Hospitality Consumer Behaviour and Insight

This report discusses the factors influencing consumer behaviour and attitudes in the hospitality industry, including cultural, social, personal, and psychological factors. It also explores how digital technology is changing consumer trends and the importance of mapping a path to purchase and understanding consumer decision making. The report includes a discussion of the stages of consumer decision making and a path to purchase for Crowne Plaza, a multinational chain of hotels.

CONSUMER
BEHAVIOUR AND
INSIGHT
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Define cultural, social, personal and psychological factors which influence consumer
behaviour and attitudes...............................................................................................................3
P2 Define how consumer trends are changing due to the impact of digital technology.............5
TASK 2............................................................................................................................................6
P3 Define different stages of consumer decision making journey and map a path to purchasing
for hospitality industry................................................................................................................6
P4 Define why it is important for marketers to map a path to purchase and understand
consumer decision making in hospitality industry .....................................................................8
TASK 3 ...........................................................................................................................................9
P5 Comparing and contrast differences between B2C and B2B using examples ......................9
P6 Evaluation of different approaches to market research and methods used for understanding
decision making process ..........................................................................................................10
TASK 4 .........................................................................................................................................10
P7 Evaluation of how marketers influence different stages of hospitality decision making
process with relevant examples.................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES .............................................................................................................................13
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INTRODUCTION
Consumer behaviour and insight is the approach of understanding human behaviour
through which the reactions and actions of an individual can be understood. The study of
consumer behaviour and their reaction can be helpful for organisation to understand consumer
demands and plan strategies according through which organisational efficiency can be enhanced.
The concepts of consumer behaviour and insight is the ability to understand the changing
consumer buying and spending potentials through which an organisation can meet their targets
and strengthen their competitive position within the industry (Attiq and et.al, 2021). Crowne
Plaza is a British multinational chain of hotels which has been operating since 1983. The parent
company of this hotel chain is InterContinental Hotel Group which is nearly operating in 100
countries with more than 431 hotels in major cities and countries. This report will define the
factors which are responsible for creating an impact on the consumer behaviour and how digital
technology can bring change to consumer behaviour. The report will also study about the stages
of consumer decision making through which a path to purchase can be created which will be
helpful n understanding the decision making process of consumers. The project will reflect the
differences between B2C and B2B and will outline approaches which will be helpful in
understanding the consumer decision making process. Lastly, the influence of consumers at each
stages will be discussed to understand the hospitality decision making process.
TASK 1
P1 Define cultural, social, personal and psychological factors which influence consumer
behaviour and attitudes
Consumer behaviour is the feeling of favourableness or unfavourable that an individual
can have towards an object, product or service. The term consumer behaviour is used to define
the approach of consumers in respect to their buying and spending potentials. There are various
factors which are responsible for creating an impact on consumer behaviour and such factors
are- cultural, social, personal and psychological. In relation to Crowne Plaza, the factors which
are responsible to create an impact on the consumer behaviour are briefly discussed below:
 Cultural Factors- Cultural factors are those factors which relates to culture, sub-culture
and social class which are responsible to create an impact on the consumer behaviour and
decision making (Cayolla and Loureiro, 2021). The cultural factors reflects the shared
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values and beliefs of an individual or a group through which an organization can sustain
in industry by understanding the decision making and changing consumer patterns. The
cultural elements are the values of consumers which can be developed in consumers
through family or through society. In relation to Crowne Plaza, this hotel will focus on
understanding cultural factors of their target segment through which they can understand
behaviour of their consumers and focus on building loyal customer base. The hotel
understands and respects the cultural values of others where the hotel acknowledge the
preference of customers and offers them packages through which they can market
consumer expectation which will support in meeting their demands and level of
satisfaction.
 Social Factors- Another factor which is responsible for creating an impact on the
consumer behaviour is social factors which are related to family, status, role and
reference groups of people (Clark, Trimingham and Wilson, 2020). Some of the other
social factors, such as- family, -peer, groups, role and status are some of the other factors
which leads to change in consumer spending potential and buying behaviour. In relation
to Crowne Plaza, the hotel will be focusing on offering packages and plans according to
their social status which will be helpful in meeting their demands. The other plans
packages of various income level and luxury packages through which they can meet the
demands of their consumers by understanding the market and consumer demands.
