Consumer Behavior and Insights: Decision-Making at TUI Group

This report examines consumer behavior and the decision-making process within the context of TUI Group, a multinational travel and tourism company. It explores the stages of consumer decision-making, including problem recognition, search process, information gathering, evaluation, and purcha...Read More

Consumer Behavior and
Insights
Table of Contents
Introduction 3
Conclusion 12
References 13

INTRODUCTION
TUI Group is the Anglo German multinational company which is dealing in the travel
and tourism sector as well. TUI stand for touristik union international and it is an tourism
company which is providing the services all over the world. Company was founded in the 1923
and it is providing the service of the travel agencies. The company is one of the finest tourism
company which has owned the five European airlines as well. Report consist of the decision-
making process of the consumer and the importance of the decision-making ability of consumer.
Different approaches and methods of research are discussed in the report. The different stages of
the decision-making process is included in report. The report want to provide the knowledge to
the students regarding the consumer making process and decision-making process of the
customer. This knowledge would provide the students with the theories and approaches which
would influence the consumer decision-making process (Wang 2017).
LO 1
LO 1
P1 Stages of consumer-decision making
Problem recognition
This is the very first stage in consumer decision making process under which the
consumers first comes to know about the need which they want to fulfil. In this stage, consumers
come across some form of problem and realizes that there is requirement of a need in order to
satisfy the problem. For example- While deciding to travel, the first problem which consumers
encounter is to stay at the required destination. This problem for staying makes them aware of
need to book the hotel. Thus, in this case TUI can provide an effective solution to their
customers by providing them with the range of hotels (Oke and et.al.,2016).
Search process
This formas the second stage in consumer decision making process where after
recognizing the specific need, consumers begin to search for the various alternatives that will
satisfy their need and thus will make them free from problem. Basically, the search for various
products and services which will fulfil their need. For example- in order to fulfil the need to stay,
consumer will begin to look for various hotels and tour operator providing the great hotel deals
in the package. Here TUI will come to know about the customers looking for hotels through the
SEO and thus can approach them by contacting with them.

Information gathering
This is the third stage of consumer decision making process wherein consumers begin to
gather the information about the product or service which will satisfy their need. They collect the
information through various sources like internet, newspaper, magazines which helps them in
effective decision making. For example- While looking for hotels, customers will gather
information on the hotels which provide great quality services at affordable price thus they will
collect information on various hotels. TUI here can make their website more innovative which
will make it convenient for customers to easily gather information about their packages, prices,
services etc.
Evaluation
In this stage, once the information is being collected about the product or services
consumers evaluate that by comparing it with other alternatives. In other words, here customers
makes a comparison between various alternatives to take effective decision. For example- After
gathering information on hotels and tour operator, customers will compare the prices and other
aspects of that company and hotel with other tour operator. Like they will compare the package
price or the quality of services hotel is offering (Ewerhard, Sisovsky and Johansson, 2019). Here
TUI can persuade the customers by clearly comparing the services provided by them with other
tour operators. It can show customers the various services provided by their hotels online and
thus can convince them by comparing with other hotels.
Purchase decision
This is the last stage of consumer-decision making within which customers finally decide
whether to go with the product or not. Here, customer makes final purchase decision after
evaluating various alternatives. For example- Customer decide go with the hotel which TUI is
providing in holiday package as it is offering great services at reasonable prices. Thus, in this
case TUI can maintain a regular contact with their customers to assure that they have taken right
decision by choosing their company.
P2 Importance to understand Consumer-decision making process
Consumers are basically the main asset for any organization which forms core of the
business. The primary and foremost goal of any organization is to fulfil the needs and demands
of consumers and thus satisfy them by going beyond their expectations. This is only possible
when organizations have well-through strategy for examining the needs as well as demands of

