HNC/HND Hospitality Consumer Behavior and Insight Report

This report provides a comprehensive analysis of consumer behavior within the hospitality industry, focusing on the decision-making processes of consumers. The report begins by mapping the consumer's path to purchase within a hospitality context, including need recognition, information gathering, alternative evaluation, pre-purchase, purchase, receive, and post-purchase stages, using the Old Parsonage Hotel as a case study. It then evaluates the appropriate forms of research, differentiating between B2B and B2C approaches, and discusses how marketers influence distinct stages of consumer decision making. The report examines various factors influencing consumer choices, such as heuristic, technological, economic, passive, emotional, and cognitive views. It also highlights the importance of understanding consumer behavior for effective marketing strategies, including building brand goodwill and increasing market share. The report also provides insights into the consumer decision-making level within hospitality, including routinised problem solving, limited problem solving, and extensive problem solving. The report concludes by emphasizing the importance of mapping the consumer journey for hospitality businesses to understand customer perceptions, gain competitive advantages, and achieve sustainability. The document is a past paper available on Desklib.

Hospitality Consumer
Behaviour Insight

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
Covered in PPT............................................................................................................................1
LO 2.................................................................................................................................................1
Demonstrating ability to map a path to purchase in a hospitality context, including the
decision-making process..............................................................................................................1
LO 3.................................................................................................................................................4
Evaluating appropriate forms of research to understand influences on the hospitality consumer
decision-making process..............................................................................................................4
LO 4.................................................................................................................................................6
Evaluating how marketers influences distinct stages of hospitality consumer decision making.
......................................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The study about people and the way they make decisions about purchasing, makes real
time usage of commodities to meet the personal needs effectively is termed to consumer
behaviour (Altinay and Taheri, 2019). Similarly. Insight is said to capability for gaining deep as
well as exact understanding about some others choices. It include buyer's behavioural, emotional
addition to mental responses which follow all their aspects. For this report, Old Parsonage Hotel
has been contemplated that is located at Banbury, Oxford, UK. The management team of the
hotel performs activities to combine primary appeal as well as quality with indulgence, comforts
and technology for providing services which are convenient for huge customers. The report
covers abilities for mapping buying path with context to sector of hospitality. It also involve
appropriate research forms and ways distinct stages within hospitality consumer purchasing is
influenced by marketers.
LO 1
Covered in PPT
LO 2
Demonstrating ability to map a path to purchase in a hospitality context, including the decision-
making process
Stages of consumer decision making process and mapping purchase path
When customers gets indulge in identifying their needs, gathering data, recognising
choices, evaluating them as well as takes purchase decision is said to the consumer decision
making trip. Consumers are lifeblood for all entities' existence as they empowers them in
determining emerging trends an assist marketers to launch innovate service or package within
hospitality industry (Cockayne, 2016). Old Parsonage Hotel marketing team must investigate
various market circumstances where consumers behave differently towards particular products.
Understanding consumer behaviour will help marketers to position substantial trade good and
unsubstantial facilities for audiences as targeted in market. The institutional administrations have
introduced a holiday package to providing accommodation services that target market expects
have analysed series of stages that are associated with decision-making journey of targetted
1

clients with the objective to carry forwards other tasks. The journey for decision making is as
defined:
Need recognition stage: Customers first recognises the needs towards particular product
to initiate steps to find solutions. Old parsonage Hotel have diverse customer base who accredit
the needs to leverage accommodation package for the time they will stay to enjoy various places.
Information gathering: Customers begins gathering information for products that are
offered by various hotels for seeking solutions that will resolve needs. For this, customers visits
organisational websites and takes advises from their social gang to gather information.
Advertisement agency that is hired by Old Parsonage Hotel makes various advertisement
templates that includes all information about packages that are offered which benefits customers
while collecting data.
Alternative evaluation: During the course, customers identifies and evaluates various
choices or options and later opts one options that will provide satisfaction in maximum quantity.
Alternatives are gathers from list of hotels and evaluations are done through comparing price
structure, reviews, service quality together with offered service. When customer develops
interests with package provided by Old parsonage Hotel, further they begins comparing facilities
provided within the package such as transportation services, days of trip and accommodation
services with other firms in identical sector.
Pre purchase stage: The moment information is gathered as well as evaluation of
choices, customers begins making pre purchase decision for one of the choice and frames budget
according to the option (Erevelles, Fukawa and Swayne, 2016.).
Purchase stage: At the phase, Customers are eager to acquire the commodity or service.
The clients with Old Parsonage Hotel, books holiday package offered by entity through making
some portion of payment in advance for using the facilities in coming time frame.
Receive stage: The facilities that were promised while booking packages are provided to
customers. They receives the promised services and enjoys facilities that results in need
satisfaction.
Post purchase stage: Te stage is related to the evaluation that whether the product or
service was effective enough to satisfy recognised needs. In Old Parsonage Hotel case,
customers who have received the facilities of holiday package provides feedbacks to the entity
which brings development within the services or facilities by hotel management.
2

