A Report on Consumer Behaviour in the Hospitality Industry Analysis

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This report delves into the multifaceted realm of consumer behavior within the hospitality industry, employing The Montcalm Hotels as a case study. It commences with an investigation of the cultural, social, personal, and psychological factors that shape consumer attitudes and behaviors, and further analyzes how these factors are evolving and driving industry trends. The report then examines the impact of digital technology on consumer behavior, followed by an in-depth exploration of the consumer decision-making journey, mapping the path to purchase. It evaluates how marketers respond to this process and applies relevant theories and models. The report also contrasts B2B and B2C decision-making processes within the hospitality context, discusses various market research approaches, and analyzes how marketers influence each stage of the decision-making process. The report concludes with a comprehensive overview of the key findings and implications for the hospitality sector.
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Hospitality Consumer
Behaviour Insight
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Table of Contents
INTRODUCTION ...............................................................................................................................3
PART A (PPT).......................................................................................................................................3
TASK 1 ................................................................................................................................................3
P1 Investigate the different cultural, social, personal and psychological factors that influence
consumer behaviour and attitudes within a hospitality context..................................................3
M1 Analyse how cultural, social, personal and psychological factors that influence consumer
behaviour and attitudes are changing and driving trends in hospitality......................................4
D1 Critically analyse the emerging trends in consumer behaviour and attitudes using specific
examples from the hospitality industry to support your arguments............................................4
P2 Analyse how consumer behaviour trends is Changing due to the impact of digital technology.
.....................................................................................................................................................4
PART B.................................................................................................................................................5
TASK 2 ................................................................................................................................................5
P3 Analyse stages of consumer decision making journey and map path to purchasing in context
of hospitality................................................................................................................................5
M2 Evaluate how marketers are responding to the decision-making process, applying relevant
examples from the hospitality sector...........................................................................................7
D2 Critically evaluate the application of appropriate theories, concepts and models that influence
and impact upon the hospitality decision- making process, supported by specific hospitality
examples and contexts.................................................................................................................7
TASK 3 ................................................................................................................................................9
P5 Compare difference between decision making process of B2B and B2C along with specific
hospitality examples....................................................................................................................9
P6 Discuss various market research approaches and methods of decision making ...................9
M3 Provide a coherent and justified evaluation of how different factors influence hospitality
decision-making and buying behaviour, supported by specific hospitality examples..............10
TASK 4 ..............................................................................................................................................11
P7 Assess how marketers can determinant various level of hospitality decision making process.
...................................................................................................................................................11
M4 Critically evaluate how marketers influence each stage of the decision-making process with
reference to relevant methods and models applied...................................................................11
CONCLUSION..................................................................................................................................12
REFERENCES...................................................................................................................................13
Books & Journal:......................................................................................................................13
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INTRODUCTION
Hospitality sector is rising at rapid scale and it has become essential for hotels to produce
service in most appropriate way. Consumer behaviour refers to activities of customers within
market & examining of purpose of those actions. The Montcalm Hotels, a group of luxury hotels
, headquartered in U.K. The hotel group has ample number of branches worldwide and operates in
at wider scale. This report comprises of different factors that influence consumer behaviour, change
of consumer trends, stags of consumer decision making, importance for mapping to purchase &
consumer decision making, comparison between B2C & B2B, different approaches to market
research and impact of marketers on different stages of hospitality decision making process.
PART A (PPT)
TASK 1
P1 Investigate the different cultural, social, personal and psychological factors that influence
consumer behaviour and attitudes within a hospitality context
In hospitality industry, consumers, guests are being considered as most important part of
firm. In market, there are various types of factors which affects the consumer behaviour as well as
attitude. It is crucial for enterprise to focus and understand the behaviour of consumer in proper
manner. This is because services are affected by attitude of consumers. So, factors which impact
upon consumer behaviour are discussed below-
Cultural factor- It is a factor in which it comprises of values, beliefs, etc. which are to
be focused by everyone in society and community. The culture is being considered a basic element
which impact upon behaviour of consumer because consumer comes from different form of cultures
accordingly they use products and services. For example- people with rich social class has
perception of buying very luxury products and services (Dahiya, 2018) This affect their perception
as well as attitude both at larger context as in hospitality sector services are offered by proper
analysing culture of a individual.
Social factor- It refers to group of people, society, community that affects the behaviour of
consumer. It is often seen that people mostly use service in market depending on social activities.
In relation with hospitality sector, the decision of people get impacted by other social course of
action (Dotzel, 2016).
Personal factor- This is another factor which affects the decisions making & attitude of
consumer. This is because it rely on perception of a person to person. This element includes family,
friends, income etc. which through which attitude of consumer is being affected. In hospitality
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sector, services are used by individual depending upon their level of income, exceptions etc.
