TABLE OF CONTENTS INTRODUCTION...........................................................................................................................3 LO1..................................................................................................................................................3 P1 Different culture, social, personal and psychological factors that can impact on consumer behaviour and attitude..................................................................................................................3 P2 Impact of digital technology on consumer.............................................................................4 LO2..................................................................................................................................................5 P3 Stage of consumer decision making process and map path of purchasing tourism services.5 P4 Importance of map path of consumer decision making process for marketer........................6 LO3..................................................................................................................................................8 P5 Key differences of the hospitality decision-making process in the context of B2C and B2B8 P6 Different approaches to market research and methods of research used for understanding the decision-making process........................................................................................................9 LO4................................................................................................................................................10 P7 Marketers influence stages of tourism decision-making process.........................................10 CONCLUSION..............................................................................................................................11 REFERENCES..............................................................................................................................12
INTRODUCTION Tourism Consumer Behaviour and Insight refers to the attitude and behaviour or preference of individual regarding selection of particular destination or place for effective operation of business. There are various factors that influence consumer behaviour such as culture, social and Psychological that needs to be considered by marketer of Trafalgar while formulating strategies to induce individuals. Digital technologies have also impacted selection or decision making of customers regarding specific destination and hotels to enjoy their leisure time and money. This report is about Trafalgar that operates in tourism and hospitality industry to provide better experienced to customers so that it can earn maximum profitability. It has analysed points such as factors that affect behaviour of people and different stages of consumer decision making while making purchase. Report has also discussed about different approaches of market research and the way marketer of Trafalgar has influenced different stages of consumer decision making process. LO1 P1 Different culture, social, personal and psychological factors that can impact on consumer behaviour and attitude Consumers are most crucial for any organisation as it helps in generation of more and more revenue or profit margin for better living standard therefore companies makes hard efforts to fulfil their requirements. Needs and preference of customers are affected or influenced by various factors such as social, personal, culture and psychological that are affectively evaluated andanalysedbymarketingmanagerofTrafalgarwhileplanningstrategiestoinfluence customers (Fleischer, 2017). Therefore various factors that affect consumer behaviour, taste and preference are as follows: Social factors:It included personal contact or network of individual that provided crucial and first hand information to individual about various destinations, places or hotel that it can choose to spend its leisure time and money. Consumer always ask to their relative, friends and family member before selecting particular destination therefore it can be stated that social factors have major impact on consumer behaviour. 3
Personal factors: Each individual have its own preference and needs or tradition , culture and belief that motivated it to select specific destination as compared to another. Therefore marketing manager ofTrafalgar has to conduct market research related particular needs and requirements of individual so that firm can grow and expand its business. Psychological factor:It refers to education level, mindset and age or social culture and family background of individualinfluence consumer behaviour and attitude. Some individual are motivated to visit at particular destination for have fun and enjoyment so marketing manager of Trafalgar have identified such factors to attract maximum number of individual. Education level or existing knowledge of individual also contributed in effective selection of destination. Culture factors: It is another factor that influence on behaviour and attitude of consumers that is culture as different people belong to different culture and tradition. Most of the tourist likes to visit destination that conserve its value, ethics and culture so that they can have fun while visit at such place (Ribeiro and Grebosz-Krawczyk, 2020). Therefore it can be stated that all such factors has adversely impacted on choice and selection of various destination across globe. P2 Impact of digital technology on consumer There are rapid changes and development in digital technologies which have impacted on overall customers taste, preference and trends.Companies are using digital media to market their products and services to wide range of customers that are living in specific society thus it have reduce total cost of marketing. Most of the people spend lot of their time scrolling or playing games, watching videos through social media such as facebook, twitter and Instragram to have entertainment and enjoyment. Therefore various points that illustrated impact of digital technology on consumer behaviour are as follows: Brand trust:People through digital media are able to known about brand image or rating of particular hotel, organisation that helps in building strong brand image and customers loyalty (Camilleri, 2017). Most of the tourist uses social sites to get suggestion regarding particular destination and hotel so that they can choose best alternative from various option for better satisfaction of their requirements. Get lot of information:Social media or digital technology has provided ease and comfort to customersbyofferingeaseaccesstovariousinformationthattheyneedaboutvarious 4