 Personal Factors- The lifestyle, income level, occupation personality are some of the
personal factors which are sole responsible for creating an impact on the consumer
behaviour and their decision making habits. Such factors allow costumers in planning and
selecting packages and services as per their lifestyle standards (Flaherty and et.al, 2019).
In case of Crowne plaza, the company focuses on understanding the personal factors with
the help of market research which is helpful for the hotel to plan packages and offers that
can be aligned with the income and preference of their target market through which they
can create a strong and loyal customer base.
 Psychological Factors- Another factor which is responsible for creating an impact on the
consumer behaviour are psychological factors which are- learning, motivation, attitudes
and beliefs of consumers. Some of the other psychological factors, such as- self esteem,
self-actualization and some other needs which can cater an impact on the spending
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potential and consumer interest within a product or service. In relation to Crowne Plaza,
the hotel will focus on understanding the emotional, cognitive and motivational aspects
of their target market which will be helpful in planning packages that an support hotel in
meeting the standards and criteria of customers. The understanding of such factors are
helpful for the hotel chain in meeting consumer demands and in generating profits.
P2 Define how consumer trends are changing due to the impact of digital technology
The rise of digital technology and transformation is responsible to create a huge impact
on the consumer trends are are one of the major factors which are responsible to bring change in
consumer buying and spending potentials. In case of Crowne Plaza, the hotel will understand the
the fact how digital technology is responsible for creating an impact on consumer behaviour
which is addressed beneath:
 Use of mobile app- Mobile based purchasing are outgrowing the growth of online
market and this is responsible for creating an impact on the consumer behaviour. The
incline in use of mobile applications has been offering consumers variety of options
through which they can select the most suitable one (Johnstone and Lindh, 2018). Such
factors are responsible for offering information which can be helpful in offering the basic
information through which consumers can avail loyalty programs and improve customer
engagement. In relation to Crowne Plaza, the hotel operates through various mediums,
such as- social media platforms, website and other channels through which they can
connect with their customers and generate higher revenues by understanding the
consumer behaviour with changing technology.
 Mobile based payment applications- As the technology have been changing, this has
been responsible for bringing change to the payment options which has been offering
online payment options to consumers which can make payments more easier (Changes in
consumer behaviour due to digitalization, 2020). In relation to Crowne Plaza, the hotel
started using online mediums, such as QR codes, Mobil number payments, online bank
transactions through which customers can easily make pre paid purchases or make
purchases at the hotel hassle free. The hotel understands the changing market trends
through which they can meet consumer demands and their expectation which will be
helpful in maintaining the organisational profitability.
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 Social media- The value and power of social media have been increasing due to the
change and transformation in technology. The companies can make use of social media
platforms, such as- Instagram, Whatsapp, YouTube and more. Such mediums and
channels are responsible for creating an impact on the consumer behaviour (Kimawati
and Moser, 2018). In case of Crowne Plaza, the hotel is making use of social media
platforms through which they promote their products and service which supports the
hotel chain in attracting customers and creating a significant impact on the consumer
behaviour and insight. Such factors are responsible for enhancing the competitive
position, brand awareness and online presence of the company which can support in
meeting the consumer demands.
TASK 2
P3 Define different stages of consumer decision making journey and map a path to purchasing
for hospitality industry
Consumer decision making is a five stage process which reflects the stages and actions
that are taken by consumers while buying the products and services. The whole process of
consumer decision making journey which defines how consumers are becoming aware and
making purchase for the selected product sand services. The consumer journey map involves
five stages, which are- need recognition, informations search, evaluation of alternatives,
purchase and post purchase behaviour. Talking about Crowne Plaza, the company will define the
stages of consumer decision making journey which has been addressed underneath:
 Need Recognition- In relation to Crowne Plaza, the hotel will be following this first
stage in which they will evaluate the problem which can influence consumer behaviour.
In this stage, the hotel will focus on evaluating the needs and demands of their target
marker through which they can meet consumer demands and focus on building strong
and competitive position within the industry (Maison, 2018). In order to attract
consumers, Crowne Plaza will be increasing their awareness through various online and
traditional promotion channels which will be helpful in creating their brand presence.
