Understanding consumer decision-making process

Consumer decision-making
process

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1.Investigation of different cultural, social, personal and psychological factors that affect
consumer behaviour and attitudes...............................................................................................1
P2.Changes which are occurred in consumer behaviour due to the impact of digital technology
.....................................................................................................................................................3
P3. Stages of consumer decision making journey and map path to the purchasing for
hospitality service........................................................................................................................4
P4. Importance of map a path to purchase and understand consumer decision making for
marketers in hospitality sector.....................................................................................................5
P5.Compare and Contrast the key difference of the hospitality decision making process in
context of B2C and B2B..............................................................................................................6
P6. Different approaches to market research and methods of research used for understanding
the decision making process........................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality is a very vast sector and it will includes different products and services that will lead
to have major impact on overall performance and growth of business. it is crucial that companies
dealing in hospitality sector is considering customer preference and needs in order to enhance
their overall experience. It is essential for organisation to analyse customer decision making
process in order to take correct steps which will lead to growth of business (Coker, 2020). This
report is based on Holiday Inn organisation. This is well known British owned America
company which is providing its products and services in hospitality sector. Holiday Inn
organisation was developed by Kemmons Wilson and its head office is located in Denham,
Buckinghamshire, United Kingdom. This report will include different factors related to cultural,
social, personal and psychological on customer’s behaviour and attitude. It consists of digital
technology impact on consumer behaviour along with consumer decision making journey or map
path. In this importance of map path to purchase and customer decision making for marketer has
have determined. It will include comparison between B2B and B2C has been analysed. Apart
from this, it consists of different approaches to market research and method for decision making
process has been analysed.
MAIN BODY
P1.Investigation of different cultural, social, personal and psychological factors that affect
consumer behaviour and attitudes.
There are different elements which can have immense effect in consumer behaviour along with
this it will influence decision making process. It is important to company to consider and
determine different such as social, personal, cultural and psychological factors as it will lead to
have direct impact over consumer behaviour and attitude (Zimmermann and et.al., 2020). It is
significant for an organization managing in the hospitality industry area to investigate just as
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assess these elements cautious so as to comprehend the effect on customer conduct and their
preferences. These elements are mention below in detail.
Cultural factor – Culture is significant piece of an individual just as influence their
decision making process and consumer. Every single individual has a place with a specific
culture and this will have decide their attitude and behaviour towards different things. Culture
comprise of people with same moral, values and believes. So culture will have direct influence
over decision making of individual as well as impact over the behaviour to purchase Holiday Inn
product and services.
Social culture - This can be describe as the society area wherein customer have a place.
Every single buyer have a place with a culture of society which comprise of their family, friend,
relatives and peer group. Social class is grouped into certain classifications, for example,
reference group and social factors.
 Reference group will include all those people who that will have high reference over the
decision making of an individual. This includes neighbours, family, friends and
supporting people (Choi, 2020). They will give suggestion and idea to individual which
influence their decision making process.
 Social factor includes group of people that belongs to same society and behaviour is
particular manner. These people play crucial role which lead to have major impact on
individual decisions regarding purchasing.
Personal factor - Personal factor incorporates the premium just as sentiment. There are
numerous individual elements which can have influence on choice taken by individuals just as
conduct of shoppers. An individual will take choice which can full their needs and needs of
client. Personal factor includes occupation, income and other elements that impact on capability
of a person to purchase products and its decisions making process.
 Income level of individual will deicide the potential of a person to purchase high quality
services of Holiday Inn company. this will lead to have direct influence over customer
attitude and behaviour.
 Occupation will have high impact over behaviour or capability of a person. As per the
occupation individual needs and attitude towards products will made. This element will
have high influence over decision making practices.
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Psychological factors - This factor comprise of an individual's discernment, attitude along with
requirements and needs (Mertens, Hahnel and Brosch, 2020). There are different factor which
can have mental of an individual and an individual will accept choice according to their
psychological elements.
Perception is one of the crucial element of psychological factor and according the perception of
individual their attitude and behaviour will vary. If customer have positive perception about
Holiday Inn company then it will lead to have positive impact
P2.Changes which are occurred in consumer behaviour due to the impact of digital technology
Digital Technology play very important role in carrying out business practices in
significant and effective manner. it is essential for Holiday Inn company to consider effective
and efficient technology which will lead to increase overall performance of business. digital
technology has been increasing form recent years and it will influence over the customer
behaviour. In hospitality industry digital technology is significant for increase potential and
capability of business to successfully and effectively conducting organisational task. There are
various changes that occurred in consumer behaviour due to digital technology and it will lead to
have direct influence over business practices. Digital technology has enhance hospitality sector
and due to this their are various changes which occurs with in customer behaviour. The major
changes are –
 Increase in customer expectation – With the influence of digital technology with in
organisational practices there is increase in customer expectation. Digital technology has
affected the way of performing business practices and it lead to have direct impact on
productivity. Because of this customer behaviour towards hospitality products and
services has been changes. Due to the impact of digital technology customer demand has
form hotels and their services has been increased. Earlier customers use to book hotel
room by calling hotel or visiting the place. but with the impact of digital technology there
have been various changes in hospitality functions. Now customers can book hotel room
through online services. This has lead to increase in expectation of customers form
business. The impact of digital technology is direct on the services or facilities expected
by customers. This will influence the satisfaction level of customer and their behaviour
towards the products and services offered by Holiday Inn.
