Understanding Consumer: Factors, Trends, Decision Making Process

This report explores the factors, trends, and decision-making process that impact consumer behavior in the hospitality industry. It discusses the cultural, social, personal, and psychological factors that influence consumer behavior. It also examines the changing consumer trends due to the impact of digital technology. The report evaluates the stages of the consumer decision-making process and the importance of mapping a path for consumer buying decisions in the context of the hospitality industry. Additionally, it explains the difference between consumer decision-making processes based on B2B and B2C. Finally, it discusses research methods and approaches to understand the decision-making process and how marketers help in influencing consumer decision-making.

Understanding consumer

Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1: Evaluate different factors including cultural, social, personal and psychological that
impacts consumer behaviours.....................................................................................................1
P2: Define changing consumers trends due to impact of digital technology..............................2
TASK3.............................................................................................................................................3
P3: Evaluate stages of consumer decision making process that helps in mapping a path for
consumer in services of respective hotel.....................................................................................3
P4: Identify the importance of mapping a path for consumer buying decision process in
context of hospitality industry.....................................................................................................4
TASK3.............................................................................................................................................5
P5: Explain the difference between consumer decision making process based on B2B and
B2C.............................................................................................................................................5
P6: Provide research methods and approaches in order to understand decision making process.
.....................................................................................................................................................6
TASK4.............................................................................................................................................7
P7: Explain how marketers help in influencing consumer decision making process.................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Understanding customer is first and most important thing for any business organisation
based on learning about everything that is important to know about customers for instance needs,
values & attitudes, buying habits and type of jobs they wants to do. Building effective
relationship between host and guest with aims as to assist, entertain and protect interests of
customers while travelling (Lugosi, 2019).
Hilton is well known name in hospitality industry developed in 1927 with having
portfolio of more than 540 hotels and resorts spreading across 78 countries. Hilton Honers
participates in different reward programs so as to make members easy to stay free or at
complementary perks . It has best hotels in several places such as- USA, Europe, Canada,
Mexico etc.
This report is based on understanding consumer in terms of their needs and priorities so
as to meet their requirements that has prominent impact in business success. In this report
importance of values and expectations of customers and changing trend due to digitalisation are
explained. Further consumers decision-making stages, importance of path mapping, comparison
between B2B & B2C with different approaches of marketing research are considered within
report. In the end influence of marketers over decision-making process are defined with suitable
examples.
TASK1
P1: Evaluate different factors including cultural, social, personal and psychological that impacts
consumer behaviours.
Consumer behaviour defined as the study of behaviour of individuals or group of
individuals associated with activities for instance purchase, use and dispose of product and
services and how their attitudes, emotions and expectations that affect their buying behaviour.
Following are the factors that impacts consumer behaviour in hospitality sector:
Social factors: The first and most significant factor that affects the behaviours of consumers
while purchasing, using or disposing products and hospitality services varies as per family size,
income status, friend circle, co-workers and collogues. In terms of Hilton Hotel promotes their
services in order to meet affordability and income level of customers and offer them effective
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discounts and safety & security services while travelling in order to make their experience better
(Volgger, and Huang, 2019).
Cultural factors: This is also an important factor that affects consumer's behaviour which
includes components such as- customs, beliefs, values etc. society in which a person is born and
brought up is also affects buying behaviours of consumers that has significant impact on
organisation performance. Social class is combined by variety of elements such as- income level,
education, occupation. In context of respective hotel it should concentrate on social class and
culture in order to meet their expectations and preferences.
Personal factors: Another factor that impacts behaviours of consumers while making purchase
decision. Personal factor includes personal characteristic of individual such as- confidence,
dominance, aggression that plays important role in selection of hotels. Respective hotel should
analyse personal factors of customers inn order to give them better experience as per their
requirements (Chan, and Hsu, 2016).
Psychological factors: It consist of elements like learning, perception, beliefs and motivation
that impacts consumer behaviour in terms of purchase selection. In context of Hotel Hilton
provides luxury comfort and experience, healthy & delicious food offerings in order to motivate
and influence consumers towards use of its services (Kandampully, Zhang, and Jaakkola,
2018).
P2: Define changing consumers trends due to impact of digital technology.
