Analysis of Consumer Behavior and Insights in Hospitality Management

This report provides a comprehensive analysis of consumer behavior within the hospitality sector, using Claridge's hotel as a case study. It examines the various factors influencing consumer decisions, including cultural, social, personal, and psychological elements. The report also explores the im...Read More

Hospitality Consumer
Behaviour and Insight

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Analysis of several factors influencing consumer behaviour of Claridge's...........................4
P2 Impacts digital technology has on emerging trends of consumer..........................................5
TASK 2 ...........................................................................................................................................6
P3 Stages of consumer decision-making.....................................................................................6
P4 Importance for marketers to map path for purchase and understanding consumer decision-
making.........................................................................................................................................8
TASK 3 ...........................................................................................................................................9
P5 Analysis and comparison of B2B and B2C business.............................................................9
P6 Approaches to market research............................................................................................10
TASK 4 .........................................................................................................................................11
P7 Marketers influence on stages of hospitality decision-making process of consumer..........11
CONCLUSION .............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Consumer behaviour is the study of individuals, groups or organisations about how they
make their decisions while selecting, buying any goods or services for satisfying their needs or
achieving desired goals. This behaviour of consumers has huge impacts on their decisions while
they are making any purchase or buying any services from hospitality field. In other words
consumer behaviour is the actions or decisions people take while purchasing any goods or
services. For this assignment Claridge's hotel is chosen for analysis the behaviour of buyers and
to learn about the different factors which influence them. Claridge's is a five star hotel located on
Davies street in Mayfair, London(Moutinho and Vargas-Sanchez, 2018). Claridge's hotel was
initially founded in 1856 and soon noticed by royal families and attracting royal guests. Many
film stars, statesmen, fashion designers and other famous personalities prefer Claridge's hotel
when they visit London, for any reasons. In this report various factors like culture, social etc. are
evaluated for understanding the decision-making criteria of buyers or guests in relation with
Claridge's. Many tools and techniques are also analysed and discussed for learning how
behaviour of consumers can be influenced and changes can be done in their purchasing
decisions.
TASK 1
P1 Analysis of several factors influencing consumer behaviour of Claridge's
Various factors which are influencing and affecting behaviour of consumers while
making purchases or availing any services to satisfy their personal needs and wants. These
factors are broadly classified as culture, social, personal and psychological. All these are
explained below:
1. Culture- It plays a vital role in life of consumers and holds huge impacts on the
behaviour of buyers. Culture refers to the beliefs of buyers, the society they live in, the
role they play in society, values they holds, customs they follow etc(Gardiner, Carlini and
Scott, 2017). It is a very important factor and needs to be analysed thoroughly. Also it's
further divided:
 Sub-culture- It is group of individuals sharing same values, customers and traditions.
This means that members of these group will have same kind of likes and dislikes and
therefore, their decisions-making process and elements are also similar.

 Social class- Society in which a person is living and grown it possesses social class.
Its necessary to understand which social class is being targeted as they have similar
traits and make similar purchasing decisions.
2. Social factors are also divided which are as follows:
 Reference groups- These groups has great potential of influencing decisions making
criteria and behaviour of individuals. These groups have an opinion leader who
usually have huge impact on thinking and mentality of its members(Sigala, 2018).
 Family- Generally, people carry values and believes of their parents as they live
together and raised by them and they are their blood relations. Therefore, families
have influence on the behaviour of buyers.
3. Personal factors refers to the personal needs and satisfaction level of consumers. These
are as follows:
 Age and life cycle- It is very much obvious that individuals will make their decision
according to their age. Their behaviour will be influenced by those things or factors
which fulfil their needs at that age. A child cannot be satisfied with goods of an adult
and same is the case with an adult or an older person.
 Financial situation- Finances also plays vital role on influencing behaviours of
people. Consumers will only those goods or services which they can afford and
manage according to their pocket.
4. Psychological elements are referring to the thinking of guests, which are also further
divided and are as follows:
 Motivation- If a person is motivated, it will rise and direct them towards their goals
and to fulfil their objectives. These needs can be describes as social needs, safety
needs etc.
 Learning and experience- This refers to the knowledge consumer have about the
product or services from their past experience or some research conducted by
them(Dekker, 2018).
P2 Impacts digital technology has on emerging trends of consumer
Digital technology is a great resource which is having immense amount of influence on
the behaviour of consumers and on their decision-making ideas. New technologies are being
introduced in market everyday and same is the case with digital technology, it has brought great