Psychological factor- It is also being viewed as crucial element & most effective one
because it affects consumer attitude & behaviour at depth. This element involves, attitude, learning
by observing others, beliefs etc. In context of chosen sector, it does affects consumer because
people purchase and use products as well services after they are aware about brand through
promotion, advertising etc.
M1 Analyse how cultural, social, personal and psychological factors that influence consumer
behaviour and attitudes are changing and driving trends in hospitality
Cultural factors are changing and driven trends in hospitality industry as because this
element includes values, morals, traditions, etc. according to which services are provided to
customers on the basis of these factors. Then social factor is also being considered as driven trends
in hospitality because these involves buying habits, family size, structure, religion which affects the
customers buying behaviour. Further is personal factor in which it includes sense of control,
place attachment, goals etc. Every person is different from each other & accordingly their
purchases the product or service (Huynh, 2020). Now a days services in hotels are customizable
depending upon need of users. Psychological factors are those which comprises of motivation,
learning, observing others, motivation, socialization etc. These too impacts the mind of consumer
decisions while purchasing because they are motivated by other to purchase a product.
D1 Critically analyse the emerging trends in consumer behaviour and attitudes using specific
examples from the hospitality industry to support your arguments
There are various emerging trends in hospitality industry such as consumers are becoming
more aware about their health and becoming health conscious. Another emerging trend is
community driven in which depicts that people are coming together to help each other in this
pandemic situation of COVID 19. So, all consumers suggests to community, societies to eat which
type of foods.
P2 Analyse how consumer behaviour trends is Changing due to the impact of digital technology.
Technology has become important in business as sector and is affecting mind of consumers
and individual. With rise of competition, it use of internet & technology has widen the scope of
business activities at wider scale. Digital technology includes resources, electric tools, systems
that are used for storing information and data. In reference with The Montcalm Hotels, they uses
digital technology at all aspects mostly for promoting their brand, services worldwide. For
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example, they use social media marketing tools such as You Tube, Facebook, Instagram etc.
Comparing it with older trends of consumers, today's consumers are dependent upon digital
technology and are active on social media (Parise, 2016). Also, online websites such as Trip advisor,
make my trip are used by chosen enterpriser to access to customers & customers can also gain
information regarding information about a particular hotel. With changing period of time, many
new digital technologies have been also developed which affects the consumer behaviour trends &
are mentioned below-
Use of voice search- It is the biggest trends which is opt by consumers as by using voice
search assistant & speakers they are able to search for a specific hotel. It is time saving process as
searching is done without wasting any time while browsing. With help of voice search , consumer
behaviour towards hospitality industry is changing behaviour of consumer at depth.
Social media tools & artificial intelligence- The use of internet has widen the scope of
social media tools. These tools are Facebook, Instagram, You tube which are utilized by enterprise.
Moreover, with use of artificial intelligence The Montcalm Hotels are providing smart room to
their special guests and VIP'S. This changes the consumer trends at consistent level as people
become used too with technology (Pawaskar, 2018).
PART B
TASK 2
P3 Analyse stages of consumer decision making journey and map path to purchasing in context of
hospitality.
Consumer decision making is defined as process through which consumer are aware about
their needs and demands accordingly use products and services. This process includes several stages
which are important to be carried out ion efficient way.
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Consumer decision-making process
Need recognition & Problem awareness- It is first stage in which consumer become aware
about their actual need which is important for them or not. Also, through this become aware
about problem which can be arise during the process. For example- If customer need is of
four star hotel then services will be consumed according to the need (Sarwar, 2016).
Information search- This is next stage in which after need recognition, information is
collected and gather by customers. Once need is being identified, the consumer searches
for most appropriate hotels and credentials like, price, locations, near by places, room
availability, facilities provided by hotel etc.
Evaluation of alternatives- Then comes the aspect in which customers compare & the
chosen hotel with other and searches for other alternatives & then selects the most
appropriate one. They chooses the alternatives after proper market analysis & searches so
that decision is made in proper manner. It is done by between chosen hotel & other similar
hotels which provided same services wit different features, specifications, amenities etc.
Purchase decisions- Then next one is purchase decisions which comes after selecting
the most appropriate alternatives (Sofi, 2020).In purchase decisions, final decisions is being
made by consumer or individual and product or service based brand is selected. In relevance
with The Montcalm Hotels, consumers made their final decisions after deep market analysis
& on basis of quality of service & hotel facilities provided by chosen hotel.
