Tourism Consumer Behaviour and Insight: A Detailed Analysis

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TOURISM CONSUMER
BEHAVIOUR AND
INSIGHT
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Table of Contents
INTRODUCTION.....................................................................................................................................3
LO1.............................................................................................................................................................3
P1 Different factor used to affect the consumer behavior and attitude.....................................................3
P2 How consumer trend are changing due to digital technology.............................................................5
LO2.............................................................................................................................................................6
P3 Different stages of the consumer decision making in the organization...............................................6
P4 Importance for marketer to analysis the consumer decision making in tourism industry....................7
LO3.............................................................................................................................................................8
P5 Compare and contrast decision making process B2B and B2C..........................................................8
P6 Different approach of the market research used for understanding the decision making process.......9
LO4...........................................................................................................................................................10
P7 Different way through which different stage of decision making can be influenced........................10
CONCLUSION........................................................................................................................................12
References................................................................................................................................................13
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INTRODUCTION
Consumer behavior is the study of the consumer which can be individual customer, group or
organization select, buy, use and dispose ideas, goods, and services to satisfy their needs and
wants. Thompson travel tourism group is the organization was originally originated from the
Canada but in the year 1998 was listed on the UK stock market. Founder of TUI group is Roy
Herbert Thomson and Baron Thomson of Fleet in the year 1965. This report highlights consumer
behavior meaning and the different factor which used to affect the consumer behavior and
attitude. After that the report goes on to explain the impact of the digital technology on the
consumer trend in the market. After that the report highlights the consumer decision making
process. After that the report goes on to explain the importance of analyzing the consumer
behavior for the marketer in the organization. After that the report compare and contrast the
decision making process in the organization on the basis of B2B and B2C. In the end the report
highlights different approaches of market research and how marketer can influence the decision
making of the consumer in the market.
LO1
P1 Different factor used to affect the consumer behavior and attitude
Consumer behavior is the study of the
consumer which can be individual customer,
group or organization select, buy, use and
dispose ideas, goods, and services to satisfy
their needs and wants. Consumer behavior and
attitude used to be affected by many factor in
the travel and tourism industry some of them
as follows:
Cultural factor: These are the factors which
are set of basic perception, value and wants of
the consumer in the market. Culture is
generally behavior which is created by the
Age: It is one of the personal factors
which used to affect the consumer behavior
and attitude as it has been seen in the past that
as the age of the customer used to grow they
generally tend to look for the different type of
the product or service. For example: Teenager
generally love to have the company with the
party theme at the same time the older age
customer always like the company with decent
and simple theme which can give them the
relax they are looking for in the company.
Life style: Lifestyle refers to the
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society of the nation as the consumer used to
grow up from starting from the different
culture. As culture of every group of the
consumer used to vary from each other as there
are different belief and values which are
followed by different consumer belonging to
different cultural background, which
eventually means the product or the service
requirement will also be different of different
customer. So marketer has to make sure that
they have to account for all the cultural value
in the marketing plan to be successful in the
long run of the business.
Social factor: There are many groups under
social factor which can affect the consumer
behavior and attitude in the operation of the
business (Riis, Fisher and Rowe, 2016).
Reference group: This is the group of
the people by which the customer is able to get
the information about the company as there are
many people around who used to influence the
customer decision as they are the one who have
already availed the services. This used to
change the consumer behavior and attitude in
the market.
Role in the society: As every
individual used to play more than one role in
the society it eventually affects the consumer
behavior and attitude as they used to consider
all the party to individual is responsible. As a
result role in the society used to affect the
different way through which individual stay in
the society. As there are some people who
loves to visit the auspicious company to reside
but at the same time there are some who do not
have such type of fantasies. As the person
living in posh area always has to maintain their
status and image in the society. So, it can be
said that lifestyle use to impact the consumer
behavior in the society.
Psychological Factor: Psychological factor
are other type of factor which used to influence
consumer behavior and attitude in the market.
Some of the psychological factors are as
follow:
Motivation: It is the biggest factor
which drive the consumer behavior as the
consumer used to take the decision when they
feel need of anything. For example individual
has to visit London and for that purpose
looking for company. Visiting London is the
motivation for the individual.
Perception: What does the individual think
about the company used to play a very crucial role
in influencing the consumer behavior and attitude
as they used to avail the service which they feel
beneficial for them (Newson and et.al., 2015)
.
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consumer behavior and attitude in the society.
