Consumer Behaviour and Insights: Decision-Making at Garden View Hotel

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This report delves into the realm of consumer behaviour, focusing on the decision-making processes of customers within the context of the Garden View Hotel, a medium-sized establishment in London, England. The report examines the five stages of the consumer decision-making journey, including awareness, information search, evaluation, commitment, and support, highlighting their significance in influencing purchasing decisions. It also emphasizes the importance of mapping the path to purchase to understand consumer behaviour and the different levels of consumer decision-making. Furthermore, the report explores various market research approaches and consumer behaviour models, such as psychological and economic models, to offer insights into both B2C and B2B scenarios. Ultimately, the report provides a comprehensive analysis of consumer behaviour, offering valuable insights for the Garden View Hotel to enhance its marketing strategies and customer satisfaction in the competitive UK hospitality sector.
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UNIT-37 CONSUMER
BEHAVIOUR AND
INSIGHT
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO1..................................................................................................................................................3
P1: Stages of the consumer decision-making journey.................................................................3
P2: Importance of mapping.........................................................................................................7
LO2..................................................................................................................................................9
P3: Differences of decision-making process...............................................................................9
P4: Approaches to market research and methods of research...................................................10
LO3................................................................................................................................................12
P5: Evaluate different stages of the decision-making process...................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Consumer behaviour is a basic behaviour of a person which influence it to take decision
towards buying any product or service to get proper satisfaction. Analysis of consumer behaviour
is very important task to an organisation within the market place. Without analysing behaviours
of customers, no business can achieve large customer base within the market. After knowing
consumer behaviour of any particular market segment. The company can simply develop its
products and services accordingly (Willis, Ozuem and Ng, 2019).There are different customers
exists within the market place with their different needs, wants and demands. In this situation,
this is very necessary to a company to perfectly know the behaviours of customers to identify
their actual needs and demands. This report discusses the consumer behaviour aspect of Garden
View Hotel. This is basically a medium-sized hotel business of the United Kingdom, situated in
London, England. This report discusses different stages of customer decision-making for
purchasing a productor service. There are different approaches of market research also has
evaluated in this report to understand the decision-making in both condition in both conditions
B2C and B2B.
MAIN BODY
LO1
P1: Stages of the consumer decision-making journey
A customer always conducts different stages before taking decision of buying any
product or service in the market place. Customers are basically the king of market, so every
business have to analyse different stages of decision-making process of customers (Torkzadeh,
Zolfagharian and Iyer, 2020). Basically, there are five stages available in the consumer decision
making journey, in which these stages of this decision-making journey of customers has
discussed below;
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Figure 1: 5 stages of Consumer Decision-making Journey
Source: Kaplan.K, 2017
Stage1 – Awareness
This is the first stage in the consumer decision making journey which is also known as
the problem recognition stage as well. In this stage, customers analyse their key needs, wants and
problems. There is every person always have different problems needs. Suppose some customers
has need of food, some has need of clothes and some has need of beverage etc. In this situation,
these problems, needs and wants motivates them to search about that product or service which
resolve problems and needs, and which also make satisfied them (Dunnett, Hamilton and
Piacentini, 2018). This is also stage which motivates different customers for improving their
current life style by purchasing any selected product within the market place. Currently the hotel
can simply fulfil accommodation needs of customers with the support of its effective room
service.
Stage2 – Information Search
Information search is the second stage after awareness or problem recognition stage. In
this stage, a customer take step towards searching information about that product which has
selected by it for fulfilling its various needs. In this stage, customer visits one store to store and
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also scroll the internet pages to find out different features and attributes of that product. In this
dynamic and modern world, there is internet is one of key way to different customers for
searching different information about any particular product or service. Specially knowing price
figures and roles of any product is the main objective of customers behind conducting this
information search stage. After conducting this stage, a customer enables to ensure that, those
products and services are available in the market place or not which can fulfil its needs and
wants in market place. In this situation, hotel have to make quality of its room service very
excellent to influence customer to take decision for buying only own product.
Stage3 –Evaluation
Evaluation is also a key stage within the decision-making process of customers.
Basically, in this stage, a customer takes steps towards comparison of products. It selects one
product in market place and compare it with another alternative product (Decker, 2017). By
conducting this stage, customers enable to choose that product which will be very productive to
them, and they can be simply purchased that product on very cheap or favourable prices.
Evaluation of alternative product is very necessary task to a customer to save its precious money.
