Understanding Customers and Consumer Behavior in the Tourism Industry

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Added on  2023/06/15

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This essay discusses the importance of understanding customers and consumer behavior in the tourism industry. It covers micro and macro consumption, decision-making theories, and technology used in the industry. The essay also provides insights into Hays Travel and its operations.

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Understanding
Consumer

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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Customer refers to a person who can purchase specific products and services from the
store and pay accordingly to satisfy their desires. Sometimes this individual is customer as well
as consumer and sometimes not. Consumer determine someone who can buy particular item and
also consume it that means it can use this product by its own can't resell such item. In simple
term, it is known as end user of items (Mishra Singh and Koles, 2021). Consumption simply
means spending on utility and utilise specific goods and services for household purpose. This
essay is based on Hays Travel, it is a independent travel company that operate tour and provide
holiday package to its clients. Its headquarters is in Sunderland, England. This report will cover
micro and macro view of consumption, theories related decision making and defines various
technologies related to big data of macro consumption.
MAIN BODY
It refers to a tendency of person who can use small resources and incentives as per their
demand. Tiny view is going to be be concerned about small details about specific product that
gives a high satisfaction level (Vanhala and et.al., 2020). This can relate directly to the decision
of person who can allocate production consumption and exchange. This micro segment helps
marketer to know better understanding about understanding of their customer just because it
empowers technology. In context of Hays Travel, customers are highly demanded as it is a
leading company. According to this small area clients are increasing through trust, relationship
and honesty that makes its holiday wonderful. This micro perspective reflect social structure and
life that are found in individual at the time of interaction. Basically tourist are consume that helps
to satisfy his/ her individual desire and make them satisfied by wide variety of items. These
factor creates a long lasting impact on business economy. It comprises consumer behaviour,
supplier, reseller etc. As nature of customer is essential part in this factor because these are one
who can improve company growth through purchasing their item. This micro consumption view
is based on strategy related to item as it is a key part for survive in market place. If any kind of
reason, company are not able to make effective strategies related then it can reflect entire
respected company. Basically, it can be used just for the sake of increasing number of customer
that aids to understand environment. Competitive price, less quality of product and other
advantages that usually offer by business.
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In short, micro segment is significant for consumers and well as company because it directly
affects both. It comprises several elements that helps to understand about targeted audience. And
also create an implication on business operations and performance level that generally used to
grow business (Duca-Radu, Kenny and Reuter, 2021). This is the main source that can increase
the competitiveness of market. Consumption is based on consumer behaviour that means what is
their taste and preference according to market trends. Due to COVID- 19 tourism business highly
affected ans as per this , it occur rapid changes in customer nature as well as market.
Information processing theory is an approach that tells about the way through which an
information is encoded in human brain. In reference to customer behaviour, it can be used in
identifying the process in which a customer thinks before buying a product or service. This
process of product selection by customer is known as consumer information processing. There
are various stages that involve in consumer decision making process. First it identifies the needs
for any product or service from the market (Sokhanvar, Çiftçioğlu and Javid, 2018). This is
known as problem recognition. It is the result of distinctions between an individual's current state
of satisfaction and its desired wants. After recognising the problems, the customer searches for
the actual or related product that could help in fulling its need, it is considered as information
search. In mostly cases he/ she has options for selecting between the same satisfactory items,
excluding the commodities or services that are provided by only one or few provider and don't
have any competition. In cases of selection, the consumer compares the different products by
considering different aspect such as price, quality and availability and select the best or most
satisfactory product. This part of process is called alternative evaluation and selection. The next
stage in this theory is outlet selection and purchase. In this the consumer selects the feasible
outlet from which he/she is going to buy and finally makes the purchase. Then there are services
which a business organisation provides to its customers that already made any purchase such as –
return, exchange or any maintenance service for developing a loyal bond with them and this is
known as post purchase processes. In tourism sector, this theory can impact to a great extent.
Tourist put lots of efforts in finding their vacation and touring spot by studying the market trends
and reviews of the past visitors (Kim and Jeong, 2018). The world has unlimited numbers of
tourist attraction place. People select from them according to their resources. Tourism companies
are also selected and even booked in advance.

