Consumer Decision Making and Marketing Strategies in Tourism

This report analyzes consumer behavior within the tourism sector, using TUI Group as a case study. It explores the influence of cultural, social, personal, and psychological factors on consumer purchasing decisions. The report examines how digital technology has reshaped consumer trends, emphasizing the importance of online presence and customer service. It delves into the stages of consumer decision-making, from need recognition to post-purchase evaluation, and highlights the significance of mapping the path of purchase for marketers to optimize ROI and customer engagement. The report also compares B2C and B2B decision-making processes, explores market research approaches, and evaluates how marketers can influence each stage of the decision-making process to enhance customer satisfaction and loyalty. The report concludes by summarizing key findings and implications for tourism businesses.

Tourism Consumer
Behaviour and
Insight

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Influence of various factors on consumer behaviour and attitude....................................3
P2 : Changes in consumer trends due to digital technology...................................................4
TASK 2............................................................................................................................................5
P3 Stages of consumer decision making and path of purchasing for a tourism service......5
P4 Importance for marketer to map a path of purchase and consumer decision making.......6
TASK 3............................................................................................................................................7
P5 Comparison between decision-making process in context of B2C and B2B....................7
P6 Approaches of market research and methods of research in decision making process.....8
TASK 4............................................................................................................................................9
P7 Evaluation of how marketer influences different stages of decision making...................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Consumer behaviour refers to the study which emphasis on the attitude of consumers
about how they purchase products, goods and services as well as how they dispose them off. It is
required for the marketers how they identify the whole process of user so that they can alter their
policies and strategies according to the requirements. In the present report, TUI Group is chosen
as the base company which is an Anglo-German multinational travel & tourism company
(Ashman, Solomon and Wolny, 2015). Headquarter of the company is located in Hannover,
Germany and was founded in the year 1923. In the present report, main focus is on the tourism
sector where identification of different elements have been done which influence the behaviour
of consumer. Along with this, it has been said that it is very essential for each and every
organisation to identify the behaviour as well as process of making so that they can fulfil the
requirements and demands of customers.
P1 Influence of various factors on consumer behaviour and attitude
The examination of groups or individuals about their buying behaviour of goods as well
as services is termed as consumer behaviour. This assist companies to produce those goods
which fulfils the requirement of consumers. Also, it determines those factors that impact the
buying behaviour of customers. In the current situation of TUI Group, the upper level authorities
analyse factors that effects the purchasing behaviour of buyers as well as customers. Below are
some of the factors:
 Cultural factors :Those factors that affect customs, beliefs, norms, values and perception
that is highly developed by culture where customer live. The consumers are divided into
three segments that is lower, middle and high class customers (Banerjee, 2017). In
context to TUI Group, they have different packages according to the class of people
which helps them to easily deal with the customers. For instance, a lower class people
prefer to travel nearest cities as per their budget.
 Social factors : The factor that includes those people who are close to the user such as
family, friends, colleagues, society and so on. These people are highly affected by the
purchasing behaviour of users of a product. In Tourism sector, the destination choices of
people is different depending upon the age and type of people (Carpenter and Yoon,
2015). For example, young people prefer to go places where beaches, clubs are there

whereas old peoples prefer to go religious paces. TUI Group plans and make packages as
per the type of customers.
 Personal factors : Factors such as economic conditions, buying behaviour, age and many
more affect purchasing power of customers. In the current context of Tourism sector, if
the customer is young and prefer small trip than 2 day package is suitable for her that is
also depends upon his income.
 Psychological factors: It includes motivational level, learning and perception of
consumers that effect on consumer behaviour of purchasing. With reference to Tourism
industry, any customer who plans to travel take suggestions and discuss it with friends or
family that affect their behaviour (Charter and Polonsky, 2017). Nowadays, customer
reviews are also plays an crucial role in taking the decisions of customers as it helps
customers to go or not to go for the place they choose.
With these factors, there are also few challenges that is faced by companies in order to give
satisfaction to customers and fulfilling their requirements. Therefore, there are some dimensions
that is followed by companies in giving effective services to customers. These are as follows:
 Tangibility : The detailed information is provided to the consumers in order to maintain
visibility in front of customers. This will satisfy the customer and builds loyal customers
for TUI Group.
 Reliability and Responsiveness : Fulfilling and completing the promises that is provided
with the services assist companies to engage customers for long time and enhance the
customer base of organisations.
 Assurance : The workforce have proper skills as well as knowledge that helps in
handling and solving the issues of customers. This will lead to customer satisfaction
which in turns increase market share (Frederiks, Stenner and Hobman, 2015).
P2 : Changes in consumer trends due to digital technology
Technology plays a very crucial role in buying behaviour of customers as well as demand of
customers. Due to innovative technologies, customers get the whole information about goods ad
services easily and in a short span of time. It is necessary for Tourism industry to adopt digital
technologies in order to survive and compete with rivals in the market. In addition to this, this
assist companies to give quality and quick services to the customer. In context to TUI Group,
some of the customers trends are discussed below that affect tourism industry:

 Impact of Technology : Due to innovation in technologies, it is essential for overall
industry to change and alter their services accordingly (Karimi, Papamichail and Holland,
2015). With reference to TUI Group, the managers of the company develop apps and
official sites in order to give convenience to customers. This aid customers to search or
book trips from wherever they are as per their needs. This technologies helps TUI Group
to retain their customers loyal towards them.
 Increases focus on health : Nowadays, people prefer to go on those places which is of
good environment and did not affect their health. In context to TUI Group, the company
offer those trips to customers which is safe for their health. The place is suitable in terms
of environment and health for customers (Maniatis, 2016). Therefore, it captures the eyes
of more peoples and the customer base if TUI Group increases.
 New roles for staff : in today's world, customer wants that their issue is solved online at
any time. As most of the customers prefer online bookings facilitates. Therefore, it is
necessary for TUI Group to hire skilled and talented staff who can handle issues or give
appropriate services to the customers. In addition to this, the employees have the ability
to cope up with the changes quickly and work according the new trends of market. Also,
these employees give professional and quality service to customers which directly leads
to customer satisfaction (Mihaela, 2015).
TASK 2
P3 Stages of consumer decision making and path of purchasing for a tourism service
Decision making process refers to the process of gathering information, analyse the
needs, identifying alternatives and after that take decisions regarding purchasing of a particular
product. These process are affected by various factors such as social, psychological, emotional,
environmental and so on. By the help of this process, companies make market position and gain
market share successfully. With reference to TUI Group, the upper level authorities should
understand the buying behaviour of customers before bringing new services in the market. There
are various stages of decision-making process which are as follows:
 Need Recognition : At this point, marketers identify the requirement of customers and as
per this they make strategies to bring new products in market. In context to TUI Group,
the manager of the company examines the needs and trends of the market (Pappas, 2016).

 Searching & collecting information : This stage takes place after the needs is identified.
The marketers collect information about the substitutes and alternatives of products that
exist in the market. They use different sources such as personal contacts, secondary data,
printed sources etc. with reference to TUI Group, Te upper level authorities have high
personal contacts through which they gather the information that is required.
 Evaluation of alternatives : After gathering the information, the managers make the
estimate of cost that occurred in manufacturing of new products in contrary to the cost of
its rivals. They examines the features and characteristics of alternative product in order to
offer something unique in the market (Petersen, Kushwaha and Kumar, 2015).
 Purchase of goods or services : At this point, the product is launch in the market and the
users has to take decisions regarding purchasing or not to purchase the product. With
reference to TUI Group, their customers compare its services with other substitute and
then take decisions whether to use their services or not.
 Post-purchase evaluation : This stage takes place after purchasing and consuming of
goods that is offered by the company. In context to TUI Group, the upper level
authorities provides extra service to its customers.
In state of setting a path of its features , the services that is offered by TUI Group is considered.
For this process, a formal meeting is organised in which all the staff of the company is invited.
 Pre-purchase : The user first identify the place where they held they formal meeting. In
addition to this, they examine about the number of guests in order to make bookings.
 Purchase : After choosing the hotel or venue, the user identify the services that is going
to provide by the hotel to the customers (Ramya and Mohamed Ali, 2016)(Rezaei, 2015)
(Rezaei, 2015). With reference to TUI Group, its travel agency is booked by the user in
order to give quality service to its customers.
 Receive : At this point, the user receive services given by TUI group. In the current
context, the user receive quality service from the company. If services offered by them
satisfy the requirements of users then it will gain customer loyalty.
 Post-purchase : At this sage, customers evaluate provided services with the services that
is promised by the company at the time of booking. For instance, if the meeting that is
organized is successful then user will take services in the future also (Ramya and
Mohamed Ali, 2016).

P4 Importance for marketer to map a path of purchase and consumer decision making
Main motive of every business entity is to satisfy the needs and requirements of customers
by doing their business functions effectively. Decision making process users helps marketer in
identifying all those elements which are considered properly when they buy anything from the
company (Rezaei, 2015). Importance of mapping a path of purchasing goods and services are as
follows: Rising ROI : As it helps in identifying the main behaviour, intention and reason behind
purchasing products, marketer need to target all the capable and potential users along
with positioning high quality products and service. This assist in increasing their whole
sales ratio as well as return on investments by providing them customized services.
 Unified Customer Data as well as continued engagement : Mapping highly helps a
institution by collection data of users which they have but are not in systematic way. This
will help in arranging all the information in an appropriate and proper manner of
different customers as well as focuses on particular consumers (Rezaei, 2015).
Mapping helps in identifying various stages of decision making which are as follows:
 Extensive Problem solving : It refers to the level where customers purchase all those
unfamiliar goods generally takes lot of time for deciding whether to buy or not. In
addition to this, it needs effective data by doing proper investigation. Limited Problem solving : In this stage users become familiar with the products and
services along with various substitutes available at the marketplace. For examining
differences it is very important to put some more efforts so proper results will be attained.
 Routine Problem solving : As per this stage, customers buy goods on continuous basis
which requires low time and information. All these products are the basic necessities of
individual person and requires for daily consumption (Verhoef, Kooge and Walk, 2016).
TASK 3
P5 Comparison between decision-making process in context of B2C and B2B
It has been analysed that there are mainly of two methods for B2b and B2C in order to
do any kind of commercial transactions between customers and organization. A basic
comparison is done between both B2B & B2C are discussed in detail manner are as follows :
Basis B2B B2C