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 Changes in customer needs – Digital technology lead to have direct impact on customer
needs and requirement. With the emerging of digital technology preference of customers
are changes very fast. Changes in customer needs due to the impact of digital technology
will lead to have significant impact on behaviour and attitude towards the products or
offering of company. Because of digital technology Holiday Inn company is able to
provide high quality products and services to customers. For example , now customers
will look of advance and innovative facilities provided by company to its customers and
it will consider WIFI services also. Now customer needs are changing as per the
introduction of new trends in market area because of digital technology.
Therefore it has been analysed that there are different factors and elements of customer
behaviour which has been change due to digital technology. This will lead to create and
develop new trends and improve facilities that could be provided by company in order to
meet with the needs and wants. It is essential for Holiday In company to consider digital
technology in order to successfully and effectively meet with the changing needs of
customers.
TASK 2
P3. Stages of consumer decision making journey and map path to the purchasing for hospitality
service
Customer decision making process can be describe as the practices that is conduct by
organisation for providing its products and services to customers. It is essential for Holiday Inn
company to determine various stages of customer decision making journey as well as identify
the path to purchase hospitality services. There are different stages through which customer
moves in order to purchase products and services of respective company. Holiday Inn customer
decision making journey stages are mention below -
 Recognition of needs - It is the main phase of Inn customer decision making journey in
organization. The company will initially examine the need of the customers as need is
consider to be most significant component in client purchasing a help. Assurance of
necessities and needs of the customers help organization to examine further dynamic
cycle. Holiday Inn company will analyse needs of customer in order to successfully move
in Inn customer decision making journey.
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 Assembling of information - The subsequent stage comes after Inn customer decision
making journey (Horner and Swarbrooke, 2016). This stage includes looking and
assembling data. Holiday Inn organization ought to give all the fundamental and general
data through their online channels to the customers with the goal that they can think prior
to putting away their cash. For this situation, the buyer break down and recognize all the
benefits and drawback of the administrations prior to burning through money on it.
Holiday Inn can recruit up candidates that pass on all the helpful data and cause them to
see better.
 Assessing the Alternatives - The third stage starts when customer begins looking
through all the accessible alternatives and best arrangements until it matches with their
set rules. Purchaser dissect quality, cost and strength of the administration and item.
organization ought to offer better types of assistance to the client with generally low costs
to prevent their clients from changing to their contention (Pappas, 2016). Organization
could likewise add some extraordinary and explicit highlights in their administrations that
are very surprising from different hotel companies. Organization should work as
indicated by purchaser fulfillment and requirements.
 Actual Purchase of the Product or the Service - This is a significant stage Inn
customer decision making journey where client at last purchase or buy an item in the
going of experiencing various stages. So as to make purchaser to purchase
administrations and item, particular organization should feature their administrations and
bundles that draw in buyer. They ought to incorporate some attractive spots for
purchasers and should set an alluring spending which buyers can without much of a
stretch manage. Organization ought to incorporate all needs and prerequisite of shoppers
and give all important offices under their set spending plan.
 Post Purchase Evaluation - This is the last phase of buyer dynamic cycle wherein
customer assess and examine bought item or administrations. In this steps customers
purchasing decision will be affected when they have already taken decision as well as
experiences the products and services that are offered by Holiday Inn. Purchaser
recognize climate the item or administration is as per their necessities or not. The
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organization ought to offer great types of assistance to their clients so they could get
faithful.
P4. Importance of map a path to purchase and understand consumer decision making for
marketers in hospitality sector
Map a path to purchase can be describe as the way through which company will be able to
attract more customers as well as influence large number of customers towards business. It is
essential for Holiday Inn company to create an effective path with the motive of increase
purchase. There are various importance of map a path to purchase as this is very effective and
significant tools that will help organisation to successfully and effectively conducting business
operations. In modern hospitality sector, old brand mapping will not be significant and it will
lead to have direct impact on overall performance of individual. Different importance of map a
path as well as understating customer decision making for marketers in hospitality sector is
mention below in detail –
o Focusing customer needs – Mapping a path is very effective in order to take correct
decision for enhancing and improving service of company (Funk et.al., 2016). Through
this, Holiday Inn company marketers will be able to successfully focus on the needs of
customers as well as meet with the requirement of customers.
o Increasing experience of customers – Holiday Inn hotel will be able to successfully
improve experience of customers with in hotel by determining customer decision making
process. Mapping a path is very important for increase customer experience level with in
respective hotel.
o Improving loyalty of customers – it is essential for hotel to improve loyalty of
customers as it will lead to have direct impact on business performance and capability.
