HND Unit 19 Research Project: Customer Buying Decisions in Hospitality

This research project investigates customer decision-making processes within the hospitality industry, focusing on key themes derived from survey data. The project explores the significance of customer decision-making, revealing that a substantial majority of respondents recognize its importance, while a smaller percentage do not. It further examines factors influencing buying decisions, with customer satisfaction emerging as the most preferred element, followed by brand value, reviews, and references. The study highlights marketing strategies as the most effective approach for influencing customer behavior, alongside policy-making and eco-friendly initiatives. Challenges faced by customers, such as unauthentic hotel reviews, over-costing, and budget constraints, are also addressed. The research concludes that eco-friendly strategies, customer satisfaction, and effective marketing are pivotal, while unauthentic reviews pose a major challenge. Recommendations include prioritizing customer satisfaction, cost allocation, and authentic reviews. The findings emphasize the importance of pricing and its impact on consumer behavior. Overall, the project provides valuable insights into customer behavior and offers actionable recommendations for enhancing organizational performance in the hospitality sector.

UNIT 19: RESEARCH
PROJECT

Table of Contents
PROJECT FINDING.......................................................................................................................3
Conclusion...................................................................................................................................9
Recommendation.......................................................................................................................10
PERFORMANCE REVIEW.........................................................................................................10
REFERENCES..............................................................................................................................12
Appendix.......................................................................................................................................13

PROJECT FINDING
Theme: customer decision-making is important in hospitality industry
Q.1) Do you understand that customer decision-making is important in hospitality industry?
Yes 22
No 8
Interpretation: Interview result reflect that customer decision is very important in context to
hospitality industry. 73% people participated in interview round agreed over this statement that
customer decision-making is a very crucial and significant element that needed to understand by
business entity. 27% respondent were also there in the interview round that did not support the
statement. According to them understanding decision-making of customer in hospitality industry
do not create any difference in the overall operations and functions of hospitality organisation.
Views given by Aketch, Basheka and Bagire (2017), also reflect the statement conclusion that it
becomes important to understand the decision-making process of customers in hospitality
industry. All operations under specific hotel are channelised based on the potential customer's
requirements and expectations from the hospitality organisation. Outcome of interview round
favour this conclusive evidence.
Theme: Customer satisfaction is the most preferable factor involve in buying decision.
Q.2) What according to you is the most preferable factor involve in making buying decisions
Yes No
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8 73%
27%
Customer decision making important
Column C

under hospitality sector?
Brand value of company 8
Customer satisfaction of organisation 9
Reviews over different sites 6
Reference 4
All the above 3
Interpretation: 30% employees took part in interview round believed that customer satisfaction
is the most significant element involve in buying decision. 27% people feel that brand value is
among the most significant element associated with the buying decision customer make under
hospitality sector. 20% employees state that people go over review site first than they like to take
any decision related to customers. 13% favoured references of friends and relative to take buying
decision. There are 10% people also involved in interview round who stated that all the
mentioned options are become a part of customer decision-making journey in respect to
hospitality sector. Based on the views state by majority of respondent that customer satisfaction
level of organisation become the most significant element or factor influence buying behaviour
of customer in market. Han and et.al. (2019), in its study over customer decision-making journey
in context to hospitality sector indicate that the level of customer satisfaction company achieve
become the most significant factor or element influence the decision process of customers in
Brand value of company
Customer satisfaction of organisation
Reviews over different sites
Reference
All the above
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
27%
30%
20%
13%
10%
Preferable factor of customer decision making
Column C