Hence, the customer journey map phases supports Old Parsonage Hotel in examining
perception of targetted customers towards brand and its services. In addition, they can gain
competitive advantages along with gain ratio of sustainability in better ways.
Consumer decision making level within hospitality industry.
Routinised problem solving: In this level, costumers makes quick decisions as they have
all information about services offered by institution. In context to Old parsonage Hotel,
customers after having all required information about holiday package, they makes fast decisions
making.
Limited problem solving: First, customers collects information through general research
about services company offers (Gibson and Parkman, 2018). Customers of selected hotel
generally takes some time to compass particular decision as they performs research activities.
Extensive problem solving: in this type of level, purchase decision is made by Old
Parsonage Hotel customers after getting involved in critical evaluations about various aspects
which takes more time in making decision.
Importance for mapping purchase path with understanding consumer decision making
within hospitality industry
Mapping path involves actions that starts with research activities and ends at final
decision of purchase (Japee, 2015). For marketers of Old Parsonage Hotel, mapping path is
important as it helps in emphasising on particular customer needs that emerges at distinct stages
within buying funnel. In addition, mapping path is important for marketers as it allows them to
focus on efforts as well as expenditures so to maximise effectiveness. Following are some of the
reasons because of which it is important for marketers of the hotel to map path for purchase
addition to understanding decision making by consumers in the sector:
 For identifying perceptions of consumers, marketers of Old Parsonage Hotel are
required to path purchase. With the help of this, they understands their buying patterns
and evaluates them effectively that help in implementing suitable strategies to influence
consumers to change the decision and make purchase determination. They consider likes,
attitudes, preferences and choices of customers so to execute plans of company.
 To meet demands and increase market shares: through mapping path of purchase,
marketers of the hospitality entity determines customer demands as well as make huge
attempts for fulfilling them. This leads to improve market shares also. When all demands
3

are fulfilled then it provides huge possibilities to company for enhancing their shares in
the pertaining market.
In addition to mapping path, it is also significant for marketing team of Old Parsonage Hotel
to properly understand decision making by its potential customers and some of the reasons for
this are:
 To determine that customers will purchase the proposed services which are offered to
them by Old Parsonage Hotel. With the help of this, marketers devises effective
schemes, strategies and practices that influences consumers to modify their decision
and purchase the offered ones.
 To build goodwill in market, it is significant for marketers to understand decision of
consumers related to purchasing products. When marketers will be aware about
purchase determination then they will be able to promote suitable offerings that will
attract maximum consumers and this will develop goodwill of hotel in dynamic
market.
Some factors that plays critical role in influencing decision making follows below:
Heuristic factors: The mental shortcut that allows people in decision making quickly.
Targetted customers meet all their desires or preferences through making best choices from the
available options. The customer base of Old parsonage Hotel is strong wherein few customers
have preferences for luxury accommodation facilities so that they maintains status level in their
social group. Hotel administration properly arranges all the luxury services and delivers them the
same will result in influencing heuristic decisions at great extent.
Technological factors: According to current conditions, innovation as well as
advancements performs activities that enlarges market share and provides detailed information to
targetted customers. Technologies like online transactions, booking apps, social media
promotions and interactive personalised services are opted by respective entity then they can
interact with huge customers and solve the queries effectively that will influence customers
decision making ability towards holiday packages.
Four views consumer decision making in hospitality sector
Economic view: The view states that all the decisions taken by consumer are based on
rationality. Consumers of selected firm compares products and packages according to collected
information and then makes decision to purchase.
4

