Hospitality Consumer Behaviour and Insight

This report analyses the factors affecting consumer behaviour in the hospitality context, exploring consumer trends due to digital technology, and evaluating marketers' response to the decision-making process. It also compares the key differences of the hospitality decision-making process in the context of B2C and B2B, using specific hospitality examples.

HOSPITALITY
CONSUMER BEHAVIOUR
AND INSIGHT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Investigating factors affecting consumer behaviour in hospitality context................................3
Exploring consumer trends due to digital technology.................................................................4
Analysing factors influencing consumer behaviour and attitude................................................4
Critically analysing emerging trends in consumer behaviour.....................................................5
LO2..................................................................................................................................................6
Investigatingstages of consumer decision-making process.........................................................6
Exploring importance of path to purchase for marketers............................................................6
Evaluating marketers respond to decision-making process........................................................7
LO 3.................................................................................................................................................8
Comparing and contrast the key differences of the hospitality decision- making process in the
context of B2C and B2B, using specific hospitality examples...................................................8
Evaluating the different approaches to market research and methods of research used for
understanding the decision-making process................................................................................9
Providing a coherent and justified evaluation of how different factors influence hospitality
decision-making and buying behavior, supported by specific hospitality examples................10
LO 4...............................................................................................................................................11
Evaluating how marketers can influence varied stages of hospitality decision-making
procedure...................................................................................................................................11
Investigatinghow marketers are responding to decision-making procedure.............................12
Critically examine how marketers can influence each phase of decision-making with reference
to suitable approaches...............................................................................................................13
Critically evaluate application of appropriate concepts, models and theories that influence &
impact upon hospitality decision-making procedure................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Customer behaviour is considered as important action and judgement of individual that
they take in regard to specific product or service, which they tend to purchase for personal usage.
The current assignment will be based on Ritz Carlton, which falls under the category of top 10
hotels in the UK. The study will explain varied psychological, social, personal and cultural
factors that influence customer’s attitude and behaviour within hospitality context. It will also
define how consumer’s trends are modifying due to the impact of digital technology and also
describe stages of customers decision-making journey as well as map a path to purchase service
of chosen hotel. The report will also justify importance of mapping a path to purchase and
comprehend overall decision-making process for marketers. Furthermore, it will specify
comparison between hospitality decision-making process in the context of B2C and B2B. Lastly,
the assignment will clarify different methods to market research, how marketers can influence
several stages of hospitality decision-making process, and respond to the same.
LO1
Investigating factors affecting consumer behaviour in hospitality context Cultural factors: Culture is defined as a set of values, beliefs & customs that a person
follows which assists him in taking decisions about what to buy. In addition to this,
subcultures also develop around communities that shares common beliefs and values.
Also, the social class affects purchase decision of consumers which is determined by
consumers' income, education, etc. For example, a company will like to have a formal
meeting with potential investor at 5 star hotels with wonderful ambience than at local
hotel. Social factors: Society is composed of several individuals that will have different taste
and preference at the time of purchasing a product or service. Society includes family,
reference groups, etc. which affects consumer behaviour (Yu, Seo and Hyun, 2021).
Family plays an important role in consumer behaviour, for instance, family person would
like to go to decent hotel with his family rather than a bachelor who would love to go to a
hotel with bar and party area. Personal factors: These factors comprise age, lifestyle, personality, and self-concept
which affects consumer behaviour. An individual living in a high society has a high

