Hospitality Consumer Behaviour and Insight

This report investigates the factors that influence consumer behaviour in the hospitality industry, including cultural, social, personal, and psychological factors. It also explores how digital technology is changing consumer trends and driving emerging trends in the industry. The report presents the stages of the consumer decision-making journey and maps a path to purchasing in Ritz. It compares and contrasts the key differences in the decision-making process between B2C and B2B and evaluates different approaches to market research. Lastly, it explains how marketers can influence the different stages of the decision-making process.

HOSPITALITY
CONSUMER BEHAVIOUR
AND INSIGHT

TABLE OF CONTENTS
INTRODUCTION............................................................................................................................3
LO1..................................................................................................................................................4
Presenting how consumer trends are changing due to the impact of digital technology............5
Analyse how factors that influence consumer behaviour and attitudes are changing and
driving trends in hospitality........................................................................................................6
Critically analyse of the emerging trends in consumer behaviour and attitudes through
examples......................................................................................................................................6
LO 2.................................................................................................................................................6
Presenting stages of consumer decision- making journey and map a path to the purchasing in
Ritz..............................................................................................................................................6
Presenting importance to map a path of purchase and understand consumer decision- making 7
Evaluate how marketers are responding to the decision-making process through examples.....8
LO 3.................................................................................................................................................8
Compare and contrast the key differences of the hospitality decision- making process in the
context of B2C and B2B.............................................................................................................8
Different approaches to market research and methods of research.............................................9
M3.............................................................................................................................................10
LO4................................................................................................................................................10
Explaining how marketers can influence the different stages of decision- making process.....10
Evaluating how marketers are responding to the decision-making process.............................11
M4.............................................................................................................................................12
D2..............................................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Consumer behaviour in hospitality industry targets to study consumer and tourist in
different leisure and touristic places. The entire study is based upon Ritz which is one of the top
hotels operates in hospitality industry and attract range of customers towards it. The report will
explain the factors that influence the hospitality consumer behaviour and then examine the stages
to map a path in order to purchase the product for effective decision-making process. Also,
report evaluate the appropriate forms of research in order to understand the influence on
hospitality industry. Lastly, it evaluates how marketers influence the different stages of a
hospitality consumer decision-making process.
LO1
Investigate different cultural, social, personal and psychological factors that influence consumer
behaviour
There are many factors that influence the consumer behaviour within a hospitality
industry which are as mentioned below:
Cultural:
 Buyer’s culture: In the context of consumer behaviour, beliefs and values guide learners
and then it influences them to make effective decisions. For example, customers of each
people differ from others and they choose the product accordingly.
 Buyer’s Subculture: Subculture always develop around communities though which
beliefs and experience shared (Sota, Chaudhry and Srivastava, 2020). There are many
customers who actually influence from the services offered by Ritz like African British
consumer have their own choice to select products.
Social: Family: The people live in a society have a family where income, lifestyle, age, size
influence their consumer behaviors. Like, as per the health status, they prefer to intake
healthy products from hotels. Reference group: It is a type of group where individual makes comparison so that a
common buying behavior might influence them. This always affect the overall
performance of a company in either positive or negative manner.
Personal:

 Lifestyle: People have their own lifestyle and this in turn affect their behaviour. In this,
there are many factors like physical activity, dietary habits, purpose, work relationship
etc. Economic situation: Individual income always affect the consumer behaviour because if
middle class people earn low and that is why, it affects their buying power whereas high
class people influence easily (Hu and et.al., 2019).
Psychological: Motivation: By complying with Maslow hierarchy theory, it has been identified that
human are motivated when they possess basic needs. This in turn assists to generate the
best outcomes and let them go to upward according to pyramid. Beliefs and attitudes: A positive attitude always assist to improve the results and let them
generate the positive outcomes that is only reinforce through beliefs and attitude.
Presenting how consumer trends are changing due to the impact of digital technology
In the modern era, range of hospitality organizations uses effective digital technology
which includes electronic tools, system ad devices so that data can be generate and process. For
example, social media which in turn assists to promote the products so that customers might
know about the new products offered by Ritz (Olya, Bagheri and Tümer, 2019). With changing
time, digital technology is evolving at rapid rate and this in turn influence the consumer
behaviour and attitude. For example, Ritz attract customer and change the perception of people
by using digital technology in which chatbots and social media are common example which
helps them to improve the overall performance. The impact is as mentioned below:
Desire of customer change: The desire of customers is completely change due to
evolving of technology. Such that organization uses online products and services that helps to
meet the needs of customer promptly. This in turn creates a positive impact over the business
performance and meet the need of customers as well.
Consumer are now more connected: With the help of digital technology, customers
becomes more connected and their expectation become high from organization which makes
them satisfied towards a business. This in turn helps to maintain long term relationship with
customers. For example, hotels generate a concept of Smart hotels that helps them to improve the
customer experience and raise profitability as well.

Access to information: Technology create a positive impact over the businesses such that
customers access information from website and social media that assists to increase their
expectations as well (Arsawan and et.al., 2021). For example, robots are also used which in turn
assists to generate the best outcomes and now there are two main ways through which the
information can be access like online and offline.
Analyse how factors that influence consumer behaviour and attitudes are changing and driving
trends in hospitality
Different factors affect the customer behaviour directly such that it creates a direct impact
over the behaviour. Such as, under cultural and social factor, class of people affected the
behaviour and this might drive towards new trend as well. Like, among higher class people, the
lifestyle changes their perception and motivate them to buy the products and services effectively.
This in turn assists to change the trend in hospitality industry because most of the customers are
changes their views and collect information through digital technology.
Critically analyse of the emerging trends in consumer behaviour and attitudes through examples
Smart hotels: It is one of the emerging trend and complied with advance technology
which helps to attract people and provide comfort to them. This in turn also assists to make the
things better like electrical distribution. On the negative aspect, this might decrease the use of
human resource because it provides best comfort to users.
Robots: Another exciting trend which helps to enhance the spend, decreases expenses
and improve accuracy (Ulker-Demirel and Ciftci, 2020). Currently, Hilton uses robots that helps
to answer the human questions. On critically side, it decreases the employment rates because
hotels reduce the hiring of employees pertaining to this work that save cost.
Bleisure Travel: It is another emerging trend which helps to offer people leisure
activities with business travel and recently the popularity increases. For example, people
normally visit location to attend a business meeting and conference, but then extend into holiday.
This in turn negatively affect the personal factors because it influences their purchase.
LO 2
Presenting stages of consumer decision- making journey and map a path to the purchasing in
Ritz
The key stages of customer decision making process includes:

Identify the need: In this the purchaser determine their own need and then proceed
towards a next stage. It is so because there is purchase cannot be completed unless the consumer
recognize the need.
Information research: It is all about determine the data that helps to purchase the
product accordingly. This means that seeking information in an outside environment. Like, social
media, friends and different other sources to make decision effectively (King and et.al., 2020).
Evaluation of alternative: During this stage, company evaluate their product and
determine the brand option which is suitable for them. This in turn helps to select the best
product as per their need.
Purchase decision: In this, purchase takes place and after considering all alternatives,
they select the best product which already identified their value. Though there are many things
that affect the purchasing which include review on website, crowd leads etc.
Post purchase behaviour: This helps to describe a way customer thinks, feels and act
once the product is buy.
The above map helps the customer to purchase the products by complying with all stages.
Though it is complex, but it helps a business to step into customer’s shoes and determine their
perspective as well. This in turn assists to generate the best outcomes and make the customers
aware about which brand should they purchase.

