Understanding Consumer Behaviour in the Hospitality Sector

This report explores various topics related to consumer behaviour in the hospitality sector, including the factors influencing behaviour, the impact of digital technology, stages of decision-making, and more. The report focuses on The Dorchester, a luxury hotel in London, and provides insights into the different approaches to market research and methods used to understand the decision-making process.

Understanding consumer
behaviour

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1: Investigate the different cultural, social, personal and psychological factors that influence
consumer behaviour and attitudes within a hospitality context..................................................1
P2 Explore how consumer trends are changing due to the impact of digital technology...........2
TASK 2 ...........................................................................................................................................3
P3 Examine the stages of the consumer decision- making journey and map a path to the
purchasing for a given hospitality service...................................................................................3
P4 Explore why it is important for marketers to map a path to purchase and understand
consumer decision- making in the hospitality sector..................................................................3
TASK 3............................................................................................................................................4
P5 Compare and contrast the key differences of the hospitality decision- making process in
the context of B2C and B2B, using specific hospitality examples.............................................4
P6 Evaluate the different approaches to market research and methods of research used for
understanding the decision-making process................................................................................4
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Consumer behaviour is study of all the activities of individuals and organization and how they
use and select good and services of particular company. It is an decision making process of
consumer at the time of purchasing good and services. Organization Analyse and identify
consumer's decision making process to target particular customer in market. This report contains
information about various topics in the context of hospitality organization The Dorchester, it is
luxury hotel located in London, United kingdom. The Dorchester operates on Park Lane and
Deanery street in London. It is one of the most prestigious and expensive hotel. Hotel works for
their customer satisfaction by providing them best services with more comfort. This report
includes study about various topics such as different factors that influence behaviour of
consumer, impact of digital technology on consumers buying behaviour, stages of consumer
behaviour, importance of map a path to understand consumer behaviour. Furthermore, hospitality
decision making process in the context of B2B and B2C, at last different approaches and
research used in understanding decision-making process(Cantallops, and Salvi, 2014).
TASK 1
P1: Investigate the different cultural, social, personal and psychological factors that influence
consumer behaviour and attitudes within a hospitality context.
Study of consumer behaviour includes study of individual, group and organization and
their the affect of various factors on their buying behaviour. Consumer behaviour helps in
understanding the behaviour of individual towards purchasing good and services of particular
brand or company. In the context of The Dorchester, hotel is highly focused on giving their
customer high level of comfort and satisfaction by the services they are providing them. There
are various factors that influence consumer behaviour is following below:
Social factors:
These factors prevent in the society where individuals are living. In society there are
several individuals with different choices and preferences and there also various factors of
society that influence the behaviour of individual. Reference groups are the main factors that
influence the decision making of consumers. These groups have impact of their leaders and
influence the behaviour of other individuals. Family, it is a place where individual's initial choice
and preferences are develop. Family members plays important role in influencing the behaviour
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of individual. Thus, social cultures are important aspect in change and influencing the behaviour
of individuals.
Personal factors:
These factors are personal factor of individual that make change in their buying
behaviour. Different persons have their own personal choice and preferences according to their
culture and environment. Age is most important factor that can change choice and purchasing
decision of individual. The Dorchester targets different age groups of individuals on the basis of
their choices and preferences. Thus, personal factors influence the behaviour of consumers of
The Dorchester( De Mooij, 2019).
Cultural factors:
In the business of hospitality different culture factors affect the behaviour of individual.
These are the people with same set of values and ideologies that belong to particular group or
community. Different culture of people affect the business of The Dorchester because consumer
has different choices according to their group and community.
Psychological factors:
It is major determinate of consumer behaviour, these factors are difficult to measure but
has strong presence that can influence the behaviour of an individual. Thus this factors can
influence and affect individual in different manner and The Dorchester should make their
services according to their consumers.
P2 Explore how consumer trends are changing due to the impact of digital technology.
Digital technology can be define as the tools, device, systems that helps in generating and
storing data and information. In today's scenario digital technology Is most useful function that
individuals are using in their daily works. In hospitality business there are several digital
technology that helps customers to use hospitality services from their home. Thus there are
several digital platforms that is affecting the business of The Dorchester. Below is various
factors that have impact on trends of consumer by using digital technology(Grimmer, Kilburn,
and Miles, 2016)
.
 Change in consumers desires: Digital technology has major impact on consumers using
hospitality facilities. It changes their demand and choice and affect the business of The
Dorchester. There are several new technologies that is changing the mind set of
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customers such as online services, new technology advancement in hospitality, and many
hospitality business are using artificial intelligence that helps them to attracts new
consumers in market. Thus, to deal with this factor The Dorchester is using many
technological factors and that improve the rate of their business.
