This report discusses the factors influencing consumer behaviour in the hospitality industry, the impact of digital technology on consumer behaviour, and emerging trends in the industry. It also covers the path to purchase and decision-making process of consumers in the hospitality sector.
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HOSPITALITY CONSUMER BEHAVIOUR AND INSIGHT
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 LO1..................................................................................................................................................3 Factors influencing consumer behaviour in context of hospitality industry................................3 Impact of digital technology in Trend changing..........................................................................4 Consumer behaviour role in changing Trends.............................................................................5 Critically analyse of the emerging trends in consumer behaviour and attitudes.........................5 LO2..................................................................................................................................................6 Path to purchase in hospitality sector:.........................................................................................6 LO3..................................................................................................................................................8 Research forms to understand influences on hospitality consumer decision making process:....8 LO4................................................................................................................................................10 Different Stages of Influencing decision-making process.........................................................10 Different Stages of responding decision-making process..........................................................11 Critically evaluation of influencing decision-making................................................................12 Critically evaluation of decision-making modules...................................................................12 CONCLUSION..............................................................................................................................12 REFERENCES................................................................................................................................1
INTRODUCTION Consumer behaviour is a study of the process a person goes through while buying or consuming goods or services. It includes how, what, when and why people are buying a particular product or service in order to meet their respective requirements(Kansakar, Munir and Shabani, 2019).Consumer behaviour plays an important role in the hospitality sectors because hotels are majorly dependent on the customer satisfaction as the service is directly provided to the customer.Marriott International is globally chain company operating in hospitality industry that manages lodging and hotels services to people at a large scale in various countries of the world (Marriott International, 2021). Likewise, company operates franchises, lodging, hotel and residential service that are provided to consumer so that it can enjoy high profit margin. This report will discuss the consumer's behaviour and factors affecting their behaviour and attitude. Further more, it will shed light onunderstanding and research of various factors affecting behaviour and decision-making process of the organisation. At last, it will cover necessary information about the role of marketers in the field of hospitality and its impact on decision- making process of consumers. MAIN BODY LO1 Factors influencing consumer behaviour in context of hospitality industry Consumer Behaviour refers to the perception of consumer towards any industry in respect of loyalty, satisfaction or dissatisfaction in Hospitality sector(Mothersbaugh, and et.al 2020). Consumer Behaviour depends on information search and quality of service by the Hotel. There are various factors that influences the consumer behaviour or perception of consumer towards any organisation, goods or service. Social factors, personal Factors, cultural Factors and psychological Factors are some factors that influence the consumer behaviour that can be discussed in detail as follows:1.Social Factors :It includes reference groups, family, role and status. Reference groups refers to the group of people with the common buying behaviour. Family influences the consumer behaviour as perception towards a product using by the family members affect decision-making of others individual within the family. Role and Status also influence customer behaviour such as people that have high status in society are influence to buy products and services that are extremely qualitative or luxury in order to meet their status.
2.Personal Factors :It includes the age and life cycle stage, occupation, economic situation, lifestyle, personality and self concept.Age is an major factor of personal consumer behaviour suchas Teenagersare more interested to spend their leisure time at some good location in order to have fun and enjoyment.Occupation influences consumer behaviour as people are likely to buy products or services according to theirprofession or disposable income. Economy of a nation also influence the consumer behaviour as strong economy leads to higher purchasing power thus more people can easily afford high price services to meet their needs. 3.Psychological Factors :It includes motivation, perception, learning, beliefs andattitudes. For example: most of the people like to spent their holiday or vacation in luxury hotel and restaurantin order to have relief from stress or get ride of their daily routine.Perception also plays an important role in consumer behaviour it refers to the image of company contribute in attracting range ofin individual towards the organisation for fulfilment of their respective desired Impact of digital technology in Trend changing Trend is a change in people's behaviour in a general direction that influence the consumer behaviour or what is popular at a point of time in the society. Consumers behaviour changes in relationtochangeintrendsuchasitchangealongwithattitudes,opinionsand expectations(Masiero, Viglia and Nieto-Garcia, 2020). Digital technology refers to the electronic tools or resources that generate, store or process data related to customers preferences. Technology is developing day by day and it is also affecting in the consumer behaviour likewise social media, televisions and smartphones(Dixit, 2017) are impacting on decision making of customers. The development in digital technology has changed the customer behaviour, in ever field including hospitality. Following are some pointsonthewaydigitaltechnologyhasimpactedtheperceptionofconsumertowards Hospitality industries. 1.Online hospitality facility gave the consumer more options, and they can consume service whenever they want. 2.Digital technology has connected people that increased the expectations and desires of the people or help in attractingmoreindividual towards the organisation. 3.Online resource made easy for the consumer to get information and reviews of any brand.