Personal Factor: Personal Factors play an
important role in affecting consumer buying
behavior. Some of the factors are as follows:
P2 How consumer trend are changing due to digital technology
In the era of rapidly changing technology it has
become very important all the organization to
adopt the new technology to satisfy the need of
the consumer in the market. At the same time
due to the digital technology there is a huge
change in the consumer trend in the hospitality
industry. Some of the impact is as follow:
Positive impact:
Quality of the product: Due to the help of the
of the digital technology all the customer is
able to get the information about the entire
company around them and the product and the
service which is provided by the company.
This has eventfully increase the demand of the
quality product in the market as consumer
always compare the service of one with the
other and decides the company which is
offering the quality service in the market
(Kitunen and et.al., 2018)
.
Convenience of booking: It is the another
positive impact which has been brought by the
digital technology on the trend of the consumer
as all the customer used to book the service of
As with the help of the online booking
customer is able to save the time of visiting the
company and booking the ticket. As in the past
the consumer used to visit the company and
used to book the ticket but with the emergent
of the Digital technology there is a trend of
online booking of the room in the market.
Negative impact:
Difficult to choose: Digital technology has
also brought the variety of the negative impact
on the trend of the consumer; one of the
biggest impacts is that it has made difficult for
the entire consumer in the market to select the
best out of the variety of the company which is
available in front of them. As it get difficult for
the consumer in selecting the company by just
looking at the picture of the company. So it can
be said that it has become difficult for the
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the company online which used to help the
organization and the customer both.
LO2
P3 Different stages of the consumer decision making in the organization
Need: It is the first stage of consumer decision making in which the consumer develops a need to
visit a company. Need can be anything, such as business meeting, family vacation, holidays etc.
Need infarct is the catalyst which used to trigger the buying decision of the individual.
Information gathering and search: It is the second stage of consumer decision making in
which the consumer used to gather the information regarding the different companies in the town
which can help the consumer in satisfying the need which has been occurred. Generally in the
changing environment all the consumer used to take the help of the internet to source about the
information which can help them in satisfying the need which has been occurred (Bonfini and
et.al., 2019). At this point of the time company has to make sure that they listed on all the source
which used to provide the information to the customer.
Evaluation of Alternative: It is the next stage of the consumer decision making and one of the
most important step as at this step only consumer used to compare the information which is
gather from the different sources. Generally, the consumer used to compare the service of two
company on the basis of the information gather. Generally, the consumer used to also look at the
price at which the facility is provided by the company. As all the consumer always look to have
the best available services at a minimum price as they look for quality of the money. After
analyzing and evaluating the different alternative the consumer tries to figure out the best
available option for them (Sturley, Newing and Heppenstall, 2018). At this stage of the decision
making all the company has to make sure that they offer good and competitive services in the
company to attract the customer toward the Company.
Purchase of Product and Services: It is the stage of the consumer decision making where
consumer after deciding the best option takes the decision to purchase or use the service of the
company. Generally, at this stage consumer are sure about the company that this company will
able to satisfy the need. At this stage all the company in the nation has to make sure that they
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offer the best o sell service to the consumer so that they have a good impression of the company
in their mind.
Post Purchase Evaluation: It is the stage of the consumer decision making in which the
consumer used to evaluate the decision which has been taken is able to satisfy the need or not.
This is one of the important step for the company as they have to make sure that they are in touch
with the consumer after sale also. They also have to make sure that they take the feedback of the
customer after they uses the services of the consumer.
P4 Importance for marketer to analysis the consumer decision making in tourism industry
All the company in the today’s era used to take the variety of the step in the company to
understand the consumer decision making process as consumer are the one in the end which will
help the company in achieving the organizational goal. Understanding the consumer behavior
provides the variety of the benefit for the company in the long run of their operation (Del
Giudice, Caputo and Evangelista, 2016). Generally, the marketing department of the
organization used to evaluate the consumer decision making process for the company as this is
the department which used to evaluate the market on the regular basis to gather the necessary
information available in the market. Some of the benefit which is seen by company for the same
is as follow:
Basis for different development: The biggest benefit which is seen is that it provides the
different information for the company to develop the product in such a way that it can satisfy the
need of the consumer in the market. Generally the marketer of TUI Company used to analysis
the common need which is occurring in the consumer and by analyzing the same company used
to develop the product which can satisfy the need of the consumer. This will also help the
organization in getting the competitive advantage as this industry used to have a very high
degree of the competition as number of the company operating in the industry is very high.
