Hospitality Consumer Behaviours and Insight Assignment

Hospitality Consumer
Behaviours and
Insight

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Assessment of factors which influence the attitudes and behaviour of consumers...............1
P2 Impact of digital technology on changing consumer trends and its effect on hospitality
industry........................................................................................................................................3
TASK 2............................................................................................................................................4
P3 Examination of stages of consumer decision making and developing a map for purchasing
in hospitality service...................................................................................................................4
P4 Significance of mapping consumer decision-making for marketers......................................5
TASK 3............................................................................................................................................6
P5 Comparison in decision making process of B2C and B2B....................................................6
P6 Evaluation of various approaches of market research for understanding decision making
procedure.....................................................................................................................................8
TASK 4............................................................................................................................................9
P7 Evaluation of impact of marketers on hospitality decision making procedure......................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Consumer behaviour refers to study of consumers, business organisations their way of
selecting as well as using the products and services. This study is highly related with psychology,
behaviour and instigations (Ariffin and et. al., 2018). It is essential for marketers to understand
the behaviour of customers in marketplace in order to solve various queries of management
regarding brands, goods, services, organisations preferred by the individuals and their behaviour
on shopping and marketing campaigns. There are several technologies through which marketing
manager can track and map the journeys of regular clients. For the purpose of this report,
Marriott Hotels International Ltd organisation is taken. It functions in luxury hotels in London,
United Kingdom on global level. This report consists of assessment of factors influencing
consumer behaviour in hospitality sector, mapping purchase demeanour of population, types of
research needed in understanding their behaviour and evaluation of impact of marketers on their
decision-making process.
TASK 1
P1 Assessment of factors which influence the attitudes and behaviour of consumers
Consumer behaviour is defined as the study of particular individuals, population,
businesses and the procedures selected by them to consume and sell products or services to
satisfy the requirements with the impact it has on consumer and community (Canziani and
Welsh., 2016). There are various factors in the environment that are responsible for influencing
the behaviour of consumer. They are discussed as under: -
Cultural factors- It includes all the factors like social class, sub-culture and culture.
These all plays an important role in affecting and determining the purchasing behaviour of
individuals. Culture is the set of norms, attitudes, beliefs that transform the behaviour and shapes
the products. It is found in the habits of consumer and in the legislation of country. For example,
Marriott Hotels International Ltd should discover the language and beliefs of customer while
setting up new service in new market place to avoid misinterpretation of language by the
customers.
Social factors- In this environment the population possesses social class. Income and
other factors such as business and education of individual elaborates this factor in group of
customers. It is different in languages, leisure time preferences, costumes and various other
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characteristics. In Marriott Hotels International Ltd, social factors are considered by management
while providing offers and discounts during festive season to create positive image in the minds
of consumers.
Personal factors- It is one of the most important factor which impacts consumer
behaviour. It alludes age, occupation, financial conditions, lifestyle and personality. These
factors are responsible for changing the purchase motive of customers. Marriott Hotels
International Ltd should take into account the purchasing power and employment in the regions
where it wants to expand the operations to perform effectively.
Psychological factors- It consists of motivation, individual perception, learning &
experience, attitudes, beliefs, etc. Motivation activates the internal requirements of consumer.
Perception changes as per the current situations in the environment, learning and experience
includes the research carried out by the customer and their past experiences, attitudes decides the
emotional actions and belief specifies the product from the market (DA Tasci, 2017). In Marriott
Hotels International Ltd, marketers conduct in depth study of psychological factors to cope with
the changing trends and demands of customers.
Challenges in delivering quality service to satisfy consumer expectations
In this modern world it has become difficult for the marketers to please customers while
competing with the competitors. Consumer service is essential for businesses to accomplish the
sales targets and become renowned service provider in the market (Osman and Nelson, 2019).
Some challenges faced by the company in rendering services to customers are mentioned below-
Understanding expectations of customers- It is the most difficult task and requires
complete understanding of changing consumer expectations. Henceforth, Marriott Hotels
International Ltd adopts the strategy of communicating with customers regularly.
Exceeding expectations of customer- Meeting the expectations of customer is not
enough in this modern era as they are influenced by competitors. To deal with this challenge
Marriott Hotels International Ltd stay updated with new suggestions collected through consumer
feedbacks and trends in industry.
Consistency- This factor is difficult to accomplish in service industries. To provide great
services to customers it is essential to supply it by 24/7 hour through various channels.
Consistency is achieved by Marriott Hotels International Ltd through clearly framed policies in
relation with supply of customer services.
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P2 Impact of digital technology on changing consumer trends and its effect on hospitality
industry
Consumer behaviour is highly influenced and motivated by change in trends of society.