consumers thus it becomes highly essential for the organizations to map the path to purchase and
thus understand the decision making process of consumers (Carpenter and Yoon, 2015). This
helps them to remain aware as where the improvement is required and what is the current market
trend prevailing. The importance of mapping a path for purchase and understanding the decision
making process of consumers are
Quicker sales
This is one of the reason which explains why it is vital for organizations to know the
consumer decision-making process. The foremost objective of TUI is to increase the sale of its
services and products and thus maximizes the profit. Sales is totally dependent on the behaviour
of consumers and how they perceive the brand and products. Thus, when TUI will come to know
that on what basis consumers base their decisions then it will be easier for them to increase sales
of their services and products. For example Through the decisions making process of consumers,
TUI come to know that the initial aspect which people considers while booking the tour operator
is the price charged by them hence this will help TUI to design appropriate pricing strategies
which will eventually increase sales of their products and services. Therefore, consumers
decision making process help the company to increase their sales (Loper and Crittenden, 2017).
Enlarging customer base
The major rationale behind understanding the decision making process of consumers for
TUI and to map the path for purchase is enlarging the customer base. Besides satisfying the
needs and wants of consumers, another objective of any organization is to capture the large
market share and enlarge the customer base. The various stages that entails in consumer
decision-making process helps TUI to know the varying expectations of consumers residing at
different locations. For example- The consumers of UK due to high employment tend to spend
much on travelling in comparison to Australians thus their decision making mainly involves
looking for tour operators which provide high quality services irrespective of price. Thus, this
helps TUI to deploy different packages for different consumers and attract them by fulfilling
their need. Hence, it is essential for company to have deep understanding of this process for
increasing customer base (Huang and Benyoucef, 2017).
Innovation
This is the another importance of consumer decision-making process and thus makes it
important for TUI to understand this and design a path for purchase. For bringing innovation in

products, it is essential to understand the effective decision making by customers. For example
customers also base their decision on the degree of differentiated product or service which firm
is providing like free loyalty programme on booking entire holiday package thus how much
emphasis customer give to innovative services helps TUI to modify their products and services
and thus makes it easier for them to attract customers.

P3 Decision making process in B2C and B2B organisations
B2B business is known as selling of products and services between business entities
while B2C is known as the business transaction directly to the customers. Te decision making
process of both types of business depends upon variety of factors which are as follows:
B2B B2C
The products are sold to organisations and
thus decisions are made in order to build long
term business relationships.
On the other hand in B2C as products are sold
directly to customers, product quality and
specifications are the first element involved in
decision making process.
The transaction process of B2B firms are
bigger and thus its decision process involves
more number of people and takes more time.
B2C organisations such as TUI directly sells
to customers and thus they are able to make
quick decisions with limited involvement of
any third party.

For encouraging the positive decisions B2B
organisations emphasis on developing mutual
and trust relationships
In order to influence the customers decision
process B2C organisations gives uses
strategies such as promotion and
advertisements while trust and mutual
relations are developed as secondary priority
and on the basis of product quality.
B2B decisions are logical and fully planned
because the volume of merchandise is large
(Iankova and et.al., 2019).
Contrary to B2B industries, in B2C decisions
are based upon emotional factors because
relation between buyer and seller is very
short.
B2B organisations involve multiple
stakeholders and broad network. Thus
decision making process is quite complex.
B2C involves transaction between buyer and
seller only and thus decision process is quite
simpler.
B2B transactions are huge and complex and
thus regulations and tax policies have greater
impact on them. Thus decisions are
implemented and monitored by large work
force.
On the other hand in B2C operations taxation
and legal policies have less impact upon B2C
operations. It makes decisions making process
easy and less complicated.
P 4 The different approaches to market research and methods of research used for understanding
the decision-making process in both B2C and B2B contexts
Market research is mostly about capturing, analysing, reporting and interpreting data
collected about the market (Mencarelli and Riviere, 2015). This helps the organizations to make
effective and proper decision which further helps them to attract new customers, increase sales,
gain competitive advantage and many more. There are various kind of approaches that can be
used for market research but there is a huge difference between market research done for B2B
and B2C. Choice of these market research approaches affects the effectivity and reliability of
results. Few areas where different market research approaches differ from each other are:

Methodologies: Most of the B2C market research involves mixed research methodologies but for
B2B, it is not the same case. In B2B market research, requirements are dependent upon few
factors such as, B2B market complexity, requirement to capture enough or required data or
information and before using it, requirement to verify and test the rest so that satisfactory
level can be obtained at an acceptable level. In simple words it only uses or utilizes one
single data collection methodology.
Importance of interviews: In B2B market research in-depth interviews are quite common
especially in qualitative studies and most of the times this research is conducted by middle
managers through telephones, web, emails etc as they are quite cost effective (Tang, Liou
and Peng, 2017). Most of the times data collection approach used in B2B market research
are survey or questionnaires or in-depth or face to face interviews are conducted. It can also
be said that in-depth interviews in B2B are quite common especially in qualitative studies.
Sample sizes: Sample size involved or market research participants involved in B2B are
comparatively much smaller as compared to participants involved in B2C market research
and because of this result of smaller sample size are also small in B2B market research.
Sample size involved in B2B market research are mostly between 10 to 150 whereas in B2C
sample size is more than that. Most of the researchers involved in B2B market research
analysis rely on 80/20 rule which is also famously known as pareto principle. According to a
research, 80 percent of revenue of an organization comes mainly from 20 percent of their
customers. Pareto principle rule helps in placing more importance on respondents that are
more important rather than the respondents who are more influential rather than important.
So, it can be said that in B2B market research it is important to have more qualified
participants otherwise market results will be unreliable or will not be accurate.
Incentives: In B2C market research incentives are quite common i.e. involvement of incentives
for participation can involve results such as discounts, gift cards etc. whereas for B2B it is
not so common in fact incentives in B2B market research are quite complex. As in B2B
incentives need to focus on business in which participant works.
LO3
P5) Evaluate how the marketers would influence the different stages of decision-making process
In the consumer decision-making process there are the different stages which are
affecting the consumer decision. In business to consumer,

problem recognition, includes the problems of the consumers and the consumer would
buy these products when the products is made by recognizing the problems faced by the
consumer. Tourism company is delivering the services in the effective way but these services
would be delivered in the effective way only when the company is working in effective
condition.
Evaluating the alternatives, the consumer are evaluating the alternatives in the case of
customers are not satisfied with the products and services of company. Customers are attracted
towards these companies which are providing the services at the low prices and with the
effective services.
Selection stage would include the selection of the product or service which want
consumer want to buy. Prior experience of the consumer would affect the decision of the
consumer on large scale.
Evaluation of decision, in these the consumer is evaluating whether he has taken the right
decision to buy the product or not. It would not affect the decision of the consumer while they
are visiting the place or the company second time because they will think prior while visiting the
place or the problems face while communicating with the company (Karimi Papamichail, and
Holland 2015).
In business to business, markets are different as compared to the customer markets. The
customers are different and the market is big as compared to the other markets. The decision-
making process includes, the purchase decision are affecting the decision-making ability of the
customer sand the customers would affect the decision-making ability. Customers are big
companies which are buying the products in the bulk and the customers would also buy the
products form the manufacturers directly. In these case also customers are buying the products
and services in form the company and evaluating the price, quality and price of product as well.
Once the customers have purchased the products and service the customers would analyse
whether the decision process is right or not and it would affect the decision-making process as
well. The price of the product would affect the decision and the customers decision regarding
visiting the second time would be affected. The quality of the product and services is must in the
case of customers decision-making process. These business to business customers would also
include the suppliers which are supplying the raw material to the other companies (Kanagal
2016). In both the case the customers decision would be changed if the service and products are

