Hospitality Consumer Behavior: Decision Making and Market Research

This report delves into the intricacies of hospitality consumer behavior, examining the psychological processes that influence consumer choices in the context of restaurants, hotels, and entertainment. It explores consumer decision-making processes, including pre-purchase, purchase, and post-purchase stages, as well as various models of consumer behavior (economic, passive, emotional, and cognitive). The report also differentiates between B2B and B2C marketing in the hospitality sector, outlining market research methodologies specific to each. Furthermore, it discusses the influence of online transactions, consumer learning, and different approaches to consumer behavior (behavioral and cognitive), providing a comprehensive overview of the factors shaping consumer choices and how marketers can effectively engage with consumers. This analysis aims to provide a deep understanding of consumer behavior in the hospitality industry, offering insights into effective marketing strategies.

HOSPITALITY CONSUMER
BEHAVIOUR INSIGHTS

INTRODUCTION
Consumer behaviour termed out as study about the behavour of customers, individual,
groups, organization, ideas, good and services to satisfy need and wants (Moraes and et.al.,
2019). Therefore, consumer behaviour termed out as purchasing habits that aids to meet needs of
consumer's. In hospitality industry, consumer behaviour highly affects how guest select
restaurant, hotels and entertainment.
Currently, consumer are becoming more demanding when it comes to hotels. However,
consumer plays crucial role in supply and demand chain of economic system of each nation. It is
psychological process and mainly it relates with emotions of consumer.
The present report is based on topic as Hospitality consumer behaviour and Insights.
Furthermore, report will emphasize on activities as to examine various components that
influence habits, hospitality consumer behaviour and evaluation on appropriate forms of research
to understand the influence on consumer decision-making process. Lastly, components will be
defined the impacts on consumer decision-making process towards different stages of hospitality
LO 1
P1
Covered in ppt
P2
Covered in ppt
LO 2
P3
Consumer decision-making process resulting in undertaking the adequate decision when
there are so many products available in market and the crises arises in respect of choosing the
appropriate one. Thus, it includes the appropriate stages of the consumer decision-making
journey in which there criteria is examined in regarding purchasing the particular products such
as:
Aspects Pre- Purchase Purchase Receive Post - Purchase
In respect of In this, consumer They avail such After getting In this aspects,

booking any room pre book the
rooms, if they
want them, in
near future. They
can enhances
such room, if they
get discount in
near future. The
pre booking can
be done through
advertising or
getting
notification
through email.
This enhances the
customer needs
and also they can
avail such
services within
the stipulated
time period.
services in
respective of
satisfying their
needs and
demands and also
get good reviews
regarding availing
such services
(Uysal, Schwartz
and Sirakaya-
Turk, 2017).
notification from
the hotel
regarding the
confirmation of
booking their
expectation arise
in respect of
getting good
discount. As
customer are
attracted if they
get discount after
availing such
services.
customer carry
the mix feeling
after booking the
services. The
feeling arises in
respect of getting
the good products
or the services
which are
offering are
adequate or not.
They are attracted
if they book the
rooms as per they
needed.
It also carries various levels of Hospitality consumer decision making such as:
 Extensive problem solving: In this consumer are facing problems in respect of choosing
the right products in comparison with different products. As customer had not prefer to
buy the products before, thus issue arises in respect of choosing the accurate products.
 Limited problem Solving: In this, consumer not search for the detail information
regarding the best services which is contained in products. They deal in such products
which will satisfy their needs and wants at better scale.
 Routine Response Behaviour: In this level, customer are least interested about the
benefits of the products, they deal in products which they prefer to purchase on routine