 Impact of Mobile Apps: In current scenario mobile app have assess to all most every
individual they are using this apps to reach hotels and restaurant. Mobile apps helps
hospitality business by connecting with more people and make them regular customer.
The Dorchester)(Zhang, and Benyoucef, 2016)
 Improvement of consumer connections: Digital technology helps hospitality business
by connecting with them for long time. They use various social media platform such as
Facebook, Instagram and other applications that help them to enhance their connection
with customers. In the context of The Dorchester, hotel is using email marketing for
daily reach to customers and makes them their loyal customer(Hofacker, . Malthouse,
and Sultan, 2016).
TASK 2
P3 Examine the stages of the consumer decision- making journey and map a path to the
purchasing for a given hospitality service.
For organization it is very important that have better understanding of behaviour of their
consumer so that they can provide them the services according to needs and wants. In the context
of respective hospitality organization The Dorchester, below is detail study of different stages
consumer have for their purchasing decision making for hospitality business.
 Problem recognition: This is the first stage of consumer decision making where
consumer recognises the needs and wants of product and services. Problem recognition
helps in understanding the criteria of customers needs and how organization can fulfil
them in most effective way.
 Information search: In this stage customer is relay on internet and other factors where
they can get proper information about hospitality business. In information stage
customers can browse through various options such as physical location or online
information. Online resources like Google and physical resources like customer review.
 Evaluation of alternatives: This is a stage where customers develop their criteria for
what they want in a particular product and service. This alternative could be the price of
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product and service, availability of services, additional benefits hospitality business
providing to their customers.
 Purchase decisions: In this stage customer actually decided to purchase product or
service after getting reviews from post customers. Customer should arrive at right
decision to purchase the product they want from specific organization.
 Post purchase behaviour: This stage of purchasing decision-making is where consumer
gives feedback and review after using product and services. This ensure that consumer
will use the product in future or not.
Thus, The Dorchester, should make their services and product in most effective way that
consumer will choose it over other hospitality business. This could ensure that customer will be
loyal to hotel or not.
P4 Explore why it is important for marketers to map a path to purchase and understand consumer
decision- making in the hospitality sector.
It is very essential for marketer to understand the journey by which the customer
purchase product and service. This journey of customers is very easy to understand by
organization. By understanding this process The Dorchester ( Jain, Khan, and Mishra, 2017)can
make strategies according to the needs and wants of customers. There are following steps of map
path to purchase of respective organization.
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Significance of map path to purchase:
 Understand level of interaction between customer and business: Map purchase path
helps to understand customers needs and want and its build long term relation between
customer and business. This is also help full in analysing the complaints of customers
from the business organization so that company can find effective way to clear all the
problems of customers. Thus, interaction between customer and organization could help
in development of trust and customer loyalty of consumer toward (Lantos, 2015) The
Dorchester.
 Emphasises on customer needs: The Dorchester modify their consumer needs in such a
way that they can offer them product and services according to their needs and wants.
Mapping is very help full for this organisation because they want to give their product
and services in such a way that can fulfil all needs of their customers and give them
satisfaction they want from hospitality services. Thus, understand of needs and wants of
customers is very important for The Dorchester organization so that they can gain
customer loyalty of their customers (Xiang, Magnini, and Fesenmaier, 2015)
 Differentiates gap between desired and real experience of customers: It is most use
full advantage of mapping process because it helps organisation to understand difference
between desired of customer and their actual experience from organisation. Its also use
full for The Dorchester, (Lin, and Hsu, 2015). because they want to understand their
customers expectation from the hotel and try to fulfil it on effective manner.
 Recognises development priorities: Purchase path mapping is also important for
understanding the recognition of customer’s priorities so that organisation can develop
their business to match the level of customer expectation. In the context of The
Dorchester it is also help full for hotel because they are dealing in five star luxury hotel
and they have tough competition in hospitality industry and understanding business
 Helpful in gaining business insight: purchase path mapping helps organization to have
detail information about their business. This helps the business of The Dorchester to
analyse their market position. They know how to deal with needs wants of their
consumers. Thus, path mapping is help full for business of hospitality.
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TASK 3
P5 Compare and contrast the key differences of the hospitality decision- making process in the
context of B2C and B2B, using specific hospitality examples
Basis B2C B2B
Branding Branding is important in B2C
because it helps marketers to
deliver massage to their customers.
In B2C marketing relation between
company and customers are
minimally interactive so company
must leave their impression on
consumers they could become loyal
customers of The Dorchester
(Mothersbaugh, Hawkin, and
Kleiser, S.B., 2019)
It is a part of B2B marketing, in
hospitality business brand image helps
them in building a good position in
market and make impact on their
customers. In the context of The
Dorchester, B2B marketing could help
the organization to build positive
relation with their customers.
