Factors Influencing Consumer Behavior in Tourism

This report discusses the factors that influence consumer behavior and attitudes in the tourism industry, including cultural, social, personal, and psychological factors. It also explores the changing consumer trends due to digital technology. The report further examines the stages of the consumer decision-making journey and maps a path to purchase for a given tourism service. Additionally, it compares and contrasts the decision-making process in B2C and B2B hospitality and evaluates how marketers can influence the different stages of the tourism decision-making process.

Report

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Different cultural, social, personal and psychological factors that influence consumer
behaviour and attitudes with a tourism context...........................................................................1
Consumer trends are changing due to the impact of digital technology.....................................2
TASK 2............................................................................................................................................3
Stages of the consumer decision making journey and map a path to the purchasing for a given
tourism service............................................................................................................................3
Explore why it is important for marketers to map a path to purchase and understand consumer
decision-making in the tourism sector........................................................................................5
TASK 3............................................................................................................................................6
Compare and contrast key differences of hospitality decision-making process in context of
B2C and B2B..............................................................................................................................6
Evaluate the different approaches to market research and methods of research used for
understanding the decision making process................................................................................8
TASK 4............................................................................................................................................9
Evaluate how marketers can influence the different stages of tourism decision-making process
giving specific tourism examples................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Consumer behaviour is regarded as the study of how single consumers, teams or firms
choose, purchase, utilise as well as dispose ideas, products or services for satisfying its
requirements. Customer insight are the interpretation of trends within human behaviours that aim
to enhance the effectualness of goods and services for clients and maximise sales for monetary
advantage of that provisioning the goods (Bel and et. al., 2015). As per the scenario the
undertaken organisation in this report is TUI Group, which is an multinational travel and tourism
firm having headquarters is in London, UK. This report covers factors which influence tourism
customer behaviours, consumers changing trend because of digital technology impact, stages of
consumer decision making journey, mapping a path to buy and understand customer decision
making into tourism industry and key differences of hospitality decision-making procedures in
respect of B2C and B2B. Moreover, the several approaches to market research and how
marketers influence various stages of tourism decision making process are also discussed in this
report.
TASK 1
Different cultural, social, personal and psychological factors that influence consumer behaviour
and attitudes with a tourism context
Consumer behaviour and attitude is considered as the feelings of favourable as well as
unfavourable decision of person towards goods or services. This consists beliefs, feelings and
behavioural intent towards things (Cavagnaro and Staffieri, 2015). This is the accountability of
TUI group to examine customers attitudes and behaviours for facilitating them services
associated with tourism in order to obtain effective experiences. The several factors which
influence their attitudes and behaviours are discussed below:
 Cultural factors: It plays vital role in ascertaining the behaviour of customers. This is
categorised into culture, social class and sub culture. In this respect, individuals
behaviours and its role that they plays within community are involved. Sub- culture
regarded as group of people in which it share traditions, belief and others in context of
religion, nation etc. Likewise, in social class individuals are concentrated upon persons
income level. It includes customers, values and many more. The people who live into
society have several requirements as well as influenced by another one. The behaviour
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and attitude of customers are influenced as all user have its own traditions as well as
culture that modify its mind to purchase goods or services.
 Social factors: It is categorised in family, status, reference group, role and others. In this,
reference group can influence customer that affects firm's products and brands. For
example: In case reference group have used services form TUI Group as well as that was
better then they recommend it to others and likewise in case of bad services they suggest
to take services from another tour operators. Individuals from several company, families
and team have to maintain its reputation into society. It influence customer attitudes and
behaviours in order to buy products or avail services.
 Personal factors: There are several kinds of personal factors such as lifestyle,
occupation and others (Cheng and Edwards, 2015). These aids to influence customers for
purchasing products or services efficaciously. For example: TUI group is facilitating
services to travellers for operator. In case of children tourists, the operators has to provide
gaming facilities, for old age safe and high class rooms and others. Like this manner, this
particular factors influence the behaviour and attitude of customers.
 Psychological factors: This involves experiences, behaviours, motivation and others. All
these influence behaviour as well as attitudes for purchasing goods. For example: if
customer obtain effective services from TUI Group then they develop plans for further
visit as well and vice versa. Like this manner, customers behaviours as well as attitudes is
influenced (4 important Factors that Influence Consumer Behaviour, 2019).