Presenting importance to map a path of purchase and understand consumer decision- making
It is necessary for Ritz to understand the importance to map a path of purchase because it
helps to tell about the customer experience with a brand by considering all the touch-points. It is
so because it helps the businesses to determine the perspective of customers. Also, determine the
how the customer interact with the business and also focuses upon business to make effective
decision in the specific stages (King, Murillo and Lee, 2017). Moreover, it helps to determine the
gaps between the desired customers and the one who received the same as well.
This in turn assists to gain an insight into a common customer pain points and then
implement effective strategies to meet the same. This in turn assist o complete the purchase and
also determine the customer journey is in a logical order or not.
Evaluate how marketers are responding to the decision-making process through examples Need recognition: The marketers respond the same by capturing the attention of their
audience and this can be done through using demographic information. Information research: In order to respond the same, company establish themselves as a
brand in an industry leader by attracting customers and make the brand visible in web
materials. This can be done through blog post (Tariq, Yasir and Majid, 2020). Evaluation of alternative: To respond in this stage, marketers can position their product
in a mind of their target customers so that they purchase a product. Purchase decision: Information can be provided by the marketers that helps to improve
the results and attract customers. Post purchase: To respond this strategy, marketers can encourage accurate consumer
expectation by providing proper and hones advertisement.
LO 3
Compare and contrast the key differences of the hospitality decision- making process in the
context of B2C and B2B
B2Band B2C are two important marketing model where sales are at end-result. The key
difference is as mentioned below:
Identify the need: In this, business determine the need whereas customer identify
practical buying need and this can be influenced through advertisement and marketing technique.
Ritz also uses the same to determine the need of customers.

Product specification: Business have a purchasing process which adhere to meet a
specific product specification. Company articulate new purchase so that customer attracted.
Whereas in B2C, customer have a clear idea of what they have to buy and did the same.
Evaluating suppliers: Business evaluate the suppliers and then select the best to offer the
product accordingly (Jauhari, 2017). Whereas, customer rely more upon the brand reputation
and compare the s same with others to make decisio.
Purchase decision: At this point, customer and business make a common decision to
buy. Here, business conduct a long process to generate results by discussing the things by
committee. On the other side, customer discuss major purchase with partners and their friends to
make final decision.
Post-purchase: The business actually wants to work with suppliers in order to resolve
them whereas customers can come to make complain and this in turn assists to make effective
decisions.
Different approaches to market research and methods of research
Market research is the systematic design that helps to find the relevant information to the
specific marketing situation. Only, effective market research assists the company to collect
information pertaining to market research so that customers can attracted and derive the best
outcome in term of sales. There are different approaches which are as mentioned below: Focus group: It is a method which helps to gather information in logical manner by
participating all the respondents together to get an insight. This is performed through a
group interaction which is used to identify and explore how people think and behave
(Focus group, 2021). Telephone interviewers: It is another method which can be used by Ritz in order to
collect the information because it helps to determine their views pertaining to topic and
then make effective results. This in turn assists to generate the best outcome by determine
views with regard to specific issue. Survey: It is another way through which marketers and Ritz generate the best views such
that questionnaire where they can determine what customers want from the company. In
this, questionnaire can be filled that helps to get an insight so that effective decisions can
be generated (Murillo and King, 2019). Therefore, effective results assist to generate the
best outcome and meet the defined aim of a company as well.