Passive view: The decisions taken by customers are based on promotional efforts that
marketers of selected business makes and customers responds quickly for advertisements appeals
that marketers have offered to them.
Emotional view: The emotionality level among customers influences them for some
decisions. For example, selected company adds positive emotions as well as negative emotions
with their advertisements of packages that motivates customers in decision making.
Cognitive view: According to this, Old Parsonage Hotel customers takes decisions for
facilities as per their interests and market demand understanding.
LO 3
Evaluating appropriate forms of research to understand influences on the hospitality consumer
decision-making process
B2B and B2C
B2B and B2C are major forms of transactions that represent market size along with
business shares in pertaining sector. The differences between the two as underneath:
Differentiation basis B2B B2C
Meaning B2B refers to Business to
Business in which organisation
provides services to other
business units that exists either
in same sector or different
industry.
B2C refers to Business to
Customers wherein firms
operates to offer unique
services to customers only
for enhancing customer
satisfaction and improving
business revenue capability
(Korstanje, 2017).
Buying decision In B2B, prior to initiating
decisions for purchasing product,
business concerns makes attempt
for understanding product,
strategies, plans, brand value and
prices of distinct firms within
similar sector to collect reliable
Within B2C, customers
plays function to judge
product purchase within less
timings. Customer makes
purchase of products that
are made for commercial
5

information for services or
commodities that can help in
inflating overall business
performance in improved aspects
(O'Rawe and Gibson, 2017).
purchases.
Market size decisions Within B2B, Old parsonage
Hotel make segmentation of wide
targetted market into smaller
groups so that they can reach
huge distant business customers
in limited time.
In B2C, company like Old
parsonage Hotel makes
market decision as per
segmenting the whole
market into behavioural and
demographic one so pay
equal attention to all.
Market research approaches
Business concerns have aim to survive in marketplace for long time and for this, they
conduct market research for analysing pertaining trends together with customer demand so that
they can take actions on corrective duration. Moreover, market research helps a firm to ascertain
new product viability with the help on investigation (Taheri and et. al., 2017). The management
team of Old parsonage Hotel uses both research forms such as B2B market research as well as
B2C market research.
B2B market research:
Within B2B market research, skill set required are data analytical skills and
communication skills. Sampling method in this research that fits best is random sampling
technique. Herein, secondary sources are majorly used by researcher of selected institution as it
involves less time and benefits in providing required data in required criteria. Following are
some sources:
Public records: With this, Old parsonage Hotel executes the procedures related to
making decisions for trading with other institution through reviewing the past book keeping
records and customer records so to execute their activities to accomplish objectives.
Agencies: At present, various governmental along with non governmental agencies exists
that also helps an entity in conducting research. Old parsonage Hotel research focuses on all
6

procedures with practices that are devised by the agencies to maintain organisational brand
image in the eyes of market population in context to legal terms.
B2C market approach:
B2C market approach is said to collecting information through primary methods. The
skill set required are interpretive skills and analytics skills. Tele depth interview plays crucial
function of conducting research in professional manner. Research methodology uses non
sampling method to gather data. Methods to gather data are:
Questionnaires: Marketers collects data by asking question sets that are relevant with
topic of research. It benefits in accurately collecting data and prepare effective research report
that further helps in improving business image in market.
Personal interviews: The research interacts with sample and make conversation through
face to face so to get valid and authentic information. When personal interviews are conducted,
Old parsonage Hotel marketers can also collect other information that can further help in
enhancing project value too.
LO 4
Evaluating how marketers influences distinct stages of hospitality consumer decision making.
Evaluation of the ways marketers influences decision making stages.
Consumer learning refers to various steps in which an individual acquires consumption
knowledge together with make application of experiences for further actions. In relevance with
Old Parsonage Hotel, marketers plays functions of collecting mental representation that are made
by customers or business institutions (Yoo and Park, 2016). Through effectively following
approaches of customer learning, marketers can influence paths within procedures of customer
learning in hospitality sector.
Cognitive approach: According to this, an individual learns through critical mental
pattern for gathering data. It provides advantage to customer to have control on various factors
that exists within complexities and nearby their surroundings. The cultural factors through which
consumer learns are ideologies and cultural values. In contrary, sub cultural factors that helps
them to learn are status and habits of workings. Marketers of selected firm have role to
understand both the factors and accordingly map purchase path to influence customer learnings.
It will results in eradicating issues that comes in ways of marketers.
7

