Analyzing Tourism Consumer Behavior and Decision-Making Process

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This report comprehensively examines consumer behavior within the tourism industry, focusing on factors influencing decision-making and the impact of digital technology. It investigates cultural, social, personal, and psychological influences on consumer behavior, providing insights for organizations like Prestige Holidays. The report explores the consumer decision-making journey, mapping a path to purchase for tourism services, and highlights the importance of understanding this process for marketers. Furthermore, it compares and contrasts B2C and B2B decision-making in hospitality, evaluates market research approaches, and analyzes how marketers can influence the tourism decision-making process. The report emphasizes the need for tourism businesses to adapt to changing consumer trends and expectations, leveraging technology and data to enhance customer experiences and achieve competitive advantages. The report provides a detailed analysis of consumer behavior in tourism and offers strategies for effective marketing and business development.
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TOURISM
CONSUMER AND
BEHAVIOUR
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Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Investigate the different cultural, social, personal and psychological factors that influence
consumer behaviour and attitudes with a tourism context.....................................................4
P2 Explore how consumer trends are changing due to the impact of digital technology......5
TASK 2............................................................................................................................................7
P3 Examine the stages of the consumer decision making journey and map a path to the
purchasing for a given tourism service...................................................................................7
P4 Explore why it is important for marketers to map a path to purchase and understand
consumer decision-making in the tourism sector...................................................................8
TASK 3............................................................................................................................................9
P5 Compare and contrast the key differences of the hospitality decision-making process in the
context of B2C and B2B using specific tourism examples....................................................9
P6 Evaluate the different approaches to market research and methods of research used for
understanding the decision-making process.........................................................................11
TASK 4..........................................................................................................................................12
P7 Evaluate how marketers can influence the different stages of tourism decision-making
process giving specific tourism examples............................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
This report revolves around importance of consumer behaviour for any organisation.
Consumer behaviour help organisation in understanding their buying pattern which help in
developing appropriate strategies and plan for development of business. Tourism sector basically
falls under service sector provides experience to consumer in exploring new places. This report
is based on organisation Prestige holidays which focuses on providing great experience which
can help in satisfying their consumer and help organisation in boosting its revenues. This report
covers information about importance of cultural, social and personal factors in influencing
consumer behaviour and how prestige holidays can boost their productivity by analysing
consumer behaviour. Consumer behaviour is explained as thought and ideas which influences
decision of individual in buying products and services. This report provides information on
several points such as consumer decision-making, impact of digital technology on consumer and
different stages of tourism decision-making (Adedoyin, 2021).
TASK 1
P1 Investigate the different cultural, social, personal and psychological factors that influence
consumer behaviour and attitudes with a tourism context
Consumer behaviour depends on different ideas and thought which occurs in consumer
minds and it help in influencing consumer decision-making regarding tourism organisation.
There are factors such as cultural, social, personal and psychological factors which play vital role
in influencing consumer behaviour and these points are mentioned below and how it can help
Prestige holidays in analysing consumer behaviour and attitude.
Cultural factors
Cultural factors plays vital role in consumer buying behaviour. Cultural factors are explained as
values, perception, needs, wants which are learned by consumer from the people around them.
There are different culture at different places and in order to understand consumer buying
behaviour Prestige holiday managers have to understand culture of target market. Managers have
to focus on providing services to consumer which can satisfy their needs and wants (Băltescu,
2019).
Social factors
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Social factor is explained as norms and values which affect mindset of consumers and influence
buying behaviour of consumer. Prestige holidays which is operating their business in London
should focus on understanding social factors which influences consumer buying behaviour.
Prestige holidays should focus on understanding needs of consumer such as there are different
age of people in group and in order to make their tour effective organisation should focus on
providing better facilities such as for children, tour company can provide facility like theme
parks etc. For adults organisation can provide service such as swimming, gym etc. as these
facilities help in making better experience for their consumers and help in satisfying consumer
which help in boosting their revenues.
Personal factors
Personal factors is explained as needs and wants of consumer and analysing those needs and
wants of consumer in order to understand consumer buying behaviour. Every consumer have
own needs and wants, organisation focuses on understanding those need to develop suitable trip
for them. Prestige holidays managers focuses on understanding needs and wants of consumer and
providing services according to their need (Bigne and et. al., 2018).
Psychological factors
Psychological factors is explained as factors which help in influencing perception of consumers
and motivate them to buy products or services. Psychological factors include perception of
consumers, motivation attitude etc. These are some psychological factors which influence
consumer buying behaviour. Prestige holiday managers focuses on understanding these factors
and provide appropriate tour packages for their consumers.