Buying Decision
making
Decision making process of B2C is
depends upon the conversation with
post customers of organization that
make their strategies easier for
company. In the context of The
Dorchester, organization is focused
on making digital relation with their
customers.
It is another place where marketer can
appeal relational and emotional
decision making of business. In the
context of The Dorchester they make
decisions on the basis of their consumer
network in market.
Customers The main motive of B2C marketing
is to derive their customer to the
product and services of company
and increase their sales. They focus
on making their customers
experience most effective so that
they can become loyal customer of
B2B business focuses on building
personal relationship with their
customers. They want to work with
their customers for long term and make
personal relation with them. In the
context of The Dorchester, the main
motive of B2B business of company is
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their company. The Dorchester is
also focus on making their
customers experience better.
generate lead in hospitality industry and
they make decisions according to the
expectations of their consumers (
Small, and Cryder, 2016
P6 Evaluate the different approaches to market research and methods of research used for
understanding the decision-making process
Market research for B2B:
B2B refers to all the business process that takes place in one organization another. This
process includes sales of goods and services between two companies and the transformation of
goods and services. The customer led to use transformation of products and services they are
purchasing from another company. There are various market research methods of B2B business
which includes competition research; it is very important research of B2B business. Because
competition in market is most important factor that affect the business of hospitality. So it is very
important aspect of market research of hospitality business. The main tool of market research is
interview that company can take from their current or previous customers. They can get feedback
from them about the product and services of company (Murphy, and Dweck, 2016). Thus
market research of B2B business is very important aspect of decision making process of
hospitality business.
Market research methods under B2C:
This is a market where company can sale their product direct to physical person. In B2C
market mangers usually do online survey for their company and know about their customers
choice and preferences. The main method of B2C research analysis is study of B2C
environment, it helps organization to achieve its objectives and fulfil the need of customers from
external environment. B2C could analyse their environment by interviewing their customers
about what they like and dislike about the hotel. (Murphy, and Dweck, 2016) Thus it is very
important for The Dorchester to understand their external and internal environment for better
growth and stable profitability rate.
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CONCLUSION
From the above information it can be conclude that understanding consumer behaviour is very
important aspect of hospitality business. With the help of analysing consumer behaviour
organization can understand needs and wants of their customer and how they can fulfil it. There
are various factors that influence the behaviour of consumers such as social, cultural, personal
and psychological. There are various digital technology trends that influence the buying
behaviour of consumers. Furthermore, different this report also explain different stages of
purchasing process of customers and how purchasing path mapping help hospitality organization.
There are also several marketing research methods of B2B and B2C marketing.
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REFERENCES
Books and Journals
Cantallops, A.S. and Salvi, F. 2014. New consumer behavior: A review of research on eWOM
and hotels. International Journal of Hospitality Management, 36, pp.41-51.
De Mooij, M. 2019. Consumer behavior and culture: Consequences for global marketing and
advertising. SAGE Publications Limited.
Grimmer, M., Kilburn, A.P. and Miles, M. 2016. The effect of purchase situation on realized
pro-environmental consumer behavior. Journal of Business Research, 69(5), pp.1582-
1586.
Hofacker, C.F. Malthouse, E.C. and Sultan, F., 2016. Big data and consumer behavior:
Imminent opportunities. Journal of Consumer Marketing.
Jain, S., Khan, M.N. and Mishra, S. 2017. Understanding consumer behavior regarding luxury
fashion goods in India based on the theory of planned behavior. Journal of Asia Business
Studies.
Lantos, G.P., 2015. Consumer behavior in action: Real-life applications for marketing
managers. Routledge.
Lin, H.Y. and Hsu, M.H. 2015. Using social cognitive theory to investigate green consumer
behavior. Business Strategy and the Environment, 24(5), pp.326-343.
Mothersbaugh, D.L., Hawkin, D.I. and Kleiser, S.B., 2019. Consumer behavior: Building
marketing strategy. McGraw-Hill Higher Education.
Murphy, M.C. and Dweck, C.S. 2016. Mindsets shape consumer behavior. Journal of Consumer
Psychology, 26(1), pp.127-136.
Murphy, M.C. and Dweck, C.S., 2016. Mindsets shape consumer behavior. Journal of
Consumer Psychology, 26(1), pp.127-136.
Small, D.A. and Cryder, C. 2016. Prosocial consumer behavior. Current Opinion in
Psychology, 10, pp.107-111.
Xiang, Z., Magnini, V.P. and Fesenmaier, D.R. 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal of
retailing and consumer services, 22, pp.244-249.
Zhang, K.Z. and Benyoucef, M. 2016. Consumer behavior in social commerce: A literature
review. Decision Support Systems, 86, pp.95-108.
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