Meaning It is the process where goods and
services are generally sold to various
organisations. For instance, a tourism
industry hire skilled staff members
from a consultancy company (Wang
and Yu, 2017).
In this context, goods as well as
services are sold to the users so their
requirements and demands will be
fulfilled. For example, packages
shown by managers will be fulfilled
by providing same to the customers.
Customer It has been analysed that users can be
a business entity just like vehicle
provider is the customer of travel
industry. They are the one who
provide travelling buses to the
company in order to fulfil the
requirements of customers.
In reference of B2C customers are the
end users. In the current situation of
tourism industry, customer who use all
the facilities are the users of the
company.
Focus The prime emphasise is to develop
strong and positive relationship with
different business organisations. For
example, a tourism company wants to
maintain positive relations with
different buses and vehicle companies
so that they can provide them services
whenever they requires.
The main focus is generally on the
goods and services sold by them to
their consumers.
P6 Approaches of market research and methods of research in decision making process
Market research help marketer to identify the present market situation along with the
demands and requirements of consumers. On the basis of gathered information, company
produces products and services accordingly. Therefore, it is required to conduct such type of
investigation on a continuous basis so they will be able to compete It is with the companies
available at the marketplace (Charter and Polonsky, 2017). In order to conduct market research
there are different types of ways used by both B2B and B2C.

Market Investigation approaches in B2B : It is the kind of business entity which is
highly concerned with different types of organisation and for this they use secondary method for
research. The information which is collected by the different business organisation might be
beneficial for the company and use them as reference. In addition to this, these investigation
help in examining all the elements which influences business relations in both positive and
negative manner. Some key sources used by the management team for collecting data are going
to be discussed as follows.
 Government agencies : With the assistance of such types of agencies, all the collected
data and information are authentic and reliable which provide help in different segments.
In addition to this, such type of agencies and companies help tourism industry in reducing
adverse affect on the functionality of business organisation within the market place
(Verhoef, Kooge and Walk, 2016)
 Publications : With the help of publication, all the information published in newspaper
related to tourism industry. If there is any kind of changes and modification arise within
the sector which affect the relationship of customers with suppliers will be published in
such type of publication.
Market Research approaches in B2C : It defines as the business organisation which
generally concerned with customers in a direct manner. Therefore, in this case management
team uses primary source in order to gather authentic data and information. With the help of
primary method for collecting information are as follows:
 Questionnaire : It is the method which is generally used by management team of TUI
are questionnaires. With the assistance of using questionnaire method, marketer can
easily examine needs and wants of individuals. In addition to this, it will also help in
examining all those factors which influences the purchasing behaviour of consumer
(Banerjee, 2017).
TASK 4
P7 Evaluation of how marketer influences different stages of decision making
For each and every business entity, consumers or end users play very important role
and the reason behind this is that they are the prime source of their earnings. Therefore, for
tourism sector it is essential by the management team to consider every needs and requirements

of customers in an appropriate manner. Apart from this, marketers also plays significant role as
they highly affect users for buying and enhancing experience and knowledge (Karimi,
Papamichail and Holland, 2015). In order to gain understanding about how marketers influence
decision making process of customers, there are some key examples which are given as follows:
The marketer within tourism industry must focuses on executing new, unique and
innovative services, which as a result help them in influencing their decision making process. For
example, a marketer among tourism sector need to develop as well as execute effective policies
and strategies so that they can give personalised services to the users according to their demands
and needs. If a family decides to go for a trip, tourism industry help them in developing
customised packages according to their requirements and made modifications in their package
for fulfilling their needs. This will highly influence process of decision making in an affirmative
way and helps company in order to raise their profitability at the marketplace (Charter and
Polonsky, 2017).
Another instance for a tourism industry which affects consumers decision making process
is feedbacks and reviews from customers on regular basis. For example, if management team of
TUI take feedbacks from their customers on a continuous basis and modify their service as per
their suggestions might influence the attitude and behaviour of users in a positive manner. With
the help of this, large number of customers will be able to attract towards the company which
increases their overall profitability and sales at the competitive marketplace.
Therefore, it is identified that these are some factors which need to considered by the
marketer as they highly influence the behaviour of consumer in both positive as well as negative
manner (Xu, Frankwick and Ramirez, 2016).
CONCLUSION
With the assistance of above stated, it is concluded that it is very essential to identify
attitude and behaviour of users. This report assist in developing an understanding about how
reaction of individual affects the society, friends and family in both positive as well as negative
manner. Furthermore, trends and demands have their influence on the business functionality
which affects their performance and profitability. Apart from this, it has been identified that
market investigation helps in identifying all the issues along with problems which may rise
within the organization associated with customers as well as suppliers both.

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