P2 Explore how consumer trends are changing due to the impact of digital technology
Digital technology have affected business of every organisation as it made its impact on
consumer behaviour. Digital technology help consumers in connecting with current market
trends and it help in understanding current market trends which help them in understanding their
needs and wants. Information about any product or service is easily available through digital
technology. It help consumer in accessing information about any product or services and help in
determining its need and wants (Csikósová, 2019). Tourism industry have to make sure that
industry can use digital technology as a tool to understand behaviour of consumer and Prestige
holidays have to focus on understanding market trends which are affecting consumer behaviour
and effect of these trends on tourism industry are mentioned below:
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Technological factor
Tourism industry have to focus on updating their technology to sustain in market and it help
industry to understand current market trends and help in innovating their services according to
need. Prestige holidays have their own website and application for their services which help
consumers in understanding services of Prestige holidays and it help in attracting consumers. By
the help of online website consumers can plan their trip or book their tickets for any destination
and this help consumer in saving their time and it is considered as one of effective and efficient
method. These days organisation focus on implementing changes in organisation in terms of
technology which can help them in achieving competitor advantage over their competitors and
help organisation in keeping track with changing market trends. Technology help consumer in
understanding about products and services of organisation and consumer understand about
product by reviews of consumer who same product and services in the past. Prestige holidays
focuses on using technology as a tool to get effective results by engaging consumers with
organisation (Filimonau and et. al., 2018).
Higher expectations of consumers
Every consumer have higher expectation when it comes to buying any product or services. These
days consumer are ready to invest good amount as consumers only need quality products which
can satisfy their needs and wants. Prestige holidays managers focuses on giving exciting offers to
their consumers and focuses on providing experience which they have never experienced. These
days consumers can access services of any organisation and choose appropriate services
according to their needs and wants. Technology is continually evolving these days and in order
to be competitive Prestige holidays have to develop their strategies according to market trends
which can help organisation in satisfying need and preference of their consumer and it help
organisation in maximizing its productivity and profitability. With growing competiton in
tourism industry and new organisation coming in market Prestige holidays focus on retaining
existing consumers with organisation and attracting new consumer which can help Prestige
Holidays in capturing market share and boosting profit of organisation. Prestige holidays focus
on providing services which can satisfy their consumer and focus on satisfying high expectation
of consumers. Prestige holidays focus on providing exciting trip packages to their consumer by
using digital media as a tool and it help Prestige holidays in doing effective and efficient
marketing (Font and McCabe, 2017).
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TASK 2
P3 Examine the stages of the consumer decision making journey and map a path to the
purchasing for a given tourism service
Decision-making journey of consumer explained as process of understanding need and
preference of own and acquiring product and services according to new of self. Decision-making
journey of consumer is affected by several factors such as perception, price, quality etc. It
includes several steps such as finding out need and wants, analysing all available options,
choosing best option from all available option and final step which includes buying product.
Decision-making of consumer depends on several factors such as culture, social, personal and
psychological. This process help organisation in understanding buying behaviour of consumer
and help in providing appropriate product and services according to their needs and preferences.
Prestige Holiday managers have to understand steps included in this process and develop
appropriate plan according to these steps which are mentioned below:
Need of consumer
In this needs and wants of consumer are analysed and it help in understanding that what kind of
product and service is needed by consumer. Analysing need of consumer help organisation in
developing product according to their needs and preferences. Identifying consumer help
organisation in satisfying their consumer which help in retention of consumers and help in
boosting profits of organisation.
Gathering Information
In this stage consumer focuses on product which are available in the market which can satisfy
their needs or alternative which are available in market. Consumer uses different sources to
identify alternative in market and which can satisfy their needs and wants. Prestige holidays
focus on analysing their need by their reviews about product or services (Ismagilova, E., and et.
al., 2020).
Evaluating alternative
In this stage available alternative of products are compared by consumers in terms of quality,
price and level of satisfaction it provide to consumers. Consumers also focus on comparing
substitutes with products in case of dissatisfaction from product.
Purchase of product
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In this stage consumer buys the product after analysing and evaluating alternative. Purchasing of
product bring satisfaction to consumer because consumer have spent lot of time and effort in
analysing and evaluating products and took its decision very carefully.
Post-purchase evaluation
In this stage consumer evaluates benefits of product and focus on satisfaction it brings to
consumer. This stage help consumer in evaluating about product and deciding to stay loyal with
this product or not in future.
P4 Explore why it is important for marketers to map a path to purchase and understand consumer
decision-making in the tourism sector
Every organisation focuses on analysing and evaluating decision-making process and
importance of decision-making process of consumer which influence consumer buying
behaviour. Mapping path to purchase help organisation in determining need of consumer and it
help organisation in retaining their consumer. Importance of path mapping are mentioned below
in several points:
Attracting consumers
Mapping help in understanding reason behind buying product and it help organisation in
targetting potential consumers for their product or services. It help organisation in boosting their
profits and gaining market share (Juvan and et. al., 2017).