This stage enables to customer for investing in that product which is really able to add some
value in the personal life of customers. A customer compares selected product with many other
alternative productive on the basis of different factors, like; price wise, quality wise, reputation
wise, attributes wise and specification wise. In this situation, customers can compare price of
hotel’s room service with its competitors, so that hotel will require to offer more favourable price
than competitors to its customers.
Stage4 – Commitment
Commitment is the stage where customers mostly commits to take decision of purchasing
any product. After comparing different products on the basis of various factors, the customer
enables to choose that product which is most favourable to it, so that in this commitment stage,
that customer have to take final decision towards buying that product from its selected segment
of market. In this stage, different customers conduct inquiry sessions also for knowing all
attribute of that product which is really essential to them. After these all activities, a customer
has visited to that store or shop which has available that product to sell. While purchasing the
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selected product, customers tries to interact with seller, because seller gives them proper
information about that product (Angela, 2019). This interaction between customers and sellers is
very necessary to share information, because many times, customers buys such products which
they now know about how to use. When the management of hotel offer excellent room service
with favourable price, then customers simply take decision towards buying service of this hotel.
Step 5 – Support
Support stage is the last stage in the consumer decision-making journey. In this stage, a
customer has fully consumed any product, and then starts to evaluate that product on the basis of
its productivity. Basically, customers review that purchased product to analyse that, this product
is efficient to satisfy anyone or not. In this situation, if customer get satisfied with hotel’s room
service, then it will be recommended to others for buying that same service through hotel. On the
other side, if customer not has satisfied with this room service, then it will be recommended
others to never buy that service. After getting proper satisfaction through hotel’s room service,
customers plan for buying that same service in the future as well.
These all are key stages in the consumer decision-making journey. These all stages show
that, a customer always analyses different aspects and factors relating to room service before
buying this hotel’s service of room. In this situation, the management of Garden View Hotel
have to make its room service very much effective and productive by quality wise, because in the
decision-making journey, customers always like to buy quality products and services.
Theories and models of consumer behaviour
There are various models and theories available here which enable to business for
analysing behaviour of different customers, in these key theories has been discussed below;
Psychological theory: This is one of key theories of consumer behaviour which informs different
customers about that, a customer always has different needs and wants. For example; food,
clothes and beverage are main psychological needs of customers which influence them to buy
any product or service which can simply fulfil its psychological needs.
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Economic model: This model also helps in understanding consumer behaviour. Economic factor
of a person always influences it while purchasing any product or service. In this situation,
customers always take decisions of buying any product after checking own economic condition.
P2: Importance of mapping
This is very mandatory and important task to the marketers of hotel to map a path to
purchase and understand consumer decision-making (Ebert, 2017). After mapping the path and
understanding consumer decision-making of customers, markers will enable to develop only
those products and services in market place which are really essential to customers. There are
markers of this medium-sized hotel has highly required to get the knowledge about three levels
of consumer decision-making, because after taking knowledge of these all levels, marketers can
simply map a path and understand consumer decision-making. These all levels of consumer
decision-making have been described below for the marketers of garden view hotel.
Levels of Consumer Decision-Making
1. Extensive: This extensive stage has high involvement of customers in the product towards all
the criteria for fulfilling their wants and needs.
2. Limited: Consumers conducts an ordinary search for selecting a product from different
alternatives.
3. Routine: In this level, the consumers mostly have low involvement in selecting any product
that satisfies its ordinary need.
According to these three levels of customers decision-making, marketers of this hotel can
simply identify that, there are lots of factors here which highly affects customers while taking
decision of buying any product. For example; a customer’s income status always influences it
while buying any product or service. There are attitude and interest levels of customers also has
highly influenced to them while buying any product or service (Cassidy, Sullivan and Radnor,
2019). In this situation, this is very necessary to markers of hotel to deeply understand consumer
decision-making process to make its products and services according to customers’ needs and
wants.
When marketers of hotel take step towards understanding decision-making process of
customers, then it will find out that, currently there are many types of customers exists within the
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market place which has different background. All customers not come from the same income
status, because some comes from law income group, some comes from medium income group
and some comes from higher income group. This background of customers always influences to
customers when they conducts different stages of decision-making process. In the process of
understanding customer decision-making process, marketers will be understood that, there are
many other factors also highly affects to various customers while taking decision of buying room
service. For example; caste, religion, attitude, ethnicity, interest, advertisements and perceptions
etc. are some key factors which highly affects to different customers in market place (Ustrov,
Valverde and Ryan, 2016). After understanding consumer decision-making, marketers of hotel
will simply focus on developing its room service which will attract different customers.
