Consumer Behavior in Hospitality: Decision-Making Process Analysis

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This report provides a detailed analysis of consumer behavior within the hospitality industry, using Grosvenor Hotel as a case study. It examines various factors influencing consumer purchasing decisions, including cultural, social, personal, and psychological elements. The report also explores the impact of digital technology on consumer trends, highlighting the importance of transparency, convenience, and online engagement. Furthermore, it analyzes the customer decision-making process, from issue recognition to post-purchase behavior, and emphasizes the significance for marketers to understand and map this process. The report also differentiates between B2B and B2C contexts and analyzes market research methods. Finally, it discusses how marketers can impact the decision-making process within the hospitality industry, offering insights for strategic improvements and enhancing customer satisfaction.
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Hospitality Consumer
Behaviour Insight
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Assess different cultural, social, personal and psychological factors which impacts the
behaviour of purchaser................................................................................................................3
P2 Change in trends of consumer due to use of digital technology.............................................5
TASK 2............................................................................................................................................6
P3 Analyses of the levels for customer decision making process and also mapping of a path for
this hospitality service.................................................................................................................6
P4 Significance for a marketer to map out the customer decision making path as well as
understanding of decision making procedure..............................................................................7
TASK 3............................................................................................................................................8
P5 Difference between B2B and B2C with the context of decision making process..................8
P6 Analysis of various methods & approaches for performing market research........................9
TASK 4..........................................................................................................................................10
P7 Marketers impacting different levels of decision making procedure in relation of hospitality
industry......................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Consumer behaviour is considered as a process of analysing behaviour of an individual
person regarding their needs and wants at market place. The organisation focuses on providing
product and services as per their need in order to satisfy them. In other words, consumer
behaviour is determined as a study of behaviour of an individual person in order to take decision
of selecting, purchasing goods for satisfying need and want of its user for achieving goal in
timely manner. This report is carried upon company named as Grosvenor hotel. It is well known
hotel which is located in UK and provide superior quality services to its user. There are around
24 rooms as well as 24 suites and overall 8 floors and they are famous for providing comfort to
its customer in addition with prudent compensation (Bharwani and Mathews, 2016).
TASK 1
P1 Assess different cultural, social, personal and psychological factors which impacts the
behaviour of purchaser
Herein, there is an investigation regarding purchasing behaviour of customer during
particular phase of time period. In context of Grosvenor, the company focuses on investment of
large amount of efforts and contribution on understanding behaviour of its client and their loyalty
towards company. There are various factors through which consumer purchasing behaviour is
analysed that are going to be mentioned below:
Social factor include education level, lifestyle and wealth of an individual person during
particular phase of time period. There are different social factor that is going to be mentioned
below:
Reference gathering this kind of gathering is connected with tremendous intensity and
choice of its user that help in achieving positive outcome in future period of time.
Family is considered as a most important thing which is attempted by individual person.
Quality as well as conviction is considered as consequences of family because there is a blood
connection between them. So, it has been analysed that purchasing decision is based on family
that imposes direct impact on organisation.
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Jobs and status: The job and status is characterised as a section through which
personality related to culture is verified. In addition to this, these element imposes direct impact
on behaviour of consumer and useful in achieving favourable outcome in future period of time
(Björk and Kauppinen-Räisänen, 2016).
Individual factor there are various factors which is related to individual person and these
factors impose direct impact on behaviour of consumer. The individual factor that is connected
with different perspective which is going to be mentioned below:
Age and life cycle stages it is considered as a stage in which the behaviour of individual
person is determined according to their age. According to changing need and requirement related
to behaviour of individual person and the organisation focuses on satisfying their need in order to
increase brand image and reputation of company in front of customer at marketplace.
Occupation is considered as functions of business organisation which is performed by
individual person. In respect of behaviour of consumer, the occupation is considered as a
fundamental function as they provide money that is connected to monetary strength because it
influences buying process.
Social group this social group are linked with virtue, conviction, custom as well as
various imperatives. Culture is considered as a noteworthy function that affects the behaviour of
consumer in an appropriate manner.
Subculture it is considered as a gathering of value, convention that is connected with one
another. By using comparative culture, there are various preferences which are maintained in
order to provide intensity to changing behaviour of its user during particular phase of time
period.
Social class is connected to different consumer have various characteristics because of
which they behave in a different manner (Bruwer and Rueger-Muck, 2019).