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destination, various availability of resources and infrastructure. Customers while staying at home can known about detail information about features of hotel, food and other facilities thus select specific hotel or restaurants for fulfilment of their requirements. Customer expectations have gone up:Due to digitalisation and innovation in technologies customer’s preference and expectation have been raised as they know prefer more qualitative products, infrastructure, services at reasonable prices (Kaur and Kaur, 2016).At the same time people can easily compare two or more hotel, restaurants on basis of price, facilities or services in order to select best possible destination for satisfaction of needs. Customers can see feedback or comment of other individual: Another option that have provided by various digital media is that people can easily give their review regarding their previous visit in particular hotel or destination. Feedback of previous customers, like, comment are some of the method that are used by people while taking accurate decision regarding to visit particular destination to have optimum utilisation of available time and resources. Trafalgar manager by using digital media is able to create awareness among customers and strong brand image in tourism and hospitality industry that have contributed in effective growth and sustainability of organisation in competitive market condition. People can easily get information about numerous facilities, services or promotion offers that are lunched by company at several occasion. LO2 P3 Stage of consumer decision making process and map path of purchasing tourism services There are various stages that are used by consumer while taking crucial decision regarding selection of products and services for their satisfaction of different needs and requirements. Consumers decision making is a process where particular individual before, while purchasing and after purchase of products make evaluation in order to identified that it have get specific amount of value by spending money on particular goods (Juvan and Dolnicar, 2016). Path and stages that are followed by people in deciding to make purchase of specific products can be illustrated as follows: Problem recognition or unsatisfied need:It is first stage at which consumers face specific problem or its needs are unsatisfied that forces its to search various method that it can use to 5
fulfil requirements. Trafalgar manager also analysis market trend and unsatisfied wants of customers so that effective strategies can be formulated to influence or attracted them for making purchased for growth and success of organisation. Search information: It is second stage in which consumer before making purchase of products and services search various information about destination, hotel and facilities or infrastructure that are present in particular place through use of digital media, feedback of previous customers or suggestion of friend relatives. Google is one the biggest search engine that is used by most of the customers while taking decision to select specific place. Evaluation of various alternatives:At this stages customer evaluate hotels, restaurants and different tourism organisation by information that are provided on their official websites. It can easily compare price, facilities provided by one organisation over another thus choice best possible option for effective utilisation of holidays at particular destination (Boz, Arslan and Koc, 2017). Trafalgar market manager have provided essential information to people about online services, facilities and prices so that customers can easily evaluated and select best possible option. Selection stage: Customers after evaluation and searching of various information is able to take final decision regarding particular products and services that need to be purchased or not by individual. Strong brand image and positive comments, feedback and lot of likes on website of Trafalgar have motivated individual to choose such travel organisation for having trip at different destination. Evaluation of decision: It is last stage where customers have actually enjoyed services offered by restaurants; hotel and its needs have been fulfilled. At this stage customers matches whether services offered by company have meet its expectation or not so that it can use in future for effective decision making. Trafalgar have always make efforts to provide best services to customers for repeated sales and long term growth and success of organisation. P4 Importance of map path of consumer decision making process for marketer Map path of consumer’s decision making process is crucial and important for marketer of Trafalgar as it helps in increasing profitability and market share of firm. Marketer by using map path can easily influenced different people to make or prefer products and services of specific 6
organisation as compared to another. Therefore various importance of map path of consumer decision making process can be explained below: Effectively understand unsatisfied needs of consumers: Marketer through map path can easily understand problem or unsatisfied needs of tourist thus find innovative and creative method to fulfil their requirements. Trafalgar manager by use of map path is able to resolve their problem andhelpscompanytogaincompetitiveadvantagesbyretainingmaximumcustomer’s satisfaction. Customers can be easily influenced: Marketer can easily influence various individual that live in particular society as it is able to known about decision making process of person (Cavagnaro, Staffieri and Postma, 2018). Trafalgar manager have use map path to formulate effective strategies that have helped in attracting existing as well as new tourist to select company. Properly fulfil demands of customers:Marketers at Trafalgar should map a path to purchase and understand consumer decision-making for properly fulfilling different demands of customers as well. It is very necessary task to the marketing team of this tourism company, because some times people or customers not able to purchase such things which they really want to purchase. In this situation, by deeply understanding decision-making of customers, Trafalgar can easily fulfil various demands of customer within the market. Evaluation MarketerswithinTrafalgarshouldproperlyresponddecision-makingprocessof customers, because this step marketing team will be positively affected to this tourism company (Benckendorff,XiangandSheldon,2019).MarketerofTrafalgarneedtousedifferent techniquesandtacticstowardssystematicallyunderstandingdecision-makingprocessof customer. Basically, every customer thinks differently, so it can take different decisions as well. In this situation, marketing team should run such campaigns within market which can positively affect to the decision-making aspect of customers. Basically, marketers at Trafalgar should influence customers in that manner which can motivate them for purchasing services only from Trafalgar. 7
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LO3 P5 Key differences of the hospitality decision-making process in the context of B2C and B2B Top-level management of Trafalgar always need to choose different ways while taking decisions in the context of “Business to Customer” and “Business to Business”. This tourism mainly depends on the B2C context to generate high revenue (Tribe and Mkono, 2017). It means, upper management of company believes in directly deal with customers without involving mediators in its business operations. But in some cases, this company is required to choose B2b context also for gaining appropriate profit. In the context of B2C, top-level management always takes decisions towards providing the best quality services to its different customers. According to upper management of company, a customer is the king of market, in which Trafalgar always responsible to provide the best services to its customers. Currently there are huge competition within the international tourism industry. Basically, each tourism company in all around the world is taking different productive decisions towards attracting lots of new customers towards its brand. In this situation, upper management at Trafalgar also highly responsible to take some appropriate decisions for gaining large customer base within the international tourism industry. The company already knows that, B2C terms is much favourable to it in the comparison of B2B, that’s why existing management