Consumer Behaviour and Insight

This document discusses the distinct factors influencing consumer behaviour and the measures in which customer trends are changing because of digital technology. It also explores customer decision-making stages and the significance for marketers. Additionally, it compares B2C and B2B in relation to decision-making and discusses the influence of marketers on decision-making stages.

Unit 19: Hospitality
Consumer Behaviour
and Insight

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1 (PRESENTATION)................................................................................................................1
P1. Distinct factors influencing consumer behaviour addition to cognition..........................1
PPT........................................................................................................................................1
P2. Measures in which customer trends are changing because of digital technology............1
PPT.........................................................................................................................................1
LO2 .................................................................................................................................................1
P3 Customer decision-making stages ....................................................................................1
P4 Customer decision-making and purchase path significance for a marketer......................3
LO3 .................................................................................................................................................4
P5 B2C and B2B comparison.................................................................................................4
P6 Approaches of research methods and market research.....................................................4
LO4 .................................................................................................................................................5
P7 Influence of marketer upon decision-making stages.........................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Consumers are those individual those who buy products as well as services for the
purpose of their personal utilisation rather than to resale or manufacture. Decision related to buy
a product from a particular brand of store has been made by customers that can further be
influenced with the help of marketing techniques and advertising. Consumer behaviour is mainly
terms as branch of scrutiny of different form of stages that are mainly linked with purchase of
services and goods. In this report discussion is being done on, Four Season London a grocery
store which is mainly situated in United Kingdom. In this report formative discussion has been
made on, stages that are linked with decision-making of customers along with their importance.
In addition to this, difference among B2C and B2B is relation with decision-making is also
covered in present report. Lastly, manner in which marketers impact upon decision-making
process is also discussed in their report.
LO1 (PRESENTATION)
P1. Distinct factors influencing consumer behaviour addition to cognition
PPT
P2. Measures in which customer trends are changing because of digital technology
PPT
LO2
P3 Customer decision-making stages
Customer decision making is mainly termed as an action within which a customer one of
the most effective product among different set of alternatives. It include steps that mainly start
from evaluation of need and want of target individual, allocation of relevant data and
information, proper examination of available alternatives that are mainly linked with purchase
decision. It has been identified that there are different types of factor that affect decision of
buying goods such as emotional factor psychological factor etc. It allows identifying consumer
decision-making behaviour organisation can efficaciously able to influence decision-making of
consumer towards their product offerings and can further increase their value in marketplace.
Mentioned below different stages has been defined:
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Need Recognition: Hereby, the needs and demands of customers prevailing at market
place are determined. It is important for Four Seasons London to ascertain the demands of
consumers so as to effectively fulfil them in a timely manner and devise an effectual marketing
strategy.
Searching and gathering information: This phase of consumer decision making
procedure is concerned with accumulation of information associated with the choices available to
customers in market. In this relation, use of sources like print media, person contacts and many
more is made to gain information.
Evaluating the alternatives: The objectives determined within the previous phase are
put to evaluation in accordance with their characteristics in a bid to ascertain the positives as well
as negatives in terms of service, quantum, quality etc. This stage is significant to choose the best
alternative.
Actual Purchase of product or services: This phase witnesses the decision regarding
entailment of a product or service. The primary motive behind the purchase is to attain extensive
contentment.
Post-purchase evaluation: After the consumption of product or service, this stage of
consumer decision making is concerned with evaluation of merchandise on the basis of its utility,
satisfaction attained and quality.
Customer map
Four Seasons London is a chain of hotels which seek to derive high satisfaction from
customers as a result of providing them with high quality services. It is imperative for this hotel
management to map the path with the help of which guests can be kept content. The customer
mapping process is explained as follows:-
 Pre-purchase - This is associated with determination of a hotel which can cater to the
needs and demands associated with arrangement of conference.
 Purchase - Sufficient research is carried out related to a number of top notch hotels in
order to find out the best hotel. This leads to the selection of Four Seasons London hotel
as the most suitable place.
 Receive - This aspect is associated with receipt of services that pertain to the conference
package. This is regarded to be one of the most crucial factors for long term customer
retention.
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 Post-purchase - This phase is concerned with providing assistance to customer in
evaluating the services opposed to desired standards. It renders aid in making a decision
regarding whether or not to repeat the purchase process from same organisation.
P4 Customer decision-making and purchase path significance for a marketer
As to ensure long term sustainability and satisfy customers in well defined manner it is
important for organisation to effectively identify decision-making behaviour of customers in well
defined manner. This will aid company to influence decision-making of customers and further
attract them towards organisational offerings. Mentioned below there is significant importance of
mapping:
Increases ROI –
There are numerous form of aspects which is required for an organisation to consider as
to evaluate decision-making of customers in context with buying any product on service. With
the help of different ways marketers of Four Seasons London can effectively able to reach
towards large base of customers. In relation with present industry, it has been identified that
entity can have high amount of return on investment via customisation of services.
Integrated customer data and continued engagement –
With the help of stored data and information of customers Four Seasons London can
effectively able to track down and categorise diverse set of customers in order to further target