maintenance lifestyle which he needs to follow, therefore, he would like to go lavish
hotels.
 Psychological factors: It consists of perception of consumers, motivation, attitude and
beliefs of individuals (Lugosi, 2019). People are driven by particular need at a time, and
they want to satisfy it. To satisfy his need, he wants to buy a product or service, such
psychological factors forces an individual to perform better and earn money to satisfy
needs.
Exploring consumer trends due to digital technology
Consumer trends are the current habits and attitudes of consumer while buying goods and
services. It keeps on changing because of new expectations, opinions, behaviours, etc. Ritz
Carlton will focus on what trends are prevailing in markets so that first mover advantage can be
taken to stay on top of consumer trends.
With the emergence of digital technology, ways of communication, entertainment and
methods of doing business have changed. It is a powerful tool which affects consumer decisions
and has changed ways in which consumer react. Digital technology has changed their desires,
and they want to have services whenever they desire (Mercade Mele, Molina Gomez and Garay,
2019). Consumers now-a-days make informed decisions because of access to so much
information with just a click of button. By using smart phones, individual gets instant answer,
and they are demanding more and better.
Ritz Carlton has launched mobile apps which serves to provide customer satisfaction and
increases profits. Company is also a smart hotel which means customers can control room
heating and AC from their phone. Another concept of Leisure is coined, that is, a business trip
with leisure activities where consumers want quick services and access to information.
Analysing factors influencing consumer behaviour and attitude
Cultural Factors:
Culture is the most important factor that hotel industries like Ritz Carlton needs to
understand. Cultural values and beliefs, social norms differ from one group to another which
affects consumer preferences and tastes. Ritz Carlton needs to analyse the cultural values of each
of its customers before attending them and offering services. Hispanic customers will engage
themselves in different shopping habits of buying online or from new vendors.
Social Factors:

Every individual has people around them which influences them at the time of making a
purchase decision. Co-workers, friends, family, neighbours, etc. affect a person's behaviour
because they have already used those products or services and have complete knowledge about
it. An individual hearing good reviews from his friends about Ritz Carlton's food, hospitality and
ambience would like to make a visit to that hotel.
Personal Factors:
Person belonging to high income group and maintains high standard of life having good
personality in society would prefer going to premium hotels and spending quality time there
whereas a person who has less income and cannot afford basic amenities of life would less likely
go to such hotels.
Psychological Factors:
An individual's belief system has strong ability to influence his decision, for example,
Sharia laws in Islam prohibits consuming alcohol, pork, etc. which can affect consumer’s
decisions at hotels whether to buy or not product or services.
Critically analysing emerging trends in consumer behaviour
Digital technology has fundamentally changed the manner in which consumers take
purchase decisions. With the emergence of new technologies, Ritz Carlton is not sitting on side
lines and providing excellent services to its customers by responding promptly to induce
satisfaction. The latest trend of Robotics in hotels is leading to excitement among customers.
More and more consumers are thrilled to experience it in their life and want to visit such hotels
(2020 Consumer Trends That Will Continue to Impact Brands in the New Year, 2021). Ritz
Carlton's Mystique is providing exceptional services of robots by responding to human speech
and answer questions.
However, digital technology has also caused havoc in hotel industries because it has
caused a lot of unemployment to managers, waiters, etc. People are now booking tables via
mobile application and get served through drones or robots. Moreover, such technology requires
heavy investment and regular updates and maintenance which increases overall cost of Ritz
Carlton.

LO2
Investigating stages of consumer decision-making process1. Problem recognition: It is the first & most important stage because if a person does not
recognize problem or need for service, he cannot purchase product or service. Ritz
Carlton in order to remain ahead of competitors provides customers with personalized
and customized packages according to their needs. Information Search: At this stage, consumers search information about different hotels
according to his budget and needs from advertisements, friends, editorials, visiting hotel's
website and application, travel blog sites, etc. Individual spend more time here and
performs full investigation. Internet surfing has made this step little easier because of
reviews and stars given for each hotel. Evaluation of alternatives: Consumers evaluate services and brand value of different
hotels which deliver maximum satisfaction and benefits (Shim, Shin and Kwak, 2018).
Hotel like Ritz Carlton provide services which is very difficult to evaluate. An individual
will evaluate hotel on basis of feasibility, affordability, etc. A consumer booking a hotel
with casino services, therefore, he is buying more than just the bed.
 Purchase Decision: This is another stage where consumer decides to book a certain hotel
after critically analysing all alternatives. Location of hotel, brand, style, financial
allocation etc. are all considered before taking a final decision.
 Post purchase evaluation- This is the final stage of the consumer decision making
process. Within this stage the consumer evaluates the effect of the decision being taken
by them. This simply includes evaluating the decision taken by the consumer to use the
product or service was correct or not.
Exploring importance of path to purchase for marketers
Mapping customer journey helps businesses to identify the purchase path by offering
them important information that will help in buying process. Customer journey are quite
complex and complicated and comes in different varieties. Creating tailored experiences: By mapping customer touchpoints, marketers of Ritz
Carlton can design more effective and tailored packages & experience for customers so
that they enjoy and satisfy themselves to their fullest.

