This report explores consumer behavior and the factors that affect it in the tourism industry. It discusses the impact of digital technology on consumer trends and the stages of consumer decision making. It also emphasizes the importance of analyzing consumer behavior for marketers and compares the decision making processes in B2B and B2C contexts.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
TOURISM CONSUMER BEHAVIOUR AND INSIGHT
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Table of Contents INTRODUCTION.....................................................................................................................................3 LO1.............................................................................................................................................................3 P1 Different factor used to affect the consumer behavior and attitude.....................................................3 P2 How consumer trend are changing due to digital technology.............................................................5 LO2.............................................................................................................................................................6 P3 Different stages of the consumer decision making in the organization...............................................6 P4 Importance for marketer to analysis the consumer decision making in tourism industry....................7 LO3.............................................................................................................................................................8 P5 Compare and contrast decision making process B2B and B2C..........................................................8 P6 Different approach of the market research used for understanding the decision making process.......9 LO4...........................................................................................................................................................10 P7 Different way through which different stage of decision making can be influenced........................10 CONCLUSION........................................................................................................................................12 References................................................................................................................................................13
INTRODUCTION Consumer behavior is the study of the consumer which can be individual customer, group or organization select, buy, use and dispose ideas, goods, and services to satisfy their needs and wants. Thompson travel tourism group is the organization was originally originated from the Canada but in the year 1998 was listed on the UK stock market. Founder of TUI group is Roy Herbert Thomson and Baron Thomson of Fleet in the year 1965. This report highlights consumer behavior meaning and the different factor which used to affect the consumer behavior and attitude. After that the report goes on to explain the impact of the digital technology on the consumer trend in the market. After that the report highlights the consumer decision making process. After that the report goes on to explain the importance of analyzing the consumer behavior for the marketer in the organization. After that the report compare and contrast the decision making process in the organization on the basis of B2B and B2C. In the end the report highlights different approaches of market research and how marketer can influence the decision making of the consumer in the market. LO1 P1 Different factor used to affect the consumer behavior and attitude Consumerbehavioristhestudyofthe consumer which can be individual customer, groupororganizationselect,buy,useand dispose ideas, goods, and services to satisfy their needs and wants. Consumer behavior and attitude used to be affected by many factor in the travel and tourism industry some of them as follows: Cultural factor:These are the factors which are set of basic perception, value and wants of theconsumerinthemarket.Cultureis generallybehaviorwhich iscreatedby the Age:It is one of the personal factors which used to affect the consumer behavior and attitude as it has been seen in the past that as the age of the customer used to grow they generally tend to look for the different type of the product or service. For example: Teenager generally love to have the company with the party theme at the same time the older age customer always like the company with decent and simple theme which can give them the relax they are looking for in the company. Life style: Lifestyle refers to the
society of the nation as the consumer used to growupfromstartingfromthedifferent culture.Ascultureofeverygroupofthe consumer used to vary from each other as there aredifferentbeliefandvalueswhichare followed by different consumer belonging to differentculturalbackground,which eventually means the product or the service requirement will also be different of different customer.So marketer has to make sure that they have to account for all the cultural value in the marketing plan to be successful in the long run of the business. Social factor:There are many groups under social factor which can affect the consumer behavior and attitude in the operation of the business (Riis, Fisher and Rowe, 2016). Reference group:This is the group of the people by which the customer is able to get the information about the company as there are many people around who used to influence the customer decision as they are the one who have alreadyavailedtheservices.Thisusedto change the consumer behavior and attitude in the market. Roleinthesociety:Asevery individual used to play more than one role in the society it eventually affects the consumer behavior and attitude as they used to consider all the party to individual is responsible. As a result role in the society used to affect the different way through which individual stay in the society. As there are some people who loves to visit the auspicious company to reside but at the same time there are some who do not have such type of fantasies. As the person living in posh area always has to maintain their status and image in the society. So, it can be said that lifestyle use to impact the consumer behavior in the society. Psychological Factor:Psychological factor are other type of factor which used to influence consumer behavior and attitude in the market. Some of the psychological factors are as follow: Motivation:It is the biggest factor whichdrivetheconsumerbehaviorasthe consumer used to take the decision when they feel need of anything. For example individual hastovisitLondonandforthatpurpose looking for company. Visiting London is the motivation for the individual. Perception:What does the individual think about the company used to play a very crucial role in influencing the consumer behavior and attitude as they used to avail the service which they feel beneficial for them(Newson and et.al., 2015) .