them on group basis. With the help of this entity can effectively able to offer formative
satisfaction to customers as per according to their need and demand.
In addition to this, mapping allow organisation to divide activities as well as efforts at
different decision-making levels in context with goods and services. Mentioned below some of
these levels are being discussed:
Extensive problem solving – This problem mainly take place when products and
services that are undertaken by them are not familiar and identical to them. This will lead
towards more time taking process as to undertake decision.
Limited problem solving –This level states, when customer is having effective
knowledge related to product and services in addition with number of alternatives that are
present in marketplace. In this comparison is being undertaken among substitutes.
Routine problem solving – In this level, customer those who already buy number of
time. In this there are plenty of data and information is needed.
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LO3
P5 B2C and B2B comparison
There are two types of ways with the help of which business can be concluded namely
B2C (business to customers) and B2B (business to business). Mentioned below a comparison
among both of the business ways is being defined:
Basis B2B B2C
Meaning In this mode services and products are
being sold to other business units.
In this services are mainly sold to
customers in order to effectively
accomplish requirements in a well
defined manner.
Customer In this organisations those who
perform their role in hospitality
industry are hotels, restaurants etc. are
duly termed as consumers in B2B.
In this final users of services are
consider to be consumer as in this their
satisfaction matters the most.
Focus The relationship is having meetings
with other form of business
organisation with same industry as to
effectively evaluate susceptibility of
all other.
In this services are mainly designed as
per in accordance with requirements
and demand of consumers.
Relationship In this close relation is kept up in a
formative manner with manufactures,
suppliers and wholesalers.
In this relationship is only ret stained
with retailers and consumers those
who are end users.
P6 Approaches of research methods and market research
Market research is important to have an idea related to current market situation along
with need of customers. Mentioned below some of the approaches that can be consider are
defined:
Market Research approaches in B2B- In this, secondary sources are mainly undertaken
as to allocate data as well as information.
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 Government agencies – From this organisation can take use of accurate as well as
authenticate form of information in order to gain knowledge related to economic
condition that prevails in within hospitality industry.
 Publication – With the help of the traditional sources like newspapers as well as
magazines data and information that can be undertaken by organisation in order to
effectively influence relationship of Four Season London with suppliers.
Market Research approaches in B2C- In order to gain reliable as well as accurate form
of data related to consumer primary sources are used.
 Questionnaire: In this there are number of questions that has been duly asked for
customers in a direct manner.
 Interviews: With the help of this Four Season London can effectively able to allocate
data and information related to their need by having focus towards particular group.
LO4
P7 Influence of marketer upon decision-making stages
In relation to each and every type of business, customers are regarded as the most crucial
aspect as they are source of revenues as well as profits for a corporation. This is significant for
every corporation in order to meet the needs and preferences of customers and gain a competitive
edge at market place. During the whole procedure, the role of marketer remains consistent that is
to influence the purchase behaviour of customers. A well described overview of role of
marketers is given as follows:-
Four Seasons London is engaged in provision of personalised service package to people
which is adjusted in accordance with customer needs. This provides a great push and positive
influence upon the process of consumer decision making. In the same manner, in case the
respective hotel is taken into consideration for execution of meetings or conferences, then
respective hotel should conduct arrangements to inflate the level of satisfaction gained by guests.
CONCLUSION
On the basis of above furnished information, it can be analysed that gaining an insight
into consumer behaviour and purchase patterns is important for each and every corporation. Its
significance exists because it provides company with the opportunity to enhance its revenues as
well as profits in near future. Further, it has been acknowledged that number of factors that duly
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place causation over the process of consumer decision making, such as emotional, psychological
and many more. In addition to this, it is determined that there are numerous types of trends and
patterns that should be anticipated by organisations to incorporate changes within organisational
systems and processes. Apart from this, it is recognised that market research is an imperative
process that should be constantly conducted to gain important information about consumers and
marketplace.
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REFERENCES
Books and Journals
Ashman, R., Solomon, M.R. and Wolny, J., 2015. An old model for a new age: Consumer
decision making in participatory digital culture. Journal of Customer
Behaviour, 14(2), pp.127-146.
Banerjee, S.B., 2017. Corporate environmentalism and the greening of strategic marketing:
Implications for marketing theory and practice. In Greener Marketing (pp. 16-40).
Routledge.
Frederiks, E.R., Stenner, K. and Hobman, E.V., 2015. Household energy use: Applying
behavioural economics to understand consumer decision-making and
behaviour. Renewable and Sustainable Energy Reviews, 41, pp.1385-1394.
Karimi, S., Papamichail, K.N. and Holland, C.P., 2015. The effect of prior knowledge and
decision-making style on the online purchase decision-making process: A typology of
consumer shopping behaviour. Decision Support Systems, 77, pp.137-147.
Maniatis, P., 2016. Investigating factors influencing consumer decision-making while choosing
green products. Journal of Cleaner Production, 132, pp.215-228.
Wang, Y. and Yu, C., 2017. Social interaction-based consumer decision-making model in social
commerce: The role of word of mouth and observational learning. International Journal
of Information Management, 37(3), pp.179-189.
Xu, Z., Frankwick, G.L. and Ramirez, E., 2016. Effects of big data analytics and traditional
marketing analytics on new product success: A knowledge fusion perspective. Journal
of Business Research, 69(5), pp.1562-1566.
Mihaela, O.O.E., 2015. The influence of the integrated marketing communication on the
consumer buying behaviour. Procedia economics and finance, 23, pp.1446-1450.
Pappas, N., 2016. Marketing strategies, perceived risks, and consumer trust in online buying
behaviour. Journal of Retailing and Consumer Services, 29, pp.92-103.
Petersen, J.A., Kushwaha, T. and Kumar, V., 2015. Marketing communication strategies and
consumer financial decision making: The role of national culture. Journal of
Marketing, 79(1), pp.44-63.
Online
Stages of Consumer Decision Making Process. 2016. [Online]. Available
through:<<http://www.businessstudynotes.com/marketing/marketing-management/
stages-consumer-decision-making-process/>
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