 Builds empathy: This activity helps in understanding customers in a better way and aids
in building empathy with consumers. This in turn will be beneficial for marketer to
analyse consumer’s mind-set, perception and motivations to predict future behaviour and
provide services accordingly. Focus on customer needs: Mapping help marketers to focus on consumers need at
different stages in purchase process so that consumers can easily evaluate their needs and
fulfil them (Willems and et.al., 2017). Web analytics allow customers to monitor
customers and analyse their behaviour.
 Guidance to business objectives: The journey map defines a criterion to help colleagues
and departments to perform better to enhance company performance and Investigating
key customers through web analytics so that there is much focus on such audience.
It is very important for the marketed to map a path of purchase relating to the consumer decision
making within hospitality sector. The reason underlying this fact is that when the marketer will
be having a map or path for tracking the fact that whether the consumer is liking the product and
services or not.
Evaluating marketers respond to decision-making process
Need recognition
Marketers try to identify imbalance between consumer’s current status and its preferred
status so that there is a need generated by consumer to buy a product or service. Ritz Carlton can
make use of advertisements and promotions so that customers can recognize their unfulfilled
needs. Marketer then can provide customizable services to reach customer and create a purchase
situation.
Information search
At this stage, marketers can try to provide accurate and correct information to consumers.
Ritz Carlton needs to make sure that their online portals, websites and social media handling are
providing perfect information about their services offered. Company can use SEO strategy to
enhance search criteria & build brand awareness.
Evaluation
in this stage, using reviews and content examples can increase engagement level and
enhance customer trust. Company can place reviews on first page and then different reviews for
different services offered by it so that customer has all information at their hand (Valos and

et.al., 2017). In addition to this, queries & solution content can be placed which will serve as a
good tool where audience can easily ask questions and get answers in return.
Purchase decision
When consumer finally decides to purchase product or service, marketers plan to retain
customers and by trying to provide excellent services and matching their expectations with
reality. Ritz Carlton tries to boost chances of their services being purchased again and asking
consumers to recommend it to their friends and family members.
LO 3
Comparing and contrast the key differences of the hospitality decision- making process in the
context of B2C and B2B, using specific hospitality examples
Basis for comparison B2B B2C
Meaning In the context of B2B means
business to business in which
the company provides goods
and services of one business to
another business.
In the context of B2C means
business to consumers in
which business sells products
and services of one consumer
to another consumer.
Customer Relationships B2B marketing try to build
personal relationships with
businessman to make their
business effective (Mogaji,
Balakrishnan and Kieu, 2021).
It takes care that their business
run for a long time.
B2C marketing focuses on
maintain relationships with
their customers so that they
may sell their products and
services by which they may
generate profits for their
company.
Branding To maintain a brand for any
product company focus on
how to make products better
so that they sell their
commodities and services at
Branding is the most important
process in which company
make products according to
their customers demand by
which they may generate their

higher cost. brand value.
Decision-making process In B2B marketing, decision-
making plays an important
role because a right decision
gives direction to any
company makes profitable.
In B2C marketing company
take better decision in the
perspective of customers
because they are the main base
of any business.
Audience targeting In B2B businesses mostly
work in niche market for
targeting audience by making
business attractive.
For example- wholesale food
purchasing, maintenance of
hotel gets done by outside
company.
In the context of B2C
company mainly focus on
advertisement by which they
may promote their products
through various social media
like WhatsApp, Facebook etc.
For example- amazon,
Walmart.
Evaluating the different approaches to market research and methods of research used for
understanding the decision-making process.
Market research- It is defined as the process through which company gathers all the data
relating to the people and the trends prevailing within the market for understanding the need of
consumers (Kustos and et.al., 2019). It focuses on discovering target market by which they may
know opinions and feedback from consumers regarding products and services.
1. Surveys- there are four types of surveys like person, telephone, mail and online. Person
survey is conducted where there are lots of traffic like shopping malls. In telephone survey they
allow customer to do participate in phone surveys. Mail surveys are the most common for any
company through which they connect with customers for any information.
2. Focus groups- under this focus group they select larger number of people those who
fit in company's target market. They want an experienced candidate so that they may manage
group of people (Lugosi, 2019). Focus groups are usually conducted on neutral locations
including facilities like videotaping, it may help people to conduct research in easy way.