Engaging consumers
Mapping help organisation in gathering information about their buying behaviour and also help
in satisfying consumers which are loyal with organisation and help in engaging new consumers
with organisation. Mapping help in arrangement of data related to consumer buying pattern.
Mapping play vital role in decision-making process and there are various levels which are related
with this and those levels are mentioned below:
Problem Solving Extensively
This is for the products which needs longer period of time and consumer needs time to make its
decision for the products. This type of product needs lot of time and research which help
consumer in making effective decision.
Solving problems limitedly
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In this consumers know about the product and understand attributes of the product and also
understand all the substitutes which are available. In this type little effort is required from
consumer side.
Solving problems in routine
In this products are used by consumers on daily basis and no such information is required by
consumer and these products are used by consumers on daily routine.
TASK 3
P5 Compare and contrast the key differences of the hospitality decision-making process in the
context of B2C and B2B using specific tourism examples
B2C is explained as transactions among business to consumer and B2B is explained as
transactions among business to business. B2B is explained as business that is conducted among
two companies and B2C is explained as strategies and plans implemented by organisation to sell
their product to consumers. Comparison between B2B and B2C is mentioned below:
Basis B2B B2C
Meaning In this business is conducted
between two organisation and
there is no involvement of
consumer in it. Business
transactions can be related in
terms of finance resources etc.
For example tour operators
rent bus directly from bus
owner (Korstanje, and
Seraphin, 2017).
In this business is conducted
among consumer and
organisation as organisation
sells their product and services
to consumer in order to boost
profit of organisation. For
example bus operators directly
provide bus tickets to
consumer.
Customers Business organisation are
considered as customers here.
End users are considered as
consumers.
Focus Focus is to maintain
relationship with other
organisation which is
Focus is to maintain consumer
which buy product and
services of organisation and
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considered as consumer
(Mathew and Soliman, 2021).
help organisation in boosting
their revenues.
P6 Evaluate the different approaches to market research and methods of research used for
understanding the decision-making process
Market research help organisation in understanding market trends and scenario which
help organisation in developing appropriate plan and strategies for organisation and it help in
implementing necessary changes in an organisation. It help organisation in understanding need
and wants of consumer and help in developing product according to need of consumer.
Organisation focus on doing research on routine basis as it help in understanding market
scenario. There are different method and approaches to conduct research which are mentioned
below:
Market research approaches in B2B
B2B is explained as transaction among two organisation and data used in this research is
secondary data. It help in understanding need of business organisation and help in maintaining
relationship among organisation. There are different sources through which secondary data is
gathered and sources are mentioned below:
Government agencies
Government agencies help in providing appropriate data to organisation and it help organisation
in acquiring useful data for implementing effective business strategies.
Publications
Publications include different sources such as magazine and newspapers which help organisation
in implementing changes in organisation and it help in maintaining relationship with suppliers
and retailers (McKercher, 2018).
Market research approaches in B2C
B2C is explained as transaction among consumer and organisation. Primary data is collected to
understand need and demand of consumers. Sources for collecting primary data are mentioned
below:
Questionnaire
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Questionnaire help in learning about consumer buying behaviour and help in understanding
about factors that affect buying behaviour of consumer (Skavronskaya and et. al., 2017).
TASK 4
P7 Evaluate how marketers can influence the different stages of tourism decision-making process
giving specific tourism examples
Consumer help organisation in boosting their revenues and also helps in maximizing
productivity and profitability of organisation. There are different stages which can help in
influencing decision-making process and it help managers of Prestige holidays in understanding
need and preference of consumers. Marketers help in influencing decision-making of consumer
and influence buying behaviour of consumer.
Role of marketer in tour agency is to implement new plan and strategies which can help
in influencing consumer buying behaviour. Prestige holidays focus on making personalised trips
which help in fulfilling need and wants of consumer. By the help of marketers, Prestige holidays
can make changes in their trips according to need of consumer. This help consumer in
influencing decision-making process of consumer and help in attracting new consumer. This help
organisation in engaging new consumer and help in boosting growth of organisation.
Prestige Holidays can focus on making change in their plans which is offered to
consumers. Prestige Holidays can change their plans in terms of need and want of consumer as
organisation can provide personal tour agent, room according to their need, food according to
their taste and preference and these changes help organisation in providing suitable option for
consumer (Wozniak and et. al., 2018).
Prestige holidays can make changes in their packages by providing services according to
need and managers focus on reaching out to friends and families of consumers. Managers
focuses on providing services which are not provided by other tourism organisation and
providing better experience to consumer in comparison to their competitors. Prestige holidays
help consumers in planning their trip according to their need and make sure that it should be
flexible and effective for consumers.
Implementing suitable changes in packages of consumer help Prestige holidays in satisfying their
consumer and it also help in retaining existing consumer and engaging new consumer with
organisation.
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