Analysis of Consumer Behaviour and Insights for the Hospitality Sector

This report delves into the intricacies of consumer behavior within the hospitality industry, using the Old Parsonage Hotel as a case study. It examines the consumer decision-making journey, from need recognition to post-purchase evaluation, and explores the importance of mapping the purchase path for marketers. The report differentiates between B2B and B2C transactions, highlighting their key distinctions, and discusses various market research approaches and methods to understand consumer decision-making processes. Furthermore, it evaluates how marketers can influence the distinct stages of consumer decision-making through various strategies, including cognitive and emotional approaches, providing valuable insights for effective marketing within the hospitality sector. The report covers topics such as marketing mix factors, technological influences, and heuristic factors, and also touches upon consumer learning and its impact on purchasing behavior.

Hospitality
Consumer
Behaviour and
Insight

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT............................................................................................................................1
TASK 2............................................................................................................................................1
P3. Consumer decision making journey stages............................................................................1
P4. Importance for marketers to map purchase path as well as understand decision making of
consumers in hospitality sector....................................................................................................3
TASK 3............................................................................................................................................4
P5. Key differentiations among B2B and B2C............................................................................4
P6. Market research approaches with methods to understand decision making procedures.......6
TASK 4............................................................................................................................................7
P7. Evaluation of ways marketers influences distinct stages of decision making.......................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Consumer behaviour is referred to studying individuals and organisational procedures
that are adopted by them to select, secure, utilise as well as dispose commodities, ideas addition
to experiences for satisfying desires. It describes when people purchase, how they purchase,
whey they purchase along with what they purchase. In other words, it reflects consumer actions
within market place together with basic motives for the actions. To better understand the
concept, Old Parsonage Hotel is selected which has its head office at Oxford, United Kingdom
(Old Parsonage Hotel, 2019). The hotel combines original charm along with character with
amenities, technologies as well as luxury so to deliver convenience services to wide customers.
The report includes factors which influences attitudes and behaviours of consumers within
hospitality industry, mapping path including decision making process associated with consumers,
appropriate research forms and ways market influences distinct stages within hospitality
consumer decision making process.
TASK 1
Covered in PPT
TASK 2
P3. Consumer decision making journey stages.
The involvement of consumers for need identification, information collection, identifying
alternatives, evaluation of alternatives and making purchase option is termed to journey of
consumer decision making (Altinay, Paraskevas and Jang, 2015). For marketing analysts of Old
Parsonage Hotel to investigate situations in which consumers behave for particular items in order
to position various substantial products as well as unsubstantial services in front of audiences
that are targetted. For providing accommodation service as expected by market, selected
institutional managers have launched new holiday package along with analysed phases of
consumer decision making journey connected with targetted clients so that they can execute
further activities. Phases of consumer decision making journey includes followings:
Need recognition phase: Herein, customers identifies their needs for specific service or
product so to start finding key solutions. In context to Old Parsonage Hotel, customers
recognises their need to buy holiday package while they will visit destination places.
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Information search: Herein, information is gathered about various hotels in order to
seek answers to resolve the needs. Various sources like organisational websites, friends and trip
advisors are used to search required information. Old Parsonage Hotel's marketers devise various
attractive advertisements containing full information about accommodation packages that helps
customers to collect the information that is required by them.
Alternative evaluation: Herein, first various options are identified and evaluation of
each alternative is done to find which option will give maximum satisfaction (Backer and King,
2015). Customers first collect alternatives such as list of hotels and then make comparison
among each ion basis of service quality, price structure and offered services. If customers have
developed some interest with selected entity then they compares transpiration facilities,
destinations, days of tour as well as accommodation facilities that entity provides with other
organisation within such industry.
Pre purchase: When required information is gathered and alternatives are evaluated then
clients make pre purchase decision by selecting one of the option and setting budget accordingly.
Purchase phase: In this, potential client is ready to buy the product. In context to
customers of Old Parsonage Hotel, they books the holiday package by making advance payments
for services they will use in upcoming duration.
Receive stage: The customers at this stage receive the promised package to enjoy
facilities in order to satisfy the needs. Organisational managers caters all promised services such
as transportation facilities, food services, accommodation facilities and many more that helps
customers in gaining values with maximum satisfaction.
Post purchase stage: Herein, customers first themselves examines experiences which are
gained from the received services and delivers feedbacks accordingly to the entity. Old
Parsonage Hotel uses the feedbacks for further improvements or making modifications so that
they can enhance their market position.
Levels of hospitality consumer decision-making
Extensive problem solving level: Within such level, consumers gets highly involved in
products offered by business concern (Bowie and Buttle, 2011). Customers of Old Parsonage
Hotel makes critical evaluation of high cost packages and takes huge time to make appropriate
decision.
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Limited problem solving level: Herein, customers of selected hotels perform general
research to gain information about various holiday packages and generally takes limited time to
make final decision.
Routinised problem solving level: Within the level, customers of Old Parsonage Hotel
quickly takes decision due to awareness about services, products or packages offered by entity.
Four views concerned with hospitality consumer decision-making
Economic view: As per the view, decision making by consumers is based on rational
aspects (Dixit, 2017). They do not have adequate information for making final judgement.