Psychological elements respectively are connected or related with the presence of
insightful capacity of individual person. Therefore, it is necessary to understand this kind of
element that is connected to various variables that is going to be mentioned below:
Inspiration motivation is determined as an important angle that is needed by individual
person in order to satisfy their need and want. In context of chosen hotel, their focus is on using
propel and various specific apparatus that help in achieving favourable outcome in future period
of time and satisfying their needs.
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Discernment this element is connected or related with brain and it determine the capacity
of individual person through which they have wider choice from which they select superior one
from different alternative. In context of selected hotel, their focus is on maintaining unmistakable
association or good relationship with its client in order to hamper discernment in an appropriate
manner.
P2 Change in trends of consumer due to use of digital technology
The innovation is considered as assets that imposes direct impact on behaviour of
purchaser during particular phase of time period. By using latest innovation which helps in
provide services for increasing profit margin in future period of time. In respect of chosen hotel,
the latest innovation helps in satisfying the changing behaviour of consumer during particular
phase of time period. There are different factors through which customer are getting enormous
ramification in context of latest innovation. There are different component that is going to be
mentioned below:
Straightforwardness and solace in getting data digital innovation assists customer in
accommodation sector in order to achieve simplicity while booking as well as delivering
administration. In respect of chosen hotel, they are adopting various kinds of gadgets for
appointment which is providing simplicity to its customer. The innovation helps in reaching to
larger number of client and using different information for satisfying its consumer in an
appropriate manner (Erickson, and Rothberg, 2017).
Changes in consumer want it is necessary to implement advanced technology for
satisfying the changing need of user during particular phase of time period. In dynamic
environment, the hospitality sector focuses on connecting with online services through which
customer have a wider choice to booking their hotel rooms in advance during particular phase of
time period. In context of chosen hotel, they are selecting customisation for satisfying needs and
wants of customer in an appropriate manner.
Improvement in client association through computerized innovation, the customer can link
for long length through which standard is maintained by its user. Online media is considered as
latest innovation that helps in satisfying the need of individual person. Web-based media such as
Face book, Instagram and there are various sites through which the hotel can interact and connect
with its clients. Therefore, the chosen hotel has their own site by using this they can take
appointment of its client in an appropriate manner.
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Effect of portable application mobile application is considered as a most appropriate idea
or views in which proper correspondence can be developed between clients as well as
association. Portable application imposes direct impact on client and it maintains the good
relationship between client and manager of hotel during particular phase of time period. In
context of chosen hotel, they focus is on launching their own application by which they can
interact with its client in a good way (Ivanov and Webster, 2019).
TASK 2
P3 Analyses of the levels for customer decision making process and also mapping of a path for
this hospitality service
It is necessary for organisation to analyse the behaviour of buyer in order to provide them
services according to their need. In context of Grosvenor, they focus on investing large amount
of energy in order to analyse the need of its client and provide them services as per their needs.
There are different levels through which the consumer takes decision related to purchase which
is going to be mentioned below:
Issue acknowledgement is considered as a basic level in which the main focus is to assess
or analyse wants of its user. This is connected with analysing the requirement of its user during
particular phase of time period.
Data search herein, the organisation focuses on collecting data related to need and want of
its user. For example, client focuses on booking in a hotel therefore they want a particular data
and information that is related to management and rates. Therefore, they are using different
sources for collecting data and information in order to satisfy themselves.
Assessment of choices there are various option is used for collecting data and there are
various options through which they satisfy their need. The individual have a wider choice and
they focus on choosing superior one through which satisfies their need (Khoo-Lattimore and
Yang, 2018).
Buy choices herein, the client focuses on taking a purchase decision during particular phase
of time period. Based on this, they focus on satisfy need and they take decision for taking
services that help in satisfying its user. The choice is also influenced by online media, mount
exposure and various perspective and many more.
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Post buy conduct this is considered as a last stage in which service provided according to
the need and wants of client. Herein, the client wants to communicate their satisfaction level by
using different channel like advertisement. It is important perspective through which client
interact with organisation and taking review regarding their services during the period of time.
P4 Significance for a marketer to map out the customer decision making path as well as
understanding of decision making procedure
It is significant for marketers to map out customer decision making path as it help in
enhancing performance and also help in gaining insight about customer requirements. In context
to an advertiser, it is basic that they map client as it has influence on customer choices. It is
determined that planning is significant in order to observe customers and to comprehend their
requirements in an effective way.