of this company always should be used its well-developed decision-making abilities to positively affecting its various customers in the market. On the other side, taking decisions in the context of B2B is completely different thing to this company, because when upper management of company deals with other businesses, then it need to consider this thing while taking decisions that, other businesses is also working in the market for generating huge profit. Basically, a company is always required huge support from other businesses within its business environment. For example; Trafalgar is a tourism company, but it is required to take decisions towards maintaining effective contacts with other businesses also for generating huge profit within the market. Suppose this company need to professionally maintain its official sites, because lots of travellers or people mainly visits the sites of different travel companies for planning their tours (He, He and Xu, 2018). In this situation, top-level management of Trafalgar responsible to take decisions towards contacting to that business which provides better IT solutions, because appropriate IT solutions is highly required to Trafalgar for maintaining its official website up to date. Not only IT business, existing management company should take decisions towards make extra-ordinary relations with other businesses. For example; 8
Trafalgarcantakedecisionsforcontactdifferentmarketingagenciesand businessesfor attracting large customer base in tourism industry. P6 Different approaches to market research and methods of research used for understanding the decision-making process There are lots of methods generally used by different companies or businesses for properly researching about the decision-making process of customers. In the situation, Trafalgar is also highly required to use different appropriate methods for systematically understanding decision- making process of customers. Of course, there are research on customers’ decision-making process is very necessary task to this tourism company to attract lots of customers towards its brand. Some productive approaches to market research and methods of research has been discussed below which Trafalgar can use for properly researching about decision-making of customers. Surveys:Survey is one of the best methods to Trafalgar for deeply understanding decision- making of customers (Bowen and Whalen, 2017). In this method, the company should conduct different surveys within various selected market segments. In these surveys, it should take different opinions from, customers, because most customers always share their point of view while giving their opinion on any specific topic. By systematically considering point of view of customers, Trafalgar can easily analyse decision-making process of customers. Interviews:This is next most productive research method that Trafalgar can use its research process for knowing about decision-making process of customers. In this method, company should conduct various personal interview sessions where it needs to invite different random customers. In these interview sessions, company should ask customer about ‘what things a company influence them to take decisions towards buying its products and services’. This is very necessary method Trafalgar, because by conducting interview sessions with customers, this tourism company can easily know about decision-making process of customers. On the other side, this research method is too efficient in providing accurate data. Observation:Many companies take lots of advantages through this approach of research as well. By observing, anyone can easily find out various attribute of a subject. That’s why Trafalgar should choose this approach of research also for researching about decision-making process of customers (Knobloch, Robertson and Aitken, 2017). Basically, marketers of this tourism company should systematically observe various customers within market. By taking this 9
step, Trafalgar will be able to properly know about decision-making procedure of different customers within tourism industry. Evaluation Currently there are lots of factors exists within market which can highly influence tourism decision-making process and buying behaviour. For example; many people or customers within market get influenced through different fancy and attractive advertisements which runs various tourism companies and brands. On the other side, economic factor is one of the major factors that highly influence customers within tourism industry while taking decisions. For example; a person who is developed economically, so this person can easily take decision towards travelling in the comparison of other people. Then, person’s attitude and interest also highly affect decision-making process of customers. LO4 P7 Marketers influence stages of tourism decision-making process Markers of a company or business mostly puts their huge efforts towards highly influencing and affecting decision-making process of customers (Kim and et.al., 2018). There are marketing team of Trafalgar also has putted its lots of efforts for positively influencing customers’ decision- making process of customers. The main aim of Trafalgar behind influencing decision-making process is to influence customers within market for taking decision towards buying its products and services. This is very necessary task to this tourism company, because by completing this task Trafalgar will be able to gain the large customer base within the market. The marketing manager at this tourism company should use those marketing techniques and strategies in its marketing operations which can positively affect behaviour of customers. Basically, behaviour of a customer convinces it for buying products and services of a company, that’s why marketers of this company should take positively affect behaviour of customers within various market segments. Currently marketing team of Trafalgar is highly using social media marketing for deeply affecting different stage of customers’ decision-making process. Basically, marketing has created its official accounts or handles on these various social media platforms, in which it always posts different attracting photos and videos on these platforms. In this situation, when customers or people within market see these posts of Trafalgar on social media, then many times they get 10
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influenced towards taking decisions for buying services from this tourism company. Sometimes marketers of this company have sponsored different event also for convincing customers for buying its exclusive tourism services (Liang and et.al., 2017). These all are some major ways which has used by marketing team of Trafalgar for influencing customers’ decision-making process within tourism industry. CONCLUSION On thebasisof reportfindings, itcan be concludedthattherearecultural,social, psychological and personal factors always highly influences customer behaviour within market. There is digital technology is affecting customer trends, in which Trafalgar also should consider this factor. There are various stages of customer decision-making journey exists which markers of Trafalgar should properly consider for positively influencing decision-making process of customers. It is very necessary task to this tourism company for affecting different customers towards taking decisions for buying only its services. At the end, Trafalgar will able to achieve large customer within the international tourism industry. 11
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