This report explores the consumer behaviour and insight in the hospitality sector, focusing on the stages of consumer decision-making and the role of marketers in influencing the process. It also discusses the differences between B2B and B2C models, market research approaches, and the impact of marketers on decision-making in the hospitality industry.
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Hospitality Consumer Behaviour and Insight Table of Contents
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INTRODUCTION...........................................................................................................................4 TASK 1............................................................................................................................................4 Covered in PPT.......................................................................................................................4 TASK 2............................................................................................................................................4 P3 Examination of various stages that relate with consumer-decision making.....................4 P4 Importance of marketers for mapping a path to understand the process of consumer- decision making from perspective of hospitality sector.........................................................5 TASK 3............................................................................................................................................6 P5 Key difference between the model of B2B and B2C with specific example of hospitality sector.......................................................................................................................................6 P6Evaluation of different approaches that are related with process of consumer-decision making....................................................................................................................................8 TASK 4............................................................................................................................................9 P7: Examine how marketers can influence different stages of decision making process in relation with hospitality..........................................................................................................9 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................12
INTRODUCTION The term consumer behaviour is explained as the analyse of individual behaviour and market for analysing how individuals select, purchase and sell products or services to the customerstosatisfyindividualneedandwants.Withthestudyofconsumerbehaviour organisation identify clues that introduce and improve products and services in market to perform work as per marketing activities. One of the main reason to study consumer behaviour is to analyse that how customer think, feel and respond towards different brands, products and company. This report is written from perspective of NH Hotel Group which is an international hotel company and it's headquarter is situated in Madrid (Arneth, Brown and Rounsevell, 2014). Moreover, this report will focus on cultural, personal and social factor to understand their influence on consumer behaviour and attitude of a hospitality organisation. Change in consumer trends which take place due to aspects of digital technology will also cover in this report. TASK 1 Covered in PPT TASK 2 P3 Examination of various stages that relate with consumer-decision making TheprocessofConsumerdecision-makingreferstoidentifyneedsandcollect informationaboutthepersonandmarketrequirements.Identificationofalternativesand purchase of decisions by evaluating are the steps that are related with consumer-decision making. ď‚·Problem recognition-This is first and most important stage of process related with decision-making because no purchase is done unless consumer identify the need related with service and product. NH hotel group formulate service that satisfies customer's needs and wants in an effective manner. In this they examine the issues that are face by customers related to offering services. ď‚·Information search-To recall about the process of information search that stores information in memory to obtain major benefit of information search(Lu, Chang and Chang, 2015). NH hotel group search all information because it supports management to perform their work according to current requirements.In this stage manager of company
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focus on searching the information that helps in solving the customers issues so that they will retain with the company for a longer period of time. ď‚·Evaluation of alternatives-This is the third stage which is related with consumer buying decision process. As per this stage consumer evaluate all services and products to identify that which services are most effective and match with consumer or buyer requirements. In this manager of NH hotel emphasis on several alternatives so that best one is to be choosing to solves the customers issues related to hotel offerings. ď‚·Purchase decision-When the purchase take place buyer focus on formulating intention that is used by individuals to gain most preferred brand. NH Hotel group focuses on the consumer-decisionmakingprocessbecauseallavailablealternativesarealready identified by buyer to seek and gain better value. ď‚·Influence on purchase decision-Review matter for deciding the purchase of services and products. A lot of individuals consume the services of NH Hotel Group so it is relates with purchase decisions that helps to make decisions as per persons review. From the perspective of company decisions this is analyse by buyer that review leads individuals to make purchase. NH Hotel group analyse the process of consumer decision-making because it helps marketers to gain understanding related with buying experience. This is also related with the customer's perspective that help persons to take action according to needs of customer's. NH Hotel group focus on problems which create barrier for individuals(Samanez-Larkin and Knutson, 2015). Strategy and work methods are designed by NH Hotel Group to minimise the problems of buyers as it helps individuals to enhance their customer base.Developing a customer journey path is very crucial for marketers because it helps in identifying the issues that customers faces along with several solution to that problems so that company can influence the customer buying decisions. It also helps the marketers to get the loyal customers so that high profitable results are enjoyed by an organisation. This path is useful to understand the customer journey because evaluating their issues to influence them for purchase. P4 Importance of marketers for mapping a path to understand the process of consumer-decision making from perspective of hospitality sector The journey of the consumer decision-making process is simple and accurate that is offered by the organisation among market. According to the detail journey related with customer