 Information Search- This is the second stage of consumer journey mapping which is the
process of recalling past information which have been gathered and stored in the
memory. In this stage, Crowne Plaza, the hotel focuses on seeking information in the
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external environment. In this stage, the consumers can search company information and
their services through which consumer loyalty ca be managed and this will be helpful in
meeting the organizational objectives.
 Evaluation of Alternatives- In this stage of consumer journey mapping, after gathering
information, consumers evaluate the collected information through which they can list the
possible alternatives. In this stage, consumers evaluate the alternatives as per their
preferences. In relation to Crowne Plaza, the company will focus on developing leads
through which they can ensure greater number of leads can be converted (Niedermeier,
Emberger‐Klein and Menrad, 2021). In this stage, consumers evaluate the alternatives
offered through the selected hotel bad compare them with other hotel chains through
which they can select the possible alternative.
 Purchase- This is the second last stage of consumer journey which is the purchase stage
of consumer decision making through which an organisation can evaluate the consumer
purchase decision and selection of alternative which have been selected by them. In
relation to Crowne Plaza, this stage will bring a sense of clarity for the hotel through
which they can evaluate their performance and conversion rate which can also be used in
evaluating the profit margins. This stage will assist the hotel in identifying customer
availability through which they can evaluate their cusy6omer base and goodwill within
the industry.
 Post Purchase- This is the last stage of consumer decision making which support in
understanding the consumer opinion, opinion about the products and services and
perception for the brand. In case of Crowne Plaza, the hotel will focus on offering quality
customer service post-purchases through which they can create a strong an competitive
the position within the industry (Santos and et.al, 2021). The hotel will analyse the
consumer behaviour with the help of taking their feedbacks and asking them for review
through which they can understand their performance and ensure a larger customer base
can be created.
Path to purchase
Path to purchase is the process which defines consumer journey across various
touchpoints which are faced by consumers before making a purchase. The path to purchase is
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evaluated with the help of marketing funnel. Talking about Crowne Plaza, marketing funnel will
be helpful in evaluating consumer journey through various stages, which are-
 Attention: In relation to Crowne Plaza, the consumers gathers awareness for an
organization and their products and services through online and offline marketing
channels (Smith, 2019). For Crowne Plaza, the company will promote their products and
service through social media platforms (Facebook, Instagram, YouTube, Website)
through which they can gather information about the company and their offerings.
 Intention: This is the phase where consumers think they can resolve their queries by
interacting with the companies. In relation to Crowne Plaza, the hotel will provide
assistance to their consumers through which their queries can be resolved.
 Desire: In this stage, the consumers of Crowne Plaza will take actions through which
they can make a purchase after evaluations of their alternatives and after resolving their
queries.
 Action: In this stage, the consumers of Crowne Plaza will take actions and make
purchase and perform the required formalities which needs to be done. This is the last
stage which reflect the purchase decision which have been taken by the consumers.
P4 Define why it is important for marketers to map a path to purchase and understand consumer
decision making in hospitality industry
It is essential for marketers to map a path to purchase which will assist them in
understanding decision making of consumers. In relation to Crowne Plaza, the importance of
mapping a path to purchase for this hospitality hotel chain is defined below:
 This helps in allowing Crowne Plaza in optimizing the on boarding process through
which they can select competent candidates which can perform best up to their potential
can be assist in meeting consumer demands.
 This will be helpful for the marketers of Crowne Plaza to benchmark the customer
experience through which they can maintain their competitive position within the
industry (Customer journey map, 2020).
 This helps marketers understand their differences in buyers persona which helps the hotel
in higher conversion through buying funnel.
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 With the help of consumer journey mapping, this supports the marketers of Crowne Plaza
to position the products and services of hotel effectively through which they drive better
outcomes.
TASK 3
P5 Comparing and contrast differences between B2C and B2B using examples
The comparison between the B2C and B2B in hospitality industry is discussed below:
Basis B2C B2B
Alternative evaluation In this aspect, customers
compare the products and
services which are offered by
the companies through which
consumers can evaluate the
alternatives based on their
preferences and availabilities
(Spangenberg and Lorek,
2019).
In such form of business,
consumers evaluate
alternatives based on their
suppliers through which they
can select most desirable
option which will be helpful in
meeting the demands.
Need identification In such form of business, the
consumers evaluate the
demands of products and
services. In context of Crowne
Plaza, the company will
promote and advertise their
product portfolio trough which
they can gather consumer
attention.
