Airbnb: Factors Influencing Millennials' Choices - Marketing Report

This report delves into the factors influencing millennials' consumer behavior and their preferences for Airbnb. It begins with an introduction that outlines the research topic, objectives, and questions, focusing on understanding why millennials choose Airbnb. The background section provides an overview of Airbnb, its operations, and its appeal to millennials, highlighting key amenities and booking conveniences. Definitions of essential terms, such as millennials and consumer behavior, are provided to ensure clarity. The research objectives aim to identify the motivations behind millennials' Airbnb choices, analyze consumer buying behavior theories, and investigate Airbnb's impact on millennial purchasing decisions. The report poses research questions about millennials' motivations, consumer behavior theories, and Airbnb's influence. The remaining chapters cover a literature review, research methodologies, data analysis, and the presentation of findings, conclusions, and recommendations. The report references key sources to support its analysis of marketing strategies and consumer behavior within the hospitality sector.

RUNNING HEAD: MARKETING 0
“AIRBNB”

MARKETING 1
Table of Contents
Introduction......................................................................................................................................2
Background Information..............................................................................................................2
Definitions of general terms........................................................................................................3
Millennials...............................................................................................................................3
Consumer behavior..................................................................................................................3
Airbnb......................................................................................................................................4
Research objectives.....................................................................................................................4
Research questions.......................................................................................................................4
Description of remaining chapters...............................................................................................5
References........................................................................................................................................6

MARKETING 2
Introduction
Consumer buying behavior is considered the taken which is taken by the consumers before
purchasing the particular products and services (Kumar & Patra, 2017). In this process
consumers perform various actions which includes engaging with the posts in social media and
buying behavior is affected through various factors such as economic, personal and social
factors. The topic of the research is “A study of factors influencing millennials towards Airbnb”.
The reason of selecting this topic because I want to understand the factors through affects the
consumers in making the decisions towards the particular products and services. As I also buy
products and services online and see reviews before making purchasing decisions. This topic
supports me to provide detail information of getting more attracted towards Airbnb. This
interests me more because through this I can learn the information about the facilities and
services provided by Airbnb and the reasons for which I can go for Airbnb rather than hotels.
Through this I can also understand the promotional activities which are offered by Airbnb for
communicating the message so that I can also get more information about the other offers which
is provided by Airbub. Therefore, this topic also interests me because through this I can
understand the theories which can apply in the hospitality industry so that the behavior of the
consumers will be understood.
Background Information
Airbub stands for “Air-bed and breakfast”, it is the community marketplace which conduct their
operation online which make the connections between the people who provided their homes for
rent to the people who all wants accommodations services. Airbnb charge about “3% of the
commission” through the host as well as about “6% to 12% commission” from the guests. It

MARKETING 3
provides basic amenities to the guests such as “towels”, “WiFi”, “Clean linens” and other
facilities (Cheng & Jin, 2019).
Airbnb attracts more millennials due to providing them convenience in booking through
describing all the information about the properties with photographs and through increasing their
connection with the host. It is estimated that in the year 2016, about 60% millennials made
booking through Airbnb. Therefore there are various factors and aspects through which the
millennials are more attract towards Airbnb that is lower pricing, more security and options. In
the present research various factors is identified and connect with the buying behavior of the
millennials (Biswas et al., 2016). This supports in achieving the objective of conducting the
research and suppose in maintaining the principle of adequacy and reliability.
Definitions of general terms
Millennials
Millennials is considered in generation Y, which is born between the periods from 1981 to 1996,
this generation is highly digital and users remain more active on social media (Anshari et al.,
2019). Social media networking play an important role in their lives while making buying
decision regarding the particular product and services. The people from this generation follow
the trend which is the main reason in changing their behavior.
Consumer behavior
It refers to the action and behavior of the consumer according the particular activity and things,
this behavior is impact through several aspects (Badgaiyan & Verma, 2015). It is the study
through which the person, organizations and different groups involved in various procedure,
framework so that they can purchase the product and satisfy their needs and demands. The social

MARKETING 4
media is also become most important in changing the attitudes of the consumers; furthermore,
there are several other aspects such as friends, buying capacity etc.
Airbnb
It offer accommodation services online through which most of the consumers gets attracted, it
focuses on the needs and requirements of the consumers (Chen & Karen, 2017). In this changes
in the facilities are made according to the external environment which forced them to adopt the
change so that it maintains the loyalty of the consumers.
Research objectives
The affordable prices, flexible websites and providing more options to the consumers are the
aspects through which millennials prefer Airbnb rather than hotels. It also provides various
marketing strategies such as content marketing, offline marketing and referral marketing by
which more customers are aware about the facilities and services provided by Airbnb. It provides
online services which is also one of the reasons to attract millennials because majority of the
person from this generation stay active on social media. The main objectives of the research
supports in identifying the factors which affects the millennials to buy the services provided by
Airbnb.
 “To explore the motives of millennials in choosing to stay with Airbnb”
 “To analyzing the theories of consumer buying behavior”
 “To investigate the affect of Airbnb on behavior of millennial”
Research questions
The research question supports the researchers to maintain the validity and helps in
accomplishing the objective of conducting the research. The research concentrates on finding the

MARKETING 5
aspects through which majority of the millennials prefer Airbnb rather than hotels. The present
research focuses on some research questions which include:-
 “What are millennials motivations for choosing Airbnb?”
 “What are the key theories of consumer behaviour?”
 “How does Airbnb influence millennials-buying behaviour?”
Description of remaining chapters
Chapter-2
In this chapter literature review is done by describing the existing literatures and authors
views about the different themes which is related to the subject matter.
Chater-3
In this chapter research methodologies, that is the tools, research design, research
approach and philosophies which will be used in the study is discussed with the rationale
of the methodologies. This provides detailed information about the strategies and
framework through which the present research is conducted.
Chapter-4
In this data collection analysis and interpretation of the collected information is done
through using different approaches so that objective of the information will be achieved.
Chapter-5
In this chapter the findings of the research is discussed, by describing the
recommendations and conclusion of the research.

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References
Anshari, M., Alas, Y., Razzaq, A., & Shahrill, M. (2019). Millennials Consumers' Behaviors
between Trends and Experiments. International Journal of Cyber Behavior , 9 (4), 45-60.
Badgaiyan, A. J., & Verma, A. (2015). Does urge to buy impulsively differ from impulsive
buying behaviour? Assessing the impact of situational factors. Journal of Retailing and
Consumer Services , 22, 145-157.
Biswas, R., Mukherjee, P. K., Kar, A., Bahadur, S., Harwansh, R. K., Biswas, S., et al. (2016).
Skin care formulation. Journal of ethnopharmacolog , 192, 283-291.
Chen, Y., & Karen, K. (2017). Consumer valuation of Airbnb listings: a hedonic pricing
approach. International Journal of Contemporary Hospitality Management .
Cheng, M., & Jin, X. (2019). What do Airbnb users care about? An analysis of online review
comments. International Journal of Hospitality Management , 76.
Kumar, S., & Patra, S. (2017). Does promotion mix really help to enhance brand equity: A
literature review. Journal of Management , 8 (4), 1387-1392.