Marketing Platform: Analyzing the consumer decision making in the organization also help the
organization in getting the information about the best available promotional platform which is in
front of the organization to promote the product of the company (Karimi, Papamichail and
Holland, 2015). Generally, the marketer used to analysis the consumer preference about the
source of the information. On the basis of the same marketer used the different resources to
promote the product or the service of the company in front of the market. This eventually helps
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the company also in improving the customer base for the company as the marketer generally uses
the combination of the marketing platform.
Increases the Revenue and Sales: Another importance which is brought by analyzing the
consumer behavior and decision making is that it helps the company in improving the sales and
the revenue of the organization. As consumer behavior help the company in having the
information regarding the future happening. On the basis of the same company used to train the
employee and also procure the different resources to satisfy the need of the consumer in the
future. As consumer satisfaction is positively linked with the sales and the revenue of the
company in the long run of the business.
LO3
P5 Compare and contrast decision making process B2B and B2C
B2B stands for Business to Business transaction which refers to transaction which is made in
between the other business rather than the individual consumer. B2B decision making process
includes the two aspect which used to be looked by the organization namely spend and Strategic
importance. In the spend aspect the organization decides how much organization has to spend in
the transaction. Strategic importance is the aspect in which organization look at the validity,
requirement and the reliability of the transaction which the organization is looking to enter into
(Panwar and et.al., 2019).
B2C stands for the decision making which has taken place between Business and the individual
consumer. Consumer decision making process includes a five stage decision making process that
starts with Need than goes to Information gathering and search stage after that evaluation of the
alternative and Purchase of product and ends at post purchase evaluation.
There are many differences in between the B2B and B2C decision making process of the
organization.
Basis B2B B2C
Type of Relationship B2B transaction used to take
place between the party who
used to share the long term
and stable partnership.
In B2C transaction both the
parties are involved in the
short term transaction. They
look for specific product. For
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Generally vendor used to sell
the product to the same group
of the people or to the
company who can sell the
same (Griffiths, 2018).
Hilton company has a
relationship with the vendor
who used to provide them
with bed sheet and pillow
cover.
example Hilton company used
to provide the services to the
consumer to reside.
Pricing In B2B transaction the parties
used to involve in the big
quantity transaction so both
the parties used to offer to the
other with the good amount of
the discount in the price of the
product. So that the best result
can be carry out from the
market.
In B2c transaction the parties
used to involve in the small
transaction so their is no that
big amount of the discount in
provided but some company
used to provide the discount to
the customer to be competitive
in the market.
P6 Different approach of the market research used for understanding the decision making
process
Market research is an effective tool to assist your business planning. It is about collecting
information that provides an insight into your customers thinking, buying patterns, and location.
In addition, market research can also assist you to monitor market trends and keep an eye on
what your competition is doing. There are many ways through which the company can research
the market to gather the information regarding understanding the consumer decision making
process (Vincent, Makinde and Akinwale, 2017).
Survey: It is the market research tool in which the group of the respondent are selected by the
organization and all the respondent are provided with the questionnaire which has the
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combination of open-ended and close ended questions. These questions are related to the
different trend which is following the market. All the respondents are asked to answer the survey
with their opinion. After that the company used to collect all the data from the survey and
analysis the same to find out the trend in the market. Generally, company used to gather all the
data at one sheet and try to find out the maximum respond from the respondent end.
Focus Group: It is another market research technique in which a group of the people are decided
by the organization before hand itself and on the basis of the same some scripted series of
questions related to the topic are made by the company. These sessions take place at neutral
locations, with the help of the videotaping equipment and an observation room with one-way
mirrors. A focus group usually lasts one to two hours. Information gather from this source
generally used to be more relevant as compare to the other source. On the basis of the
information gather organization also try to check the relevancy of the information from the
market.
Personal interview: It is another type of the market research technique in which the
representative of the company used to meet the consumer in the market. Representative used to
carry a series of the question with them to be asked to the consumer to get the best out of the
consumer. Organization beforehand itself used to select the group of the respondent on which the
interview can be conducted by the Company.
Observation: It is another market research tool in which after gathering the information from the
market company generally used to look at the customer in the market to just find out the way
consumer used to behave in the organization. In this market research technique, the information
gather with the help of the focus group and the survey are verified by applying them in the
reality.
