Hospitality Consumer Behaviour and Insight

This report discusses the factors affecting consumer behaviour in the hospitality industry, including cultural, social, personal, and psychological factors. It also evaluates the stages of the consumer decision-making journey and mapping a path for purchase. The report also discusses the marketers' response to the decision-making process in the context of B2B and B2C.

Hospitality Consumer
Behavior and Insight
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Table of contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Factors affecting consumer behaviour.........................................................................................3
Impact of digital technology on changing consumer trends........................................................4
Driving trends with changes in consumer behaviour..................................................................4
Critical analysis of the emerging trends in consumer behaviour.................................................5
Stages of consumer decision – making journey and mapping a path to purchasing for
hospitality industry......................................................................................................................6
Importance of mapping for purchasing and understanding consumer – decision making
process.........................................................................................................................................6
Evaluating the marketers response to decision – making process...............................................7
Key differences of the hospitality decision – making process in context of B2B and B2C........7
Different approaches to market research used for understanding decision – making process....8
Different factors influencing hospitality decision – making and buying behaviour...................8
Marketers influencing the different stages of hospitality decision – making process.................9
Evaluate marketers responding to decision – making process....................................................9
Marketers influencing each stage of decision – making process with the help of models and
methods......................................................................................................................................10
Application of concept that influences and impact upon hospitality decision – making process
with examples............................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Consumer behavior is the perspective and behavior which is observed while buying the
products and services of the company (Fasi, 2017). Inter – Continental Hotel is a British
multinational hospitality company serving its facilities to customers through products and
services at large scale.
The report will analyse cultural, social, personal and psychological factors influencing
consumer behaviour and attitudes within Inter – Continental Hotel. And changes taking place in
the consumer trends due to impact of digital technology. Stages of consumer decision – making
journey and mapping a path for purchase will be evaluated. Marketers will also respond to the
decision – making process in context of B2B and B2C. Market research methods will also
analyse and how marketers influenced each stage of decision making process with examples will
be provided.
MAIN BODY
LO1
Factors affecting consumer behaviour
Consumer behaviour is a process which is related with the emotions of the consumers
(Dixit, 2019). It is a process where consumer recognises needs for product and services and finds
way to fulfil the needs. It is a human trait which changes with a slight change in the market and
the trend. There are various factors which affect the consumer behaviour:
Cultural factors play a vital role in determining the consumer behaviour. Culture includes
the behaviour, values, tradition and custom of the society (Wiederhold, 2018). It a very important
factor that influences the behaviour of consumer. Sub culture includes group of people who share
the same customs and values, nation, religion and racial groups. Intercontinental hotel is working
in more than 100 countries and representing multi nationalities and the many religion, culture,
sexualities and backgrounds which is helping them in drawing the attention of its customers.
Social factors affect consumer behaviour significantly that is it influences there buying
preference (Loxton and et.al., 2020). It includes the reference groups, family role and status,
lifestyle, income level, age, stage of life cycle, health status etc.
Personal factor includes the age and life cycle of individual, occupation, the financial
situation and the life style of the individual. In the time of this pandemic where health was the
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top most priority Intercontinental Hotel provided clean and safe stay with physical distancing
operating procedures and giving top most priority to health of the society.
Psychological factors include the motivation, perception, learning and attitude and beliefs
of the consumers (Voramontri, 2019). It is an interconnected cycle where beliefs and attitudes
creates behaviour which produces outcomes and again reinforces the beliefs. Intercontinental
Hotel keeps in mind the psychological factors and provide services accordingly.
Impact of digital technology on changing consumer trends
Consumer trend are the attitudes and habits which are currently prevailing among the
consumers about goods or services (Wood, 2017). These are formed on the basis of new attitudes
and behaviours and new opinions. Technological advancement has played a very significant role;
it has fundamentally changed the way consumers make purchasing decisions. With the use of
digital technology, consumers are more connected and have high expectation for getting their
needs satisfied. With the widespread adoption of internet contactless payments and mobile check
ins have emerged in hotels and restaurants which has helped in reducing friction and cutting
down waiting times.