changes in thoughts and choices of customers of hospitality field. Some of those impacts are
explained in context of Claridge's:
1. Smart devices or technology offers ease and comfort- Nowadays people are becoming
very lazy and technology friendly. Both these factors are fulfilled by digital devices,
consumers get all the information in some minutes by doing some clicks which gave
them ease and variety of products to compare and then make their decisions. Easy
availability of data provides comfort to consumers which directs them towards attaining
their level of satisfaction and goals(Mariani and et. al., 2018).
2. Saves time- Another impact digital technology have on lives and behaviour of people is
it saves alot of their time and also fulfil their wants. Time saving factor is the most
influencing one, in today's world customers are more interested in getting their goods
delivered to their home rather than going out and buying them. In hospitality field this is
the case with food deliveries guests wants their food to come to them saving time from
their busy schedule and giving them full satisfaction in just some clicks.
Challenges of quality service delivery
Many challenges are faced by Claridge's in order to provide quality services because of
the dynamic environment, aggressively increasing competition and changing needs of
individuals according to them. One of the most complicated challenges which is faced by
Claridge's and by other hospitality organisations is highlighted:
1. Different satisfaction level- Every person is different or all guests have unique
satisfaction levels and specific factors which will fulfil their desired wants. Therefore,
quality criteria's are different from person to person and from products to product. For
example one customer wants good tasty food another wants better presentation, quality
definition for both the individual are separate. This challenge can be managed by
Claridge's, by performing effective activities like conducting research of consumers and
then make goods according to their desired needs(Chen and et. al., 2017).
TASK 2
P3 Stages of consumer decision-making
Model of hospitality consumer decision-making:

It is a model or procedure guests follow to select and make best choice while availing any
product or services from hospitality sector. Through following all steps of the process consumer
finds the best available option for themselves. This model has five stages which are as follows:
1. Need recognition- The first step is where consumer identify their wants and according to
search for goods or services which will satisfy them. Also, shortlist some brands
providing similar products.
2. Information search- Then comes the research stage here individual will start collecting
data of various goods or services which are shortlisted by them in the first stage. They
gather all relevant information about the products for actually identifying if they are good
enough or not(Liu and et. al., 2017).
3. Evaluation of alternatives- Then at the third stage buyers will analyse and evaluate all
the information gathered by them to select one best option which will fully fulfil their
needs. On this step consumer will be very attentive and make effective decision in
accordance with their behaviour.
4. Purchase decision- Second last stage is of purchase, which means here customer will
make buying decision in relation with the selected goods or services of particular
company. Basically, purchase transaction takes place on this stage which will then proved
to be satisfying or not.
5. Post purchase behaviour- This is last step and the most neglected one but holds great
importance for organisations. On this stage, consumer will provide feedbacks if they are
satisfied and if their needs are fulfilled or not. By looking at this stage marketers on
behalf of company can understand and predict the behaviour of guests. This will help
them to know if the consumer will stick with their product or not.
Mapping path of consumer towards purchasing services offered by Claridge's:
In early times sales and purchase were very easy tasks for both the consumer and seller
but with continuous changing environment and market situations it became difficult(Samoggia
and Riedel, 2018). These complications are more for the organisations as compared with the
customers. On the other hand, with involvement of technology in business activities and in day
to day lives of people, it became much more easier for buyers to buy goods or services.
Here comes the needs for Claridge's hotel to map path of guests towards them and make
them stick to their organisation. It can be done by delivering highly relevant and optimizing

experience to their guests. The more company knows about consumers, the more likely and
related services Claridge's hotel will give to guests, which will also help them to retain customers
for longer period. Path to purchase has four phases:
1. Pre-purchase- This is that phase where potential guests are doing research and
gathering data from different sources for selecting best possible brand and services. This
is the stage where consumer will be very attentive and make effective decision which
will brings them one step closer towards fulfilling their needs(Jauhari, 2017).
2. Purchase- Then comes the phase where actual purchase transaction takes place. At this
stage exchange of services and money took place between guests and organisations.
3. Pick-up- Next comes the pickup phase, earlier there were just some ways of delivering
or receiving goods or services. Now times have changed, many sources and ways are
available in market for making deliveries which are also adopted by public(Varkaris and
Neuhofer, 2017).
4. Post-purchase support- Last phase is where after sales services are provided by
company's. These services can be anything but in case of hospitality industry,
organisations can ask for feedback from guests to know what they actually expected and
what can be done better, in order to retain them.
P4 Importance for marketers to map path for purchase and understanding consumer decision-
making
Marketers are professionals working for organisation and conducting research for them.
Aim behind conducting these research's is by their outcomes company makes their plans, set
strategies and decide their goals and objectives. Marketers jobs is to perform effective research
of market understand behaviour of consumer’s and use them in marketing plans. Some of those
importance are:
1. Learning about the perspective of customers- Marketer with the help of their research
results can learn about the experience of guests and their perspective. These can be
anything were the visitors happy, is their any improvements Claridge's hotel can do in
their marketing process and operating methods.
2. Helps in understanding needs and behaviour of individuals- Another, importance
marketers hold is they get to know and learn new things about their behaviours which
will help them to make effective marketing plans. This way they get and idea about the