Consumer trends refers as changing behaviour of consumers which results in new
behaviours, new attitude and expectation, new opinion of customers impacted by increasing use
of information technology. Following are the points that shows how digitisation forcing
consumer trends for change:
Increasing use of social media: Digitalisation changes entire process of searching and selecting
hotels & resorts for travel and stay varies upon demands such as- individual, family & friends
holidays, office meetings, couples, family picnic etc. customers uses information technology for
searching best hotels, their services, reviews and ratings given by different users who
experienced their services. In terms of Hotel Hilton should effectively update their websites in
order to make customers aware about modification and innovations so as to meet changing needs
of consumers (Dixit, 2017).
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Review of consumers: Digitalisation and information technology allow consumers to give
review and feedbacks for hotel that has prominent impact on successful running of respective
hotel. These reviews and feedbacks leads to influence image of respective hotel in both positive
an negative ways. Consumer has rights to read and selects hotel as per their experience. In
context of Hotel Hilton should concentrate on meeting changing needs of customers that creates
positive impact over achievements of goals in effective manner and raise market shares of firm.
Rising online bookings: Information technology changes ways of booking travel hotels and
resorts as compared to classical ways where tickets are booked through offline ways by visit
offices of travel agents. But digitalisation makes it easy, convenient for customers to book hotels
and resorts for vacations, nights stays and picnic that helps in saving time and efforts of
customers indulge into visiting travel offices (Ramanathan, and et.al 2017).
TASK3
P3: Evaluate stages of consumer decision making process that helps in mapping a path for
consumer in services of respective hotel.
Consumer decision making is the process of assisting consumers while selecting of most
suitable goods and services are explained as follows:
Need recognition: This stage is associated with recognition of a need towards products and
services for instance requirement of hotels and resort for family functions, office party and stay
during tour and many more (Nunkoo, 2018).
Information searching: When a need is recognised the next step is to finding out the available
hotels through variety of sources such as- hotel websites, social media apps like goggle And
some other sources that contains all information.
Alternative evaluation: When there is a need arise and information is gathered the next phase is
to assess other available alternatives so as to compare options based on factors such as- service
quality, price, wellness etc.
Purchase decision: This stage is related to decision taken by customers regarding what to buy,
form where to buy based on personal knowledge & experience, reviews and recommendations.
This is most important phase where consumer takes purchase decision (Sigala, 2017).
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Post purchase: Final phase of consumer decision making process is related to what consumer
thinks feels & acts towards hospitality services after consumption of them and then gives reviews
and feedback based on their experience.
Although, these all stages plays prominent role in experiencing hospitality services. In
context of Hotel Hilton should analyse consumer needs, provide sources for them to create
awareness about its services in order to satisfy needs and wants of consumers.
P4: Identify the importance of mapping a path for consumer buying decision process in context
of hospitality industry.
A buying decision making process is gone through different stages where need for
hospitality services arise in the minds of consumers, then they take a step to find out
available options, comparing them and taking purchase decision and giving reviews that
has positive or negative impacts on firm. In context of hospitality sector it is very
important to map a path that helps in displaying consumer buying process in visual
presentation. This makes it easy for hotels and resorts to find out effective ways of
bringing interactions with customers in order to influence them for purchasing or
consuming of services of particular hotel (Park and et. al., 2020). Available sources of
interacting with customers are mails, social media platforms, live chats etc. in terms of
Hotel Hilton provides exclusive membership to its customers and it has worldwide
contemporary, conventional, emerging distribution channel that has prominent role in
effective promotion and marketing of its services. Path mapping is essential in order to
know a gap between desires of customers and the experience gained after consumption of
services. For respective organisation it is prominent to evaluate difficulties faced by
consumer while buying decision process and assist them for best option and influence for
consuming its services. This will leads to meet the expectations and desires of customers,
helping them for take best decisions and give them specific reasons regarding why it is best
to chose over its competitors. This will be beneficial for both organisation as well as
consumer in context of in terms of finding best services and rising customer base &
enhance brand reputation of business. Marketers of respective hotel should concentrate on
helping customers in their decision making regarding purchase and consumption of goods
and services of it and satisfy them in order to raise market share of business as well as
customer experience (Edghiem, and Mouzughi, 2018). Thus, mapping a path for buying
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decision making process of consumers has prominent impact for respective organisation in
terms of rising market share and profits of firm.
TASK3
P5: Explain the difference between consumer decision making process based on B2B and B2C.
Basis of comparison B2B B2C
Definition Business to business is defined
as the exchange of product
and services between seller
and other business firm
(Wang, 2020 ).