M3
There are so many factors that are affected consumer buying behaviour, such as personal,
social, psychological etc. As amazon identified that consumer is mostly affected by the
subculture and social class factor; for example, need of customer are different according regions.
Such as Ritz, marketing strategy are very different from the European countries, that is
organisation decided to design online strategies for marketing in order to attract the customers
and able to sell the products as per the requirement of consumer.
LO4
Explaining how marketers can influence the different stages of decision- making process
Marketers are played very important role in order to influence the various stages related
to buying behaviour of decision-making process in context to B2B and B2C (Oroszi, 2020).
There are different stages that are included in consumer decision making process such stages are
as follows:
1. Need recognition (awareness)
This is the first stage where consumer decision making process is starts for a need such
as hunger, thirst, advertisement. In context to organisation Ritz put the stories on social
media so that people are likely to visit new places and wants to taste yummy food.
2. Search for information (research)
It is the process of when consumer research about the need of a solution and find the best
alternative such as consumer can research for best hotel of UK, what is the best
affordable hotel? And list of top 10 hotels of UK. This type of research helps consumer to
know about the possible solutions that would be choose by the consumer.
3. Evaluation of alternatives (consideration)
At this stage the research is done and consumer start evaluate about the brand and the best
alternatives, with minimizing the risk related to the price, input of previous consumer (Lin, Chen
and Zhe, 2021). Example, Consumer will find the objectives of hotel by considering the budget
and feedback of past customer, so that consumer make sure about the service quality of the
hotels.
4. Purchasing decision (conversion)

This is the stage where consumer is ready to select the hotel but still, not confirmed
because some doubt related to hotel are still pending. Also, it is the time to trust the
organization.
5. Post-purchase evaluation (re-purchase)
At this situation consumer are likely to share their experience with friends and family so that
they will also experience same thing (Willman-Iivarinen, 2017). Consumer are ready to choose
same hotel in the future.
Evaluating how marketers are responding to the decision-making process
This is same situation where marketers are also thought according to the consumer buying
behaviour on the same stages such stages as follows with the same example hotel:
1. Need recognition (awareness)
At this stage marketers are identifying the need of consumer and then discuss about their
thought process regarding which type of hotel is best suitable for them. Manager will be
going to suggest 2-3 options so that consumer can confirm about the best suitable brand.
Search for information (research)
After this, consumer are starts research about another options and managers likely to approach
customer in order to convince him for choosing their hotel and provide them all the information
regarding their choice (Azaiez and Akaichi, 2017). But still consumer research as per his budget
and quality of service given by other hotels.
2. Evaluation of alternatives (consideration)
Manager are ready to share experience of people who are their regular customer and
likely to visit their place. So that customer considers this feedback and respond
accordingly, then markers are comparing all the services that are better from other such
as additional facility of gym etc.
3. Purchasing decision (conversion)
Now consumer is decided to visit that hotel which is convinced by manager, when he is
going to booked the hotel, customer will rethink about the services and about the budget
how much customer going to paid according to their budget and start payment with very
less doubt (Akay and Baduna Koçyiğit, 2020).
4. Post-purchase evaluation (re-purchase)

This is the situation where consumer like the services of Ritz and start suggesting other friends
and family member so that they are also make fun over there. Also, consumer is ready to thought
about the future purchasing by selecting Ritz and share good experience with all of them.
M4
It has been analysed that many of the decision regarding the purchase is related to the
routine process as per their need and choice but still consumer wants to research as seen in
tradition model of consumer decision making process. On other hand, it has been criticised that
this model is not appropriate for all the situation, there are so many things where buying process
is not related to that model. For example, if the consumer wants to purchase medicine this
process not applicable for that time because they want to purchase it without taking time in
thought process (Stankevich, 2017).
D2
The theory of consumer decision making is consideration that is related to consumer
preference which is raised quickly in mind while making decision. For example, if the consumer
visited that place where he gets best experience on that time, they will remember the name while
they want to hotel at same place. Also, consumer suggest other to go Ritz and have the same
experience later on. On other side, this theory will not applicable while it has bad experience of
consumer and not likely to visit that place.
CONCLUSION
It has been concluded that consumer buying behaviour played important role in
organisation customer’s thinking about their products and services. The report analysed that
there are different factors that are influence the behaviour of customer and their attitude.
Moreover, explained the different stages that are map a path of purchasing in hospitality services,
and also identified that how marketers respond to decision making process. Further, evaluated
the stages by traditional model of decision making. Lastly, it has been critically analysed that
marketer with different stages and applied theories of consideration that are relevant to this
concept.

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Online
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https://www.b2binternational.com/research/methods/faq/what-is-a-focus-group/>.