LO4
P7 Different way through which different stage of decision making can be influenced
Marketer of the organization used to play a very crucial role in the company to influence the
customer decision making process in the organization as marketer is the one who used to play a
very crucial role in inviting the different consumer toward the organization (Diba, Vella, and
Abratt, 2019).
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Need: At this stage the market has to make sure that company is using the mixture of the
promotional method and promote the services of the organization in front of the customer so that
they feel in need of something. For example: marketer of the company has to make sure that they
publish the different picture of the service offered in the organization, so that after looking at the
picture customer feel the need of the same.
Information gathering and search: At this stage the marketer has to make sure that the
customer is able to get the information about the company very easily from the market. As
consumer generally uses the variety of the source to collect the data about the company.
Marketer has to make sure that the company is listed over the variety of the source and also they
have to make sure that all the data which are published are good enough to attract the customer
eye toward the product or the service of the company.
Evaluation of Alternative: This is the stage in which the marketer has to take the help of the
different department in the organization. As the marketer in the company used to provide the
information regarding the competitor to the company. On the basis of the same the organization
used to develop unique product in the company. Marketer has to make sure that the company
used to pass on the correct message toward the customer in the market about the USP of the
company. This will eventually help the company in attracting more customers toward the
company as the entire customer used to look for the unique option to satisfy their need in the
market (Low and et.al., 2015).
Purchase of Product and Services: At this stage the marketer has to make sure that they
provide the best selling services to the consumer which will eventually help the company in
passing on the message to the customer that they used to care about them. Also marketer has to
make sure that the customer always feel that they are benefited from the transaction which has be
done
Post Purchase Evaluation: Marketer in the organization has to make sure that they are in
contract with the customer who have availed the service as they are the one used to refer to other
about the company so marketer has to make sure that they take the feedback of all the customer
are provide them with the solution of their every problem.
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CONCLUSION
After going through the above report it has been summarized that there are many factor which
used to influence the consumer behavior and the attitude of the customer. After that the report
goes on to summarized that digital technology has brought both positive and negative impact on
the consumer trend. After that the report summarized that there is five stage consumer decision
making process. After that the report summarized that there is a difference in the B2B and B2C
decision making in the organization. After that the report goes on to summarize that marketer can
influence the customer decision making.
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References
Books and Journals
Riis, J., Fisher, J. O. and Rowe, S., 2016. How food marketers can sell smaller portions:
Consumer insights and product innovation.
Newson, R. S and et.al., 2015. International consumer insights into the desires and barriers of
diners in choosing healthy restaurant meals. Food Quality and Preference. 43. pp.63-70.
Kitunen, A and et.al., 2018. Generating consumer insights into physical activity patterns for three
different segments. Journal of Strategic Marketing. 26(2). pp.188-202.
Bonfini, M and et.al., 2019. Evaluating the validity of consumer insights into the wine business.
In Case Studies in the Wine Industry (pp. 181-190). Woodhead Publishing.
Sturley, C., Newing, A. and Heppenstall, A., 2018. Evaluating the potential of agent-based
modelling to capture consumer grocery retail store choice behaviours. The International Review
of Retail, Distribution and Consumer Research. 28(1). pp.27-46.
Del Giudice, M., Caputo, F. and Evangelista, F., 2016. How are decision systems changing? The
contribution of social media to the management of decisional liquefaction. Journal of Decision
systems. 25(3). pp.214-226.
Low, J and et.al., 2015. Assessing nutritional value and changing behaviours regarding orange-
fleshed sweetpotato use in sub-Saharan Africa. Potato and sweetpotato in Africa: transforming
the value chains for food and nutrition security, pp.551-579.
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.
Panwar, D. and et.al., 2019. Consumer Decision Making Process Models and their Applications
to Market Strategy. International Management Review, 15(1), pp.36-44.
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.
Griffiths, C., 2018. The role of motivation within tourism behaviour and its effect on the
consumer decision making process. URL: https://www. linkedin. com/pulse/role-
motivationwithin-tourism-behaviour-its-effect-making-griffiths/. Accessed, 18.
Vincent, O. R., Makinde, A. S. and Akinwale, A. T., 2017. A cognitive buying decision-making
process in B2B e-commerce using Analytic-MLP. Electronic Commerce Research and
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Diba, H., Vella, J. M. and Abratt, R., 2019. Social media influence on the B2B buying
process. Journal of Business & Industrial Marketing.
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