While business to consumer is
described as the exchange of
goods and services between
buyer and seller in return of
some monetary value.
Customers For respective organisation
customers includes tour &
travel companies, food serving
firms etc.
On the comparison with
business to business customers
of respective organisation
final customers are people
who stay within its hotel &
resorts and consumers
services.
Focus Based on B2B the main focus
of respective firm is on
formulating better relationship
with travel companies and
food producers.
While in B2C Hotel Hilton
concentrates on providing
better quality of products and
services to consumers (Pizam
and Tasci, 2019).
Relationship Based on business to business
respective hotel should
concentrate on building
effective relationship firms
who satisfy need of
consumers.
On the other hand in terms of
business to customers
respective organisation should
make better relations with
customers so as to serve their
needs.
Purchase decision The buying decision based on
business to business customers
While buying decision of
customers based on emotional
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is planned (Wong and Wei,
2018).
factors like values, beliefs,
needs etc.
Target customers In terms of business to
business targets customers of
respective hotel are tour &
travel agencies, food
producers etc.
On contrary target customers
of respective business are
people who need hospitality
services. For instance business
professionals, general public
etc.
P6: Provide research methods and approaches in order to understand decision making process.
Market research approaches
Primary Research: It is defined as method of collecting information for the first time and first
hand without depending upon previous information. In terms of respective organisation primary
research is used to solve specific problems with proper accuracy and authenticity. Marketers of
respective hotel should analyse unique requirements of customers through this method and
satisfying them.
Secondary Research: This approach of market research is used to gather information which is
already exist within market through various sources such as- local and central governmental
publications, reports from institution and research scholars etc. in context of Hotel Hilton
marketers should focus on understanding consumer needs and offering services as per the
requirements of customers (Rahimi and et.al 2017).
Market research methods
Surveys: The best method for understating consumer decision making journey is to conduct
surveys with straight forward questions offering respondents to answer them in multiple choices.
Hilton Hotel should conduct surveys for better understanding of customer needs and satisfy them
with better services. This plays significant role in understand customer needs and how they take
buying decisions that impacts market share and profitability of respective hotel.
Questionnaire: It includes variety of questions with aim as to know customers preferences offer
to customers for answer that plays significant role in rising vesting of customers or respondents.
Questionnaire helps in understanding consumer buying decision process in better ways.
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Marketers of Hilton should focus on developing better questions as per their needs in timely
basis so as to enhance business performance and reputation within industry.
Feedback: It is also an important method for conducting research for better understanding of
customers that leads to successful running of business and helpful in rising business
sustainability. This method research allow consumers to give feedback regarding services and
their experience towards hospitality organisations that has prominent impact on influencing other
whether in positive or negative ways. Marketers of Hilton should focus of effective services and
making better experience for customers so as to bring positive feedbacks and reviews that
influence others for consuming of its services (Sahin, Gulmez and Kitapci, 2017).
TASK4
P7: Explain how marketers help in influencing consumer decision making process.
Buying decision making process of consumers based on factor such as- urgency of
products and services, quality and durability of goods, economic conditions and some
other that influence consumer’s decisions regarding purchase and consumption of services.
It is important to know needs and wants of consumer before offering them any product or
service. It plays important role in satisfying needs and wants of customers according to
their needs and desires that is major aspect of consumer buying decision. In context of
respective organisation marketers should focus on evaluating needs of customers and
factors that influence consumer behaviours towards decision making for purchase and
consume of services so as to encourage them for use of its goods and services so as to
enhance their experience ( Baum, 2019). Marketers of Hilton Hotel should need to analyse
consumer behaviours and then promote their services and goods in such a way that creates
best impact over customers and attract them for consumption of its goods and services.
Marketers of Hotel Hilton should provide better reception, entertainment, proper hygiene,
tasty foods so as to enhance customer experience. Management of respective business must
focus on taking care customer preferences so as to feel them happy while purchase and
consume of goods and services. This will leads to enhance goodwill of firm and market
share within industry. There are some approaches that help in influence consumer decision
making process:
Approaches of understanding consumer decision making
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Cognitive Learning: It is an important approach that has prominent impact over
influencing decision making of consumer in terms of respective organisation. Values and
beliefs are naturally developed without enforcement of that reflects unique personality for
people. For example suggestion, reactions, recommendations etc. that plays significant role
in business performance and helps in rising customer experiences so as to enhance
customer base and goodwill of firm. In terms of respective hotel should make effective
communication between hotel and customers and use effective techniques for displaying
and promoting of goods and services for rising customer experience (Alhelalat, Ma’moun
and Twaissi, 2017).