hotel industry. Author has also stated other factors like brand value of company, reviews of
different sites and references are the key element that influence customer decision-making
journey in hospitality industry along with the level of customer satisfaction company achieve.
There is not any specific or certain factor affect buying behaviour of customer plenty of factors
directly influence this area.
Theme: Marketing strategies is the best possible approach to influence buying behaviour of
customer
Q.3) What according to you must be the best possible approach for companies to influence
buying behaviour of customer?
Eco-friendly initiative 8
Marketing strategies 12
Policy making 10
Interpretation: 40% respondents participated under the interview round indicate that marketing
strategies is the best possible approach company can use to attract customers towards the
organisation. 33% people also there in the interaction round who stated that company can only
attract its customer in market if it makes the best suitable policies related to customer service and
other key areas. Eco-friendly initiative is also a key option available in front of organisation to
attract customer decision journey. The views and opinions reflected by majority of people
indicate that marketing strategies or to channelize the market campaign can be the possible way
27%
40%
33%
Best posible approach to attract customers
Eco-friendly initiative
Marketing strategies
Policy making

to entertain buying decision-making journey of customer. Liat and et.al. (2017), has also
reflected the similar judgement in its research over hospitality sector that how effective the
business organisation promote its services will be the key area that customer will attract towards
the organisation. Majority of companies invest significant amount of budget over promotions of
products and services and the key reason behind is in today era the business environment is
moving around the branding which can only be achieved through marketing and promotion.
Scholar justified this result of interview in its study that the first thing customer come against the
brand is its marketing and promotions. Many times even if the business entity do not cater the
best level of services but it will still be able to attract customers due to its diversified and
attractive marketing campaign.
Theme: Unauthentic hotel reviews is the major challenge of customers in hotel sector
Q.4) What challenges do you feel customers face while making buying decision in hospitality
industry?
Many online sites do not reflect true reviews about hotels and
restaurants.
12
Over costing of many hospitality services 10
Limited budget 8

Interpretation: The views of employees involved in interview round denote that 40% of the
time customer face challenge while conducting booking in hotel line is due to unauthentic
reviews different booking site provide to customers. 33% employees favoured over costing of
different resources as the key area of concern for customers while taking hospitality services.
27% employees voted to limited budget of customer as their key area of challenge which they
face while entertaining hospitality services. The result of interview round denote that biased
reviews of hotel is the major challenge which customer face while taking services of hospitality
sector organisation. Walheer and Zhang (2018), has also reflected the same in its study that
unauthentic reviews of different sites become the major challenge for customers. In today time
this become the trend of hospitality sector as customers go through different sites before doing
any booking with any of the business entity associated with hospitality sector. Companies try to
interfere in such reviews to attract more number of customers.
Theme 5- Economic factor affects the sustainability within hospitality sector.
Q.5) What factor affect the most when it comes to sustainability under hospitality sector?
Environmental factor 10
Economic factor 12
Socio cultural factor 8
40%
33%
27%
Challenges of customers
Many online sites do not
reflect true reviews about
hotels and restaurants.
Over costing of many
hospitality services
Limited budget

Interpretation- by referring to the data collected with help of 30 respondents it was evaluated that
there are different types of factors which affect the sustainability within the hospitality sector.
Out of different factors, most agreed factor is the economic factor. The reason pertaining to the
fact is that if hotel will not be providing the services within the range of the consumers then this
will affect the consumer coming to the place (Siddique and Hossain, 2018). In addition to this
when prices of the hotel and its services will be high then is would have affected consumer and
their perception relating to the hotel and its services.
Theme 6- Strongly agreed that consumer sustainability plays a key role in overall growth
and success of business within hospitality sector.
Q.6) Do you feel customer sustainability play key role in overall growth and success of
business entity in hospitality sector?
Strongly agree 9
Agree 7
Neutral 4
Disagree 6
Strongly disagree 4

Interpretation- with assistance of the data gathered with help of the 30 respondent it was
identified that customer sustainability is a crucial concept which leads to overall growth and
success of business. this is agreed by majority of people that is 9 (Ricci, Banterle and Stranieri,
2018). This is pertaining to the fact that if the consumer will not be coming to the place again
and again then this will affect the growth of company. but on the other side some of the
respondent does not agree to this and argues that customer sustainability does not have any
impact on growth of hotel.
Theme 7- Booking is the major customer touch point for consumer when they arrive at
hotel.
Q.7) What according to you is the major customer touch point for hotel when it comes to
influence the buying decision?
Travel inspiration 6
Research 8
Booking 10
On property 4
Post stay 2

