Consumer Behaviour and Decision-Making in the Hospitality Sector

This report delves into the multifaceted realm of consumer behavior within the hospitality sector, meticulously examining the factors that shape consumer decision-making processes. It begins by outlining the stages of the consumer decision-making journey, from need recognition to post-purchase behavior, and explores the importance of marketers understanding this journey to effectively influence consumer choices. The report then contrasts the decision-making processes in B2C and B2B hospitality contexts, highlighting key differences and implications. It evaluates various market research approaches and methods used to understand consumer decision-making, including feedback and social media. Furthermore, the report analyzes the factors that influence consumer decisions, such as cultural, social, and personal influences, including Maslow's hierarchy of needs and cognitive theories. Finally, it assesses how marketers can strategically influence each stage of the decision-making process through various models and methods, providing a comprehensive understanding of consumer behavior in the hospitality industry.

CONSUMER BEHAVIOUR

Table of Contents
INTRODUCTION.......................................................................................................................2
LO2..............................................................................................................................................3
P3 Examine the stages of consumer decision-making journey..........................................3
P4 Explore the importance of the marketeers to map a path to purchase and understand the
.......................................................................consumer decision-making in hospitality sector 4
M2 Evaluate how marketeers are responding to the decision-making process..................6
LO3..............................................................................................................................................6
P5 Compare and contrast the key differences of the hospitality decision-making process of
B2C and B2B......................................................................................................................6
P6 Evaluate the different approaches to market research and methods of research for
understanding the decision-making process.......................................................................8
M3 Provide the coherent and evaluation of factors influence the decision-making and
buying Behavior.................................................................................................................9
LO4............................................................................................................................................10
P7 & D1 Evaluate how marketers can influence the different stages of decision-making
process..............................................................................................................................10
M4 Critically evaluate how marketers influence each stage of the decision-making process
with models and methods.................................................................................................12
CONCLUSION..........................................................................................................................12
REFERENCES..........................................................................................................................14

INTRODUCTION
Consumer behaviour is the study in which the individual customers buy the goods and
their actions in the market place is consumer behaviour (Shim, Shin and Kwak, 2018). The
report is discussing the consumer behaviour and the factors which would influence the
consumer decision-making process. Decision making process of consumers would be affected
and these are discussed in the report. This Report would be providing the knowledge to the
students regarding the consumer behaviour and the decision-making process of consumers.
LO2
P3 Examine the stages of consumer decision-making journey
In the customer decision-making journey will include journey of customers and it will
be started form the process of idea of journey.
Figure 1Consumer decision making process
(Source: Stages of Consumer Decision Making Process, 2016)
Customers will need recognition because they need to develop the idea of visiting out.
Information research is done by customer in the tourist aces and which hotel could be
visited for getting beast experiences.
Evaluation of alternatives is important because customers will look after the every
hotel. Customers will also look after the prices and quality of the services provided in hotels.
Purchase decision will be done by customers on the basis of the price of services and
after evaluating the alternatives of hotels.

Post purchase behaviour, after staying at any hotel customers will give the feedback
and reviews for hotel services.
Consumer decision-making journey would include the factors which would affect the
decision of the consumer like consumers would look after the brand and the quality of the
products and the alternatives of the products which would affect the decision-making process
of consumer. There are different stages which would affect the decision-making ability of
consumer.
Search process is next step for consumer decision-making process. In these step
consumers would be searching for the best service which would provide the best quality of the
services in hotel. In search process costumers would also look for the services which are
provided to them at the low cost and with the best quality. Searching of the hotels is done by
the way of the families and the reviews and feedback on the websites would also affect the
decision (De Mooij 2019).
Evaluating alternatives is the next step and these would include the alternate hotels
which would be providing the services to the customers. Consumers would be evaluating the
alternatives by the way of quality services and price of the services. Selection stage would be
affecting the decision of the consumers but the consumers would evaluate their decision and
take the decision which would be suitable for them. The customers would evaluate the
decision whether it s right or not and then visit the hotel for working in the effective way.
Consumers would visit the hotel and look after the service and quality of the services.
Customers must be satisfied, and then they would leave the hotel if customers are not satisfied
they would give the negative feedback to others and also they would not visit the hotel.
P4 Explore the importance of the marketeers to map a path to purchase and understand the
consumer decision-making in hospitality sector
Consumer decision-making in hospitality industry is playing the vital role in the
making the hotel successful. As if consumers take the decision of moving towards other firm
then it can affect profitability and sustainability of company badly.. Customers would face
many problems, and then they would search for the solutions which would solve their
problems. In some case all the problems of customers would be solved but in some cases only
limited problems of customers would be solved. Employees behavior towards the consumer
would affect the decision and so the employees would behave nicely with the customers.