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4.Booking or reserving also can be done from home with the use of smartphone and it has created variety of customers. 5.Marketers are influencing consumer's behaviour with the help of social media platforms and it is also affecting the image of organizations. 6.Use of mobile application directly connects the consumer to the organizations which keeps consumer engaged. Consumer behaviour role in changing Trends Consumer trends refers to the current behaviour of a consumer towards a kind ofgoods or services that are provided by the organisation(Ali,2021). Hospitality industries are largely affected due to emerging trends such as development in technology, customers preference etc. Cultural, social, personal and phycological factors of consumer behaviours are roots of trends because change in consumer behaviour lead to change in trends. Cultural factor affect the trends in relation to the way a business is touching the culture of the society. A new technology or development in the industries respects the cultural belief of people andcatch the trend. Social factors influence the others people in the society in the society, change in behaviour of an influencer of the society lead to the change in trends. Perceptions of individual affects the others perception towards any industry that drives the trend in hospitality sectors. Therefore, trends are affected by change in personal factors includingage and life cycle stage, occupation, economic situation, lifestyle, personality and self concept. Critically analyse of the emerging trends in consumer behaviour and attitudes Trend of smart hotels in Marriott International increase the service quality of the hotel by implementing technology tools such as smart lights, air conditioners etc. In critical discussion it also increase overall the cost of the company. Bleisure” is trending popular among millennials that refers to travel which include both business meeting and leisure. This service by the provided by company operating in hospitality industry gave the people service by the use of digital technology but company has to remove barriers in regard to simplify the booking of the hotel. Artificial Intelligence (AI) adopted by the Marriott International improved the customer services and decreased the work load of the company. But AI is too expensive and needs to be
updated as soon as possible after a new change in the software. Maintaining such services is expensive and risk of data loss is always there. LO2 Path to purchase in hospitality sector: Consumer decision stages: Consumers make decisions through a variety of steps which consist before purchasing a product or service and after the consumption of product. The consumer buying behaviour is process which describes the consumer behaviours towards a purchase (Stankevich, 2017). It consists of following stages:Need recognition: In this stage the consumer recognises the need of a particular product or service which can satisfy his need. This is the stage where a consumer finds that a problem has occurred and something is needed to fill the gap or solve the problem. For example: Mr A decides to go on a vacation. He realises the need for accommodation during the stay.Information search:After the consumer have realized the need, they search for more information through which they can satisfy their need. He uses various sources of information such as personal which involves suggestions from family and friends and commercial such as advertisements and newspapers etc. as well. For example: Mr A searches various accommodation options available at the location. Evaluation of alternatives:After collecting the information, consumers searches for various products for selecting the most appropriate product out of all. The alternatives are compared on the basis of features, and brands etc. which suits best to the tastes and preferences of consumers (Panwar, and et.al., 2019). For example:Mr A searches for Marriott’s Hotels and their different options.Decision to purchase:The consumer selects a product and decides to buy the product after collecting and analysing all the information. Consumer selects a product, decides it amount and purchases it. For example:Mr A selects the holiday package option from Marriott’s hotel’s stay options.Postpurchasebehaviour:Inthisstage,consumerevaluatestheproductafterits consumption. They decides if the product have satisfied their need or not.
For example:After the vacation, Mr A was fully satisfy with the services provided at the Marriott’s Hotels. Importance of mapping a path to purchase for marketers Marketers such as Marriott’s Hotels needs to understand the path to purchase and various decision making stages of consumers so that they are able to market their products in a way that the consumer prefer their products and services over others. It can be describes as following: Identify consumer engagement Map to paths of purchase such as search engines, emails, websites and social media networks can help the marketers such as Marriott's Hotels to view where the consumers are interacting the most with their businesses. For example:Marriott's Hotels can use its social media networks to get the feedback about their products and services. Focus on particular demands Marketers can identify the particular needs of customers at various stages in their buying processes (Cortinas and et.al., 2019). They can identify the consumer buying journey in a logical order and identify gaps between their desired experiences and received experiences. Improvements in products and services Through mapping the path to purchase, businesses can get insights of consumer points such as their experiences of a product or service. This way the marketers can realize the gaps and improve the consumer experiences in order to complete a process. For example: Marriot’s hotels can realize the gaps or issue consumers are facing with their services and then improve them so that consumers are fully satisfied with their provided services. Marketer's response to decision making process The major goal of hospitality sector is to influence the decisions of a consumer. Marketers respond to the consumers in all stages as: In the first stage of consumer buying behaviours consumers realizes the need. Marketers influence this need through capturing the attention of their target consumers. In the second stage i.e. information search, marketers establish their brands as a market leader and becomes more visible in online searches and web materials.