Interpretation- with help of the data collected with primary source it was analysed that consumer
is attracted by many different touch points. This is particularly because of the reason that these
touch point attract consumer to come to the hotel. As agreed by the majority of respondent it is
evident that booking is the key touch point which attract maximum of consumer (Sharma and
et.al., 2020). The reason pertaining to the fact is that if booking within hotel will be effective and
fast then this will attract consumer to come to the place. But on the other side, some of the
respondent stated that post stay and on property is also a good touch point in attracting
consumers.
Theme 8- Yes, pricing can assist in overcoming impact of any factor involving buying
decision of consumer.
Q.8) Do you feel pricing can overcome the impacts of any other factor involve in buying
decision of customer in hotel sector?
Yes 23
No 4
Neutral 3

Interpretation- by evaluating the responses of 30 participants it was clear that pricing is a factor
which assist the hotel in affecting over the buying decision of the consumers. This is agreed by
majority of people as if price will be reasonable then this will affect the buying decision of the
consumer (Han, Chua and Hyun, 2020). For instance, if price is normal then every person will
think they can go to the hotel. On the other side, if price will be high then it will demotivate
people to go to the place.
Conclusion
The above research report summarised the fact that use of eco- friendly strategies and
policies create an impact over consumer decision making. This is pertaining to the fact that
currently people have become more conscious relating to the protection of environment and use
of eco- friendly products. Further the project inferred that customer satisfaction is the most
preferred factor which is undertaken at time of buying decision. This was particularly because of
the reason that when consumer will not be satisfied then they will not come to the place again. In
addition to this review of the hotel also affect the buying decision of the consumers. Along with
this it was identified that use of marketing strategies is a method which will assist the company
in influencing the buying behaviour. Furthermore, it was also concluded that unauthentic hotel
reviews are a greater challenge for the hospitality sector. The reason pertaining to the fact that
many a times people post wrong reviews relating to the hotel and their services.

Recommendation
Though there were good things with the hotel in relation to the use of eco- friendly
products and strategies. But then also there are some areas in which hotel The Queens Park need
to work for improvement. Some of the recommendation for improvement of challenges relating
to consumer decision making are as follows-
 The hotel must provide services to the consumer in such a manner that it satisfies the
need of consumers. This is necessary because of the reason that if they will not be
satisfied then they will post wrong reviews over social media.
 Furthermore, another recommended strategy to The Queens Park Hotel is that they must
properly allocate all the cost to the required activities and department. This is essential
because of the reason that if the cost of the company will be high then they will charge
high price to consumer. It might be possible that consumer does not like this and will not
come to the place.
PERFORMANCE REVIEW
Reflection on effective research methods
With the help of the research I learnt that framing of aim and objective is the major thing
on which success of the research is dependent. The major reason pertaining to the fact that when
proper aim and objective will be set then only researcher will get an idea how research need to
be completed in successful manner. In addition to this use of qualitative research was also
assistive to the researcher in completing the research. This is pertaining to the fact that when the
researcher makes use of qualitative study then this will help researcher in developing deeper
insight relating to research topic. Moreover, I learnt that for collection of the data combination of
primary and secondary sources was helpful. The reason underlying this fact is that when the
researcher makes use of both sources then this provides a better and more reliable set of data
relating to the study. Furthermore, it was evaluated that the use of interpretivism strategy was
helpful in completing the research in effective manner. The reason pertaining to this fact is that
this help researcher in focusing on more of qualitative information rather than the factual
information and number facts and figures.
Alternative research methods
From the above research it can be evaluated that use and selection of appropriate research
method is very important for success of the business. this is pertaining to the fact that if research