With the emerging trend the concept of smart hotels is emerging that is integration of
technology to improve the customer service and experience which helps in increasing the
profitability of organisation by enabling efficient management of their activities. Intercontinental
hotel realises the emerging technological changes that is it provides mobile check ins. In times of
Covid where people are nervous it provides mobile check in which helps in avoiding face to face
interactions and providing greater flexibility in terms of checking. And also, it provides
contactless payment so even if customer do not have wallets or have misplaced their credit cards
can pay via online payment and also it an excellent way of reducing human contact.
Driving trends with changes in consumer behaviour
With the changes in the factors like culture, personal, social and psychological factors in
the consumer behaviour has led to change in the desires of the consumers. That is with the
introduction of online hospitality services and products, consumers can get product whenever
they want and have various options to choose from. Also, it has made the consumers more
connected and raising their expectations in getting their needs satisfied. And with the access of
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internet consumers can gather information on different brands and products, comparing various
brands and accordingly satisfying their needs. It has also impacted the digital technology that is
with the introduction of smart phones consumers need instant answers every time they want to
go out, it has made the consumers more demanding. Intercontinental Hotel understanding the
changes in the consumer behaviour, provides with 24/7 customer care services where consumers
can ask their queries.
And with the changes in the consumer behaviour, it has led to driving the consumer
trends in the industry. That is, it has led to the concept of smart hotels. It is said to be the future
of hotels by giving maximum control to the customers. Also, it has led to the use of artificial
intelligence which has helped in improving customer services. Intercontinental has introduced AI
and voice controlled customer services within their hotels providing swift responses to the
question of the consumers. And thus increasing their level of satisfaction.
Critical analysis of the emerging trends in consumer behaviour
It can be critically analysed that the emerging trends in the consumer behaviour has
affected the hospitality industry in various ways. It has affected the profitability of the business;
it has help business increase their efficiency by providing better quality services. With using of
advance technologies, it is providing consumers with a safe and hygienic environment keeping in
mind their safety needs. For e.g. the emerging trend of leisure travel by millennials that is
combination of business travel with leisure activities is increasingly becoming popular in the
millennial generation. So to provide millennials with their leisure travel, Intercontinental is using
mobile technologies for their hotel staff that directly streamlines the request of guests so that the
staff can get them as quickly as possible. And it creates a win-win for both the employees and
the guests.
With the increased emphasis on the health and well-being, it has emerged the concept of
wellness tourism that is travelling with the intent of maintaining health. For example;
Intercontinental promotes wellness of its guests and is providing them with well-equipped fitness
clubs, spas and pools, yoga spaces and also vitamin infused shower water and also offers a vegan
menu. And all these has led to increase its profitability by engaging more and more customers
towards them with their quality services.
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However, it can be critically analysing that using of these techniques and trends can be
costly and with the dynamic environment and the rapid changes in the technology it is not
possible for organisation to cope up with the technological changes.
LO2
Stages of consumer decision – making journey and mapping a path to purchasing for hospitality
industry
Stages of consumer decision – making journey in purchasing the products and services of the
Inter – Continental Hotel involves –
Problem Recognition – This stage defines that it is the choice of the choice of the consumer
when they need to buy the products or services of the Hotel.
Information Search – The consumer in this stage processes the information either from their
past experiences or from the outside environment while purchasing the products and services
(Schamp and et.al., 2019).
Evaluation of Alternatives – In this stage, consumers evaluate the options in products and
services which are made available to them by Inter – Continental Hotel and what scale of
attributes and benefits they are seeking.
Purchase Decision – In this stage, they finally decide what products and services they buy from
the Inter – Continental Hotel (Varkaris and et.al., 2017).
Post Purchase Behaviour – This stage defines the consumer’s reaction towards the products
and services they have bought from the Inter – Continental Hotel.
The path to purchase includes the ways through which consumer’s purchase the products
and services which are through emails, review channels, social networks, loyalty programs etc.
Importance of mapping for purchasing and understanding consumer – decision making process
Mapping a path to purchase helps the businesses to know the perspectives of customers. It
helps the customers in knowing how they contribute to the business. It helps in analysing the gap
between the services which are being rendered to those being desired by the customers while
buying the products of Inter – Continental Hotel (Hamilton and et.al., 2019). Mapping also helps
in identifying the customer’s needs at different stages while buying products and services of Inter
– Continental Hotel. Mapping for purchase helps in gaining the insights of how to increase the
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customer experience and what are the needs of the customers while they are purchasing products
and services from the Inter – Continental Hotel. There are various development priorities which
are being highlighted in the process of mapping for purchase of products and services.