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In evaluation of alternatives stage, marketer’s presents and positions their products best as compared to the competitor’s products. In the decision making process, marketers market their products in simple and straightforward way (Kemp and et.al., 2018). In the post purchase behaviours, marketers attains feedbacks regarding the products. If the consumers are no satisfied then they assure consumers better services in the future. LO3 Research forms to understand influences on hospitality consumer decision making process: Differences of Hospitality decision making process: BasisB2BB2C MeaningBusinesstobusiness,isa commercial interaction of purchase andsalebetweentwoormore business houses. Businesstoconsumersis interactionofpurchaseandsale between a business and consumers. Time periodB2B decision making process takes longertimeperiodstoreacha decision. B2Cdecisionmakingprocesses involve only a few steps so they take shorter time periods. Target groupB2Bbusinessdecisionshave multipletargetgroupsatonce. Theytargetvariousbusinesses housesandtakedecisions accordingly. A B2C decision making process involvesSingletargetgroupfor whom the decision is to be taken. SimplicityB2Bdecisionmakingprocessis very Complicated B2C decision making process is very simple. FocusB2B decision making focuses on building relationships. B2C decision making focuses on sale and purchase of Products. CustomersCustomers of B2B are Companies and business houses. They are not the end users of product or service. Customers of a B2C sectors are the End users of a product or services. DecisionsThe decision of B2B are plannedDecisionsinvolvedinB2Care
andlogicalbaseduponcertain factors. emotionalandarebasedupon wants and desires of the customers. For exampleBrand value of Marriott's Hotels in its B2B unit is based upon trust and mutual relationship. Brand value of Marriott's Hotel’s initsB2Cunitisbasedupon advertising and promotion. Approaches to market research and methods of research Approaches to market research for understanding decision making process: Marriott Hotels and other business houses can use the following approaches to market research for understanding the consumer decision making process: Online survey:Marriott hotels can gather feedback from its target groups with few human interactions. It takes less professional time and is also cost effective technique (Brace, 2018).Online focus groups:In online focus groups, participants visits a focus group so that they can answer questions about a particular group. The marketers such as faculty of Marriot Hotels sit in a viewing room for observing behind one way mirror. Methods for market research for understanding decision making process: Following methods for market research to understand consumer decision making process can be used by Marriott hotels:7.Qualitativemarketresearch:ThechosenCompanycanusethismethodtoseek information on what consumers are thinking, what they feel about a products and driving forces behind their purchase decisions. 8.Quantitative market research:Through this method the company can search information such as how many customers like the product and how many don not and how strongly the consumers are satisfied with their product’s performances. Evaluation of different factors influencing hospitality decision making and buying behaviour: There are various factors which influence the decision making process of a customers. These factors are as follows:
Personality:Consumers tend to buy the products which reflect their personalities (Lee and Dopson, 2019). For example: Upper class people will chose First class and expensive services of Marriott hotel as compared to lower class people. Motivation:Motivation drives the need to satisfy their demands through products and services. Ti gives insight what consumers buy and why. For example: A person might chose Marriott hotel instead of other accommodations because their friends told their best experiences of same place. LO4 Different Stages of Influencing decision-making process Every consumer have to go through basics steps of decision-making process before purchasing or consuming any kind of goods or services(Shah and Trupp, 2020). Steps taken by marketersofMarriottInternationaltoinfluencetheconsumersbeforegettingservedby hospitality industries are as follows :Problem Recognition :It is first step of decision-making which means what kind of problems face by the consumer. So it is basically the need of consumer that help the Marriott International manager to understand the desire or needs of the consumer thus providing better services for any occasion such as either spending their holiday, wedding or business meeting.Information search :It refers to the information a customer is seeking related to the desire or fulfilment of its needs . Marriott manager by understanding what kind of information a customer needs help in deciding particular strategies that could be used to influence them. Such as itproviding the right and detailed information about the company, its existing services and review of previous customer’s.Alternativesevaluation:Afterrecognitionofproblemandinformationsearcha consumer will go for alternatives in hospitality sector. Marketers influence the decision- making process of the customer by providing them variety of alternatives in all aspects from low price to luxury rooms in the Marriott International.Purchase Decision :This step of decision-making is highly depended on the customer. The Marketers of the Marriott in hospitality industryinfluence the customer by giving
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them previous customer feedback and the rating of how many customers are satisfied with Marriott International. Post-purchase evaluation :This part involves the reflection of both the customer and the company. It is the feedback of the services that customer purchased such as hw much they are satisfied with the service or if they really got what they wanted to purchase. Marriott International take feedback of customers after providing them services in order to improve its services and gain competitive advantages in future circumstances. Different Stages of responding decision-making process Analysing the decision-making process of the consumer and responding accordingly is very effective way to understand the market.Along with it Marriott hasmake changes keeping in view how customer is making decision that lead in attracting in the organisation.. Below are mentioned four views or model of customer decisions(Gupta, 2019):The economy view :This view assumes that customer is a rational person and take decisions after getting proper information about the products or services. Marriott International provides all kind of information on their website. This help the customer engaged and through the information they can make wise decision.The passive view :Marketers always promote the Marriott International services with advertisement for passive view customers. They generally attract by promotional offers. Analysing which kind of promotional approach benefits the most to the given industry and promoting accordingly to keep customer interacted. Such sort of decision-making responds improves the progress of the company in respect to increase the sales.The Cognitive View :This view of decision-making is based on the interest and understanding of the market demand. Rational decisions are not made in the cognitive view. Marketers help the consumer to shorten the decision-making process of the consumers. The Emotional View :As the word describe this view if decision-making process depend on the mood of the customer. Decisions are on the base of emotional attachments towards locations or hotel. Marriott International keeps innovating the various strategies to create emotional attachments with the help of this part of decision-making.
