industry.
 After the customer buy services of their hotel now it is important for marketer to evaluate
their experiences by asking following question:
1. Did needs of the customer achieved?
2. Did customer enjoyed their stay?
The above question will help the marketer to analyse about experience of customer with them. In
addition to this, it is important to remain in touch with the customers through follow up emails in
order to attract new customers from the market.
Discussion of key difference between B2B and B2C in decision making process:
Basis B2B B2C
Main focus The main focus of B2B On the other hand, the main

business is to make Personal
relationships with businesses.
It gives importance to the
interest of target audience by
following moral and ethical
values in business process
(López-López and Giusti,
2020).In relation to Premium
Inn, the company follows this
type of business that leads the
hotel to focus on building long
term meaningful relationships
with the businesses by giving
proper feedback to their
problems and issues.
focus of B2C business is to
make transactional
relationships with the
customers. In addition to this,
this type of business value
building efficiency and focus
on selling high quality
products. In relation to Hilton
hotel, the firm puts its
emphasis more on delivering
high quality service but puts
less focus on building
customer relationships(Zhang
and Du, 2020).
Branding This business activity lays
focus on enhancing branding
through building relationship
with the audiences and
adopting brand recognition
campaigns in order to attract
target audience more
effectively. In relation to
Premier Inn, the company
follows comprehensive
branding campaigns in order to
motivate business persons to
buy their services. In addition
to this, the hotel adopts
branding of its services by
making long term relationship
This business activity focus on
providing quality services to
customers in order to attract
large number of customer
base. In relation to Hilton, the
company focuses on building
its branding campaign by
focusing mainly on providing
quality services and attracting
customers through
advertisement and promotional
activities.

with their customers(Connell
and et.al., 2020).
Relationship horizon The duration of relationship
between the parties involved in
doing business is generally
long term. In context to
Premier Inn, the firm makes
long term mutual relationship
with business parties.
The duration between business
and the customer is generally
short term as compared to B2B
business. In context to Hilton,
the firm builds short term
relationship with its customers
as long as they are part in the
contract.
Buying and selling cycle The length of the buying and
selling procedures between the
business entities is generally
lengthy and time consuming.
In context to Premier Inn, the
transactional activities
between the parties involved is
complex and
lengthy(Szutowski, 2018).
1. The length of business
activities in this
process is generally
short term and less
time consuming
compared to the B2B
business. In context to
Hilton, the
transactional activities
between parties are
short term as it deals
with the short term
satisfaction of
customer needs.
Evaluation of different market research methods or approaches for understanding customer's
decision making process:
Market research is the set of techniques undertaken with the aim of gathering vital
information about customer preferences and wants in the target market. In context to Premier

Inn, the hotel adopts certain market analysis methods in order to design better services and
transforming user experience with the aim of enhancing its competitive edge in market. The
following approaches of market research that the hotel practices are:
Qualitative Market Research:
This type of research is considered as non numerical approach of finding information
about customers in the market by using questionnaires describing certain questions. This method
is undertaken by the hotel in order to seek data related to what customers think about their
services or what are motivational factors that drive them to buy services of the hotel. The
approach supports the hotel to gain deeper insights about the behaviour of customers and helps
the hotel to meet customer expectations in the most suitable manner(Senbeto and Hon, 2020).
Quantitative Market Research:
This type of market research activity is considered as numerical approach to find the vital
information about the customers. In this, the data based on customer is collected in the form of
figures, charts or graphical method. This method seeks for the issues such as reaction of
customers about current service provided by the hotel. The main of this research is to gather
quantitative data about customer opinions and analyse it in order to make better decisions(Garver
and Williams, 2020).
Market research by social media:
This type of market research ensures collection of real time information of the customers
wants and desires by mining into social media platforms such as Instagram, Facebook or
Pinterest. This method assists the hotel to make focused advertisements to target large number of
potential customers in the market.
Discussion of the influence of marketers in customer decision making process:
The marketers of hospital industry can influence customer decision making process by
undertaking following techniques:
Ads: In order to put influence on the customer decision making journey the marketers can make
use of social media Ads or Search engine optimisations to ensure that hotel is viable in the initial
searches made by the customers.
Email templates: In this, the marketer identify best element of its brand that is best responded by
customers. After identifying best elements, marketers can accordingly use constant contact's
branded templates in order to attract attention of the customers.

Audience segmentation: In this method, the marketer can divide target customers on the basis of
their specific needs and wants regarding hotel service. This helps the marketer to deliver
informations about the service of hotel to the undecided customers(York and Poynter, 2018).
Building creative Website: The marketer can make creative and impactful websites in order to
influence customer decision making process. In addition to this, it can help the hotel to retain or
make happy customers by utilising easy to use portals or well informed website.
Conclusion
It has been concluded that analysing consumer behaviour is crucial for any business in
order to convince consumers to buy their products or services. It has been analysed from above
report that factors such as cultural, psychological and many more strongly influence the customer
behaviour and attitudes. It has been further concluded that emergence of new digital technology
has changed the way of decision making process of customers. It has been further analysed the
different stages of customer decision making process and its importance for the marketers. In
addition to this, it has been concluded that the adoption of different market research techniques
provides an insight of customer wants and preferences and marketer can influence the decision
making process of customers by undertaking certain techniques.

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