Noteworthiness of guide way to buy
Comprehend level of collaboration between customer &business: By the assistance of
planning, it is analysed that an effective communication is take place with clients that is consider
as an effective and ideal way. After this, there are various complaints made by customer need to
be settled in best way. Along with this planning is beneficial in order to manger customers and
deal with their changing requirements. In context to Grosvenor, its higher authority’s focuses on
developing trust in mind set of customer by considering their issues and solved it in proper way.
Accentuates on client requirements Herein, there are various clients which is
categorised in different level which helps company in bring changes within company. With
reference to respective organisation planning is helpful in gaining more number of clients and
also help in attaining desired goals in a timely manner (Kostelijk, 2016).
Separates hole between wanted & genuine experience of clients: It is associated with
favourable position of divorcing hole between genuine and wanted customers. This will assist
higher authorities of Grosvenor in gaining customer loyalty and increase its customer base level
appropriately.
Perceives improvement needs: It is analysed that purchase planning assist an advertiser
to determine advancement requirements so that one of the major asset is saved in a best manner
which is customer. In relation to Grosvenor, it provides extra value service to customer instead
of providing them the value of which they paid money. In addition to this, it provides customer
higher steadiness & capacity to make effective use of its services.
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Accommodating in picking up business knowledge: It is analysed understanding of
customers and using of effective decision making procedure is helpful for both customer and
advertiser as well. There are various perspective under which planning is elaborated as a factor
that is giving higher customer loyalty and also assist in dealing with the changing requirements
that further help in gaining higher growth and success as well.
TASK 3
P5 Difference between B2B and B2C with the context of decision making process
B2B is considered as an exchange which is made between different organisations. In
addition to this, B2C is conducted their operations between organisation as well as user.
Therefore, in context of Grosvenor, there are various examples that help in taking decision
making which is going to be mentioned below:
Basis B2B B2C
Customer Herein, the business is
considered as a client. For
example the company focuses
on conducting their
organisation with other
company in an appropriate
manner (Viglia and Dolnicar,
2020).
In this approach, the client is
determined as an end user of
things. In context of
Grosvenor, they provide
product and services to its end
user which is considered as a
b2C exchange.
Criteria of Focus B2B focuses on making
appropriate relationship. The
chosen hotel focuses on
adopting correspondence with
other organisation for
becoming familiar in relation
to platform patterns.
Herein, the company focuses
on increasing loyalty of its
user by providing
administration or items to
them. In context of Grosvenor,
their focus is on attracting
large number of user at market
place.
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Initiation of brand value In B2B, brand esteem is
considered as a making
appropriate relationship
between various organisations.
For instance, Grosvenor
focuses on increasing
engagement level with
implementing various
exercises related to B2B
approach for expanding
market.
For higher brand, B2C
company are focuses on using
limited time equipment and
making contribution towards
client in an appropriate way.
Sales drivers In B2B their main focuses on
dealing with social evidence as
well as worth proposed.
In B2C, they deal with client
within organisation in order to
make steadfast client
Buying Decision making Herein, the decision taking
based on other competitive
firm in order to achieve
competitive advantage over
rivalries at marketplace.
Herein, their main focus is on
taking decision on the basis of
satisfying need and want of its
user.
P6 Analysis of various methods & approaches for performing market research
Statistical surveying for Business to Business: It is determined that decision making
under business to business is inflexible & is associated with various aspects as well as issues.
The upper level authorities are required to accomplish within market by performing B2B
exercises in an effective manner (Nusair, Butt and Nikhashemi, 2019). In context to Grosvenor,
they are making use of various statistical surveying approaches in order to shown exercises
related to Business to Business. Some of the parts of exploration techniques are as follows:
Rivalry examination: In relation to procure and support generosity competitor
investigation is a conspicuous idea that can be utilized by company in order to outline B2B
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choices. Within this shortcomings and quality of adversary is categorised down in order to
comprehend changing cycle.
Subjective investigation: Herein, unmistakable spotlight is given on assortment of
different information by considering meetings from experts. Flexibility in B2B exercises is
difficult and yet by considering help of subjective analysis of economic situation that can be
consider it an effective manner. This analysis is assisting the business to comprehend ferocious
market competitor & manner through which business is modified.
