Hospitality Consumer Behaviour and Insight: A Case Study of Marriott
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This report discusses the consumer behaviour and insight in the hospitality sector with a case study of Marriott. It covers the marketing mix, factors affecting consumer behaviour, consumer trends, and digital trends in the industry. Marriott's strategies for enhancing the consumer experience are also discussed.
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Unit 19: Hospitality Consumer Behaviour and Insight
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Contents Introduction................................................................................................................................3 Main Body..................................................................................................................................3 Overview................................................................................................................................3 Marketing mix........................................................................................................................4 Factors affecting consumer behavior.....................................................................................5 Consumer trends in hospitality sector....................................................................................6 Digital trends in hospitality sector.........................................................................................7 Impact of digital technology..................................................................................................8 Recommendation....................................................................................................................8 Conclusion..................................................................................................................................9 References................................................................................................................................11
Introduction Business activities depends on the choices and actions of consumers while looking for any product or services in the market. Consumer behavior refers to the process by which a person analyzes and evaluate the products by which he can fulfil his demands and achieve the maximum level of satisfaction. It is like an all and all procedure where a customer of any product wants to acquire the complete knowledge regarding the company and offering also. It is like a decision-making criterion that helps the company to attract more and more customers towards them, so it is necessary for the business firm to work on the improvement over consumer behavior. In hospitality sector, where there is enormous competition available, companies are trying to embrace the better consumer behavior tactic(Marriott, and Williams, 2018). This helps in exploring the most suitable chance by which a hotel chain can attain the opportunity to grow in the market segment. Along with this it also helps in selecting those people who the management of the hotel wants to target and wants to hold them for the longer period of time. This given report about a famous hotel chain Marriott, it will help in identifying the current strategical approach of the company for the enhancement of the consumer’s experience. Main Body Overview Marriott is very famous hotel chain which is spreading in all over the world.This hotel has almost numbers of branches which are established in more than 100 locations. The main aim of the company is to give the better services to their customers and maintain its reputation as five-star hotel. Services like lodging, reservation and bookings, packages for vacations with the conveniences like providing cars on rents. Several policies have been formed by the management of Marriott hotel where customers are avail with loyalty programs that will help in retaining the customers with the organisation(Li, Yao, and Chen, 2021). These programs include- Marriott Bonvoy, rewards and Starwood preferred guest. When the hotel guest uses these services, they will get the opportunity to get the free hotel facilities. Marriott is also concentrating on developing the mass properties in the hospitality industry, so that consumers easily access their and build a successful vacation plan. Company is looking forward to aim those people as their guest who wants to obtain accommodation facilityforthelongerperiodoftime.Marriotthotelchainisbetterknownforthe
modernization and creation in the services to attract the customers. This is the reason which has marked the company as the market leader in the hospitality sector. Marketing mix ď‚·Product-Marriott has wide range of product portfolio which is consist of numbers of resorts and hotels. Moreover, company is also promoting the application of new changes and modification that will support in making perfect services and contented arrangements for the guest coming for stay. The management has distributed the operational area of hotel in distinct parts which depends on the types of services demanding by the customers in the hospitality industry. Not only this, if any guest is asking for the optimum quality of services, then Marriott has the premium offering for them in which they will get all the facilities to make their experience best with the hotel(Kim,Park, and Kim, 2021). ď‚·Place-The functioning Marriott has been extended to the different countries such as China, Dubai, Argentina, Venezuela, Switzerland, Bangladesh, Thailand, United Kingdom, etc. Currently, the headquarter of Marriott hotel chain is located in Bethesda, Maryland. In order to grab the attention of the people towards the hotel administration has decided to have the distinguishing and planned site where guests can easily arrive. With the help of good and skilled staff Marriott hotel was the very first organization which has offered the facility where people can book the hotels through online platform. Other than this, administration of the hotel is trying the expand the area of Marriott hotel to more advanced level. ď‚·Price-The strategy regarding the price of the company is based on the premium services for the high-income level people, people who belong to multinational corporation. The major customer section for Marriott hotel is the person who are ready to spend the good sum of money, in order to get the enhanced services during their travelling and business meetings. With such price approach, Marriott hotel has earned around billions as revenue and approximately 850 million dollars net income in a financial year. The charges for the food and other services which are offered by Marriott hotel is matches with the idea of best quality of the company. ď‚·Promotion-The good brand image of Marriott has made it possible to present the organization as the most popular hotel chain in the hospitality industry. While company has also conducted some upgraded features such as providing satisfying compensation and recompenses or schemes to the guests(Mathew, and Soliman,