Evaluating the marketers’ response to decision – making process
The marketers’ response can be evaluated in the following manner –
In Need Recognition Stage – Marketers respond by capturing the attention of their target
audience by getting all the content in places where they advertise the products and services of
Inter – Continental Hotel. Example – Excitement of owing a new product promotion and
advertisement (Alvarez-Milán and et.al., 2018).
In Information Search – This is the stage where the marketers are providing what the
consumers want by making the brand visible of Inter – Continental Hotel through web searches
and online platforms. Example – Designing and modifying new website of Hotel.
In Evaluation of Alternatives – The Inter – Continental Managers positions their products and
services in the market so that they can target the customers at large scale by making their brand
name reach them (Vassileva, 2017). Example – Creating advertising with the data showing
product compared to other products.
In Purchase – Marketer in this stage serves the products and services of Inter – Continental
Hotel to the customers as per their demands and needs. Example – Advertising the Inter –
Continental Hotel products.
In Post – Purchase – As soon as the marketers identify that the customers are not satisfied with
the products or services of Inter – Continental Hotel then they make changes in their products.
Example – Providing honest sales and advertising to customers (Alvarez-Milán and et.al., 2018).
L03
Key differences of the hospitality decision – making process in context of B2B and B2C
Identifying Need – Consumers identify the needs for the products and services which are to be
taken from the Inter – Continental Hotel in B2B.
Product Specification – Consumers know what are the services and the products of Inter –
Continental Hotel which they need and wish to consume in B2B (Rėklaitis and et.al., 2019). This
helps in specifying what the kind of product served by the Hotel is.
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Evaluating Suppliers – Customers rely more on the brand and its products and services which
are being served by the Inter – Continental Hotel in B2C.
Purchase Decision – Consumers make impulse purchases and this helps them to know the
purchases of products and services of Hotel which includes B2C (Iankova and et.al., 2019).
Post – Purchase Behaviour – The customers react to the products and services of the Inter –
Continental Hotel when they purchase it and this shows their post – purchase behaviour in B2C.
These are the major differences which are observed within the B2B and B2C context in the
marketing which is related to decision making process.
Different approaches to market research used for understanding decision – making process
There are six different approaches which are used for understanding the decision – making
process to market research –
Involves More Mixed Methodologies – The market research involves methodologies which
help in knowing various aspects of product and services which are displayed in market.
Involves Web, Mail, E - Mail – This is the best research approach in these times, as the
customers interact in market through mail, web, e – mail (Mooi and et.al., 2017).
Involves Smaller Sample Sizes – The researcher in this market research takes smaller sample
size.
Involves Units than Individuals – Market research should focus on units based on decision –
making rather than individuals.
Identification of Incentives – Gift cards, special discounts and cash should be identified by the
market researchers to be provided to the customers.
Different Skill Set – Very detailed information is being known in this approach from the
marketing environment.
These are the key skills and approaches which are understandable in the decision making
process and these help in concerning the key points which are highlighted in the area of the
business.
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Different factors influencing hospitality decision – making and buying behaviour
Personality, Self-Concept and Motivation are the three factors which influences the Inter –
Continental Hotel consumers’ in buying products and services –
Personality – Consumers purchase the products and services and reflect the personality towards
the products and services which they are utilizing of the Inter – Continental Hotel. Example –
Type of hotel products customers buying reflects their personality (Wang and et.al., 2020).
Self – Concept – Self – Concept reflects the idea of the customers as how they are taking
concern of the products and services of the Hotel and through this they are expressing their
opinions towards the products. Example – Customers for the Hotel analyse the products and
services being delivered to them.
Motivation – Motivation is the concept which helps in identifying the key perspectives of how
the customers are engaged towards the services of Inter – Continental Hotel. Motivation helps in
taking decision – making process to be known through which they are able to buy the products
and services of Hotel. Example – Motivated customers are engaged in buying the products and
services of Inter – Continental Hotel.