Statistical surveying techniques under Business to customer: Herein, B2C association
are consider as an important aspect in order to gather information and to attain customer’s edge.
In addition to this, time and cost is being utilized within the strategy that leads to attainment of
positive and desirable outcomes.
Survey: It is associated with gaining of information from the target and potential customer
by asking some question in an effective way. In context to Grosvenor, changes are taken place by
collecting and analysing information in an appropriate way (Sanjeev and Birdie, 2019).
Meetings: It is useful for clarifying what everyone perceive by taking information from
customers that is needed to undertaken by business entity for longer sustaining in market.
TASK 4
P7 Marketers impacting different levels of decision making procedure in relation of hospitality
industry
It is stated that development and enhancement of business entity is rely on the level of
productivity and efficiency of performing activities. It is significant for marketers to make
changes and make use of effective decision making process and performing well at each stage
that help in gaining success at marketplace. In relation to impact of decision making procedure to
marketers are as follows:
Need/issue acknowledgment: It is significant to analyse clients request and needs that
has positive influence on business performance and profitability level. An advertiser can gain
undoubtedly effect of customer requests and clients by which they can make effective strategy
and gain success at an equivalent level (Schütte and Ciarlante, 2016).
Assessment of choices: After analysing the requirements, the role of researcher is to
assess all the options that is available for fulfilling and addressing customer requirements. In the
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present time, alternatives are easily available that make customers to easily shifts to another
brand and has negative impact on performance of respective organisation.
Data search: Herein, data is search by company which is related to requirements of
clients. Some of the sources to collect data are books, web, face to face communication and
many more.
Buy choice: Herein, clients take decision by analysing all the requirements and choices
prevailing at marketplace. Herein, advertiser having the functions that helps in persuade
customer to make choice their own brand.
Post buy discord/conduct: Herein, inputs are collected by advertiser in order to analyse
experience of customer & to gain knowledge about the degree of their satisfaction level by
gaining services (Sipe, 2016)
CONCLUSION
On the basis of above mentioned report, it has been analyzed that consumer behaviour is
considered as a process of analysing behaviour of an individual person regarding their needs and
wants at market place. The organisation focuses on providing product and services as per their
need in order to satisfy them. In other words, consumer behaviour is determined as a study of
behaviour of an individual person in order to take decision of selecting, purchasing goods for
satisfying need and want of its user for achieving goal in timely manner. There are various
process used for taking decision related to purchasing products and services by its user for
satisfying their needs during particular phase of time period.
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REFERENCES
Books and Journals
Bharwani, S. and Mathews, D., 2016. Customer service innovations in the Indian hospitality
industry. Worldwide Hospitality and Tourism Themes.
Björk, P. and Kauppinen-Räisänen, H., 2016. Local food: a source for destination
attraction. International Journal of Contemporary Hospitality Management.
Bruwer, J. and Rueger-Muck, E., 2019. Wine tourism and hedonic experience: A motivation-
based experiential view. Tourism and Hospitality Research, 19(4), pp.488-502.
Erickson, G.S. and Rothberg, H.N., 2017. Healthcare and hospitality: Intangible dynamics for
evaluating industry sectors. The Service Industries Journal, 37(9-10), pp.589-606.
Ivanov, S. and Webster, C. eds., 2019. Robots, artificial intelligence and service automation in
travel, tourism and hospitality. Emerald Publishing Limited.
Khoo-Lattimore, C. and Yang, M.J., 2018. A family for the holidays: Delineating the hospitality
needs of European parents with young children. Young Consumers.
Kostelijk, E., 2016. The influence of values on consumer behaviour: The value compass.
Routledge.
Nusair, K., Butt, I. and Nikhashemi, S.R., 2019. A bibliometric analysis of social media in
hospitality and tourism research. International Journal of Contemporary Hospitality
Management.
Sanjeev, G.M. and Birdie, A.K., 2019. The tourism and hospitality industry in India: emerging
issues for the next decade. Worldwide Hospitality and Tourism Themes.
Schütte, H. and Ciarlante, D., 2016. Consumer behaviour in Asia. Springer.
Sipe, L.J., 2016. How do senior managers influence experience innovation? Insights from a
hospitality marketplace. International Journal of Hospitality Management, 54, pp.75-83.
Viglia, G. and Dolnicar, S., 2020. A review of experiments in tourism and hospitality. Annals of
Tourism Research, 80, p.102858.
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