Consumer Decision-Making Process in the Hospitality Sector

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Added on  2023/01/04

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This report discusses the consumer decision-making process in the hospitality sector, focusing on the importance of mapping a path to purchase and understanding consumer behavior. It also compares the decision-making process in B2C and B2B and evaluates different market research approaches. The report is based on the case study of Travelodge, a leading hotel brand in the UK.
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Consumer decision-
making process
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................3
Explore why it is significant for marketers to map a path to purchase & understand consumer
decision-making within the hospitality sector........................................................................4
TASK 4............................................................................................................................................5
Comparing and contrasting the key differences of the hospitality decision making process in
the context of B2C and B2B...................................................................................................5
Evaluating the different approaches for market research and method of research which are
used to understand the decision-making process....................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
Consumer behaviour is defined as the study of how customer, groups, individual as well
as organisation choose & purchase goods and service for fulfilling needs and requirements. It
consist of certain or specified decisions, ideas or expertise, activities or action to fulfil customer
requirements properly. For the present report, Travelodge is taken into consideration. It is one of
the largest hotel brand of UK that has across more than 570 hotels worldwide. In addition to this,
it was established in the year 1985 and its head office is located in Thame, England. The report
will cover stages of consumer decision making journey and importance of map a path for
purchasing hospitality services. Along with this, there is a difference about B2B & B2C
hospitality business. In the last, various approaches of market research is elaborated in a proper
manner.
TASK 1
(Covered in PPT)
TASK 2
Evaluating the phrases of the consumer decision making journey and formulate a plan to the
purchasing of a
Every consumer goes through some basic guidelines before making a decision about buying
any product or service. Understanding this process helps the organisation in producing precise
strategies for their customers. The various phases a consumer goes through before availing a
service in context of the UK hotel chain are mentioned below:
Need Recognition: The introductory phase of consumer journey is need recognition. When
the consumer identifies the absence of fulfilment of some of their needs, they feel the need to
take immediate action for the fulfilment of that need. This is called need recognition. In the
context of the chosen company, performs research so that they can understand needs and wants
of the consumers. During certain big vacations many consumers fell the need to travel and
explore which is fulfilled effectively by the organisation.
Information Search: After the consumer identifies their need, they search about the most
feasible and efficient ways to satisfy those needs. The consumers collect such substance from
various channels in large amount. Travelodge aims to provide accessible and personalised
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information on different portals which is targeted to specific consumers according to their needs
and wants.
Evaluation of Alternatives: The consumer compares the results of their search so they can
receive maximum satisfaction under their budget. They evaluate various alternatives and pick the
most lucrative and budget friendly alternative. The chosen organisation markets their services
with customer specific offers and collects relevant customer information by applying various
research strategies.
Actual Purchase of product or services: This stage witness the decision associated with
buying of goods & services. The motive here is to satisfy the requirements in a proper manner.
Post-purchase evaluation: It take place after the consumption or using of products as
well as services. In addition to this, herein the customer is concerned with satisfaction achieved,
utility & quality as well.
Explore why it is significant for marketers to map a path to purchase & understand consumer
decision-making within the hospitality sector.
For a significant, it is vital to track out and value the consumer journey mapping as it assist
in gaining advantage in an effective manner. With reference to Travelodge hotels Ltd, the
importance of mapping and understanding of consumer decision making is given below:
Increased ROI –
There are various aspects that is needed for a company to undertake as in order to
evaluate decision-making of customer in relation with purchasing of goods as well as services.
By the help of various ways, Travelodge UK can effectively able to reach large number of
people and enhance its customer base level that impact on the profits and revenue level in a
positive manner.
Integrated customer data and continued engagement –
By the assistance of stored information & data of customers, Travelodge can efficiently
capable to track down & categorise set of activities that help in targeting customer in a proper
manner. In addition to this, it further assist in offering satisfaction to customer requirements.
Along with this, mapping allow a business entity to categorise activities & efforts at
various decision making levels in relation to product & services. Given below some of these
levels are being described:
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Extensive problem solving – This problem arise when goods & services which are
consider by customers are not familiar with them and take time for purchasing decision.
Limited problem solving –This level signifies, when customer is having proper
knowledge and idea about goods as well as services along with the alternatives prevailing at
marketplace.
Routine problem solving – At this level, customer who already purchase product many
times are undertaken. Herein, plenty of information is required in order to satisfy customers.
There are different ways through which marketers are able to influence the culture and
subculture of consumer behaviour which is along with customer buying behaviour. In this it can
be done by using activities like personal selling, sales promotion and advertising.
For example- when there is promotion by providing different discount to customer. This
can help to attract high customer base to avail their services which can increase the profit.
Role of opinion leader is that they need to influence attitudes of customer who are there
looking for better opinion. In this, they are able to influence by brand marketing along with
product marketing.
TASK 4
Comparing and contrasting the key differences of the hospitality decision making process in the
context of B2C and B2B
There are huge differences in the organization for decision making process in B2B and
B2C business which existed for serving different purposes. In B2B the product and the services
are directly sell out the other business where there are not involving of the final consumer who
consumes the product which means that one business unit is selling their product or services to
other business which is finished product for the seller but the row material or helping product for
the buying business whereas in B2C, the final product or services is sell out to the consumers
who consumes related product and services for full filling the needs and want in proper manner
(Van and et. al., 2018). There are large differences in the activity which directly or indirectly
influences the decision-making for respective organization which are as follows.
