Analysis of Consumer Behavior and Insights for Hospitality Services

This report delves into the intricacies of hospitality consumer behavior, focusing on the decision-making processes and marketing strategies relevant to the luxury hotel, Rosewood London. It examines the five stages of the consumer decision-making process, emphasizing the importance of mapping the path to purchase and understanding consumer buying behavior. The report contrasts B2C and B2B decision-making in the hospitality sector, exploring different market research methods and approaches used to understand consumer behavior. Furthermore, it estimates how marketers can influence each stage of the hospitality decision-making process, providing examples to illustrate effective strategies. The analysis covers various aspects of consumer behavior, including the impact of digitalization, consumer trends, and the significance of factors like income level and urgency in purchasing decisions.

Hospitality consumer
behaviour & insight

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK2.............................................................................................................................................1
P3: Explain the stages of consumer decision-making process and map a path for purchasing of
hospitality services for Rosewood London.................................................................................1
P4: Inspect why it is important for marketers to map a path to purchase and understand
consumer buying process in hospitality sector............................................................................2
TASK3.............................................................................................................................................3
P5: Compare the differences of hospitality decision-making process of consumer with respect
to business to customer and business to business......................................................................3
P6: Assess the different research methods and market research approaches used for
understanding the decision-making process................................................................................5
TASK4.............................................................................................................................................6
P7: Estimate how marketers can effect different stages of hospitality decision-making process
with examples.............................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
The friendly relationship between host and guest is considered as hospitality, where host
welcoming and receiving the guest with compassion and kindness (Understanding the
Hospitality Consumer, 2020). Its aims is to assist, entertain and protect visitors or guest while
travelling. Consumer behaviour is defined as the process of studying behaviour and attitude of
someone while selecting, buying, using and disposing of goods, ideas, products, services and
experiences to fulfil needs and wants (Understanding the Hospitality Consumer, 2020).
Rosewood hotel is one of the grand and gracious hotel of United Kingdom. It is a 5 star
hotel of London which provides luxuries accommodations. Organisation offers easy booking at
reasonable & refundable prices, airport transfer in luxury cars, use of natural oils for spa, luxury
suites and rooms, safety & security etc. which provides comforts of private residence.
In this report different factors affecting consumer behaviour in hospitality, changes in
consumer trends due to impact of digitalisation are discussed. Further stages of consumer
decision making process and its importance for mapping a path for buying of hospitality services
are explained. In addition key differences of hospitality decision making process in context of
B2B and B2C described with comparison, research method and approaches for above process
and hoe markets can influence the process are also considered in the report.
TASK1
Covered in PPT
TASK2
P3: Explain the stages of consumer decision-making process and map a path for purchasing of
hospitality services for Rosewood London.
Consumer decision making is defined as the process with the help of which consumers
selects the most appropriate products and services out of various alternatives (Jauhari, 2017). It
consist of series of phases that a consumers goes through in order to fulfil the needs and wants
are explained below :
1. Recognising the need : This is the first stage of decision-making process of consumer.
In this stage the need and requirement of a product is occurs. It states that actual purchase is
happened when a consumer recognise their need for a product or service.
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2. Searching information : Second stage of consumer decision-making process is to
searching and seeking informations about the required product and service from company's
internal sources or from outside environment.
3. Evaluation of alternatives : The third stage of consumer decision-making process is
to evaluate the other alternatives of products and service. In this stage consumer closely examine
the available options in terms of price, quality, services etc. & selects the best deal.
4.Decision of purchase : In fourth stage of consumer buying process consumer decides
as what to buy and from where to buy to fulfil desire. Purchase decision is based on reviews,
recommendation, personal knowledge and requirement of a buyer.
5. Post purchase : This is related to the after purchase behaviour of consumer such as-
feels, thinks and acts regarding purchased product or service (Hofacker, Malthouse and Sultan,
2016). It is related to accessing whether consumer is happy with purchase or not.