In this dynamic world, there is very huge competition in the UK’s hospitality sector. In
this situation, map path and understanding decision-making process of customers is one of key
ways to the marketing team of this hotel for properly fulfilling different needs of customers
relating to room service. Nowadays, any customer can simply compare price, facilities, services
and products of one hotel with alternative hotels by seeing various information about hotels on
different travel websites, like; Expedia, Booking.com, TripAdvisor etc. In this situation, the
management of hotel business has highly required to show its key services on these all travel
websites, like; free wi-fi, gym facility, swimming pool, bar etc. (Adams and Smart, 2017).
Showing own effective room services to customers is basically a marketing strategy to marketing
team of business for making a path to purchase for different customers in market place. These all
steps of marketers will definitely influence to different customers for making decision towards
buying room service of hotel, and that’s why mapping a path to purchase and understanding
customer decision-making is very useful tasks to the marketing team of this medium-sized hotel
business.
Evaluation
Currently marketers of this hospitality business are very effective in the terms of
attracting lots of customers in the market place by responding their decision-making process. For
example; customers always take decisions for buying hotel’s room service which really has an
effective quality. In this situation, marketing team of this hotel business completely knows about
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this aspect of consumer decision-making, so that it always tries to offer an excellent service of
room in its hotel zone which is very productive according to various customers.
LO2
P3: Differences of decision-making process
There are top-level management of this hospitality business always needs to take
decisions in the both contexts (Heinonen, 2018). For example; this hotel business deal with
businesses as well as customers. There are comparison and contras between differences of
decision-making process in the context of B2C and B2B has been included below;
Decision-making process in the context of Business to Customer (B2C)
The business currently has very large customer base, because top-level management of
this business always takes decisions towards making its various products and services very much
effective. Currently this decision of management plays an effective role in growing this hotel
business in the market place. The main objective behind taking this decision that, currently most
customer within market place always like to buy quality products and services. There are top-
level management of this business completely know about existing market competition. In this
situation, taking decision towards making own products and services is very effective by quality
wise is very essential to this hotel business.
After taking this type of decisions, hotel business will simply enable to gain huge
competitive advantage in market place. In the decision-making journey, customers always
compare products and services of one brand with other existing brands for choosing the most
favourable and appropriate product or service to buy (Kureshi and Thomas, 2016). In this
situation, top-level management at existing hospitality business always takes decision towards
adopting and implementing competitive-based pricing strategy, because this pricing strategy will
help to hotel for setting price of its products and services something cheaper or favourable than
its competitors.
Decision-making process in the context of B2B (Business to Business)
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There are taking decisions in the context of business to business is completely different
from taking decisions in the context of business to customers for the management of this hotel
venture. Basically, in the context of business to business, this hotel has required to deal with
another business. For example; many times, different corporate companies want conduct their
office party, then they contact to the management of garden view hotel for organising a party. In
this situation, top-level management of this hotel get influenced to take decision towards
providing the best services to that another business. On the other side, there are suppliers of this
hotel also comes under this context B2B, because a supplier also has its business to supply
different raw-material to garden view hotel (Fielding and Hornsey, 2016). In this situation, there
are management of hotel has required to take decisions towards maintaining an effective
relationship with different supplying businesses, because they always provide various raw-
materials to hotel on time.
P4: Approaches to market research and methods of research
There are various productive market research and research methods available here which
the management of hotel can use for systematically understanding the decision-making process
in both contexts, B2B and B2C (Ciasullo and et.al., 2017). There are some prime or major
approaches of market research and method of research has been discussed below;
Focus groups: Focus group is one of key approaches of market research. This approach will
basically enable to the management of hotel for focusing on different groups to properly
analysing them. Currently there are many types of customers and businesses exists within the
workplace which has many types of needs and requirements. For example; a customer always
take decision towards buying ordinary products because it comes from low income group. On the
other side, a customer takes decisions towards buying premium products and services, because
that customer comes from high income group. So that, the management of company has highly
required to focus on all the existing groups of customers and businesses to take decision for
systematically fulfilling their various needs and demands.