bases. In this consumer decision making are reflected on the bases of preferring the same
products which they prefer in past (Kim, Lee and Fairhurst, 2017).
There are four views or models of hospitality consumer decision making as:
 Economic: In this, consumer takes rational decision before purchasing any products.
They compare the products and services from other company products and than execute
the advantages and disadvantages before availing such products.
 Passive: In this model, consumer are mainly focused and take decision through watching
the promotional techniques used by company which attract their interest. As consumer
prefer the products which carry the renowned brand name in market.
 Emotional: Consumer are emotional at the time of purchasing the products. As they did
not take much time in availing the services as smart buyer takes appropriate time to
research about the products and than prefer it. But in this model, the emotion of consumer
are examined regarding availing such products.
 Cognitive: It is considered to be one of the best model as consumer make decision on
the bases of their own interest and also availability of the products in near future.
P4
In this aspect marketers play the critical role in examining the mental structure of the
consumer regarding availing the products and services (Fyall and et.al., 2019). In such
perspective, consumer are already facing issue in choosing the right products as they mind says
that prefer the same products but their heart says to prefer different products. In such
circumstances they are stuck with their current situation. Thus, issue arises in respect of choosing
the right decision and availing the services to get better results. It is examined that many
hospitality sector uses the Heuristic approach to attract the customer interest towards the services
which they are offering. Through this aspect, the matters which influences the marketing mix
concept is relating to:
1. Price: Marketers use the penetration pricing strategy to attract the interest of customer.
As consumer can easily take decision if they find low prices products in market.
2. Product: The product is to be formed as per the customer demand and also reviews is
to be undertaken once the consumer avail the products. This attract the customer
interest towards the products.

3. Places: It refers to the accurate area where the products are to be kept and consumer
can use the products easily. In case of hospitality sector, the matter arises in respect of
ordering food online or also same dish is available at restaurant also (Ji and King,
2018).
4. Promotion: In respect of taking effective decision, promotion is the best method, as
marketers motive is to need proper attention of consumer and also consumer needs
proper platform from where they avail such services.
Consumer decision making can be influenced on the bases of online transaction. As
various issues arises in respect of not getting accurate services which consumer expected to get
through online booking. Their decision also fluctuated in respect of identifying the reviews of
particular products and services which they are planning to prefer (Lugosi and Jameson, 2017).
Thus, this results in facing issue in taking effective decision making.
LO 3
P5
Business to Business (B2B) marketing has huge competition in market as this is type of
commercial transaction in which purchasing and selling of merchandize performe within
business houses and supply to another for undertaking production activity and enterprise
providing service to another (Šálková and Hes, 2015).
Illustration 1: Business to Business (B2B)
(Source:Difference Between B2B and B2C, 2019)

On the other hand, the another model is Business to Customer (B2C) in which business sells its
goods and service to final customer. Additionally, enterprise whose production services can
consumed directly by end user termed out to be B2B companies.
Illustration 2: Business to Customer(B2C)
(Source: Difference Between B2B and B2C, 2019)
The key differenced between B2B and B2C define in below contexted manner as are-
Basis for comparison B2B B2C
Definition The selling of good and
service between two business
enterprise termed out to be
business to business(B2B).
The selling of good and
sertvice to consumer is termed
out to be as Business to
consumer (B2C).
Customer They dealth with company. They deal with service to
customers.
Needs to focus on They primarily focus building
of reslationship.
It aids put their core focus on
benefits of product.
Brand value Services mainly depends on In order to enhance brand

trust and mutual relationship. value, they use technique as
aggressive advertising and
promotion.
Decision making It has long process. There is quite similiar and
short process.
How does market research differ between B2B and B2C-
In essence, market research is relate with capturing, analysing, interpreting and reporting
the data about market. However, organization, public sector and non-profit groups pertaining to
customer, competitors and so on. Therefore, the approaches are different as-
Methodologies- B2C involves the market research whereas B2B not involves the market
research areas. However, requirements is based on the three merged components as the
complexness of B2B markets, need to capture enough data and need to test and verify result.
Telephone, web and email- B2B market research participants can be termed out as
professionals. They need to involve in more practical and cost effectual areas to undertake
research study to get involve in telephone, web and email surveys (Gursoy Decrop and
Woodside, 2017).
Involves unit rather than individual- B2B market research use this method as they need to
involve in decision-making unit rather than individuals. This is more typical to B2C research.
Identifying incentives and getting buy is more typical- B2C market research, participation can
involve fairly straightforward reward such as particular discounts, free good and so on. On the
other hand, B2B market research incentive need to be geared more towards the business
participants.
The bottom line- B2B market research mainly carried out with help of expert researcher who
have knowledge, resources, experience and tool to ensure that process can be more efficient and
carefully controlled.
P6
There are various methods in conducting the market research as research is conducted on
the bases of personality as every person carry different status and also there paying capability is
also different. Thus, the fluctuation arises in respect of having different thoughts and expression