These are the five stages of consumer decision-making process. Marketers of Rosewood
London should access the needs of customers and promoting and marketing their products and
services in such a way that meets the needs of costumers.
Stages of customer journey :- Consumer's buying journey gone through five phases of
awareness, engagement, evaluation, purchase and post- purchase. It is important for marketers of
Rosewood London to promote its products and services everywhere so as to develop brand
awareness of organisation in a dynamic way (Altinay and Taheri, 2019)(. Marketers of
respective organisation should done proper research to identify consumer needs and evaluate
effective strategies to engage more customers. It is important to offer good quality of products
and better services as compared to competitors in order to strengthen the purchase decision of
consumer. So they can feel satisfaction after purchasing of the products and services of
Rosewood London.
P4: Inspect why it is important for marketers to map a path to purchase and understand consumer
buying process in hospitality sector.
Path of purchase described as the series of channels used by consumers in respect to
convert into purchase. For instance information from e-mails, websites, apps, loyalty programs
etc. mapping of consumer journey is a visual presentation of consumer buying process. It helps
in identifying whether customer interacts with business through live-chat, apps, e-mails or any
other medium. It is important for marketers of Rosewood London to understand the process of
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consumer buying which plays important role in creating the awareness about the products and
services of company at everywhere. Mapping helps the respective organisation in identifying the
gap between the desire and experience gained by the customers. It helps in knowing the needs of
customers in order to fulfil their needs and requirements Gursoy, 2019). Thus, this is essential for
marketers of Rosewood London to identify the difficulties of consumers in completing a
purchase. Mapping helps in analysing these difficulties. This provides framework for the
company to meet the expectations of consumers and influence their behaviours while taking
decision of purchase of a product and service. Marketers of respective firm should focus on the
quality of services and goods at favourable and affording prices. They should also promote and
market its offerings at different places such as- social media, company websites, getting
customers feedbacks through e-mails etc. this leads to solving the problems of consumer buying
process and give expected results to the customers. This performs great role in enhancing the
brand image and awareness. Purchase mapping is strategic process of understanding the
expectations of buyers in a better way. Map a path plays crucial role in the development and
expansion of business through satisfying and giving better experiences for people. It helps both
the business in identifying the expectations and demands of consumers and customers in
satisfying their needs. Thus, marketers of respective company should consider this in their
organisation and expand its services in a dynamic environment.
TASK3
P5: Compare the differences of hospitality decision-making process of consumer with respect to
business to customer and business to business.
Basis of differences B2C B2B
Meaning Exchange of goods and
services between seller and
customers is called business to
customer.
While, transaction of goods
and services between two
business entities is known as
business to business.
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Focus The main focus of Rosewood
London is on offering better
quality products and services
to its consumers.
On the other hand main focus
of respective firm in terms of
B2B is on building effective
relationships with tours and
travel companies.
customer In terms of respective
organisation the main
customers are people who
stays in its hotel and consumes
their services (Varkaris and
Neuhofer, 2017).
While, as compare to B2B
tours and travel companies,
food serving organisations are
the final customers of
Rosewood London.
relationship As per B2C the hospitality
organisation marketers of
Rosewood London should
maintain effective relationship
between hotel and customers.
On the other hand marketers of
respective hotel should try to
build & maintain good
relationship with other
organisations who helps in
serving customers (Sipe,
2016).
Buying decision In terms of Rosewood London
the buying decision of its
products and services is based
on the emotional factors of
customers (Murphy, Gretzel
and Pesonen, 2019). For
instance theirs needs and
wants.
While in B2B buying decision
of business entities is planned
and based on requirements.
For instance if a business
organisation plan to arrange
meetings and conferences they
needs a hotel to fulfil their
purpose.
Target market Marketers of Rosewood
London should focus on the
customers from small and
niche market in terms of
On the other hand in terms of
B2B marketers of respective
hotel should focus on large and
broader market in terms of
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satisfying the needs of
customers.
attracting business
organisations for
collaborations (Viglia and
Dolnicar, 2020).