Consumer trends are changing due to the impact of digital technology
With enhancement into technology, there is change into individuals requirements. The
digital technology plays vital role within human life as well as develop it more simple for
attainment of objectives. Likewise, in respect of tourism industry, digital technology have
effected the trends of customers that are discussed below: Digital technology provides peace of mind and convenience: With raise into digital
technology, they have developed human life in more advanced (Cohen, Prayag and
Moital, 2014). The technology services is available 24*7 that help customers to do task in
more simple way in order to attained business objectives efficaciously and efficiently. As
per the information above 75% of clients have brought the smart devices for family safety
and comfort (4 Examples of How Technology Is Changing Consumer Behavior, 2019).
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For example: TUI Group concentrate upon facilitating online information to consumers
that assists them to render whole kinds of offers, discounts and other by online sources
that drives them to formulate plans for tours. Moreover, this is easy for person and safe
money as well.
 Wearable shape of customer lifestyle as well as protect money of entities: The changing
digital technology trends aids into tracing records for several information. The wearable
technology is regarded as the initial step towards minimising stress and adapting standard
lifestyle (Gao and Bai, 2014). Digital technology have assisted customers for making
effective decisions to accomplish objectives. For example: there are huge number of
clients who utilized the services of TUI group or another tour operators as well as
facilitates its feedbacks, ratings, suggestion in websites as well as apps that aids
customers to formulate better decisions for its holidays plan. It leads to shape the lifestyle
of customers as well as safeguard its business money.
TASK 2
Stages of the consumer decision making journey and map a path to the purchasing for a given
tourism service
Customer decision making journey is regarded as model that assists to states how clients
are formulating their buying decisions. This is considered as non- linear into nature which means
that to overlap one another until final decision is developed. It sis an economic activity that
facilitates satisfaction to clients in respect of accomplishing their requirements. This is also
known as customers buying decision process. It includes five stages that are discussed below:
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 Required recognition: This is regarded as the beginning stage into decision making
procedures that assists TUI Group in identifying customers purchasing behaviours for
goods or services. It is the essential step of decision-making in which targeted market
requirements have to be ascertained in efficacious way.
 Information search: After the identification of requirements, the accumulating as well
as searching of information are done (Gnoth and Matteucci, 2014). The customer
accumulate data related to products or services before formulating any buying decisions
with undertaking its negative and positive aspects. Herein, TUI Group have to
accumulate information regarding ist customers as well as consequently perform for the
attainment of profitable results. They may utilise several sources like e– media, reviews
of person to gather data and others. Beside this, there are few more sources that involves
commercial data sources, printed and previous experience of clients and so on.
 Assessment of alternatives: This is regarded as the third step in which TUI Group have
to assess the alternatives in efficacious way. Within this particular step, customer perform
assessment of several alternatives in respect of quality, price and many more. This have
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Illustration 1: Stages of Consumer Decision Making Process
(Source: Stages of Consumer Decision Making Process. 2019.)

to be performed in very efficient manner in order to formulate best decisions for
purchase.
 Purchase decision: This is regarded as fourth step in which customers decides that what
to purchase, from where to buy and others. Herein, they exactly buy goods or services
that is needed to them efficaciously. Their requirements and wants are influenced through
advertisement campaigns, marketing or many more. In this, TUI Group have to facilitates
effective packages of holiday in order to purchase it.
 Post purchase behaviour: This is also regarded as the final step of decision making
procedures in which customer can examine, assess product satisfaction level. In case the
products which are brought were accomplishing customers desired then it will become
the loyal clients. Thus, TUI Group has to facilitates higher satisfaction level to customers
in efficacious way (Stages of Consumer Decision Making Process, 2019).
Thus, all these stages perform in systematised order that initiate from requirement
identification and last with post buy. This is the map of consumer decision making journey. Such
as in case consumers likes to visit Europe then this is their requirements thereafter they
accumulate information regarding several tour operator that facilitates services as well as assess
them in context of services as well as cost and develop decision to visit. At the time they reaches
its services facilitated to them in respect of hotel, welcome gifts and response of feedbacks are
post buying behaviours of clients.
Explore why it is important for marketers to map a path to purchase and understand consumer
decision-making in the tourism sector
At current times, there is raise into competitive which drives towards impacting
consumers decision making regarding their brand and products as well. The customer behaviours
is dynamic in nature in which its preferences, tastes are modified consequently (Higham and et.
al., 2016). In respect of travel and tourism industry, there is higher competition that impact their
business profit and productivity. Thus, TUI Group management have to observe the situation of
market for reducing risk for obtaining higher position. Some of the reasons are discussed below:
 Marketing Mix influence: It is the factor which aids in developing effective position to
organisation in context of facilitating appropriate products at correct time and areas. For
example: the TUI Group management will observe marketing mix such as price, product,
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promotion and many more then this will leads to impact entities productivity and profit.