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
consumer behavior and attitude in the society. Personal Factor:Personal Factors play an important role in affecting consumer buying behavior. Some of the factors are as follows: P2 How consumer trend are changing due to digital technology In the era of rapidly changing technology it has become very important all the organization to adopt the new technology to satisfy the need of the consumer in the market. At the same time due to the digital technology there is a huge change in the consumer trend in the hospitality industry. Some of the impact is as follow: Positive impact: Quality of the product:Due to the help of the of the digital technology all the customer is able to get the information about the entire company around them and the product and the service which is provided by the company. This has eventfully increase the demand of the qualityproductinthemarketasconsumer always compare the service of one with the otheranddecidesthecompanywhichis offeringthequalityserviceinthemarket (Kitunen and et.al., 2018) . Convenience of booking:It is the another positive impact which has been brought by the digital technology on the trend of the consumer as all the customer used to book the service of Aswiththehelpoftheonlinebooking customer is able to save the time of visiting the company and booking the ticket. As in the past the consumer used to visit the company and used to book the ticket but with the emergent of the Digital technology there is a trend of online booking of the room in the market. Negative impact: Difficult to choose:Digital technology has also brought the variety of the negative impact onthetrendoftheconsumer;oneofthe biggest impacts is that it has made difficult for the entire consumer in the market to select the best out of the variety of the company which is available in front of them. As it get difficult for the consumer in selecting the company by just looking at the picture of the company. So it can be said that it has become difficult for the
the company online which used to help the organization and the customer both. LO2 P3 Different stages of the consumer decision making in the organization Need: It is the first stage of consumer decision making in which the consumer develops a need to visit a company. Need can be anything, such as business meeting, family vacation, holidays etc. Need infarct is the catalyst which used to trigger the buying decision of the individual. Information gathering and search: It is the second stage of consumer decision making in which the consumer used to gather the information regarding the different companies in the town which can help the consumer in satisfying the need which has been occurred. Generally in the changing environment all the consumer used to take the help of the internet to source about the information which can help them in satisfying the need which has been occurred(Bonfini and et.al., 2019). At this point of the time company has to make sure that they listed on all the source which used to provide the information to the customer. Evaluation of Alternative: It is the next stage of the consumer decision making and one of the most important step as at this step only consumer used to compare the information which is gather from the different sources. Generally, the consumer used to compare the service of two company on the basis of the information gather. Generally, the consumer used to also look at the price at which the facility is provided by the company. As all the consumer always look to have the best available services at a minimum price as they look for quality of the money. After analyzing and evaluating the different alternative the consumer tries to figure out the best available option for them(Sturley, Newing and Heppenstall, 2018). At this stage of the decision making all the company has to make sure that they offer good and competitive services in the company to attract the customer toward the Company. Purchase of Product and Services:It is the stage of the consumer decision making where consumer after deciding the best option takes the decision to purchase or use the service of the company. Generally, at this stage consumer are sure about the company that this company will able to satisfy the need. At this stage all the company in the nation has to make sure that they
offer the best o sell service to the consumer so that they have a good impression of the company in their mind. Post Purchase Evaluation: It is the stage of the consumer decision making in which the consumer used to evaluate the decision which has been taken is able to satisfy the need or not. This is one of the important step for the company as they have to make sure that they are in touch with the consumer after sale also. They also have to make sure that they take the feedback of the customer after they uses the services of the consumer. P4 Importance for marketer to analysis the consumer decision making in tourism industry All the company in the today’s era used to take the variety of the step in the company to understand the consumer decision making process as consumer are the one in the end which will help the company in achieving the organizational goal. Understanding the consumer behavior provides the variety of the benefit for the company in the long run of their operation(Del Giudice,CaputoandEvangelista,2016).Generally,themarketingdepartmentofthe organization used to evaluate the consumer decision making process for the company as this is the department which used to evaluate the market on the regular basis to gather the necessary information available in the market. Some of the benefit which is seen by company for the same is as follow: Basis for different development:The biggest benefit which is seen is that it provides the different information for the company to develop the product in such a way that it can satisfy the need of the consumer in the market. Generally the marketer of TUI Company used to analysis the common need which is occurring in the consumer and by analyzing the same company used to develop the product which can satisfy the need of the consumer. This will also help the organization in getting the competitive advantage as this industry used to have a very high degree of the competition as number of the company operating in the industry is very high. Marketing Platform:Analyzing the consumer decision making in the organization also help the organization in getting the information about the best available promotional platform which is in front of the organization to promote the product of the company(Karimi, Papamichail and Holland, 2015). Generally, the marketer used to analysis the consumer preference about the source of the information. On the basis of the same marketer used the different resources to promote the product or the service of the company in front of the market. This eventually helps