Marketers of Old Parsonage Hotel are responsible to deliver efficient information that influences
consumers for prominent decision making.
Passive view: The view states that consumers are passive in nature who rely on
advertising actions to make decision for tourism packages.
Emotional view: According to emotional view, institutional marketers influences
consumers decision by using emotional tactics in advertisements and campaigns that helps
clients to make decision.
Cognitive view: Consumers from such view are considered as thinking problem solver.
When consumers have enough information about packages then they restrict collecting
information and make decisions as per the available information only.
P4. Importance for marketers to map purchase path as well as understand decision making of
consumers in hospitality sector.
Mapping path is refereed to journey of a person in which decisions to purchase products
are framed on appropriate duration (Dredge and Gyimóthy, 2017). It comprises series of steps
beginning with research procedures and completes when final purchase decision. For Old
Parsonage Hotel, mapping path is important for marketers as it help sin highlighting
improvement priorities, emphasising purchase funnel stages and understanding individual
perceptions for sales activities for holiday packages. The management team must map proper
path for understanding factors, eliminating hurdles to improve brand image, forecasting
emerging trends and monitoring existing circumstances within market. Few factors influencing
decision making are as elaborated:
Marketing mix factors: Marketing mix is aggregation of elements which are controlled
by entities to influence clients for purchase the commodities. The elements are physical
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evidence, product, people, promotion, price, place and promotion that have influence of decision
making at great manner. For example, to reach on final decision, consumers performs prior
activities like analysing product quality, location, commodity brand and so on. In context to
marketers, they should collect information about behaviour of clients towards marketing
schemes, customers purchasing power and clients desire for framing strategies for influencing
consumer decisions that can result in retaining potential clients by enhancing sales of holiday
packages.
Technological factors: Innovations addition to advancements in existing technologies
also leads the entity in influencing stages of making decisions among customers (Horner and
Swarbrooke, 2016). When Old Parsonage Hotel administration opts technologies like interactive
personalised services, online transactions, promotions through social media sites and tailing than
all the queries of customers can be resolved effectively and answers are given to their questions
in order to influence their decisions making capability for holiday packages.
Heuristic factors: These are the mental shortcuts through decision making is influences
through existing emotions. Customers can meet their desires by making effective choices among
available options. Old Parsonage Hotel has strong customer base in which few customers have
needs for luxury accommodation services so that they can maintain their status level within
social group. The management of hotel properly makes arrangement by analysing customer
perception and delivers them the luxury services only that results in great influence of decisions.
TASK 3
P5. Key differentiations among B2B and B2C
B2B and B2C are recognised as commercial transnational forms. Key differentiations
among both are as follows:
Differentiation basis B2C B2B
Meaning B2C is said to commercial
transaction form wherein
decisions are taken by managers to
sell their products to customer
directly.
B2B is defined to other
commercial transaction
type in which decision
making is done to sell
products to other business
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concerns.
Process of making decision In B2C, proper process is
followed to make decision. It
starts with need
acknowledgement, finding
information, searching alternatives
and making evaluation, choosing
final alternative option and
decision evaluation (Gbadamosi,
2017).
In B2B, for making final
decision, managers follows
desire identification,
organising information by
modern as well as
traditional approaches,
development with
evaluation of alternatives,
estimating information,
selecting specific choice,
implementing framed
decision and decision
monitoring with
evaluation.
Decision for market size In this, administrators of Old
Parsonage Hotel frames decisions
to grab attention of small size
market so to offer attractive
holiday packages with vast scope
for attaining customer attentions.
For instance, customers having
income level between £ 10000 to
£ 50000 or more with diverse
travelling demands are targetted.
Herein, decisions are made
to emphasis on business
concerns that make profits
more than £ 30000 to £
500000 are targetted from
the market.
Differentiations within B2C and B2B benefits managers of Old Parsonage Hotel to
conduct market investigations as well as gathering information to capture wide shares of market
and making revenues despite of facing critical conditions. With both concepts, managers builds
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effective relationships with diverse customer segment and various entities that helps in achieving
competitive benefits.
P6. Market research approaches with methods to understand decision making procedures.
Market research refers to determining new product viability by conducting investigation
for key customers (Jahauri, 2017). With market research, business concerns discover target
audience along with collect feedbacks with various opinions about products. B2B research is
used to gather information related with other business entities where as B2C research shows data
about customers and their belonging desires. Investigators of Old Parsonage Hotel uses both
research mediums for the purpose of selling holiday packages to targetted customers together
with different firms.
Approaches related with B2B and B2C research:
Qualitative approach: In this, all the information concerned with people and their social
behaviour is gathered for future decision making (Korstanje, 2017). Through surveys, sample
representations along with observations information is assembled. Skill Set required for
conducting such research type are communication skills, collecting data skills and data analysis
skills. Researches chooses random sampling technique from sampling method in which 150
samples were selected who represent other populations effectively. Tele dept interviews
benefits in collecting detailed information through covering motivations of customers as well as
distinct entities beliefs. Managers have properly applied Pareto principle in research and
analysed that 20% of customers are accountable for gaining 80% profits. Th approach benefits in
elimination all types of hindrances in achieving outcomes. But at same time, involves distinct
practices that consumers additional efforts of market analysts.