Thus, this is vital to examine recent trends as well as accomplish its needs consequently.
 Technology influence: It is the factors that aids in enhancing rivalry as well as market
share. For example: in cases TUI group have adapted advanced technology within entities
then it may enhance their profitability and market share. It cam utilise technology for
performing promotion by social media as well as web promotion for increasing consumer
base and share of market.
Beside the above, the concepts as well as model which are helpful for facilitating
guidance to marketers for mapping a way to buy and understand decision making of customers
within tourism industry are discussed below:
 Cognitive view: In case TUI Group may simply accumulate information regarding their
requirements, tastes, preferences and others of person then it can facilitate premium
products value by formulating efficacious strategies.
 Economic View model: While buying goods through customers develop analysis of
several brand prices as well as select that who are reasonable in nature. Thus, marketer
have to charge affordable cost for goods or service from clients.
 Emotional view: This is vital for TUI group to examine emotional view of its targeted
customers efficaciously so that it may attained the desirable objectives in appropriate and
proper way.
 Passive view: It is associated with advertising actions as well as practices which assists
firm to maximise its productivity (Horner and Swarbrooke, 2016). The TUI Group
perform innovation with the help of advertisement channels for gaining competitive
advantages.
TASK 3
Compare and contrast key differences of hospitality decision-making process in context of B2C
and B2B
In relation to marketing function, B2B as well as B2Care considered as the type of
commercial transaction. In this, B2B is regarded as business to business in which firm sell its
products to customer (Juvan and Dolnicar, 2014) Likewise, is regarded as business to consumer
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in which firm can sell its goods to clients. The distinguish between B2B as well as B2C are
discussed below:
Particulars B2B B2C
Buying decision Within B2B, before facilitating
any goods to entities, TUI
Group have to assess several
elements like customers
nature, pricing strategies and
many others. So, this is very
vital to accumulate effective
information regarding business
that is needed to them in
efficacious way so that
profitable improvement may
be performed.
Herein, consumers are
considered as most vital
factors in which they do
judgements regarding firm's
purchasing products or
services. It needs less time for
performing transaction of
business. As consumers
directly purchase goods from
enterprises without any type
of hindrance.
Identifying requirements Herein, they have to place its
participation for observing
marketing situation to
facilitates services to
enterprise. It has to find as
well as examine business
requirements that is needed to
operate business efficaciously.
Within it, this is the
management accountability to
examine market for its
customers in order to find its
requirements as well as
facilitate them service
consequently. It has to utilised
advertisement channels for
creating awareness and gaining
attention of clients.
Decision associated to market
size
In this, TUI Group have to do
market segment as per their
lifestyle, income level and
others. Moreover, they may
segment this into small group
Within it, this is the
accountability of firm's
management to cover larger
places for facilitating services.
It aids in obtaining the
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to accomplish its requirements
efficaciously for optimistic
results.
attention of huge customers for
availing services which will
drives towards enhancing
profitability.
Thus, the above differences between B2B and B2C aids TUI group to identify and
accumulate information for enhancing profit.
Evaluate the different approaches to market research and methods of research used for
understanding the decision making process
For sustaining as well as surviving at market area, this so much essential for firm to
analyse regarding customers requirements in efficacious way (Kunz and Seshadri, 2015). TUI
Group have utilised both business B2B and B2C market investigation which are discussed
below:
Approach of market research into B2B
Within this approach of marketing research, data are accumulated which are already
provided into internet, websites and others that is regarded as secondary methods. This may be
utilised for further time duration. Some of the sources related to this are explained below: Government as well as non government agencies: TUI Group have to monitor overall
agencies, procedures, policies and others whether it is government or non- government
for developing brand reputation at market area. It also aids into individuals procedures of
decision making in appropriate and efficacious way.
 Public records: TUI group ascertain previous records as well as performance among
market and customers for obtaining appropriate information and consequently examine
the process of decision making.
Market research approach within B2C
Marketers are accumulating data from primary method as this facilitate fresh data for
reducing issues. Some sources of this are described below: Personal interview: Within this, investigator perform face to face interview with
individuals for understanding its viewpoint as well as perception about goods or services
of TUI Group. With this the procedures of customers decision may be understandable.
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 Questionnaire: Within this, investigator formulate design for obtaining data which aids in
developing organisational value as well as efficaciousness of assignment.