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
the company also in improving the customer base for the company as the marketer generally uses the combination of the marketing platform. Increases the Revenue and Sales:Another importance which is brought by analyzing the consumer behavior and decision making is that it helps the company in improving the sales and the revenue of the organization. As consumer behavior help the company in having the information regarding the future happening. On the basis of the same company used to train the employee and also procure the different resources to satisfy the need of the consumer in the future. As consumer satisfaction is positively linked with the sales and the revenue of the company in the long run of the business. LO3 P5 Compare and contrast decision making process B2B and B2C B2B stands for Business to Business transaction which refers to transaction which is made in between the other business rather than the individual consumer. B2B decision making process includes the two aspect which used to be looked by the organization namely spend and Strategic importance. In the spend aspect the organization decides how much organization has to spend in the transaction. Strategic importance is the aspect in which organization look at the validity, requirement and the reliability of the transaction which the organization is looking to enter into (Panwar and et.al., 2019). B2C stands for the decision making which has taken place between Business and the individual consumer. Consumer decision making process includes a five stage decision making process that starts with Need than goes to Information gathering and search stage after that evaluation of the alternative and Purchase of product and ends at post purchase evaluation. There are many differences in between the B2B and B2C decision making process of the organization. BasisB2BB2C Type of RelationshipB2B transaction used to take place between the party who used to share the long term andstablepartnership. In B2C transaction both the partiesareinvolvedinthe shorttermtransaction.They look for specific product. For
Generally vendor used to sell the product to the same group ofthepeopleortothe companywhocansellthe same(Griffiths, 2018). Hiltoncompanyhasa relationshipwiththevendor whousedtoprovidethem withbedsheetandpillow cover. example Hilton company used to provide the services to the consumer to reside. PricingIn B2B transaction the parties usedtoinvolveinthebig quantitytransactionsoboth the parties used to offer to the other with the good amount of the discount in the price of the product. So that the best result canbecarryoutfromthe market. In B2c transaction the parties used to involve in the small transaction so their is no that big amount of the discount in provided but some company used to provide the discount to the customer to be competitive in the market. P6 Different approach of the market research used for understanding the decision making process Market researchis an effective tool to assist yourbusinessplanning. It is about collecting information that provides an insight into your customers thinking, buying patterns, and location. In addition,market researchcan also assist you to monitormarkettrends and keep an eye on what your competition is doing. There are many ways through which the company can research the market to gather the information regarding understanding the consumer decision making process (Vincent, Makinde and Akinwale, 2017). Survey: It is the market research tool in which the group of the respondent are selected by the organizationandalltherespondentareprovidedwiththequestionnairewhichhasthe
combination of open-ended and close ended questions. These questions are related to the different trend which is following the market. All the respondents are asked to answer the survey with their opinion. After that the company used to collect all the data from the survey and analysis the same to find out the trend in the market. Generally, company used to gather all the data at one sheet and try to find out the maximum respond from the respondent end. Focus Group:It is another market research technique in which a group of the people are decided by the organization before hand itself and on the basis of the same some scripted series of questions related to the topic are made by the company. These sessions take place at neutral locations, with the help of the videotaping equipment and an observation room with one-way mirrors. A focus group usually lasts one to two hours. Information gather from this source generally used to be more relevant as compare to the other source. On the basis of the information gather organization also try to check the relevancy of the information from the market. Personalinterview:Itisanothertypeofthemarketresearchtechniqueinwhichthe representative of the company used to meet the consumer in the market. Representative used to carry a series of the question with them to be asked to the consumer to get the best out of the consumer. Organization beforehand itself used to select the group of the respondent on which the interview can be conducted by the Company. Observation: It is another market research tool in which after gathering the information from the market company generally used to look at the customer in the market to just find out the way consumer used to behave in the organization. In this market research technique, the information gather with the help of the focus group and the survey are verified by applying them in the reality. LO4 P7 Different way through which different stage of decision making can be influenced Marketer of the organization used to play a very crucial role in the company to influence the customer decision making process in the organization as marketer is the one who used to play a very crucial role in inviting the different consumer toward the organization(Diba, Vella, and Abratt, 2019).