Quantitative approach: The data collected with the approach is based on non numerical
terms. Skill set required for collecting information includes analytics skills, reflective skills and
interpretive skills. Research methodology that is opted is non sampling method wherein around
750 respondents were chosen to gather data. Tele depth interview plays important function in
conduction research addition to gaining data in professional ways. The research benefits Old
Parsonage Hotel in smoothly performing research activities in fluent manner without any
disturbances. But the research adds costs in business activities that reduces profit margins at
some time of the entity.
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TASK 4
P7. Evaluation of ways marketers influences distinct stages of decision making.
Consumer learning is characterised to series of steps wherein a person acquire purchase
along with consumption knowledge and apply its experiences to future behaviour (Li, 2016).
There are various learning that exists among which some are incidental and others are
categorised as intentional. At Old Parsonage Hotel, marketers have role to acknowledge
perceptions for the purchases that business concerns or customers makes. By applying following
consumer learning approaches, organisational marketers influences phases within consumer
decision making process in hospitality sector:
Cognitive approach: With the approach, consumers learns with complex mental
practices to collect information. The model befits clients to posses control on distinct factors of
surroundings and complexities. Cultural factors that helps in consumer learning are their
cultural values, principles as well as ideologies. Similarly, Sub cultural factors constitutes habit
that is key for marketers to plan activities for influencing the learning process of customers.
Using the approach, Old Parsonage Hotel marketers can properly influence learning stages by
understanding purchase patterns so to map journey for enhancing awareness for hospitality
services that company offers. It also helps customers too by eradicating hurdles that they faces in
devising final decision.
Behavioural approach: Herein, more focus is on observing other behaviours in context
to various activities (Yoo and Park, 2016). The approach states that a consumer learns through
response tendencies which are related to experiences. For example, when an individual gains
specific experience, they all times behave in similar manner. Cultural factors like individual
belief, perceived knowledge and independent package have more possibilities in influencing
customer behaviours of respective entity. If sub culture such as religion or shared interest are
effectively understood then behaviours are learned accordingly by marketers. While advertising
or promoting holiday or accommodation packages marketers have role to consider all the sub
culture or cultural factors in order to influence consumer learning at great extent.
CONCLUSION
As per the above made discussion, it is concluded that to meet requirements with
preferences of customers it is essential for entities to majorly focus consumer behaviour together
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with insights. The journey of consumer decision making is related to the ways consumers
performs actions to frame buying decisions. Within it, various stages are involves in which
different practices are executed to make decisions. Marketing mix elements, heuristic factors and
technological factors influences decisions in great manner. B2B and B2C have more aspects that
uses available knowledge to sell products to wide consumers along with other business units for
making revenues in great quantity. Research approaches are further categorised into Quantitative
approach together with Qualitative approach that are used to gather key data within set time
frame.
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REFERENCES
Books and Journals:
Altinay, L., Paraskevas, A. and Jang, S. S., 2015. Planning research in hospitality and tourism.
Routledge.
Backer, E. and King, B. eds., 2015. VFR travel research: international perspectives (Vol. 69).
Channel View Publications.'
Bowie, D. and Buttle, F., 2011. Hospitality Marketing Principles and Practice. 2nd ed. Oxford:
Routledge.
Dixit, K., 2017. The Routledge Handbook of Consumer Behaviour in Hospitality and Tourism.
1st ed. Oxford: Routledge.
Dredge, D. and Gyimóthy, S. eds., 2017. Collaborative economy and tourism: Perspectives,
politics, policies and prospects. Springer.
Gbadamosi, A. ed., 2017. Young Consumer Behaviour: A Research Companion. Routledge.
Horner, S. and Swarbrooke, J., 2016. Consumer behaviour in tourism. Routledge.
Jahauri, V., 2017. Hospitality Marketing and Consumer Behaviour: Creating Memorable
Experiences. 1st ed. New Jersey: Apple Academic Press.
Korstanje, M. E., 2017. Terrorism, Tourism and the End of Hospitality in the'West'. Springer.
Li, X.R. ed., 2016. Chinese outbound tourism 2.0. CRC Press.
Prebensen, N. K., Chen, J. S. and Uysal, M. eds., 2018. Creating experience value in tourism.
Cabi.
Sanchez-Franco, M. J., Cepeda-Carrion, G. and Roldán, J. L., 2019. Understanding relationship
quality in hospitality services: A study based on text analytics and partial least squares.
Internet Research.
Swarbrooke, J. and Horner, S., 2016. Consumer Behaviour in Tourism. 3rd ed. Oxford: Taylor
and Francis.
Yoo, J. and Park, M., 2016. The effects of e-mass customization on consumer perceived value,
satisfaction, and loyalty toward luxury brands. Journal of Business Research. 69(12).
pp.5775-5784.
Online:
Old Parsonage Hotel. 2019 [Online]. Available through:
<https://www.oldparsonagehotel.co.uk/>