TASK 4
Evaluate how marketers can influence the different stages of tourism decision-making process
giving specific tourism examples
Both B2B as well as B2C are considered as essential marketing components which
depends upon the procedures of decision making as well as buying behaviours of consumers for
obtaining higher profitability margins and productivity (Malone, McCabe and Smith, 2014). In
respect of tourism business, marketer facilitates goods and services to clients for accomplishing
its needs and wants. Both of these assists in producing revenue for firm and influencing
marketplace by adapting several methods which are discussed below:
 Marketing Campaign: There are several campaign of marketing like social media,
advertisement and many other that aids consumers to obtain data related to products or
services. In respect of TUI Group, it has to utilise several marketing campaign creating
awareness regarding goods or services that they are providing at market area. This aids in
grabbing the attention of huge clients which leads towards maximising profit as well as
productivity.
 Perception: This is regarded as the manner regarding how individuals understand or
obtain things (Santos and Ramos, 2014). The TUI group goods or services plays an
efficacious role for influencing the customers purchasing decisions. It have to concentrate
upon manufacturing products according to its needs. It aids to grab the attention of large
consumers towards their entities as well as accomplish its level of satisfaction.
Example:
TUI Group deals into travel and tourism industry that facilitates several services in
context of holiday packages but on another side when firm like restaurant, transportation and
others performs business with aids of tour packages then this is considered as B2B business.
Likewise, when respective organisation is facilitating services by merging the holiday packages
to customers with the aids of social media such as TV, radio and others that is known as B2C
(Nguyen, 2016). The business management sell its goods or services directly to clients that is
also regarded as B2C.
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CONCLUSION
As per the above report, it has been concluded that consumers behaviour as well as
insight plays vital role into tourism industry growth. Moreover, this is considered as customer
actions within market area as well as underlying intent for that actions. This is crucial to examine
requirements of customers to facilitate the standard quality of goods or services. The factors like
social, cultural and many others influences the attitude and behaviour of customers. Also, these
factors are keep modifying according to societal requirements. With enhancement into
technology, they have perform individuals task and firm can able to render services as well as
obtain products. They have also affected tourism industry in which customer obtain information
with the assistance of technology. Journey of customer decision making initiate from
requirement identification and last with post product purchase. This is essential for company to
examine consumer requirements as it assist firm to render services consequently. Marketer may
able to understand clients perception by marketing mix and technology. In addition to this, B2C
as well as B2B are vital entities that aids in enhancing profitability margins and profit
efficaciously for profitable results.
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REFERENCES
Books and Journals
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establish futures patterns and insights. Journal of Tourism Futures. 1(2). pp.94-107.
Cheng, M. and Edwards, D., 2015. Social media in tourism: a visual analytic approach. Current
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influences and opportunities. Current issues in Tourism. 17(10). pp.872-909.
Gao, L. and Bai, X., 2014. Online consumer behaviour and its relationship to website
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Gnoth, J. and Matteucci, X., 2014. A phenomenological view of the behavioural tourism
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Higham, J. and et. al., 2016. Climate change, tourist air travel and radical emissions
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Horner, S. and Swarbrooke, J., 2016. Consumer behaviour in tourism. Routledge.
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Kunz, W. and Seshadri, S., 2015. From virtual travelers to real friends: Relationship-building
insights from an online travel community. Journal of business research. 68(9). pp.1822-
1828.
Malone, S., McCabe, S. and Smith, A. P., 2014. The role of hedonism in ethical tourism. Annals
of Tourism Research. 44. pp.241-254.
Nguyen, Q., 2016. Linking loss aversion and present bias with overspending behavior of tourists:
Insights from a lab-in-the-field experiment. Tourism Management. 54. pp.152-159.
Santos, V. and Ramos, P., 2014. Consumer behaviour in tourism: a content analysis of
relationship between involvement and emotions. Journal of Tourism Research. 9. pp.28-
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Online
4 important Factors that Influence Consumer Behaviour. 2019. [Online]. Available through:
<https://www.educba.com/4-factors-influencing-consumer-behaviour/>.
4 Examples of How Technology Is Changing Consumer Behavior. 2019. [Online]. Available
through: <https://www.visioncritical.com/blog/4-examples-how-technology-changing-
consumer-behavior>.
Stages of Consumer Decision Making Process. 2019. [Online]. Available through:
<http://www.businessstudynotes.com/marketing/marketing-management/stages-
consumer-decision-making-process/>.
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