Critically evaluation of influencing decision-making From the critically evaluation, it can be stated that Marriott International has provide all the information accurate to the customer wheather if it may impact the customer negatively and the reviews provided on the websites also may be bad to the given company. Sometimes giving more alternatives may confuse the customer and it can lead to the bad impact on the customer. Critically evaluation of decision-making modules From the above discussion it can be critically evaluate that responding to the decision- making may be influence a particular group but it has disadvantages of loosing other customers because every customer has their own perception and behaviour, Marriott International needs to be aware of others customers too and apply the most suitable module which creates costumer engagement. CONCLUSION From the above report it can be concluded that change in customer behaviour lead to the change in the trend. Social, personal, cultural and psychological are the factors that affected the hospitality industries and the use of digital technology changed the perception of the consumer behaviour. Path to reach the hospitality sectors needs recognition and information search. This report also understood the difference between hospitality decision-making process. It helps in understand Methodsfor marketresearchfor understandingdecision-makingprocesswere qualitative and quantitative market research.
REFERENCES Books and journals Ali, B. J., 2021. Assessing (The impact) of advertisement on customer decision making: Evidence from an educational institution.Ali, BJ (2021). Assessing (The impact) of advertisement on customer decision making: Evidence from an educational institution. Afak for Science Journal.6(01). pp.267-280. Brace, I., 2018.Questionnaire design: How to plan, structure and write survey material for effective market research. Kogan Page Publishers. Cortinas, M. and et.al., 2019. Attention to online channels across the path to purchase: An eye- tracking study.Electronic Commerce Research and Applications.36. p.100864. Dixit, S.K. ed., 2017.The Routledge handbook of consumer behaviour in hospitality and tourism. Taylor & Francis. Gupta, V., 2019. The influencing role of social media in the consumer’s hotel decision-making process.Worldwide Hospitality and Tourism Themes. Kansakar, P., Munir, A. and Shabani, N., 2019. Technology in the hospitality industry: Prospects and challenges.IEEE Consumer Electronics Magazine.8(3). pp.60-65. Kemp, E.A. and et.al., 2018. The heart in organizational buying: marketers’ understanding of emotions and decision-making of buyers.Journal of Business & Industrial Marketing. Lee, P.C., Lee, M.J. and Dopson, L.R., 2019. Who influences college students’ career choices? An empirical study of hospitality management students.Journal of Hospitality & Tourism Education.31(2). pp.74-86. Masiero, L., Viglia, G. and Nieto-Garcia, M., 2020. Strategic consumer behavior in online hotel booking.Annals of Tourism Research.83.p.102947. Mothersbaugh, D.L., and et.al 2020.Consumer behavior: Building marketing strategy. McGraw- Hill Education. Panwar, D. and et.al., 2019. Consumer decision making process models and their applications to market strategy.International Management Review.15(1). pp.36-44. Shah, C. and Trupp, A., 2020. Trends in consumer behaviour and accommodation choice: perspectives from India.Anatolia.31(2). pp.244-259. Stankevich, A., 2017. Explaining the consumer decision-making process: Critical literature review.Journal of International Business Research and Marketing.2(6). Online references MarriottInternational,2021.[Online].Availablethrough <https://www.marriott.com/marriott/aboutmarriott.mi>. 1
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