guests, their satisfaction levels and their changing requirements. These will help them
enhance their marketing plans according to them and even help in retaining existing
visitors and attracting new customers.
TASK 3
P5 Analysis and comparison of B2B and B2C business
B2B business stands for Business to Business, this kind of marketing and business
transaction takes place amongst two businesses. When one business in need of goods or services
which will help them complete their operations and provide their goods to end users(Yüksel,
2017).
B2C business is short for Business to consumers, this business transaction happens when
goods or services are sold to end user for satisfying their needs. This sale and purchase exchange
took place in between consumers and company for fulfilling the wants and providing satisfaction
to customers(Hellwig, Belk and Morhart, 2017).
In Claridge's both B2B and B2C business is happening, hotels provides different services
to their visitors and to do so they need supplies or raw materials. In other words, Claridge's hotel
needs raw material for changing them into finished goods according to specification given by
guests. These raw materials are acquired from outside the hotel and this is when Claridge's
engage in B2B business transaction. Hotel approach other business partners for buying supplies
for changing them into finished goods and serving to their customers. B2C business is the main
business of Claridge's hotel, ultimately they serve to their visitors and earn revenue from them.
Source of revenue are mostly and mainly through giving required services and products to
consumers according to their needs.
Difference between B2B and B2C
Basis B2B B2C
Size Order size are huge or at least more
than that of B2C. Because here needs
of group are seen and this transaction
takes place for fulfilling the
requirement of whole organisation.
Here, in B2C business transaction
size is very low as only needs of
individuals are being fulfilling.
Target audience In B2B business style targeted B2C business style set their targets

audiences are the other businesses who
require raw materials or supplies to
complete their operations.
from the population in which they
are doing business. Different
segments are their in market out of
which one or two suited targets are
chosen for business.
Relationship In this business style relations are
made and maintained for longer
period.
Here, relation are maintained
between consumer and seller for
shorter period, because of
continuous changing needs of
people.
P6 Approaches to market research
Several market research tools and techniques are available in market which are helpful
for marketers to gather information and work accordingly. These tools are classified into two
broad categories primary and secondary sources(Gursoy, 2019).
Primary sources are those from which information are gathered for the first time by the
researcher. Some of those sources which marketers of Claridge's can use to collect data about
their visitors and to understand their behaviour are as follows:
1. Personal interviews- Marketers can divide their team in small groups and ask them
to conduct personal interviews from the guests by asking pre decided questions.
These questions will be made after good discussion and analysis.
2. Feedbacks- Another source of collecting data for analysis of behaviour of guests of
Claridge's hotel is by asking for feedbacks. Some forms containing specific questions
can be circulated by hotel with a humble request of filling them by providing honest
opinion. For getting feedbacks digital technology can be used forms can be send on
emails to the existing customers.
Secondary source are tool of collecting data which is already present in market, they
help in sorting data and gathering only that much which is required and helpful for marketers.
These sources are explained below:
1. Social media- Its a very easily accessible and productive source of data collection. There
are many social media networks which can be seen for reading the comments or thoughts

people and existing customers have written about the Claridge's hotel. This way
marketers can understand their expectations and work accordingly to provide maximum
satisfaction to visitors.
2. Media- Another very effective and accurate source of data collection is press releases.
Press releases can be studied by Claridge's hotel marketing professionals. This is
effective because press releases are done by professionals which means hotel will be
receiving opinion of professional. These professional are those who have good
knowledge about hospitality industry and have skills related to it(Gibson and Parkman,
2018).
TASK 4
P7 Marketers influence on stages of hospitality decision-making process of consumer
Marketers of Claridge's can impact and influence the decision-making process of their
guests and general public, many factors are their which can influence and are discussed as:
1. Promotional activities- These are widely known as marketing campaigns, which
includes many small activities. Advertisement and social media presence are one of those
actions which are performed by marketer of Claridge's with proper research. These
activities are important as they are done to spread awareness in public, for making them
know about about the hotel and attract them by giving effective information about
services offered by hotel.
2. Affordable services- All individuals are not same, therefore their purchasing power also
differ from person to person. Marketers should do research for learning about different
segments of which are present in economy where Claridge's hotels are established. By
this marketers can target those segments which suits with their operations and develop
effective services to fulfil their needs and satisfying visitors. This way Claridge's hotel
can also attain competitive advantage of knowing their customers well and putting efforts
in only those areas which are useful for them.
Two theories are explained which can influence the buying behaviour of consumers:
1. Behavioural theory- This theory helps marketers of Claridge's hotel to understand and
identify the behaviour of guests and targeted market which is useful as it enhance the
knowledge of marketers. The various factors are discovered which affect the purchasing

power of consumer and ultimately influence their behaviour. Because people buy
according to their pocket, income is very influencing element which describes the
demand, needs and requirement of people.
2. Cognitive theory- This is the theory which is dependent on thinking process of
marketers of how they see people, how they analyse the collected data and how they
make plans according to it. This theory is a scientific process based on thinking capacity,
mentality and expertise of marketers. Therefore, Claridge's hotel need to appoint experts
who have enough knowledge of hospitality world and its criteria(Gibson and O’Rawe,
2018).
CONCLUSION
The above report is about hospitality consumer behaviour and insight and it can be
summarised from the above data and analysis that consumer behaviour plays a very important
role in decision-making process. But, behaviour of consumers can also be influenced by
attracting them toward the organisation. This influence can be made by using unique tools and
techniques and gathering data from primary and secondary sources for developing and
understanding and learning about people. Many business styles like B2B and B2C are also
practised for having effective operations which at the end will be beneficial for company for
earning revenue. Also, benefiting the consumers as their needs are being fulfilled by providing
them what they exactly want.

REFERENCES
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