Mapping a path and determining customer decision is significant for enhancing loyalty of
customers towards Holiday Inn company.
o Developing plan – It is important for respective company to develop and create effective
plan which is signficiant for successfully and correctly performing business practices.
Mapping a path is effective for developing plans and prioritizing task in significant
manner.
TASK 3
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P5.Compare and Contrast the key difference of the hospitality decision making process in
context of B2C and B2B
In hospitality industry decision making process vary from B2B and B2C. Business to
business practices are very different form business to consumer decision making activities. it is
essential for respective company to compare and contrast the key differences in order to take
correct decision. This will lead to have major impact on overall performance and capability of
business to carry out organisational task in more significant manner. Comparison between
hospitality decision making process in regarding to B2C and B2B is mention below in detail –
Business to business decision making process – Decision making process will includes
different elements as aspects that is crucial for making correct and effective decisions. Business
to business refer as all business activities that is between one organisation to others. In business
to business, Holiday Inn company needs to identify the required of other organisation in order to
provide them better quality services and offerings (Hu and Yang, 2020). Once the need of client
business has been determined by respective company it will focus on collecting information from
different sources. This will assist in gathering significant data in order take correct decision. It is
essential for Holiday Inn company to determine other idea or option will be suitable for client
company. Evaluation of alternative will be significant for selecting best and most effective
option. The last stage is actual purchase stage and in this client company will actually purchase
the products and services of Holiday Inn organisation.
Business to consumer decision making process – This is refer as the approach in which
company is providing its products and services to other company. In this different step of
decision making of customers in order to purchase products and offering of company has been
determined. In this process, Holiday Inn company will first focus on identifying and analysing
the needs of customers in order to provide accurate products and services. There are various
options available to customers and in this potential customers will identify and evaluate different
alternatives. Once customers have gathered information regarding different services, it is crucial
to evaluate pros and cons of each stage. This is significant for considering best and most suitable
option. The last stage is actual purchase and in this customer will visit Holiday Inn company for
actually purchasing products.
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P6. Different approaches to market research and methods of research used for understanding the
decision making process.
There are various approaches and method that could be consider by researcher in order to
understand decision making process In hospitality sector there are different aspects which needs
to be determine by company is order to successfully identify the decision making process as well
as take correct steps (Fuli, Foropon and Xin, 2020). It is important that respective company is
considering accurate market research approaches and method in order to gather relevant data and
information. Different method in respect to Business to business decision making process and
business to customer decision making process is mention below –
Market research approach in B2C
This will includes different methods and techniques which is significant for analysing
information in most effective manner (Crovini, Santoro and Ossola, 2020). Through market
research approach, Holiday Inn company will be able to determine needs and want of targeted
customers and take correct decision for enhancing business practices.
o Feedback survey – In this strategy for statistical surveying a legitimate review is led so
as to break down just as assess through and see focuses. There are various approaches to
direct review, for example, online and offline through which organization can pick up
data by asking questions to clients careful a specific medium.
o Interview - This is considered as a successful method of gathering essential information
as in this individual have direct cooperation with other person. It is a vis-à-vis connection
which help in in depth and correct data by conveying in better way.
Market research approach in B2B
In order to research about business to business decision making, investigator is consider
secondary sources. This is beneficial for taking correct decision which is significant as per the
needs of client.
o Government ad non government agency – This will includes documents that consist of
proper information is systematic manner. Information that is gained through government
or non government agency will assist in better decision making process.
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CONCLUSION
From the above report it has been concluded that it is important for organisation to take
correct steps for determining customer decision making process. There are different factors such
as culture, psychological, society culture and many other. All of these factors will lead to have
impact over decision making of company. Digital technology lead to have major impact on
changes in customer needs and want. It has been identified that there are different stages of
consumer decision making journey. It is important for marketing to map a path to purchase and
understand consumer decision making. Apart from this it has been identified that there are
various approaches to research in order to gain better understanding of decision making process.
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REFERENCES
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Choi, B.J., 2020. Cultural priming conditions and decision-making on food consumption: means-
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Mertens, S., Hahnel, U. and Brosch, T., 2020. This way, please: Uncovering the directional
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behaviour.Journal of Retailing and Consumer Services. 29. pp.92-103.
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Horner, S. and Swarbrooke, J., 2016.Consumer behaviour in tourism. Routledge.
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Fuli, G., Foropon, C. and Xin, M., 2020. Reducing carbon emissions in humanitarian supply
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Crovini, C., Santoro, G. and Ossola, G., 2020. Rethinking risk management in entrepreneurial
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(Hu and Yang, 2020) (Fuli, Foropon and Xin, 2020) (Crovini, Santoro and Ossola, 2020)
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