Digital technology increases the expectations of customers and make them more selective in the
industry (Howison, Finger and Hauschka, 2015). The impact of this technology on Marriott
Hotels International Ltd can be clearly understood as under: -
Change in customer behaviour- Customers who prefers to book services online
frequently visits online portals to access information and buy service. Increasing use of digital
marketing by businesses has increased the content posted online. Lot of subject matter on
product discourages customer's attention.
Rise in customer's expectation- Digital technology has increased the functioning of
business activities on online platforms as it is quickest and cheaper. Henceforth, various
businesses enter the online market with different range of products. Availability of number of
commodities rises the expectations and desires of consumers.
Increase in accessibility of information- Businesses make use of this technology to assist
customer in collecting the information about the products (Ro, 2015). Hence, the visits of
customer on online websites increased and it highly influenced their buying behaviour as well as
decision.
Emerging consumer trends and their effect on hospitality industry: -
Tech explosion- Consumers today have become self sufficient and tech-savvy and are
comfortable in utilising apps and websites on mobile. The impact of this trend is that Marriott
Hotels International Ltd has to provide updated and user friendly offerings with tech quality to
its clients.
Increased importance of health and wellness- In this technology friendly environment,
customers became health conscious and therefore, they exert high emphasis on the services
which assures their well-being and controls health issues. Marriott Hotels International Ltd is
well equipped with pools, fitness centres, spa rooms, yoga spaces, exercise equipments and
shower water with essential vitamins to fulfil client's expectation regarding innovative health
options.
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TASK 2
P3 Examination of stages of consumer decision making and developing a map for purchasing in
hospitality service.
There are several factors that influence a consumer in making a buying decision.
Consumer’s decision making process is driven by rational, irrational, emotion and economy. It is
the motivation, perception, knowledge, experience and personality of individuals which
extensively encourage or discourage customer in deciding what to purchase and where to invest
the income (Di Foggia, 2015). Marriott Hotels International Ltd may make assumptions of
client's spending through this process.
The decision making process of consumer goes through following stages: -
Pre-purchase- It includes developing goals for satisfying the requirement of specific
need. This is the first step of this process.
Need recognition- In this step, consumer establishes the need, issue or motive for
purchasing. The customer may be driven by internal and external information which drives them
to search something that assists in satisfying the problem.
Searching and gathering information- Consumers start searching and collecting
information about particular goods and services when the need forces them to attain the product.
Data is gathered from known sources who are regular users of the commodity and through
internet, newspapers and radio communications.
Evaluating the alternatives- After gathering the necessary information from different
sources, consumer evaluates the merits and demerits of product, and compares it with similar
goods available in the market (Bharwani, and Mathews, 2016). Subsequently, establish choices
related to commodity, its store and brand that corresponds to requirement, taste, personality,
preference and lifestyle.
Purchase- When specific products are assisting in satisfying the want and provides best
possible solution to the problem, consumer approaches to accomplish final purchase. It alludes
choosing the commodity, brand, dealer, price amount and time of buying.
Receive- Finally consumer purchases and receives the delivery of product.
Post-purchase evaluation- After purchasing the product consumer evaluates whether the
commodity is really solving the issue, providing satisfaction, investment was done on proper
product or not, the quality is according to need.
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Levels of consumer decision-making: -
Consumer decision making is categorised into three parts. They are explained as under-
Extensive problem solving- Consumers invests their time in selecting the most
appropriate product by critically evaluating the information of commodity established in market
through other consumer experiences.
Limited problem solving- Out of the several brands available in market, consumer
researches and select product that solves basic need in daily life.
Routine Response behaviour- The consumers who possess this type of behaviour
purchases any kind of product of any brand applicable in stores that fulfils the primary
requirements (Del Chiappa, Gallarza and Dall'Aglio, 2018). They do not spend much time on
selecting the most appropriate product.
P4 Significance of mapping consumer decision-making for marketers.
Customers are regarded as important in every stages of marketing process that assists an
organisation in attaining consumer satisfaction (Lub and et. al., 2016). They influence flow of
demand and supply of products in the business environment. For Marriott Hotels International
Ltd the service of luxurious rooms is considered as vital asset for business management as it is
utilised by clients daily. It is vital for marketers to map and evaluate individual decision making
to understand the needs of consumers in current global world. The information gathered about
customer preferences in selecting the company's product and avoiding the use of other services
assists the hospitality organisation to implement any changes required for improving the quality
in commodities. This buying behaviour is needed in framing effective marketing strategies and
developing mapping path to discover the stages of consumer decision making. Following are the
factors that are covered by consumer in the entire purchasing journey: -
Pre-purchase- It is most essential element as in this factor customer discovers the need
for purchasing the product, whether it will be advantageous or not and all the information
regarding commodity is gathered to make effective investment in market (Bowie, and et. al.,
2016). In this stage Marriott Hotels International Ltd can focus on improving and increasing
various communication channels which can benefit consumers in collecting necessary
information.