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2021). This is like a key planning by which Marriot is finding the suitable way that may increase the belief of the consumers in the services. For all those customers who are quite recurrent for the services in the hotel, authority has decided to give them some discounted and free facilities as a surprise. People-This part of mix shows the efficient and effective labor and working staff of the company who are equally involved in making the goodwill image of the business, along with presenting the innovative idea to embrace the better services with the business. In Marriott, employees are fully trained whether they are handling the room service department, kitchen area and responsible for the cleanliness or hygiene of ethe hotel. Likewise, manager of Marriott supports the staff and appreciate them for the profitable work which they have done for the increment in the competitive advantage of the business. Process-It refers to the idea of the business which helps in serving the product to the consumers in better way. In hospitality sector, the procedure regarding the offerings and presentation of services keeps of changing, this is because of the behavioral changes in the needs of the customers. Marriott is also believing in making the modification in the infrastructural facility of the company so as to drive the operations of the business as per the external changes in the environment. It also involves the utilization of digital tools in the service sector for the efficiency and effectiveness in the management(Inanc–Demir, and Kozak, 2019). Physical evidence-It denotes to the internal infrastructure and designing of any business entity which has been constructed with an aim to grab the considerationof the customers, so that they show their interest to acquire the services. Marriott has maintained its hotel interior and other facilities very well. These are so much captivating that guests are able to enjoy the luxurious and royal feeling while staying in that ambience. Moreover, it concentrates on making the dining zone, entertainment areas refreshing and innovative, this is helping them in getting the positive customer feedback and reviews for the services they are rendering to the guests. Factors affecting consumer behavior In hospitality sectors, it is not simple for the hotel and restaurants to maintain the lifelong relation with their customer. It requires lots of modification and alteration in the practices of the business, in order to go along with the behavioral aspects of the consumers (Piramanayagam, and Seal, 2022). By offering the business services according to the
customers preferences, the administrating is assuring the overall success of the business and strengthen the position in the global market of hospitality industry. Some of the factors which are mentioned below governs the changes in the behavior of the customers, a detail discussion on them is given in the context of Marriott- Psychological Factors-It relates with the awareness and informed behavior of the customers regarding the product and services which he is looking in the market. It includes different components which altogether controls the choices of the consumer such motivation, perception, learning, attitude and beliefs. Social Factors-It comprises of the people whom a consumer is connected such as his family, friends. In general, the status and influence of a person among the people of society in which he is living also affects the preferences for the demand of any product or services(Siddiqi, Sun, and Akhtar, 2020). Cultural Factors-This part is driven by the values, needsand wants of the consumers. A person usually gets attracted towards those business offerings which shows the capability to fulfil and satisfy the all-basic principles. This element of consumer behavior possesses the high impact on the deeds of a buyer of services. Personal Factors-Age, earning, profession and lifestyle are some special factors which individually administrates the demand of the consumer in the market. In order to acquire the products, a consumer always consider all these elements. Economic Factors-It refers to the monetary elements that lies in a person’s life, it could be related to his personal or family, the amount of budget he has prepared to spent on some products and services, etc. Consumer trends in hospitality sector There are numbers of changes which has been detected in this industry, and it is very important for Marriott to consider them. Being a premium hotel, so it is very much obvious that it will be the priority for all the multinational companies while holding any business events and functioning. For this, Marriott can bring some new alteration in its infrastructure that will support the remote working of the businessmen. Another thing which is widely circulating in the hospitality industry is about the hygiene and cleanliness of rooms and ambience of the hotel. Before pandemic it might not be that concerning issue, but COVID outbursts has changed the thought process of the customers.Now they are more conscious and aware for their health and prefer such hospitality management where administration is assuring them complete safe and healthy environment(Guillet,2020). Digitalization is also
creating a advanced changes in the hospitality sector. Customers are more likely to travel those hotels and restaurants which are fully digitalised and have all the facilities. It is also a solution for one of the trends which has been evolved in the pandemic in which people avoids to come in contact with each other and in case of hotels it becomes major concern for them. Marriott can include the personalized services in its business where they can greet and welcome their guest with the help of some electronic medium. This will enhance the operational activities of the business and make in more influential among the consumers as well. Every guest in Marriott wants to have that best experience which supports them in keeping a good value for the money which they have been spent in acquiring all those services. So, it is like an obligation for Marriott to work in accomplishing these needs of the consumers and ensure their success in hospitality industry(ĂśrgĂĽplĂĽ, and HĂĽseyinoÄźlu, 2021). Digital trends in hospitality sector Virtual reality is an ongoing model which is highly used in the hospitality industry. Marriot can utilize this facility to provide the customers a real view of its hotel infrastructure that will support them in booking the services. It will give a detailed information to the consumers about the services and offering which are granted by the consumers. On the other hand, implementation of robotic technology in the business will help in eliminating the cost which is incurred for the hiring of staff and room service department in the hotel industry. Furthermore, Marriott can include the advance tactics which helps in saving the consumption of energy, it basically related with the implementation of sensor devices in the rooms of hotels. By consider such devices in the hotel management, there will be no wastage regarding the resources which are used by the administration for the betterment of the customer experience. Marriott can work on employing the cyber security in the management as it will help in avoiding the threats which is concerned with the data of the customers.This also helps in maintaining the security of VPN to ensure the safety of the devices which is being used by the customers(Garg, Agarwal, and Singh, 2019). These facilities also help in restoring the important information of the consumers and helps in stimulation the goodwill of the hotel in the hospitality industry. Many businesses website taking the help of voice search which provide an ease to the consumers while surfing over the internet for the collection of necessary information regarding the hotels. It is not only used on such digital platform, but Marriott can also use this facility for the accommodation where consumers can use the devices and operate them with the help of their voices. Lastly, Marriott should focus on developing the technique of cashless transaction for the ease of the guests who arrives there.