Behavioural approach: An individual within this approach emphasis on observing other
way of workings for various operations. The consumer learns with the help of responded
tendencies associated with experiences (Korstanje, 2017). Cultural factors like perceived
knowledge including self-reliant packages posses chances within influencing behaviours of
clients that selected firm has. Similarly, when sub cultural factor like shared interest and
individual belief is accurately identified them opinion leaders can influence consumer learnings.
During framing advertisements, opinion leaders plays role of taking all the sub cultural factors
into consideration for influencing learning within customers at huge level.
Along with models, there are various ways in which marketers of Old Parsonage Hotel
can influence distinct stages of decision making procedure in hospitality industry that are as
evaluated:
Need recognition: In stage, marketers of Old Parsonage Hotel can influence purchase
decision making of customers through properly helping customers to recognise their needs and
also providing relevant information. With this, consumers are influenced more for changing their
decision towards offerings of entity.
Information search: Herein, marketers of the hotel help consumers to search the
information about the solutions that can meet their needs. By using effective promotional
strategies and attractive advertisements that plays huge role in influencing decisions to purchase
the products that are provided by Old Parsonage Hotel.
Alternative evaluation: In this process, consumers like to evaluate information about the
offerings that are provided by other companies. In this, marketers of Old Parsonage Hotel helps
consumers to provide them report and detailed information related to prices, facilities and many
more for the similar packages that other firms are providing. Marketers influences decisions
through presenting additional features about the package that is Old Parsonage Hotel provides
and this motivates consumers to make determination for it.
Purchase decision: It is the phase in which consumers makes purchasing of product. In
this, marketers ask managers of Old Parsonage Hotel to provide some discounts and additional
services to customers that stimulates the decision of consumers to buy particular travel package.
Post purchase evaluation: Marketing team of Old Parsonage Hotel will collect
feedbacks from customers are also help them from any unoffered service that was earlier
8

promised. As per the feedbacks, major changes are done by marketers in their strategies so that
they can influence decisions of various customers.
With above mentioned practices and ways, marketers achieve success in influencing
targeted audiences to make decision for buying tourism packages and services as offered by Old
Parsonage Hotel.
CONCLUSION
The above discussion summarises that organisations initiates various practices to realize
consumer behaviour so to execute all the other activities in set manner. They initiates evaluations
of demand along with pertaining trends so to increase customer satisfaction by offering
uniqueness. In addition, phases through which consumers make decisions states their attitude and
curiosity for buying and disposing specific hospitality packages. The B2C market research along
with B2B market research have huge significance in father all type of required content that can
maximise profits. Furthermore, by adopting approaches of behavioural and cognitive, marketers
with opinion leaders can influence stages of decision making concerned with consumers of
hospitality industry.
9

REFERENCES
Books and Journals:
Altinay, L. and Taheri, B., 2019. Emerging themes and theories in the sharing economy: a
critical note for hospitality and tourism. International Journal of Contemporary
Hospitality Management. 31(1). pp.180-193.
Cockayne, D., 2016. Redefining B2B relationship marketing: insight from postmodern Alibaba.
Journal of Customer Behaviour. 15(1). pp.49-66.
Erevelles, S., Fukawa, N. and Swayne, L., 2016. Big Data consumer analytics and the
transformation of marketing. Journal of Business Research. 69(2). pp.897-904.
Gibson, P. and Parkman, R., 2018. Cruise operations management: Hospitality perspectives.
Routledge.
Japee, G. P., 2015. New Ways of Reaching Out to End Users: Retailing. diplom. de.
Joy, A. and Li, E. P. H., 2012. Studying consumption behaviour through multiple lenses: an
overview of consumer culture theory. Journal of Business Anthropology. 1(1). pp.141-
173.
Korstanje, M. E., 2017. Terrorism, Tourism and the End of Hospitality in the'West'. Springer.
Mohammed, I., Guillet, B. D. and Law, R., 2015. The contributions of economics to hospitality
literature: A content analysis of hospitality and tourism journals. International Journal
of Hospitality Management. 44. pp.99-110.
O'Rawe, M. and Gibson, A., 2017. Virtual Reality as a Promotional Tool: Insights From a
Consumer Travel Fair.
Taheri, B. and et. al., 2017. Escape, entitlement, and experience: liminoid motivators within
commercial hospitality. International Journal of Contemporary Hospitality
Management. 29(4). pp.1148-1166.
Yoo, J. and Park, M., 2016. The effects of e-mass customization on consumer perceived value,
satisfaction, and loyalty toward luxury brands. Journal of Business Research, 69(12),
pp.5775-5784.
Online:
Difference Between B2B and B2C. 2019. [Online]. Available
through :<https://keydifferences.com/difference-between-b2b-and-b2c.html>.
10