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This phenomena is a sphere of consumption that can use analytical categories. This
transformation can be used on societal level. In case of tourism it defines a sub system that is
based on socio- economic improvement. It is a very important aspect of tourism as it helps in
providing clear over view. Acknowledging related to extreme variability of this sector needs to
identify dynamic through social and economic perspective that can be arises direct changes in
tourism. Large scale parts of shopper conduct additionally incorporates many element which
influences working and various tasks of organization. It is vital for advertiser to distinguish
diverse full scale perspectives which influence purchaser conduct (Vergori and Arima, 2020).
Social and affordable angles is being considered as the main variable which straightforwardly
sway on the decision making of the consumer. Social perspectives incorporates the things like
family, companions, status, gatherings of people and a lot more which influence the conduct of
the buyer(Lee and Jan, 2019). They Rome around and meet with various individuals which have
distinctive attitude, conduct and language. This influences the conduct and buying choice of
buyer. Monetary viewpoints additionally impact on buyers which are impacted by economy of a
nation or a market. In this event, nation have a high political solidness and strong financial
conditions then this lead to increment in buying force of shopper. Positive financial and money
related circumstance increment venture of purchaser on buying item. The climate or social
orders in which an individual live is being considered as a significant component for impacting
conduct of shopper.
In context of tourism, various firm that can highly connected with this industry are directly
implication on this aspects as the consumption view related to customer. Companies that are
usually in this be like, Export travel, London travel , ultimate travel etc. are directly affect
through this segment.
Use of technologies play a vast role in mostly all types of business entities including
tourism sector. Tourism centred entities can include hotels, restaurants, guides, convenience
facilities and many more. To make their experience better and avoid uncertainties such as not
finding or getting spots to visit and places to stay, people search for the tourism companies
online and book them in advance. This gives tourism companies a positive force to make their
online presence. There are certain apps through which people can easily view and book their
hotels. These are vastly getting in use so that the tourists can put their full focus in getting new
experiences and avoid wasting time in finding the useful resources at the time of their visit
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(Gravari-Barbas, 2018). Making of online websites is also a source of attraction to tourists by
showing and giving them the reliance to have a fruitful experience through pictures and videos.
CONCLUSION
It is conclude from above essay is that consumer is very important aspect for every
organisation as these are one who helps in surviving business. Above analysis includes micro as
well as macro segment, decision theories and technology that are adopt by tourism industry.
These aspects is significant not only for business or consumer but also for enhancing competition
level in market place. A suitable instances of tourism organisations are also marked in this essay
as these business also concerned about these term in order to increasing industry growth and
success.
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REFERENCES
Books and Journals
Mishra, R., Singh, R.K. and Koles, B., 2021. Consumer decision‐making in Omnichannel
retailing: Literature review and future research agenda. International Journal of
Consumer Studies. 45(2). pp.147-174.
Vanhala, M. and et.al., 2020. The usage of large data sets in online consumer behaviour.
Duca-Radu, I., Kenny, G. and Reuter, A., 2021. Inflation expectations, consumption and the
lower bound: Micro evidence from a large multi-country survey. Journal of Monetary
Economics. 118. pp.120-134.
Sokhanvar, A., Çiftçioğlu, S. and Javid, E., 2018. Another look at tourism-economic
development nexus. Tourism management perspectives, 26, pp.97-106.
Vergori, A.S. and Arima, S., 2020. Cultural and non-cultural tourism: Evidence from Italian
experience. Tourism Management, 78, p.104058.
Gravari-Barbas, M., 2018. Tourism as a heritage producing machine. Tourism management
perspectives, 25, pp.173-176.
Lee, T.H. and Jan, F.H., 2019. Can community-based tourism contribute to sustainable
development? Evidence from residents’ perceptions of the sustainability. Tourism
Management, 70, pp.368-380.
Kim, H.J. and Jeong, M., 2018. Research on hospitality and tourism education: Now and
future. Tourism Management Perspectives, 25, pp.119-122.
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