The consumer behavior would help the market to analyze the trends and the taste of the
consumers which would not affect positively the sales of the hotel. Consumers behavior would
help the market to understand need of consumer and purchasing ability of the consumer.
Decision making process would identify the marketers and the consumers (Galib Hammou and
Steiger 2018).
Consumer behavior is important for the hotel because it would show the mind of the
customers. What questions are raised in the mind of the customer and then what decision
would the consumer would be taking is affecting the hotel industry. So the consumer
Behaviour is important for the hotel and it needs to be analysed as well. Every individual is
different from each other and many are from the different regions and different customers and
these all would affect the decision of consumers. Standard of living is changing and the
technology is used by the individual. So these all would be affecting the sales of hotel and the
consumer attitude towards the hotel. Consumer needs are must and these would be understood
by the hotel on studying the consumer Behavior on the large scale. Customers needs would be
identified and analyzed by studying the consumer buying Behavior (Huang and Benyoucef
2017).
cultural factors are affecting the consumer decision on the basis of the culture and
traditions which are followed in the country. Social status and subculture as well affect the
consumer decision. Social groups which will have the effect on consumer decision are the
groups families and standard of living as well. Personal factors are also affecting the decision-
making process like the age and occupation of consumer, whether consumer is able to buy the
services or not. Personality is important because consumers will buy the products as per the
personality of individual.
Maslow theory of needs
Physiological factors which will have then impact on the consumer and individual
behaviour is the maslow theory of needs. These theories include the physiological needs which
will include the food clothing and shelter which includes the basic needs. Safety needs will
include the security of individual regarding the jobs and the financial condition. In the
belongingness and love needs individual will focus on the relation ships and friends which will
affect the behaviour of individual. Esteem needs will include the prestige of individual while

the self actualization needs will include the satisfaction for attaining every thing in the life and
individual is motivated to achieve more.
Cognitive theory
There are various models which will have the effect on the consumer behaviour which
will include the cognitive approach. This is the theory that pay more emphases on consumer
and ensure that firm will offer them products that they require hence they feel connected with
brand. It will also include the feeling and behaviour of consumers which are casually
interactive.
M2 Evaluate how marketeers are responding to the decision-making process
Hotel will ask feedback from them and will make connection through social sites; it will
help in responding them properly to their decision making. It would have the impact on the
consumers and the hotel industry as well. People in market would be visiting the hotels and
these would increase the sales of hotel. Marketers would be using the consumer for their sake,
but they would not be taking the advantage of the purchase. They would understand the
consumer behaviour, and they would be able to communicate with them in the effective way
(Griffiths 2018).
LO3
P5 Compare and contrast the key differences of the hospitality decision-making process of
B2C and B2B
In the B2C the hotel would provide the services to the customers directly and the
customers would look after the quality and the price of the products. These would have the
impact on the consumer decision. Consumers visit the hotels and the consumers only demands
the quality products and the services which is rendered to them. In hotels the owners want to
generate more price, and they would be generating more profits from the customers. The high
amount is collected for the services given and these would have the effect on the sales of the
hotel. Customers also generally does not visit the hotel because these hotels would not provide
the service with the high quality, and they would deliver the services with the low quality
products, and they would easily compromise with the low quality raw material used in the
products. As B2 C business pay more attention on products because they have to directly deal
with end users hence it is essential for them to make such products that can satisfy consumers.
Hospitality business make decision in such manner so that their products can satisfy end users.

They develop relationship with retailers and consumers so that sales of company can be raised.
Buying decision is much more emotional because desire, needs of consumers are taken into
consideration.
Criteria B2C B2B
Definition Refers to the kind of
business in which company
sells its products and
services to end users Shim,
Shin and Kwak, 2018)
Refers to the type of
business where the main
focus of a company is on
corporate business and
through these corporate
clients ;end products reach
the consumers.
Customers Consumers use services
provided by hotel such as
spa, food, accommodation
etc.( Differences Between
B2C & B2B in Business
Systems, 2019)
In this kind of business
customers have their own
different professional such
as catering business as they
provide such catering
services to end users. (De
Mooij, 2019)
Emphases B2C business pay more
attention on product
development
B2B business pay more
attention on developing
relationship with consumers
in hotel
Involvement of persons In B2 C business only one
person is involved who can
make the final decision.
Whereas in B2B business
many people such as
corporate clients, suppliers
are involved anon the bases
of their common findings
final decisions are made…
( Differences Between B2C