Buying process In terms of respective
organisation buying process is
gone through simple steps in
B2C (Ciasullo, Montera and
Palumbo, 2020). For instance
inquiry about services and
location, booking hotels and
tours, check-in and consuming
services then check-out.
While in B2B purchase
process is lengthy and gone
through multiple steps. For
instance checking rates and
reviews, inquiry about
availability of proper space of
meetings halls in the hotel,
arrangements of drinks and
snacks during meetings,
planning for tickets, bookings,
check-in, fulfilling the
purpose, check-out etc.
P6: Assess the different research methods and market research approaches used for
understanding the decision-making process.
Market research approaches
 Primary research :- This methods is used to collect first hand data and
information for the first time. The purpose of it is to collect data directly without
depending upon previously collected informations (Kenyon, Robinson and
Musgrave, 2020). Marketers of Rosewood London done primary research for
getting authentic and accurate solutions for solving specific problems of business.
For understanding expectations and preferences of customers, marketers of
respective organisation should conduct online surveys. They can also use
observation for analysing the behaviours and reactions of customers and test
marketing for selling products and services in small market to gain popularity.
 Secondary research :- It is used to collect data and information which is already
available in the market through various sources like- reports of research scholars
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and institutions, publications of government etc. it is easy and cost effective
approach of marketing research (Hoyer and et. al., 2020). Marketer of respective
organisation can use secondary approach to identify the needs of its target market,
for understanding the new trends and characteristics of market. In terms of
Rosewood London secondary research is important for promoting its offerings via
sponsors. It saves the time and cost of organisation.
Marketing research methods
 Questionnaire : It is an effective method of market research which helps in
understanding the decision-making process of consumer. This is the method
which consist of series of questions with aimed of gathering informations from
respondents. Researchers of Rosewood London can enhance the visiting of
customers by knowing their behaviour through questionnaire and then influencing
them by offerings.
 Survey : Another important method of analysing consumer decision-making
process is through conducting survey. In this method of market research
prescribed and straightforward multiple choice questions are presented for
respondents to answer (Ogbeide, Fu and Cecil, 2020). In terms of respective
organisation researchers can know the requirements and factors which influence
consumer behaviours. Then taking essential measures in services to attract
customers for experiencing its services.
 Feedback : It is also a vital method of market research which provide important
informations about consumer decision-making process. In this tool consumers are
allowed to give their opinions about their experience regrading product and
service of particular organisation. Researchers of Rosewood London should use
this method in on their company website to know how people feel about their
arrangements and services and modify if required. This helps in building brand
image of organisation.
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TASK4
P7: Estimate how marketers can effect different stages of hospitality decision-making process
with examples.
Consumer's buying decisions is based on the factors such as- theirs requirement of a
product or service, urgency of the item, quality and durability of goods, economic situations and
more. First and most important element of decision-making process if need and desire of
particular product or service. Marketers of Rosewood London should use effective approaches of
recognising the needs and urgency of a customer. Another important factor that affects
consumers buying decision is income level or financial conditions, services offered by respective
firm should be favourable or nominal. So it makes it possible for normal people to experience
their luxury and comfort. The next factor is availability of alternative options, organisations can
help their consumers by giving them strong reason how their services are different and unique as
compare to competitors (Mariani, Borghi and Okumus, 2020). This will help consumers
confusion for choosing right one. Next step of process is related to the final purchase. In terms of
Rosewood London marketers should provide effective reception, entertainment, tasty food with
proper hygiene, transportation and security services to show goodwill of organisation. Last factor
of consumer buying process is after purchase experience of customer. Management of respective
organisation should take care about meeting customer's preferences, so the customer can feel
happy after purchase. It helps in increasing goodwill and positive reviews of organisation.