Purchase- In this stage, consumer buys the product after assessing the advantages
provided by commodity and discovering experience of past users of same products. In Marriott
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Hotels International Ltd, marketing department can concentrate on marketing the product
effectively so as to attract interest of customers.
Receive- This factor makes delivery of product finally to the consumer and they utilise it
to fulfil their requirement. Company can gain loyalty of customers in this stage if the purchased
commodity satisfies their expectations and needs. Marriott Hotels International Ltd can collect
information regarding client’s satisfaction through feedbacks with the use of both online and
offline platforms.
Post purchase- Here the customer evaluates whether their experience of using product
was beneficial or not and that it satisfied their expectation and desires. Further, they make
decision regarding use of commodity in future. This factor assists marketer in Marriott Hotels
International Ltd to develop and innovate product and service to intensify sales margin.
TASK 3
P5 Comparison in decision making process of B2C and B2B.
B2B marketing consists of marketing practices used in and among various businesses. On
the other hand B2C marketing refers to marketing practices used for customers (Jauhari, 2017).
Every marketer enters in the marketplace with several objectives like capturing large market with
products and services of organisation. Few business are engaged in selling commodities
Following is the comparison between Business to consumer and business to business decision-
making process:-
Decision making process B2C B2B
Recognising need Consumer starts the
purchasing process by
identifying need. The
requirements of customers are
practical in nature. For
example, purchase of
computer takes place when
people undergo learning and
education.
Business consumers starts
purchasing process by
discovering the need. It may be
required to simplify operation
or increase stock. For example,
purchase of computer parts in
company to improve stock
ordering activity.
Collection of information In this stage, consumer gathers Businessman gathers data from
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every information of computer
product available in
marketplace.
trusted sources about computer
equipment’s.
Identify the options Here customer discovers
various sources which will
assist in satisfying the need of
computer product.
Enterprise identifies all the
options available in market to
make effective purchase of
computer parts.
Comparing alternatives In this stage, consumer
compares needs, costs, benefits
and quality of computer
product with accessible
options in the market area.
They carry out this activity
through online reviews
Purchase manager in business
compares the product
computer equipment suppliers
with all brands provided in
market, and also considers
factors like cost, quality,
durability, budget of company.
Select among various
alternatives
Here, customer finally selects
the most appropriate computer
from several alternatives.
On the other hand, in this stage
business finally chooses the
equipment’s of computer that
best suits the stock ordering
process.
Execute the purchase In this stage, consumer finally
decides to buy computer after
discussing with friends, family
and partners. Here, only one
person is involved in making
final judgement of purchasing.
Here, business makes a final
decision of purchasing
computer equipment’s. This
stage is time consuming as
buying decision is taken
collectively by committee.
Evaluating the results Here, consumers provide
feedbacks only if their
expectations are not met. They
may directly complain to the
seller or make use of social
In this stage, if businesses
faces any issue in product then
they resolves them by
communicating with supplier.
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media to present their
dissatisfaction.
P6 Evaluation of various approaches of market research for understanding decision making
procedure.
Consumer decision making is a procedure by which they select the most relevant product
from several available alternatives (Consumer behaviour 2019). In this competitive world it is
essential for Marriott Hotels International Ltd to understand the decision-making process of
consumers in order to capture large market areas and attract huge population to improve the
selling of products. This is possible if marketer apply appropriate strategies and make use of
following models in business activities-
Economic view model- It presumes that a customer is a rational person and therefore,
takes logical decisions while purchasing. They separate different products, determines its
advantages and disadvantages and finally comes to a conclusion after analysing collected
information. Consumer possess abilities to rank several commodities according to their quality
and price. Economic view model considers that there is perfect competition in the world.
Cognitive view model- This is one of the best model from among several models of
consumer decision-making. It states that consumer takes decisions of spending on a particular
product as per their individual rational needs and not according to advertisements published by
the businesses. Cognitive view model assumes that individuals plans goal and acts as per their
goals to attain satisfaction in using commodities. In every hospitality organisation, a marketer
should be engaged in enhancing the skills of consumer in taking quick decisions regarding
buying products.
Passive view model- Passive view presumes that consumers buying behaviour is
influenced by the selling, marketing or promotional efforts of the businesses and they drive by
the sales appeals provided by marketers (Gibson and Parkman, 2018). This model consists of
contrasting viewpoints from economic view model which assumes that consumers are first and
final individuals in deciding the purchasing activity of goods. It is relevant to apply in B2C
marketing as here customers are not aware about the goods and commodities and hence, can be
easily manipulated by the business organisations.