is complex and quite and it also exists among different varieties. NH Hotel group implement consumer decision-making process to formulate an accurate base which leads customer's to purchase individual requirements. The term customer journey mapping is to put about all shoes that is related with customer's to try and it also leads organisation to analyse and understand path to follow till management get it's business(Simonson,2016). Moreover, the idea is to get the perfect method or process which enhance overall customer's experience from initial period to finish. Enhances ROI- In this mapping the customer journey reflect the positive purchasing pattern of customers. Due to this company targets the customers effectively. This helps the NH hotel to get high returns so that ROI will maximise. On the other side, another important aspects is to enhance the customer experience and this is used to create and formulate customer service as per requirements of individuals. With the analyses of customer's management make products to understand and improve the buyer related experience for managing and delivering the competitive edge to manage work according to effective results. TASK 3 P5 Key difference between the model of B2B and B2C with specific example of hospitality sector Almost each organisation implement the model of B2B and B2C for performing their work sell and purchase related activities. Within Business-to-business model trading is done between merchandise to perform their action in an organised manner. On the other hand, B2C method focus and emphasis on selling products and services directly to the final consumers without involving any intermediaries. Both these techniques can be utilised by the marketer in their business as these kinds of businesses are much effective and leads enterprises to achieve strong position in market(Sinha and Sandhya, 2019). Here are the key differences between B2B and B2C along with their process of decision making: BasisB2BB2C Purchase related decisionIn this, decision taken in respect of buying products is based on the prices of product, goodwill It includes less time to frame a buying decision as it entirely basedontheirtasteand
of firm etc., so that gathered data can be used to set up the pricesonthebasisofrivals pricing strategies. preferences. Decisionrelatedtothe Marketing strategy In this, no marketing strategy is used as they mainly focus on adoptingstrategyofpersonal contact,interiorsalesinthe business etc. with the purpose of serving other business with better quality. Inthis,businessesuse marketing tools and techniques to influence buying behaviour oftargetedcustomers.These techniques include social media marketing, advertisement etc. Decisionrelatedtomarket size Todrivethebusinessfor furtherexpansionby conductingmarketresearch wheretheirproductsand servicescouldbesellmore (Smith, 2017). To drive business to identify targetedcustomeralongwith its needs and preferences. Identifying requirementsIn this, requirement of business aredeterminedwithan objectiveofframingan effectivestrategiesandplans for further growth and success in future. Here B2C mainly emphasis on identifyingtheneedsand preferences of customers along with the factors that influences their buying behaviour so that furtherplanscanbe implementedforexample, marketingtools,lowering pricing of products etc. ConceptIt refers to that business where commercialtransactionsare It refers to that business when transactionsaretakenplace
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takenplacebetweenthe organisations. For example- NH hotel buy their linen stock with linen making company. betweencustomersand business.Forexample-NH hotel offers their services like accommodationetc.to customer for earning profits. CustomerIn this customers are business parties who need products and services of NH hotel to manage andorganisetheirbusiness activities effectively. In this business, customers of NH hotel are those people who want to spend their leisure time with families, friends, want to do a business meetings etc. are buy services of hotel. P6Evaluation of different approaches that are related with process of consumer-decision making Conducting market research is important for an organisation to identify the current market situation and fluctuation in needs of customers. It enables management of NH Hotel Group to make proper decision regarding making changes in their current offerings with an objective of maximizing satisfaction level of targeted customers. Market research approach in B2B:In this, business mainly emphasis on using secondary sources for purpose of collecting relevant data in order to make quick better decision for the betterment of an organisation. Business uses secondary sources as it consumes less time and cost. ď‚·Public records:The main focus is depend on the decision taken regarding trading with other business firm and it can be possible by organising and arranging public record of respective firms. Collecting data from public record helps business to make decision more effectively(Tiago and VerĂssimo, 2014). ď‚·Government and non-government agencies: Under this, an organisation operate their business with engagement of other business that conduct research with an objective of understanding information related with all government and non-government agencies so as to undertake at the time of decision making process regarding trading with other businesses.