Observation: Observation is another key research approach to the management of hotel for
understanding decision-making process in B2B and B2C. With the support of this approach,
existing management at garden view hotel will enable to observe different needs and wants of
customers and businesses in the market place. Observation is the one of key approach of research
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to different researchers, because by observing different factors in market place, a person can
simply identify various accurate data (Calvert and et.al., 2019). In this situation, with the support
of observation method, the management of present hospitality venture will enable to analysis the
actual demands and wants of customers which influence them to take decision towards buying
any product or service in market place.
Internet data: Interne data also a very effective method of research to the management of garden
view hotel, because by analysing different data of the internet, this hotel will simply know that
which factors most influences customers for taking decision to buy a product or service.
Currently on the internet, there are lots of articles easily available where many experts have
shared their point of view on consumer behaviour. In this situation, by using this approach of
market research will definitely support to hotel business to properly understand the decision-
making process in both contexts B2B and B2C.
Evaluation
There is income, attitude, interest, advertisements, recommendations, religions etc. some
major factors which decision making and buying behaviour of different customers. Not all
customers have needs and requirements (Tran and et.al., 2020). The hotel should develop its
products and services according to customers’ needs and wants.
LO3
P5: Evaluate different stages of the decision-making process
Marketers plays essential role in influencing different stages of decision-making process
of B2B and B2C. B2B is a commerce type business wherein transaction is done between two or
more than two companies. While B2C is e-commerce type business whereas wherein company
sells it’s product directly to the users through online media like social platform. For example, X
company has implemented both type business models like B2B and B2C in order to offer
different services to the customers. There are five stages of the decision-making process of B2B
and B2C which uses by marketers of Garden View Hotel to influence buying behaviour of
customers. Stages are mentioned below:
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Recognize the problem
It is primary stage of buying decision-making process that starts with issue recognition
and needs identification stage. There is a example to understand this stage such as customers
looks for such facilities which improves their trip experience while business organization wants
to increase additional facilities in room services. In this situation, marketers of the Garden View
hotel play effective role to aware customer about it’s product and services through advertisement
and social media platform in order to influence buying behaviour of customers (Diba, Vella and
Abratt, 2019).
Develop product specification to solve the problem
It is a second stage of the information search whereas users and business buyers search
for essential information for the hospitality services which they want to purchase. It is prime duty
of the marketers to place the information about their brands in such a manner that the customers
can find important information about the brand easily. There are various methods like CEO, PPT
and social media that can be used by marketers of SEO to provide essential information to the
customer. Billboard, sales and brochures are also considered the effective media for providing
information.
Search for and evaluate possible product and suppliers
Evaluation of information is the third stage of buying decision-making process whereas
customer compares various brands in respect of product features, prices, availability and
specifications. So, marketers company use marketing mix elements to be highlighted customer’s
preferences in top list. Garden View Hotel offers high standard quality products, availability of
products, competitive pricing, distribution and informative promotions so that customers and
consumers can easily differentiate brand and it’s services from others and takes buying decision.
Select product and supplier and order product
It is another stage of making purchase whereas hotels marketers plays specific role in
making the buying process so that customers can easily buy. It is essential for the company to
keep payment process easy and flexible and room registration online services must be easy and
fair (Stormi, Laine and Elomaa, 2018). Garden View Hotel provides flexibility in price and easy
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payment process to the customer and user in respect of maintain their wellbeing. It also offers
online booking and buying facility to the customer and consumers so that they can easily access
and get information about hotel. Such activities of the hotel influence customers buying decision-
making process.
Evaluate product and supplier performance
It is the post purchase behaviour stage that supports marketers to build strong relationship
with the customers. Garden View Hotel always take care of post purchase customers by
understanding their issues and resolves in minimum time. Management of Garden View Hotel
keeps continuous maintenance so that it always keeps it’s customer satisfied. Even CRM of
company always resolves issues of dissatisfied customers of the company and consumers and
makes them loyal for the company.
But the major limitation of the buying decision-making process is that if marketers do not
pay attention on each stage of decision-making process then they cannot influence customers and
consumers to buy brand services. So, it is essential for the Garden View Hotel to critically
measure needs of customers and users.
CONCLUSION
On the basis of above findings, it can be concluded that currently there are lots of factors
exists within the market place which highly affects different customers to buy any products or
service. It also can be concluded that there are customers always suffers from the stages of
decision-making journey before taking final decision towards buying any product or service. It
also can be concluded that, the management of existing hotel business mostly need to take
different decision while dealing both contexts B2B and B2C.
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REFERENCES
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Online
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through :< https://www.nngroup.com/articles/customer-journey-mapping-process/>.
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