in context of purchasing any products or availing any services. Thus, marketers had to use the
advertising concept which is attractive in respect of promoting the services. As research is
conducted in respect of determining the taste of consumer in every aspect and than accordingly
the products are to be differentiated. So that it result in getting their interest for longer time
period.
Consumers are attracted towards the products in respect of self motivating themselves to
choose the right products. Thus, market research is conducted in respect of identifying the
customer needs and than promoting the products (Uysal, Schwartz and Sirakaya-Turk, 2017). In
this, the matter related to consumer learning it is interpreted on the bases of developing the
understanding and learning from the experiences which is helpful in dealing with future. Thus,
through recognising, they recognises the needs of the needs of the products and the information
which helps them to take effective decision and recalling it from the memory, if in past they hear
about this products. Attitudinal in consumer behaviours reflects the opinion which they interpret
regarding the particular products. As the thought of the customer are important for the company
for long term sale.
The taste of consumer are dynamic which change as per the change in environment.
Consumer perception are identified on the bases of facing any risk. As through this aspects they
take less chances in respect of occurring any risk or also conflict in not getting the products
which they imagined at the time of ordering. This situation usually occurs in respective of
ordering food from restaurant.
LO 4
P7
It carries various approaches to consumer leaning such as:
Behavioural: Marketers are influences in respective of examining the behavioural of the
customer and than accordingly the services are offering. They take decision, if they get good
response from the hotels and also provide quality services.
Cognitive: Consumer takes decision on the bases of taking effective time to think about the
products and than take decision. Though this aspects, they get adequate knowledge regarding the
products benefits and its procedure to use the services (Brunt, Horner and Semley, 2017).

It further includes various perspective which influences the marketers to take effective
decision such as:
Stage 1: Interpret Decisions: Marketer verify the ideas and thoughts of the customer regarding
availing the products. Through this aspects they can identify the needs of customers.
Stage 2: Provide evidence: They use such strong point to distract the mind of the customers
towards the services.
Stage 3: Provide alternative methods: They compare the products and than provides better point
to choose the right products. This can also be undertaken through providing the adequate
information of the products.
Stage 4: Take actions: After conducting various aspects, take accurate action which results in
offering discount or special scheme to attract their interest.
CONCLUSION
From the above study the report is concluded that consumer behaviour are important in
promoting any products in market. Thus, it is to be undertaken in respective of initiating various
models and theories to influences their decision towards availing such services. In respective of
hospitality sector, the consumer behaviour are attracted in respect of availing the online services
such as online booking of rooms or ordering foods online. In such perspective the consumer
behaviours are examined and how they are influenced to give productive results. In this report, it
is also concluded that there are various stages of consumer decision and which marketers also
take initiative to influence their decision making through adapting various models. Through this
procedure, it identifies various changes which is undertaken in maintains the interest of customer
to gain long term profits.

REFERENCE
Book & Journal
Uysal, M., Schwartz, Z. and Sirakaya-Turk, E., 2017. Management Science Applications in
Tourism and Hospitality. In Management Science in Hospitality and Tourism. (pp. 20-
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Kim, S. H., Lee, K. and Fairhurst, A., 2017. The review of “green” research in hospitality, 2000-
2014: Current trends and future research directions. International Journal of
Contemporary Hospitality Management. 29(1). pp.226-247.
Fyall, A. and et.al., 2019. Marketing for Tourism and Hospitality: Collaboration, Technology
and Experiences. Routledge.
Ji, M. and King, B., 2018. Explaining the embodied hospitality experience with
ZMET. International Journal of Contemporary Hospitality Management. 30(11).
pp.3442-3461.
Lugosi, P. and Jameson, S., 2017. Challenges in hospitality management education: Perspectives
from the United Kingdom. Journal of Hospitality and Tourism Management. 31.
pp.163-172.
Uysal, M., Schwartz, Z. and Sirakaya-Turk, E., 2017. Management Science Applications in
Tourism and Hospitality. In Management Science in Hospitality and Tourism. (pp. 20-
39). Apple Academic Press.
Brunt, P., Horner, S. and Semley, N., 2017. Research Methods in Tourism, Hospitality and
Events Management. Sage.
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