Market research approach in B2C:In this, the enterprise mainly emphasis on using primary sources to collect information so that the accurate subject can be gathered regarding customers’ actual taste and preferences. It consumes more time and cost but provide accurate result thus possibilities of making corrective decisions are much higher in comparison with using secondary sources. Questionnaire:It is form containing list of questions related with topic of research which further distributed to the interested parties in order to identify their actual needs and preferences(Wang and et. al., 2016). It assists management of COMPANY to make corrective decision after analyzing the results. Personal interviews:It assist business to directly communicate with their targeted customers and employees in order to identify the areas where business is lacking so that it could be corrected by taking proper decisions and plans. TASK 4 P7: Examine how marketers can influence different stages of decision making process in relation with hospitality The growth and success of an organisation are very much depend on the effectiveness of decision making process that can be influenced by the marketers due to which it is important to identify the impact of marketers on different stages of decision making process. Decision making process is an activity involving various of ideas and suggestions with a clear objective of maximising productivity of an organisation as well as satisfaction level of targeted customers. It includes different stages such as need and problem acceptance, information investigation, evaluation of option, selection and trial, purchase as well as post purchase behaviour. Marketers have power to influence these stages of decision making as they bring critical information about customers’ actual needs and preferences that changes on frequent basis. Here are the impact of marketers on decision making process in the context of hospitality sector: Effect of marketers on decision process is discussed below- Need/problem recognition;Need/problem is necessary essential to recognise as it influences sales and profit of an organisation.Marketershave easily influence buying behaviour of customers by identifying and communicating problems/needs to management ofNH Hotel
Groupwith the purpose of solving or meeting them with more effective and efficient manner (Zhang, van Doorn and Leeflang, 2014). Evaluation of alternatives: After conducting brief research bymarketer, an organisation enable to find out alternatives that can meet the needs of customers too. Availability of substitutes shifted the buying behaviour of customers which in results brings negative impact on NH Hotel Group’s sales and revenue. Thus,marketercan make both negative and positive impact on overall sales and revenue of an organisation. Information search: After recognising needs, information and specification about the services is required by user. In this context,marketeruses distinct sources including newspaper and magazine to transmit such information which results in increasing demand of products and services ofNH Hotel Groupinto the market. This leads increment in sales and profit of an organisation. Selection and trial:It is another stage of decision making process in which customers try to use product or services for shorter time period in order to examine quality and duration. Under this,marketerimpacts customers’ decisions by communicating them about the benefits of products using presentation/demonstration skills and allow them for trial. Purchasedecision:Atthisstage,customerstookfinaldecisionofbuyingafter examining the benefits and duration of products and services. In this,marketermotivates consumer to buy their products by giving them discount coupons. Post purchase dissonance/ behaviour: Under this stage, consumers provides feedbacks to an organisation about their experience after using product or service and suggest them for further improvements.Marketerevaluates the satisfaction level of customers by providing them feedback form so that their issues can be resolved and make further improvements to maximise their satisfaction level. CONCLUSION It can be concluded from the above report that every business organisation examines the needs and requirements of customers using different research methods. B2B uses secondary sources to gather relevant data about the needs of other businesses whereas B2C uses primary sources to identify the needs and preferences of targeted consumers. Marketers also play an important role in effective decision making process by bringing crucial information about the fluctuations in the preferences of customers and market. In last, this is also essential for
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marketers to map a path for the purchase and understand of process related with consumer decision- making of hospitality sector so that better decisions and plans can be formulated for further growth and success of businesses.
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