Post purchase evaluation- In this aspect, consumer give score or ratings to customers on
the basis of services given to them & satisfaction level. It is crucial stage because in this,
evaluation is important because feedback is received by hotel from customers. With help of
evaluation, it become easy for The Montcalm Hotels to be aware about their firm hospitality
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level. So, provide services it is crucial for selected Hotel to map path for consumer
satisfaction as it is a hospitality enterprise. Thus, there are various elements which can used
for mapping a path & are mentioned below-
Pre-purchase- In this, it is a stage which specifies that customer search for a hotel &
compare it with other hotels & then acquire best alternatives for product or service. In relevance
with chosen hotel, consumer pre-purchases the services on basis of information gained by them
after evaluation (Somocor, 2017).
Purchase- It is next aspect in which final decision is made by consumers from all
alternatives. So, The Montcalm Hotel is chosen as first choice of consumers because of their service
provided by them with wide range.
Receive- In this, one hotel is chosen by consumers services are provided by hotels at all
aspects. It is necessary for chosen Hotel, to deliver high quality of services to customers so that
positive relationship is maintained between both parties.
Post purchase- It is last stage in which satisfaction level is being measured which is
received by consumers. It is essential for hotels to take feedbacks from consumers so that they
become well aware that hotel is delivering satisfactory services to customers.
M2 Evaluate how marketers are responding to the decision-making process, applying relevant
examples from the hospitality sector
Marketers are responding to decision making process as by conducting market research at
deeper level. For example- marketers in hospitality sector has been using advanced technology &
high end security so that customers are able to use their personal information while making
payment online properly. Moreover, marketers have been able to provide personalized services to
consumers so that positive decision making is done during process.
D2 Critically evaluate the application of appropriate theories, concepts and models that influence
and impact upon the hospitality decision- making process, supported by specific hospitality
examples and contexts
The concept of various approaches such as theoretical approaches like cognitive and
behaviourist approach impacts the decision making process at depth. In behaviourist approach it
states that behaviour is affected by external elements which directly impacts the buying behaviour
& decisions of consumers. Further is cognitive approach in which it states that learning is done via
observing others & in case of hospitality industry they consumers use services after observing
other & then they made decisions regarding service.
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P4 Discuss why it is necessary for marketers to map a path to purchase & understand consumer
decision making in hospitality industry
In business sector, every entity ,is focused towards their customers so that better products
are services are provided to them in appropriate way. With rise of hotel industry, it is become
important to map a path to purchase so that decisions are made properly. Marketers map a path
properly understanding the attitude as well as behaviour of consumer (Sujith, 2017). So, there
several factors which shows that mapping a path by marketers is important and which are explained
below-
Importance of mapping a path to purchase
Increases rate of return- In hospitality industry, purchasing is to be done by customers
after deep level of search and analysis. By mapping a path to purchases will help marketers to
make decisions properly that also increases rate of return.
Integrated consumer data & continuous engagement- In relation with selected hotel,
they assures that they have all the necessary amenities which are needed by customers. As this help
in engaging with customers at consistent level. Moreover, by mapping path to purchase marketers
to integrate consumer data so that they are stored and accessed ion secure manner (Vassileva, 2017).
Importance of consumer decision making-
For marketers, it is essential to focus towards consumer decisions making as it will help
them in understanding their behaviour towards service or a products. Through this, it is easier for
marketers to carry out promotion and advertising methods accordingly. Furthermore, by focusing on
consumer decisions making it is easy to influence their decisions towards a service. This can also
used by marketers as competitive edge. Also, by properly examining of consumer decisions
marketers carry out functions and operations according to consumer's point of view which is
beneficial for business. The level of diving activities is as follows:
Extensive problem solving- This this useful when new product is being utilized by
customer. In this consumer takes more time compare to expected time for purchasing any new
product or service.
Limited problem solving- It states that consumer have great knowledge/ information about
a particular product so they will not take time to purchase it. In this consumer have alternative
option too.
Routine problem solving- In this consumer has experienced about quality and performance
of product. For same buyer will not take too much time in order to purchase that product or service.
Therefore, after analysing above matter it is stated it is essential for marketers to properly
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examine the consumer decision making as well as map a path to purchase. It is time consuming
process but is crucial to be carried out in appropriate manner. It is essential to make ensure that
both are addressed properly by marketers so that they are able to achieve goals & objectives.
TASK 3
P5 Compare difference between decision making process of B2B and B2C along with specific
hospitality examples
Decision making process is wider procedure which required high level of skills & expertise
so that appropriate decisions are made. It is important for marketers & entity to use correct way of
making decision so that problem do not occur during process.
Basis B2C B2B
Meaning B2C are those who perform
process of exchange of goods
& services between customers
& producers (Syaekhoni,
2017).
These are those who carry out
process of exchange of goods
& products between
enterprises.
Buying Decisions In this, decisions are made on
basis of needs or demands.
In this, decisions are made on
basis of business requirements
profit criteria etc.
Target Market The target market is small
because market is targetted on
basis individual interests.
In this target market is
relatively large because two or
more than two enterprise are
involved.
