Analysis of Consumer Behavior and Decision Making in Hospitality

This report provides a comprehensive analysis of consumer behavior within the hospitality industry, focusing on the factors that influence consumer decisions and attitudes. It explores the impact of digital technology on changing consumer trends, detailing the stages of the consumer decision-making process, and the importance of path mapping for marketers. The report examines hospitality decision-making in both B2B and B2C contexts, and discusses research methods used to understand the decision-making process. Furthermore, it highlights the influence of marketers on consumer choices, including problem recognition, information collection, specification, and the use of advertising campaigns. The Royal Crescent Hotel is used as a case study throughout the report to illustrate these concepts.

Hospitality Industry Consumer
Behaviour
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1.................................................................................................................................................3
P1 Factors influence Consumer behaviour and attitude in Hospitality.......................................3
P2 Impact of Digital Technology in changing Consumer trends................................................3
LO2..................................................................................................................................................3
P3 Stages of the consumer decision making process in hospitality sector.................................3
P4 Importance of mapping path for marketers based on consumer decision making.................4
LO3..................................................................................................................................................4
P5 Hospitality decision making in the context of B2B and B2C................................................4
P6 Methods and Approach for research to understand the decision making process.................5
LO4..................................................................................................................................................6
P7 Influence of Marketers in Hospitality decision making process............................................6
CONCLUSION...............................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Hospitality industry is a broad category within the services industry which includes food
and beverage services, lodging, transportation, theme parks etc. This industry is growing on a
large scale and is considered as huge contributor towards country’s economy.. In this report all
the factors that influence the behviour in the hospitality industry will be discussed. All the
impacts of digital technology on changing consumer trends will also be discussed in this report.
All the stages of consumer decesion making in hospitality industry will also be brief about in this
report. Various researches will also be discussed to evaluate the influence on the decesion
making process of the customer in hospitality. In this report hotel Royal Crescent has taken as an
organisation. The Royal Crescent Hotel is a luxury hotel built in the year 1774. The hotel located
in Somerset, England. John Wood, the younger was the architect of the hotel Royal Crescent.
Georgian style of architecture has used in building this hotel
LO1
P1 Factors influence Consumer behaviour and attitude in Hospitality
P2 Impact of Digital Technology in changing Consumer trends
Coverd in PPT
LO2
P3 Stages of the consumer decision making process in hospitality sector
There are various stages of consumer decision-making journey in hotel selection. Such
stages are :
Review Model: All the travellers like to see the reviews of the choosen hotel. Reviews put a
huge impact in hotel selection (Kaushik, Agrawal and Rahman, 2015 ). All the guest like to stay
in the hotel that shows the best reviews. These reviews are based on the experiences of the
people in the stay of the particular hotel. Hotel Royal Crescent always rush brcause of the
visitors or guests and the good reviews of the hotel is probably among one of the reason.
Facilities Threory: Facilities becomes very crucial in the hotel selection. Visitors always focus
on the facilities that hotel provide during the stay. Hotel Royal Crescent is best known for its
royal facilities to all its guest. It is probably among one of the reason behind its huge demands in
the visitors.
Prices Theory : Prices play the huge impact in the decesion making of the guest in choosing
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hotel. All the consumers select the hotel which best feet in to the budget. Price play the major
role in staying decesion. Hotel Royal Crescent offers the best to its vesitors in very affordable
price range that put an impact in the decesion making of its consumers.
Location Theory: All the consumers like to stay in a hotel that has the most attractive location.
Hotel Royal Crescent stays always in huge demand because of its Royal location that offers the
best to its consumers.
P4 Importance of mapping path for marketers based on consumer decision making
Setting Campaign: Path mapping always plays the crucial role in setting the marketing
campaign for all the customer base of Hotel Royal Crescent. Based on the decesion making of all
the travellers the marketing campaign is set to attract the customer base.
Attractive Services: Based on the decesion making of the customer Hotel Royal Crescent
always try to serve the best services possible so it can make a good impression in all its
consumers (Kaushik, Agrawal and Rahman, 2015 ). Facilities and services is always amongst a
big demands for the customer and it is crucial to make a good market image.
Prices: Path mapping plays the very crucial role in setting the prices of all the services Hotel
Royal Crescent offer to all its customers. As per price theory all the customer like to stay in the
most affordable hotel and that becomes the crucial part of the decesion making of the customers.
LO3
P5 Hospitality decision-making in the context of B2B and B2C
B2B: B2B denote to Business to Business. Following factors influence the decesion making:
Purpose: In case of B2B usually the purpose to book the hotel is for business meetings and some
times specific ocasions.
Services: Usually in case of B2B company look at all the services that is best suit the purpose of
the booking related to the business.
Atmosphere: In case of B2B businesses see the most appropriate atmosphere based on the
purpose of booking. Hotel Royal Crescent provide the atmosphere that looks suitable for all the
purposes related to the business.
B2C: B2C denote to Business to Customer.
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Purpose: In case of B2C usually the purpose of booking is to crack the deal or to talk about
some deals that relate to sale of the product or services.
Services: In case of B2C business see the services in the hotel that can give the best vibe to its
customer. Hotel Royal Crescent is all about vibe and company book the hotel to meet its
customer requirements or to put an good impression on the client.
Atmosphere: In case of B2C Businesses see the atmosphere based on the clients. The purpose is
generally to impress the customer so company take the most suitable atmosphere to impress the
customer. Hotel Royal Crescent gives the vibe of Royalty and generally company use this hotel
to put a good impression over its customer.
P6 Methods and Approach for research to understand the decision-making process
Hotel Royal Crescent can follow two approaches to conduct the research about consumer
decesion making process. One is quantitative approach and the second one is qualitative
approach.