3. Personal interviews- in this personal interviews they generally provide open-ended
questions (Filimonau, 2021). The results which they get provides are not up to mark which
means they don't usually show at large area segment of population.
4. Observation- the main important thing is that how may observe the people's behavior
to do videotaping by seeing how a customer is purchasing or using any product.
5. Field trials- their main work is to focus customer that how they are responding to see
any new product in stores by which get help to know the consumer choice.
All these methods are being used by the company for effective market research. These
approaches are helpful to the company in evaluating the fact that what are the latest trends which
are prevailing within the market and whether the company is using it into practice or not. All
these methods are helpful for company in effective decision making process. The reason
underlying this fact is that when the latest trends and analysis is being used by the company then
this assist them to take the decision that whether the company is performing in better manner or
not. In case the company is not performing better than the proper and relevant decision can be
taken for better working of company.
Providing a coherent and justified evaluation of how different factors influence hospitality
decision-making and buying behavior, supported by specific hospitality examples.
1. Cultural factors- It is an important factor because by this people come to know
about the behavior and needs of people. Every society and country has an own
culture, and they celebrate it in their own way. The effect of culture on buying
behavior shows the country's different culture, regions and groups (Sann, Lai and
Chen, 2021). This includes culture, subculture and social class. Subculture is
considered as a group of people they share their views which are based on
experience. For example- in the western country it is very common to invite
friends or colleagues for dinner at home.
2. Social factors- It involves family, groups, roles and status and it effects someone
lifestyle that any person what is doing in day to day activities. It includes
reference groups which are able to form someone attitude and behavior. It is also
considered as a membership groups which are related to age, hobbies, place of
residence and leisure etc. It also involves social roles and status shows that how a
person is able to maintain their status in their society it also reflects their life, and

they improve ourselves by seeing others. For example- a person may buy a car
according to their status that shows how he is successful in their own life.
3. Personal factors- It is related to person lifestyle such as age, occupation, studies
and economic circumstances etc. A consumer always wants to try different
products and services because they change their lifestyle according to their age,
hobbies, activities and environment etc. After doing all this things people focus on
their studies by which they choose occupation which may help in choosing the
best job (Ulker-Demirel and Ciftci, 2020). The person may have to face economic
situation totally depends on their income and savings because if its high then
consumer may purchase expensive products. For example, a marketing manager
of company may buy suits but a lower level worker may purchase inexpensive
clothes.
4. Psychological factors- It includes various factors such as motivation, perception,
learning, beliefs and attitudes, personality etc. The marketers also require and
want to know that which type of people involved in buying decision and what
type of different role is being played by each person by which marketing
strategies also affect. The psychological factors also affect personality so that a
person may improve ourselves. Motivation is the main factors which consider that
customers may develop their purchasing power by seeing relevant products
(Hospitality Consumer Behavior and Insight, 2021). Every person has various
needs, and they try to fulfill their wants and needs. Learning which they may learn
through day to day activities and it plays an important role in changing an
individual behavior. It comes at a point of time through skills, knowledge and
experience. The customer perception before purchasing a product that they collect
the information about products so that they don't face any problem to buy a
commodity.
LO 4
Evaluating how marketers can influence varied stages of hospitality decision-making procedure
Marketer may effectively and appropriately influence key stages of hospitality industry
decision-making process by conducting several practices and these are;