Basis of differences `B2B B2C
Purchasing decision and
buying behaviour.
In this business, they deliver
products and services after
In B2C, consumers are said to
be one of the most judging
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evaluating different attributes
and factors which are related
to the factors like pricing,
preferences and taste of
customer in order to gain the
potential outcome. So, it is
very crucial for delivering the
right kind of information and
knowledge to other for gaining
the effective and profitable
outcome.
factor for evaluating the
quality of the product which is
related with the cost
effectiveness in manner to stay
competitive in the business
environment. As per the
respective process there are
less time taken due to having
the different promotional tools
which reach at in large number
in positive manner (Kumar and
et. al., 2018).
Evaluate needs In the context of B2B, they
need to analyse about the
trends of the marketplace that
what the customer are
demanding at that particular
time. So they can manage to
serve the customer in very best
way (Raychaudhuri and et. al.,
2016).
In B2C, the Travelodge needs
to evaluate the area which
required their services which
the organization is able to
serve this in the better way.
They need to cover the large
geographical area and need to
take the proper feedback for
matching well the both
demand and supply. In context
to Travelodge, they are using
different promotional activities
for reaching the large number
of customer base and to get
aware about their brand.
Market scope The market scope is very vast
which not everyone is able to
see that due to having the B2B
In context to B2C, there are
reach of potential outcome
which are able to evaluate the
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specification. Only the
business are having the
knowledge related to this.
They are the one who makes
their product or services
according to the final
consumer which is changing in
some period of time.
need of different target
customer which are having the
requirement of their services.
This gives them the idea of
buying capacity of the
customer and the purchasing
power to gain potential
outcomes from them.
So, form the above it is summarized that both types of businesses are having their own
importance for the production of product and services in serving of their consumers by full
filling their need in proper manner.
Evaluating the different approaches for market research and method of research which are used
to understand the decision-making process
For any organization it is very essential to accumulate Static and potential data to
acknowledge the customer taste and preferences. In various form of businesses like B2B and
B2C uses different types of approaches for research as per the nature of business and objectives
which are as follows.
Research approach for B2C businesses
Different form of organizations uses of different kinds of approaches for accumulating the data
and statics for bringing out potential outcomes which are discussed further.
Survey
It refers to the potential approach to collect important and necessary knowledge and information
which is regarding the consumer taste and preferences.
In this potential information is acquired from the large number of people for remaining always
competitive in marketplace.
Interview
It is one of the best method for collecting necessary areas of interest of consumers in context to
travelodge which are using the method face-to-face interaction which is also known as interview
process with potential individuals by asking the relevant question from them (Zhu and et. al.,
2017).
Market research in context of B2B business
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In B2B businesses major factors which helps in in collection of necessary information which are
from secondary source for collect information from the the books records governance
Publications journals and many more.
Books and records
B2B business collect their information with the help of records which are already available in the
market place that have the low cost and time consuming nature. Are using the public records
they are able to find out the potential outcome from them to build products and services
accordingly. In context of travelodge the use the the respective metaphor of information which
helps in build desirable product for their consumers (Giraldi and et. al., 2018).
Government Publications
Government Publication organization to get the potential knowledge and information
study of respective document in proper manner. Government conducts a different kind of
research for the improvement in life of people for contribution in GDP. In context of Travelodge
they are using secondary source of information to be in the competition.
CONCLUSION
From the above discussion it has been concluded that understanding the perception of
consumer and insights are more important for the organization in such order to achieve the
growth in sales. Customer engagement and many more factors are there to be remain competitive
in mmarketplace. Accessing the various factor like personal, psychological and social factors
which organization can able to demonstrate while effective decision making process through the
potential outcomes. To sustain and remain in the marketplace it is very essential to learn the
consumer decision making process which helps in evaluating each and every aspect which are
related to consumers acknowledge their test and preferences. One is able to satisfy the consumer
needs by using various forms of businesses B2B and B2C where various approaches of enlarge
business opportunities in the positive manner.
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REFERENCES
Books & Journal
Van and et. al., 2018. Validating relationship marketing factors predicting B2B customer loyalty
towards crop protection suppliers. Journal of Contemporary Management, 15(1), pp.224-
249.
Kumar and et. al., 2018. Organizational characteristics of B2B E-commerce adopters in the
canadian manufacturing sector. Journal of Electronic Commerce in Organizations
(JECO), 16(4), pp.1-18.
Raychaudhuri and et. al., 2016. Brand Influence in Business-to-Business (B2B) Markets:
Understanding the Buying Criteria of Different Organizations. Indian Journal of
Marketing, 46(12), pp.42-52.
Zhu and et. al., 2017. Strategic IT investment in B2B e-commerce platform on user loyalty:
considering variable investment cost. International Journal of Networking and Virtual
Organisations, 17(2-3), pp.290-313.
Giraldi and et. al., 2018. Quality Assessment of Business-to-Business (B2B) Relationships
between SMEs: A Qualitative Approach Based on the Relational Capability
Conception. Journal of Industrial Integration and Management, 3(02), p.1850008.
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