Examples The Montcalm Hotels provides
services to customers.
Trivago & Oyo provide B2B
services to other businesses too
(Wright, 2018) .
P6 Discuss various market research approaches and methods of decision making
In business, it is important to use market approaches so that objectives are achieved
properly. These approaches are used for collecting appropriate and reliable information for business
perspectives. In relevance with selected hotel, they carry out these approaches in such a way that
market current trends & situations are analysed appropriately. In this current research, data is being
gathered from secondary sources such as magazine, newspaper, articles etc. There are several types
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of sources which are used for secondary credentials & are described below-
Publications- It is type of method in which publications sources such as blogs, websites,
journals are used for collecting information. Through these, customer insight is gained at
appropriate level. It is also crucial to check the reliability of these credentials so that these can be
used appropriately. From these sources, it is easy to collect information without any wastage of time
(Dahiya, 2018).
Government agencies- This is another way through which credentials are collected by
accessing to government departments, people, agencies, websites etc. It is seen that data &
information which is gathered from such sources are highly reliable & authentic that can be used
properly. Moreover, through this it is easy to gain insight of market as well customers.
Market research-
It is defined as process of collecting market information & data about the needs and
demands of customers. To achieve a competitive advantage, it is crucial to do the market research
in proper way. There are various types of methods which are used for decisions making & are given
as follows-
Interviews- It is a method which is adopted by entity with aim of collecting data about a
particular topic or field. To use this approach, time and knowledge is required in proper way. In
relevance with selected firm, they use this method when there is requirement of modifications or
changes (Dotzel, 2016).
Questionnaire- It is another method in which data set of questions are written down and
asked by others. It is mostly used for gathering of fresh or primary source of data. Through this
method, feedbacks are also gained which assist in meeting up with demand of customers.
M3 Provide a coherent and justified evaluation of how different factors influence hospitality
decision-making and buying behaviour, supported by specific hospitality examples
There are different types of factors which affects the hospitality decision making buying
behaviour of consumer which are described below-
Culture- It is factor which impacts the buying behaviour & decision making as because
many hotels provides foods services by properly considering the culture of a particular individual.
Advantages-
This factor assist hotel industry to understand the culture of a society & community so that
relations are maintained.
Disadvantages-
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It is difficult for hospitality industry to carry out their decisions & deliver services
according to culture because it is a time consuming process (Huynh, 2020.
Personal factor- This is also another element which affect buying behaviour of consumers
& decision-making of hotel as because each & every individual has different way of perception
accordingly they prefer service.
Advantages
By focusing on personal elements, it is easy to for individual to choose service depending
upon their on level of choice & preference. For example- The Montcalm Hotels provides
services on basis of personal preference of individual or guests rooms with view, super
deluxe room etc.
Disadvantages
Due to involvement of so many personal variables it is difficult and time consuming for
consumers to make decisions while purchasing (Parise, 2016).
TASK 4
P7 Assess how marketers can determinant various level of hospitality decision making process.
Due to rise of competition, it has become important for hospitality sector to examine the
determinant of hospitality decisions making so that it is easy to accomplish objectives within a
period of time. In relevance with The Montcalm Hotels, marketers make decisions with proper
market so that consumers are influenced in positive way. Also, marketers need to focus on range of
services which are required to be provided by hotel to customers so that height satisfaction level of
achieved (Pawaskar, 2018).
Pattern buying behaviour- In viewpoint of chosen hotel,they also ensure that correct level
of services are delivered such as personalized which enhances the moral of customers guests. It
also increases goodwill of firm at wider scale. To meet up with demand of consumers, company
should implement training & development programmes so that workers ability to handle customers,
their knowledge of customers behaviour is increased. The pattern buying behaviour of evey
consumer flexible in nature and changes periodically.
M4 Critically evaluate how marketers influence each stage of the decision-making process with
reference to relevant methods and models applied
Influence on decision-making process-
Personality, self & motivation- Marketers influence the decision making process they
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affects the personality & motivation of a individual because they encourages consumers through
promotion, advertising, discounts etc. to purchase product or service (Sarwar, 2016).
Culture & sub-culture- Marketers influences the decision making process of consumers
through culture & sub-culture. This is because consumers mostly uses services or make decisions
on basis of their value & beliefs which impact their decisions making process (Sofi, 2020).
CONCLUSION
After a brief analysis of above report, it is examined that ion hospitality industry it is
important to understand consumer behaviour and insight so that decisions towards business are
taken effectively. This report gives a brief knowledge about B2C & B2B, factors affecting
behaviour of customers, consumer decision making process. Further, importance to map a path
towards consumer decisions making as well as purchase, market research approaches are discussed
briefly. So, it is stated that appropriate decisions are necessary to be so that goals are accomplished
within a period of time.
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