& B2B in Business Systems,
2019
B2C B2B
Decision process B2C firm use market
research method to know
more about consumers and
according to this research
financial decision is taken by
firm.
Whereas B2B business uses
interview method of
secondary sources to get to
know about industry and
trends and accordingly final
decision is taken.
Sample size It uses large sample size It uses small size.
Decision-making  B2B cannot directly
coordinate with
customer that
require to the
strategic decision-
making. In order to
understand their
demands (Seddighi
Sharifi and Seddighi
2018).
 It should gather the
large information by
using alternative
sources.
 B2C can understand
the requirement of
buyer and focus on
their interest,
preference which
help for decision-
making.
 In business to
customer, it can be
used specific source
after decision-
making
 Decision-making
process in business
to business is very
 In Business to
customer, decision
making is very easy

complex (Seddighi
Sharifi and Seddighi
2018).
because it directly
related to customer
demand.
B2C B2B
Promotion decision  The marketer trends
to the personalise
marketing message
to enterprise buyer.
 In B2C, marketing
messages to client is
often impersonal.

In the B2C the hotel would provide the services to the customers directly and the customers
would look after the quality and the price of the products. These would have the impact on
the consumer decision( Differences Between B2C & B2B in Business Systems, 2019)
Consumers visit the hotels and the consumers only demands the quality products and the
services which is rendered to them. In hotels the owners want to generate more price, and
they would be generating more profits from the customers. The high amount is collected for
the services given and these would have the effect on the sales of the hotel. Customers also
generally does not visit the hotel because these hotels would not provide the service with
the high quality, and they would deliver the services with the low-quality products, and they
would easily compromise with the low-quality raw material used in the products. As B2C
business pay more attention on products because they have to directly deal with end users
hence it is essential for them to make such products that can satisfy consumers. Hospitality
business make decision in such manner so that their products can satisfy end users. They
develop relationship with retailers and consumers so that sales of company can be raised.
Buying decision is much more emotional because desire, needs of consumers are taken into
consideration.

Kotler, P. and Armstrong, G (2017), “Principles of Marketing”.17th edition, Pearson: Harlow,p.194
Buying behaviour of consumers must be analyzed by companies, first company
recognize their need or problem associated with consumers. After that description of their
general needs is done. Now firm analyses what specific product is demanded by consumers
and what supplier can provide the same. Proposal is made by company and according supplier
which is suitable for business is selected. Once it is done then satisfactory product is delivered
to buyers and performance review is asked to them so that individual can give rank to
company and enterprise can make changes in its strategies to give amazing experience to
consumers in near future.
There are many factors that influence buying behaviour of consumers. Environmental
factors such as technology, completion affect the buying behavior, as if completion is high
then business have to look for such suppliers so that products can be bought at lower rates and
company can sell to end user at lower rates. If government policies get changed then also
company can make changes in its pricing that would affect buying behavior. It processes of
company is completed then also people may make changes in their buying behavior. Expert

advice, personality, preferences are some element that influence consumers and can make
changes in buying behavior.
In the B2B the hotels would deliver the service to the other business. In the business
to business consumers would not have the power to take the decision and these would have
the impact on the sales. The business decisions are taken by the way of the brand image and
business is only looking after the sales and how to generate the profits and how to increase
the brand image of the hotel in the market. Businessman is only looking after the brand
image and the strategies which would help the businessman to generate the profits. In the
hotel industry businessman are investing in the hotel for generating more profits and these
would affect the image of the company. In businesses the promotion and advertising is done
which would be used by the hotels for increasing the sales (Yacout and Vitell 2018). In the
B2B hotel can deliver the services but consumers are limited and the sample size as well. In
the qualitative research the research will be done on the basis of the interviews of the
customers which are less expensive. B2B business make planned and logical decision that
helps them in generating profit. They pay more attention on building trust of corporate
clients so that they buy its services frequently. Manufacturer, wholesalers are the person
with whom B2B business develop relationship.
Pareto theory
Theory will include pareto principle of 80/20. In the principle 80 stands for the sales
and 20 stands for the clients. These parameters are set according to the hotels and so the theory
will concentrate on the distribution of income and wealth among the population. This theory is
implemented by B2B business (Understanding the Pareto Principle (The 80/20 Rule), 2019).
P6 Evaluate the different approaches to market research and methods of research for
understanding the decision-making process
Market research methods would be used by the hotel sector for doing the research in
the market as in any other sector. This research would be done by the way of the surveys and
the interviews which would help the researcher to conduct the research. In the field of
research would be done by the way of the surveys and groups. The employees would
conduct the interviews and surveys for understanding the consumer decision-making