Behavioural Approach: Another important approach for influencing customer’s buying
decision making process that has prominent impact in terms of identifying their needs and
offering quality services with taking care of health and safety of customers or guests
coming within firm. It is the approach based on study of customer behaviours and their
reactions towards particular situation that plays significant role in better understanding of
buying process of customers. This study of behaviours helps in better offerings in order to
meet their expectations and preferences that have prominent impact on business
performance. Marketers of Hotel Hilton should better understand customer behaviours
while making purchase decision and offer services as per requirements that maximise
profits and customer base of firm.
CONCLUSION
As per above discussion it is observed as that understanding customers is first and important
aspect of any business organisation especially in terms of hospitality. Various factors that
influence customer behaviours are considered within report. Further methods that are used
by marketers in order to conduct market research are explained so as to know customer
decision making process is discuss with essential steps. Moreover, impacts of digitalisation
over changing consumer buying habits and path mapping is considered in order to better
understand customer buying decision process. In the end effective approaches are provides
so as to influence consumers that lead to prominent impact over company performance nd
growth.
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REFERENCES
Books and Journals
Lugosi, P., 2019. Deviance, deviant behaviour and hospitality management: Sources, forms
and drivers. Tourism Management. 74. pp.81-98.
Volgger, M. and Huang, S.S., 2019. Scoping irresponsible behaviour in hospitality and
tourism: Widening the perspective of CSR. International Journal of Contemporary
Hospitality Management.
Chan, E.S. and Hsu, C.H., 2016. Environmental management research in hospitality.
International Journal of Contemporary Hospitality Management.
Kandampully, J., Zhang, T.C. and Jaakkola, E., 2018. Customer experience management in
hospitality. International Journal of Contemporary Hospitality Management.
Dixit, S.K. ed., 2017. The Routledge handbook of consumer behaviour in hospitality and
tourism. Taylor & Francis.
Ramanathan, U., and et.al 2017. Impact of customer loyalty and service operations on
customer behaviour and firm performance: empirical evidence from UK retail sector.
Production Planning & Control. 28(6-8). pp.478-488.
Sigala, M., 2017. How “bad” are you? Justification and normalisation of online deviant
customer behaviour. In Information and communication technologies in tourism 2017 (pp.
607-622). Springer, Cham.
Park, E., and et. al.m, 2020. Understanding customers' hotel revisiting behaviour: a sentiment
analysis of online feedback reviews. Current Issues in Tourism. 23(5). pp.605-611.
Wang, C.C., 2020. Corporate social responsibility on customer behaviour: the mediating role
of corporate image and customer satisfaction. Total Quality Management & Business
Excellence. 31(7-8). pp.742-760.
Pizam, A. and Tasci, A.D., 2019. Experienscape: expanding the concept of servicescape with
a multi-stakeholder and multi-disciplinary approach (invited paper for ‘luminaries’ special
issue of International Journal of Hospitality Management). International Journal of
Hospitality Management. 76. pp.25-37.
Wong, E. and Wei, Y., 2018. Customer online shopping experience data analytics.
International Journal of Retail & Distribution Management.
Rahimi, R., and et. al., 2017. Customer relationship management research in tourism and
hospitality: a state-of-the-art. Tourism Review.
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Sahin, I., Gulmez, M. and Kitapci, O., 2017. E-complaint tracking and online problem-
solving strategies in hospitality management. Journal of Hospitality and Tourism
Technology.
Baum, T., 2019. Does the hospitality industry need or deserve talent?. International Journal
of Contemporary Hospitality Management.
Alhelalat, J.A., Ma’moun, A.H. and Twaissi, N.M., 2017. The impact of personal and
functional aspects of restaurant employee service behaviour on customer satisfaction.
International Journal of Hospitality Management. 66. pp.46-53.
Edghiem, F. and Mouzughi, Y., 2018. Knowledge-advanced innovative behaviour: a
hospitality service perspective. International Journal of Contemporary Hospitality
Management.
Nunkoo, R. ed., 2018. Handbook of research methods for tourism and hospitality
management. Edward Elgar Publishing.
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