Therefore, the buying behaviour of the customers depend upon the factors influencing the
decision making of the customers.
LO4
Marketers influencing the different stages of hospitality decision – making process
Marketers are influencing the different stages of hospitality decision – making process as
they should teach the consumers in what to buy and how to buy the products of the Inter –
Continental Hotel. Inter – Continental Hotel helps in understanding the business and make
available the services and products to the customers at large scale. The Inter – Continental Hotel
fulfills the needs and demands of the customers by providing them the products and services as
per their requirements so that they are satisfied (Stankevich, 2017). But the customers may end
up buying the products and services by comparing it with other products in the market. Example
– The attitudinal and behavioural measures towards the products and services of Inter –
Continental Hotel like advertising of the products and services helps the marketers in promoting
and engaging in activities to make them available to customers.
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Evaluate marketers responding to decision – making process
Marketers are responding to the decision – making process by recognition and recall
measures. The recognition and recall tests are conducted to determine whether the consumers
remember observing the ads and how they recall the content which they have seen there. This
helps in knowing the purchase intentions and attitudes of the consumers at large scale (Kemp and
et.al., 2018). Marketers are responding to decision – making process towards the products and
services of how Inter – Continental Hotel is covering the market and targeting the customers
towards the facilities which they are providing to the customers. Example – Inter – Continental
Hotel products and services are served to customers through the advertisements and promotions
done by marketers in which the marketers respond to the perspective of the customers and their
decision – making process.
Marketers influencing each stage of decision – making process with the help of models and
methods
The decision – making process is observed through the motivation model which is named as
Maslow’s Hierarchy of Needs and this is explained as –
Maslow’s Hierarchy of Needs – Maslow explained it in five stages which are described as
below –
Physiological Needs – The physiological needs consist of the needs water, rest, warmth and
food. These are important in each stage of how the decision – making process is being influenced
(Hopper, 2020).
Safety Needs – Safety needs of the customers for Inter – Continental Hotel consist of their safety
and security from the facilities they are rendering from the Hotel.
Belongingness and Love Needs – Friends and relationships with the individuals are the basic
needs of the customers which are to be fulfilled between the members of Inter – Continental
Hotel and customers.
Esteem Needs – The esteem needs are needs which include feeling of accomplishment and
prestige when the customers are satisfied with the products and services being served by the Inter
– Continental Hotel.
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Self – Actualization Needs – The needs such as including creative activities which reflect the
decision – making power of the customers for brand of Hotel serving its best in products and
services at large scale.
Application of concept that influences and impact upon hospitality decision – making process
with examples
There is influence of culture on consumer behaviour which impacts upon the hospitality decision
– making process. These are explained as below –
Influence of Culture on Decision – Making Process – Culture explains that certain products
are sold in certain regions. Besides how the customers perceive the products and services, culture
affects the buying decisions of the customers towards Inter – Continental Hotel. There are
various buying patterns which customers follow while products of Inter – Continental Hotel.
Concept of Opinion Leaders -
Role of opinion leaders in influencing purchasing decision – The process by which the
person informally influences the attitudes of others who are opinion seekers and recipients.
Opinion leaders influence other individuals in purchasing the products and services of the Inter –
continental Hotel. Opinion leaders’ influences and impact the decision – making process which
make the brand name and its products effective and efficient. Example – The products and
services of Inter – Continental Hotel are promoted through the social media channels and
websites.
CONCLUSION
This, it is concluded from the above report that cultural, social, personal and psychological
factors influence consumer behaviour and attitudes within Inter – Continental Hotel were
discussed. Furthermore, changes have been observed in the consumer trends due to impact of
digital technology of the Inter – Continental Hotel. Moreover, the stages of consumer decision –
making journey and mapping a path for purchase was observed effectively for the company.
Moreover, marketers also responded to the decision – making process in context of B2B and
B2C regarding the business perspective. Finally, market research methods were also analysed
and how marketers influenced each stage of decision making process with examples was
provided in the report.
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REFERENCES
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Voramontri, D. and Klieb, L., 2019. Impact of social media on consumer
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Wood, R.C., 2017. Now and when: Reflecting on some realities of consumer behaviour in the
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