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This will element the urgency to carry the cash while checking in such hotels and acquiring other services. So, Marriot should concentrate on embracing all digitalisation changes in its infrastructure as this will help in improving the customers engagement with the business. Impact of digital technology ď‚·Automationinthebusinessoperation-Digitaltacticshasminimizedthe involvement of employees in the hotels. Now, Marriott does not have to focus on managing the enhance staff to provide the services to the guests. With the help of automationfacility,hospitalityindustryhasexperiencedthelessinvestmentin recruiting the workers to deal and handle the customers effectively. It also helps in providing the services to the customers at any time, and guests can book the hotels without any support of human conversation. ď‚·Enhanced services-Travelers and those individuals who are doing remote working can take the advantage of the digitalization as it will give them all the opportunities to execute their work at any given place. Guests can use the Wi-Fi and different types of modern technology which will ensure their comfort in the long journey. Cleanliness and good hygiene in the hotel industry is the positive changes by the implementation of the advanced digital features(Chu,Deng, and Cheng,2020). ď‚·Convenience in check-in and check-out-It also solve the complication which is concerned with the dealing with so many people and staff while arriving to the hotel. Now, guests do not have to wait for the longer period of time for the same, as they can do all these activities by themselves. All these activities are also available at different stores and business, which supports in providing the good services and experience to the customers. ď‚·Improved services of staff-Other positive impact of digital technology is that staff of the hotel become more efficient and skilled in performing their assigned task. Hotel administration also focuses on providing the sufficient knowledge and information them, by which they can learn about the operational activities of digital tools in the business. Recommendation By evaluating the overall concept of customer behavior and current trends which exist in the hospitality industry, there are some relevant changes which meant to be followed by the Marriott in its business operation. It is important for Marriott to find out those areas in its hotel which are making some disturbances in giving the better performance in the global
market. By acknowledging all these problems, Marriott can analyze the issues which is restricting it back in acquiring the good support of the consumers. Moreover, it should work on the pricing strategy, because of the high prices customers often avoid to stay here.There are so many hotels which are giving the same quality services in very affordable prices. Such situation may rise the competition for the Marriott in the hospitality industry.Marriott should concentrate on developing such business strategy which relies on providing the optimum level of satisfaction to the consumers. By generating the customer centric approaches in the making the decision will help Marriott in successfully attaining the loyal customer base in the global market. Moreover, it also requires timely upgradation in the services which are driving with the help of technological advancement. If Marriot goes with its old and outdated tactic to deal with the consumers then gradually administration will experience the major changes in the conduct of the customers in respect to the offerings of management. Next, higher authority of Marriot should focus on formulation such policies for the business which fulfils the all-basic needs and demand of the consumers. It should focus on using that form of marketing which assures to have a good communication and message delivery among the customers.Marriottshouldfocusonidentifyingthereasonforthealterationinthe expectations of consumers at very coarse level. It will provide a base to the company by which they can analyze the operation which is reducing the revenue and profit of the business. Moreover, it can present some mediums where customers are allowed to drop their issues and feedbacks in respect to the services which are provided Marriott to them(Chalak, Abou-Daher, and Abiad, 2018). By doing so management will show their concern to improve the experience of the consumer with them and this gives them an opportunity to increase the competitive advantage in the global market. Conclusion The above given report went into the detail about the concept of customer behavior in any business organization. It is like a guiding force that dominated the demand of the product and services in the market. In order the ensure the positive consumer behavior towards the business firm, administration have to focus on identifying the growth and current status of the services which are rendered by them. This is possible with the help of systematic execution of marketing mix, which disclose the overall strategical approach of business to maintain the reputation of the offerings in the market. This report has explained the factors which plays a crucial role in affecting the behavior of the consumer in the global market. A detailed note has been stated on the implementation of digital tools and its influence in the hospitality
sector. Along with this, distinct ways in which a business can embrace these innovative aspects in the management of the functional areas.
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