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Emotional view model- This model states that every consumer has certain emotions
which are responsible for affecting their purchasing behaviour. They make more spontaneous
purchases after relating the commodity with their life. Customer tends to take less time in
deciding the need of product and also generates positive as well as negative emotions in context
of that product. Henceforth, goods that develops negative emotions are totally avoided and that
of positive emotions are selected and purchased by them. Emotional view model targets the
emotional characteristic and impulse of purchasers in order to attain the sales objective of
business concern.
TASK 4
P7 Evaluation of impact of marketers on hospitality decision making procedure.
An individual consumer has the power to make decisions in the market area. The
decisions like what to buy from a retail store, whether to get influenced or not through marketing
strategy of marketer and select which brand bestows upon customers (Gbadamosi, 2017).
Therefore, businesses should work on adopting techniques that assist in controlling the
behavioural feature of customer. There are various factors through which marketers can affect
the stages of decision making process of purchaser. Marriott Hotels International Ltd can make
use of following models and methods to influence the decision-making process of consumers-
Cognitive learning- In cognitive learning, marketers get an idea about recent trends in
behaviour of customers. Through this data companies can frame strategies in order to pull
potential customers and develop positive brand image of product in the market. It will aid in
gaining competitive advantage and survive in the environment for longer time period. Businesses
should focus on determining mental condition of targeted population so as to introduce
commodity in the area which delivers sales growth and higher profitability.
Perception- In international market several customers has different perception related to
various goods. In hospitality industry marketers are engaged in activities which establish positive
image for the products and services of organisation (Moutinho and Vargas-Sanchez, 2018).
Perception performs a significant role in getting attention of important customers and
encouraging them to purchase the commodities of the business. It will assist in improving the
profits margins and accomplishing sales target within specified time period. In marketplace
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consumers are pulled by those items which have unique features and quality. This is common
perception of consumers engaged in buying and selling activity in the market area.
Behavioural theory- This theory enhances purchasing behaviour as well as influences
decision-making ability of customers because it is related with individual's attitude, characteristic
and behaviour in market area. It alludes conditioning elements that discovers the interaction of
customers with the surroundings and commodities present in the market in order to satisfy their
wants and interests. Behavioural theory recommends businesses to adopt flexible nature in
operations to deal with change in the consumer's tastes and trends.
CONCLUSION
From the above study, it is concluded that consumer behaviour is responsible for
affecting the sales and purchase activity in marketplace. Marketing department in an organisation
gets an idea of need of change in product, introducing new product or developing goods, fixing
prices and enhancing other activities of marketing. It is significant for hospitality industry to
make products according to demand generated by customers in order to grow and improve
overall productivity. The behaviour and perception of individuals are affected by several factors
like psychological, cultural and social being. Digital technology has increased the spending,
expectations and qualitative demands of consumers in the industry.
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REFERENCES
Books & Journals
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industry. Worldwide Hospitality and Tourism Themes. 8(4). pp.416-431.
Bowie, D. and et. al., 2016. Hospitality marketing. Routledge.
Canziani, B. F. and Welsh, D. H., 2016. Website quality for SME wineries: Measurement
insights. Journal of Hospitality and Tourism Technology. 7(3). pp.266-280.
DA Tasci, A., 2017. Consumer demand for sustainability benchmarks in tourism and hospitality.
Tourism Review. 72(4). pp.375-391.
Del Chiappa, G., Gallarza, M. G. and Dall'Aglio, S., 2018. A relativistic value-based approach to
interpreting e-rating and e-complaining behaviour in the hospitality sector.
European Journal of Tourism Research. 18. pp.13-32.
Di Foggia, G., 2015. Governance, Strategy and Innovation of Utilities controlled by Urban
Governing Bodies: Insights for Industrial Policy. Management Research and
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Gbadamosi, A. ed., 2017. Young Consumer Behaviour: A Research Companion. Routledge.
Gibson, P. and Parkman, R., 2018. Cruise operations management: Hospitality perspectives.
Routledge.
Howison, S., Finger, G. and Hauschka, C., 2015. Insights into the Web presence, online
marketing, and the use of social media by tourism operators in Dunedin, New
Zealand. Anatolia. 26(2). pp.269-283.
Jauhari, V. ed., 2017. Hospitality Marketing and Consumer Behavior: Creating Memorable
Experiences. CRC Press.
Lub, X. D. and et. al., 2016. The future of hotels: The Lifestyle Hub. A design-thinking approach
for developing future hospitality concepts. Journal of Vacation Marketing. 22(3)
pp.249-264.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
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Osman, M. and Nelson, W., 2019. How can food futures insight promote change in consumers’
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Online
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Consumer behaviour 2019. [Online]. Available
Through:<https://www.kbmanage.com/concept/consumer-behaviour/>.
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