Primary Research
Primary research include all the primary factors that can be a part of the decesion making
process of the customer. Such primary factors can be a part of primary research are as follows:
Data Collection: Hotel Royal Crescent can collect data based on multiple approaches regarding
all the potential customer base. The data collection will include the existing customer and the
new expected customer base (Patwary and Rashid, 2016). Data collection is always a crucial
factor in conducting any research because it put a huge impact on the entire research programe.
Hotel can use various mediums such as social sites and many other agencies to collect the data
reagarding all the potential customers. Data collection is a quantitative approach for the research
on decesion making process.
Information Search: Hotel Royal Crescent can search about all the informaation regarding all
the potential customer base. This information will include all the basis at which consumer make
its decesion. Hotel can use social sites or social media to collect the information related to the
customers. This information will give the complete brief about the requirements of the
customers.
Secondary Research
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All the secondary aspects or more can be said as qualitative factors that comes in the
decesion making process of the customer's related to the hotels will be a part of secondary
research.
Social Analysis: Hotel Royal Crescent can assess about all the social aspects that affect the
decesion making of all the customers. These social aspects will be based on the beleifs, values
and perspectives of the consumers. Social aspect put the huge impact on the decesion making of
the customers and some times this can be the ultimate reason to choose the hotel.
Cultural Analysis: Hotel Royal Crescent can look at the complete brief about the cultural
aspects of the customers. Cultural factors put the huge impact and hotel can look cultural factor
as qualitative part of the research. Cultural aspect attract the many customers and it influence the
decesion making of the travellers alot. Cultural aspects is also related to the social factor but it
has some differentiation so it can be approach spcefically in the research.
LO4
P7 Influence of Marketers in Hospitality decision-making process
Marketers influence the decision-making process of consumer through various techniques
Problem Recognition: Marketers in hotel Royal Crescent use the basis of researches and
identify the problem a consumer face in the decision-making related to the hotel. They identify
the problem and bring out the solution and highlight it for the customer (Gupta, 2019). Based on
the problem recognition method marketer try to convey the solution of all the problem customer
face in choosing the hotel so it can attract to the customer in the most efficient way possible.
Information Collection: Marketers of the Hotel Royal Crescent collect various information
about all the potential customer base of the hotel from the research program. Based on the
information marketer conduct the most efficient marketing campaign that can attract the
customer base effectively. Sometimes some specific information becomes the whole reason
behind the decision-making and marketers try to use such information to attract the customer
base.
Specification: Marketers of Hotel Royal Crescent use specification technique to attract the
customer base. With specification marketer specifies all the positive aspects of the hotel that
create the unique image of the hotel Royal Crescent. Uniqueness always create a huge impact in
the decision-making process and it brings some enthusiasm for the traveller to stay in the hotel.
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Marketers use advertisement campaigns to highlight the specification of the hotel. Hotel Royal
Crescent gives the very royal vibe to all its customers and that factor works a lot for the
marketers to attract the decision-making process of the customers.
Advertisement Campaigns: Advertisement campaigns becomes the main reason for the
attraction towards the hotel (Fan and et.al.,2016). Marketer of hotel Royal Crescent use all the
effective advertisement mediums to influence the decision-making of the customers. Marketers
of the hotel use social media, magazines, journals, books and many such effective methods
which can take a huge role in influencing the decision-making of the customers. Hotel Royal
Crescent invest a couple of money in the advertisement campaign of the hotel.
CONCLUSION
This report concluded about all the factors that influence consumer behaviour and
attitude during the stay in the hotel. This report also conclude the impact of information
technology on the changing trends of the consumers. This report also conclude about the
different stages in decesion making process of the customer. This report also conclude about the
importance of the marketer to map the path to understand the decesion making of the consumer.
Comparision between decesion making processes of B2B and B2C has also concluded in the
report. All the methods and approaches of market research to understand the decesion making
process of consumer has also concluded in this report. All the influences of marketers on the
decesion making process of customer has also concluded in the given report.
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REFERENCES
Books and Journals
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Dahiya, K.S. and Batra, D.K., 2016. Travel industry selecting between online and offline
mode. International Journal of Scientific and Research Publications.6(9). pp.694-701.
Fan, A.A. and et.al.,2016. The impact of other customers and gender on consumer complaint
behaviour in the Ecuadorian restaurant setting. European Journal of Tourism,
Hospitality and Recreation.7(1). pp.21-29.
Gupta, V., 2019. The influencing role of social media in the consumer’s hotel decision-making
process. Worldwide Hospitality and Tourism Themes.
Kaushik, A.K., Agrawal, A.K. and Rahman, Z., 2015. Tourist behaviour towards self-service
hotel technology adoption: Trust and subjective norm as key antecedents. Tourism
Management Perspectives.16.pp.278-289.
Mariani, M.M., Borghi, M. and Kazakov, S., 2019. The role of language in the online evaluation
of hospitality service encounters: An empirical study. International Journal of
Hospitality Management.78.pp.50-58.
Ng, C.Y.N., Wong, B.K.M. and Ma, E., 2017. Antecedents of consumer loyalty. In The
Routledge Handbook of Consumer Behaviour in Hospitality and Tourism.(pp. 263-
276). Routledge.
Patwary, A.K. and Rashid, B., 2016. The impacts of hospitality services on visit experience and
future visit intention of student travelers. International Journal of Business and
Technopreneurship.6(8).pp.107-125.
Potwarka, L.R. and Jiang, K., 2017. Consumer behaviour and the Olympic Games. In The
Routledge Handbook of Consumer Behaviour in Hospitality and Tourism.(pp. 469-
478). Routledge.
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