 Problem recognizant- marketer may influence decision-making process of hospitality
industry by taking initiative to determine current needs and requirements of customers,
which drive the attention of management towards grabbing chance attract profitable
travellers who tend to spend their holidays by taking pleasure of that within a well-known
hospitality organization.
 Need description- they may influence overall decision-making procedure by
concentrating on services quality and value that match demand of all the guests in
appropriate manner (Lu and Tabari, 2019).
 Product specification- Marketer influence entire process of sector by highlighting
unique and attractive elements of current and further offering, which management
attempt to promote in the market.
 Suppliers search- they may take initiative to find out the best and trustworthy suppliers
for Ritz Carlton, who are capable to provide fresh fruits, seasonal vegetables and other
resources that hotel may offer to customers in satisfactory way.
 Proposal solicitation- they conduct practice to develop the best marketing plan, which
influence decision-making of industry in term of making tactic to make arrangement of
better services as people are attract when they consider business campaign.
 Supplier selection- at this stage, marketer with previous guest reviews and comments as
well as feedbacks may generate useful content that help to build trust among target
audience and assure that hotel is delivering those accommodation services that meet
guests needs.
Investigating how marketers are responding to decision-making procedure
 Need recognition- they may influence the first stage of decision-making by addressing
needs of all guests and developing plan to provide those services that meet need of
individual guest in effective and satisfactory manner (Foroudi, Tabaghdehi and Marvi,
2021). They may attempt to stimulate requirements and wants of individuals by using
advertising tools and conducting practice of service promotion.
 Information search- marketer may influence the second stage of overall procedure by
providing a valid source of information to customers about Ritz Carlton, which covers the
key info about its services, price and other things that a guest expect to obtain. For
example, they may effort to develop useful keyword in the context of search engines and

upload satisfied guest reviews and comments over those websites where people may
reach easily.
 Identification and evaluation of alternatives- this phase defines process of comparing
and contrasting hospitality services by the customers. Marketer may influence this stage
by conducting practice of interacting with potential guest, which enable them to choose
their organizational service and products.
 Purchase decision- here, marketer may attempt to influence final decision of consumers
by using strategic promotional techniques, which make them capable to generate great
awareness of accommodation service and drive the attention of target audience towards
purchasing the same.
Critically examine how marketers can influence each phase of decision-making with reference to
suitable approaches
Marketer can influence and respond at each stage of decision- making by using marketing
funnel, according to that, they may conduct practice of generating products and services
awareness by using social media channels.

Shim, D., Shin, J. and Kwak, S.Y., 2018. Modelling the consumer decision‐making process to
identify key drivers and bottlenecks in the adoption of environmentally friendly products.
Business Strategy and the Environment, 27(8), pp.1409-1421.
Furthermore, they may also attempt to determine customers interest regarding
accommodation service of Ritz Carlton and consider plan accordingly. It can be critically
analysed that evaluation action enable marketer to evaluate the best tactics and plans, which give
them power to retain and acquire new guests, which is quite beneficial for hotel in term of
increasing profits margin. They may send prospects more data about accommodation service via
automated email sources to customers at the stage of consideration.
Critically evaluate application of appropriate concepts, models and theories that influence &
impact upon hospitality decision-making procedure
It can be said that application of customers decision-making journey and marketing
funnel made marketer capable to take appropriate action. For example, implication of marketing
funnel allow marketer to conduct those practices that differentiate business to customers and
business-to-business decision-making process in effective manner. It may provide them benefit
of increasing base of guest. On the other hand, implication of both concepts may consume a lot
of time which is not suitable for marketer who expect to obtain desire outcomes in short time
duration.
Illustration 1: The Marketing Funnel
(Source: How the Marketing Funnel Works From Top to Bottom, 2020)

CONCLUSION
On the basis of above discussion, it has been concluded that by considering all the factors
whether it is social or personal as well as cultural, management has gained competitive
advantages. According to these they have developed effective plans through which customer’s
attention is simple for them to gain. Furthermore, from above analysis, it has been summarized
that marketer has reached and influenced target market or audience by using social media, and
other approaches. They have conducted varied strategic practices for purpose of gaining the
attention of individual buyers that in turn has increased profitability and generated revenue of
hotel more than its rivals that also operated in same industry from long time. By solving the
issues of guests and resolving their queries, they contributed to enhance the satisfaction level of
all visitors.

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Hospitality Consumer Behaviour and Insight. 2021. [Online]. Available Through.
<https://desklib.com/document/hospitality-consumer-behavior-and-insigh/>

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<https://www.skyword.com/contentstandard/how-the-marketing-funnel-works-from-top-
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