In B2B business, the
companies collaborate with
other companies through
which they can bring
innovation to business and
meet the demands and level of
satisfaction of employees
(Szmigin and Piacentini,
2018).
Values This domain is helpful in
maximizing the value of
transactions.
On the other hand, such
business are responsible for
maximizing the value of
relationships.
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P6 Evaluation of different approaches to market research and methods used for understanding
decision making process
By conducting an effective market research, there are various methodologies which can
be followed by marketers. Some of the approaches which can be followed by the marketers of
Crowne Plaza are:
 Primary method- This is the methodology of data collection in which marketers will do
be extensive research through which they can evaluate the consumer behaviour and their
preferences. This will be helpful in understanding the changing consumer patterns with
the help of questionnaire and surveys (Testa, Iovino and Iraldo, 2020). Some of the other
primary sources which will be used by the hotel is interview which will involve face to
face interaction that can support in meeting consumer level of satisfaction., this can be
managed by the hotel by taking interview of their consumers where they can
understanding their preferences and plan strategies accordingly to met desired targets.
 Secondary method- With this form of marketing, the company uses already published
and collected data through which they can evaluate the changes in consumer behaviour.
The type of methodology which can be used by Crowne Plaza as secondary methodology
are collected through published journals, articles and other sources.
TASK 4
P7 Evaluation of how marketers influence different stages of hospitality decision making process
with relevant examples
Marketers are responsible for creating an impact on the different stages of consumer
decision making. The influence of marketers at different stages of hospitality decision making
for Crowne Plaza is explained underneath:
 Need Recognition- In this stage, marketers of Crowne Plaza promote their products and
services through online channels which helps the brand in creating brand value and
online presence in the market place through which the hotel can gain attention of target
market and their consumers.
 Information Search- In this stage, Crowne Plaza focuses on establishing competitive
position within the industry by posting interactive content and post with the help of their
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social media channels and website (Wycherley, 2021). The promotions and posting
through various platforms will be helpful in influencing customers to browse and search
information through which consumes can gather information which can make them
understand in relation to the products and services of the company.
 Evaluation of Alternatives- In this stage, consumers are influenced by marketers of
Crowne Plaza in which they can influence consumers in making a purchase of products
and services from the selected company (Yamoah and Acquaye, 2019). In this stage,
Crowne Plaza, the hotel will position their products and services effectively in front of
their customers through which they can meet the demands of consumers and lead to high
consumer conversion rate.
 Purchase- In this stage, the marketers of Crowne Plaza will influence customers with the
help of their effective communication and convincing skills through which they cab
make a purchase with the brand itself.
 Post Purchase-As this stage is inevitable, the marketers of Crowne Plaza focus on
offering the post services to their customers through which they can retain greater
number of customers which will be helpful in creating a loyal customer base and will also
help in attracting new customers as well.
CONCLUSION
By the detailed analysis of report, it can be evaluated that consumer behaviour is the
reaction of consumers and their opinion for products and services of specific brands. There are
various factors which are influencing the consumer behaviour. The factors, such as- personal,
psychological, cultural and other factors are creating significant influence on the consumer
spending and buying potential which has been influencing their spending potential and their
interest in a products and service. The process of consumer journey mapping is the
understanding of sequence of actions which are formed by consumers while making a purchase.
By mapping a consumer journey, this can be helpful in understanding the decision making
process of consumers through which their opinions and interest can be evaluated which will
support companies in meeting the targets and in supporting companies in strengthening their
competitive position within the industry. In order to influence the consumer behaviour,
companies focus on promoting their products and services through various mediums through
which they can create a significant impact on consumers. As the path to purchase is not linear,
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this makes consumers go through various phases while making a purchase in relation to products
and services.
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REFERENCES
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Szmigin, I. and Piacentini, M., 2018. Consumer behaviour. Oxford University Press.
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Online
Changes in consumer behaviour due to digitalization, 2020 [Online]. Available through
<https://www.infovision.com/6-changes-in-consumer-behavior-due-to-digital-transformation-in-
retail/ >
Customer journey map, 2020 [Online]. Available through
<https://www.salesforce.com/uk/blog/2016/03/customer-journey-mapping-explained.htmlb>
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