Following are the approaches that influence the behaviour of consumer decision-making process
:
 Cognitive learning : The beliefs and values are develop naturally without
enforcement which reflects the unique personality of individual. For
instance reactions, suggestions and recommendation. In terms of
influencing customers buying behaviour Communication plays important
role in planning for target audience for offerings of Rosewood London.
For instance display of information and repeated message can influence
consumer to learn about companies offerings.
 Behavioural approach : It is the study of behaviours and reactions of
people in particular situations. In terms of respective organisation should
understands the behaviours of individuals before offering them. For
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instance by knowing psychological behaviours of consumers respective
organisation can gain maximum customers. This maximise the profits of
organisation.
CONCLUSION
It has been summarise from this report that primary and secondary research approaches
plays significant role in finding new trends, competitions in market which helps in better
planning for firm's offerings. Digitalisation changes the expectations of customers in terms of
use of online bookings, feedbacks, fast and quick services. This creates some challenges for
hospitality sector. Mapping a path to understand buying behaviour of consumer helps
organisation for facing these challenges and forces. It is also important for developing and
exploring the business and satisfying the needs and desires of customers which creating goodwill
of firm.
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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.
Ciasullo, M.V., Montera, R. and Palumbo, R., 2020. Online content responsiveness strategies in
the hospitality context: exploratory insights and a research agenda. The TQM Journal.
Gursoy, D., 2019. A critical review of determinants of information search behavior and
utilization of online reviews in decision making process (invited paper for ‘luminaries’
special issue of International Journal of Hospitality Management). International
Journal of Hospitality Management. 76. pp.53-60.
Hofacker, C.F., Malthouse, E.C. and Sultan, F., 2016. Big data and consumer behavior:
Imminent opportunities. Journal of Consumer Marketing.
Jauhari, V. ed., 2017. Hospitality marketing and consumer behavior: Creating
memorable experiences. CRC Press.
Hoyer, W.D., and et. al., 2020. Consumer behaviour. Cengage AU.
Kenyon, A., Robinson, P. and Musgrave, J. eds., 2020. Managing Hospitality Experiences.
CABI.
Kenyon, A., Robinson, P. and Musgrave, J. eds., 2020. Managing Hospitality Experiences.
CABI.
Mariani, M.M., Borghi, M. and Okumus, F., 2020. Unravelling the effects of cultural differences
in the online appraisal of hospitality and tourism services. International Journal of
Hospitality Management. 90. p.102606.
Murphy, J., Gretzel, U. and Pesonen, J., 2019. Marketing robot services in hospitality and
tourism: the role of anthropomorphism. Journal of Travel & Tourism Marketing. 36(7).
pp.784-795.
Ogbeide, G.C., Fu, Y.Y. and Cecil, A.K., 2020. Are hospitality/tourism curricula ready for big
data?. Journal of Hospitality and Tourism Technology.
Sipe, L.J., 2016. How do senior managers influence experience innovation? Insights from a
hospitality marketplace. International Journal of Hospitality Management. 54. pp.75-
83.
Szmigin, I. and Piacentini, M., 2018. Consumer behaviour. Oxford University Press.
Varkaris, E. and Neuhofer, B., 2017. The influence of social media on the consumers’ hotel
decision journey. Journal of Hospitality and Tourism Technology.
Viglia, G. and Dolnicar, S., 2020. A review of experiments in tourism and hospitality. Annals of
Tourism Research. 80. p.102858.
Zhang, K.Z. and Benyoucef, M., 2016. Consumer behavior in social commerce: A literature
review. Decision Support Systems. 86. pp.95-108.
Online
Understanding the Hospitality Consumer. 2020. [Online] Available through
<https://www.emerald.com/insight/content/doi/10.1108/ijchm.2003.15.2.129.1/full/
html>/.
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Understanding the Hospitality Consumer. 2020. [Online] Available through
<https://www.researchgate.net/publication/225083500_Understanding_the_Hospitality_
Consumer>/.
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