not delivered upto date. The customer would think while visiting the company and buying the
product and services.
M2) Evaluating different factors which influences decision-making and buying behavior of an
individual.
The different factors which influences decision making as well as buying behaviour of an
individual could be economic factors which simply assures whether the individual is capable of
buying or not. Functional factors which determines need of purchase, marketing mix factor
which includes place, promotions, pricing as well as product. Sometimes personal factor such as
economic status, gender, social status, lifestyles, occupation and age affects the buying decision.
Attitudes, beliefs, motivations and perceptions which are the components of psychological
factors could be reason of buying decision. Social status, family and friends as well as reference
group could be reason to buying behaviour. Moreover, cultural factors may be the reason which
influences the buying decision of an individual as it considers the social and cultural
environment in which the individual lives. Thus, moral values, caste, traditions, race and religion
could be the factor of culture which influences the consumer’s buying decision (Kanagal, 2016).
M3) Critically evaluate how the market will influence the decision-making process
The decision-making behaviour of the consumer is affected because the companies are
working in the effective manner. The consumer are like after the facts and figures which are
affecting the consumer decision-making process Like the quality and price of the product is
affecting the decision-making process of consumer.
D3) critically evaluate the theories and concepts of consumer decision process
in the company consumer decision-making process is affected by the factors like the
price and quality of the products. Increase in the competition in market is also affected the
customer decision process. Other companies are providing the products at the low prices and in
the effective way as well. So the company would provide the service like the after concentrating
on the problems of the consumer.

CONCLUSION
This report can be concluded as, TUI Group is the Anglo German multinational company which
is dealing in the travel and tourism sector as well. TUI stand for touristik union international and
it is an tourism company which is providing the services all over the world. Company was
founded in the 1923 and it is providing the service of the travel agencies. The company is one of
the finest tourism companies which has owned the five European airlines as well. Report consists
of the decision-making process of the consumer and the importance of the decision-making
ability of consumer. Different approaches and methods of research are discussed in the report.
The different stages of the decision-making process are included in report. The report want to
provide the knowledge to the students regarding the consumer making process and decision-
making process of the customer. This knowledge would provide the students with the theories
and approaches which would influence the consumer decision-making process (Kanagal, 2016).

REFERENCES
Books and journals
Kanagal, N.B., 2016. An Extended Model of Behavioural Process in Consumer Decision
Making. International Journal of Marketing Studies, 8(4), pp.87-93.
Karimi, S., Papamichail, K.N. and Holland, C.P., 2015. The effect of prior knowledge and
decision-making style on the online purchase decision-making process: A typology of
consumer shopping behaviour. Decision Support Systems, 77, pp.137-147.
Wang, Y. and Yu, C., 2017. Social interaction-based consumer decision-making model in social
commerce: The role of word of mouth and observational learning. International Journal
of Information Management, 37(3), pp.179-189.
Carpenter, S.M. and Yoon, C., 2015. Aging and consumer decision making. In Aging and
decision making (pp. 351-370). Academic Press.
Loper, T. and Crittenden, V.L., 2017. Energy security: Shaping the consumer decision making
process in emerging economies. Organization and Markets in Emerging
Economies.8(1). pp.8-32.
Huang, Z. and Benyoucef, M., 2017. The effects of social commerce design on consumer
purchase decision-making: An empirical study. Electronic Commerce Research and
Applications. 25. pp.40-58.
Mencarelli, R. and Riviere, A., 2015. Perceived value in B2B and B2C: A comparative approach
and cross-fertilization. Marketing Theory. 15(2). pp.201-220.
Tang, Y.C., Liou, F.M. and Peng, S.Y., 2017. B2B Brand Extension to the B2C Market—The
Case of the ICT Industry in Taiwan. In Advances in Chinese Brand Management (pp.
269-286). Palgrave Macmillan, London.
Ewerhard, A.C., Sisovsky, K. and Johansson, U., 2019. Consumer decision-making of slow
moving consumer goods in the age of multi-channels. The International Review of Retail,
Distribution and Consumer Research.29(1). pp.1-22.
Oke, A.O and et.al.,2016. Consumer behavior towards decision making and loyalty to particular
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Iankova, S., and et.al., 2019. A comparison of social media marketing between B2B, B2C and
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