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Need: At this stage the market has to make sure that company is using the mixture of the promotional method and promote the services of the organization in front of the customer so that they feel in need of something. For example: marketer of the company has to make sure that they publish the different picture of the service offered in the organization, so that after looking at the picture customer feel the need of the same. Information gathering and search:At this stage the marketer has to make sure that the customer is able to get the information about the company very easily from the market. As consumer generally uses the variety of the source to collect the data about the company. Marketer has to make sure that the company is listed over the variety of the source and also they have to make sure that all the data which are published are good enough to attract the customer eye toward the product or the service of the company. Evaluation of Alternative:This is the stage in which the marketer has to take the help of the different department in the organization. As the marketer in the company used to provide the information regarding the competitor to the company. On the basis of the same the organization used to develop unique product in the company. Marketer has to make sure that the company used to pass on the correct message toward the customer in the market about the USP of the company. This will eventually help the company in attracting more customers toward the company as the entire customer used to look for the unique option to satisfy their need in the market(Low and et.al., 2015). Purchase of Product and Services:At this stage the marketer has to make sure that they provide the best selling services to the consumer which will eventually help the company in passing on the message to the customer that they used to care about them. Also marketer has to make sure that the customer always feel that they are benefited from the transaction which has be done Post Purchase Evaluation:Marketer in the organization has to make sure that they are in contract with the customer who have availed the service as they are the one used to refer to other about the company so marketer has to make sure that they take the feedback of all the customer are provide them with the solution of their every problem.
CONCLUSION After going through the above report it has been summarized that there are many factor which used to influence the consumer behavior and the attitude of the customer. After that the report goes on to summarized that digital technology has brought both positive and negative impact on the consumer trend. After that the report summarized that there is five stage consumer decision making process. After that the report summarized that there is a difference in the B2B and B2C decision making in the organization. After that the report goes on to summarize that marketer can influence the customer decision making.
References Books and Journals Riis, J., Fisher, J. O. and Rowe, S., 2016. How food marketers can sell smaller portions: Consumer insights and product innovation. Newson, R. S and et.al., 2015. International consumer insights into the desires and barriers of diners in choosing healthy restaurant meals.Food Quality and Preference.43. pp.63-70. Kitunen, A and et.al., 2018. Generating consumer insights into physical activity patterns for three different segments.Journal of Strategic Marketing.26(2). pp.188-202. Bonfini, M and et.al., 2019. Evaluating the validity of consumer insights into the wine business. InCase Studies in the Wine Industry(pp. 181-190). Woodhead Publishing. Sturley, C., Newing, A. and Heppenstall, A., 2018. Evaluating the potential of agent-based modelling to capture consumer grocery retail store choice behaviours.The International Review of Retail, Distribution and Consumer Research.28(1). pp.27-46. Del Giudice, M., Caputo, F. and Evangelista, F., 2016. How are decision systems changing? The contribution of social media to the management of decisional liquefaction.Journal of Decision systems.25(3). pp.214-226. Low, J and et.al., 2015. Assessing nutritional value and changing behaviours regarding orange- fleshed sweetpotato use in sub-Saharan Africa.Potato and sweetpotato in Africa: transforming the value chains for food and nutrition security, pp.551-579. Karimi, S., Papamichail, K. N. and Holland, C. P., 2015. The effect of prior knowledge and decision-making style on the online purchase decision-making process: A typology of consumer shopping behaviour.Decision Support Systems,77, pp.137-147. Panwar, D. and et.al., 2019. Consumer Decision Making Process Models and their Applications to Market Strategy.International Management Review,15(1), pp.36-44. Wang, Y. and Yu, C., 2017. Social interaction-based consumer decision-making model in social commerce: The role of word of mouth and observational learning.International Journal of Information Management,37(3), pp.179-189. Griffiths, C., 2018. The role of motivation within tourism behaviour and its effect on the consumerdecisionmakingprocess.URL:https://www.linkedin.com/pulse/role- motivationwithin-tourism-behaviour-its-effect-making-griffiths/. Accessed,18. Vincent, O. R., Makinde, A. S. and Akinwale, A. T., 2017. A cognitive buying decision-making processinB2Be-commerceusingAnalytic-MLP.ElectronicCommerceResearchand Applications.25. pp.59-69. Diba, H., Vella, J. M. and Abratt, R., 2019. Social media influence on the B2B buying process.Journal of Business & Industrial Marketing.
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.