HNC Hospitality Consumer Behaviour and Insight Report Analysis

This report delves into the intricacies of consumer behavior within the hospitality sector, using Hilton as a case study. It examines the consumer decision-making process, outlining the stages from need recognition to post-purchase evaluation, and emphasizes the significance of mapping the customer's path to purchase. The report also contrasts the decision-making processes in B2B and B2C contexts within hospitality, exploring the influence of various factors such as the marketing mix, new technologies, and heuristics on consumer choices. Furthermore, it evaluates how marketers can influence different stages of the decision-making process, providing insights into strategies to enhance customer experience and drive business success. The report also includes an overview of the consumer behavior theories and models. The report aims to provide a comprehensive analysis of consumer behavior in the hospitality sector, offering practical implications for businesses to improve customer satisfaction and loyalty.

Hospitality Consumer
Behaviour and Insight

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Covered in PPT...........................................................................................................................3
TASK 2............................................................................................................................................3
P3 : Stages of consumer decision making and path of purchasing for a hospitality service.......3
P4 Explore why it is important for marketers to map a path to purchase and understand
consumer decision- making ........................................................................................................5
TASK 3............................................................................................................................................8
P5 : Comparison between hospitality decision-making process in context of B2C and B2B . . .8
Decision making process in B2B and B2C ................................................................................8
P6 : Approaches of market research and methods of research in decision making....................9
TASK 4............................................................................................................................................9
P7 : Evaluation of how marketer influences different stages of decision making .....................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Consumer behaviour refers to the study of behaviour of individuals and a group of people
related to select, purchase, use and dispose of several product, services and ideas in order to
satisfy needs and desire of customers. It define all the actions of customers in the marketplace
and motive behind those actions. In order to operate all the business organisation activities as per
the customers demand and needs it is essential for an organisation to give their focus on
assessing the behaviour of consumers. As in the present hospitality worlds a range of services are
existing like food, accommodation, recreation, entertainment and many more. This following
assignment is based on Hilton which is an American multinational hospitality company that
manages and franchises a range of hotels and resorts. This report will cover various aspects like
several factors of consumers behaviour, importance of mapping a path to purchase and consumer
decision making process so as to enhance their experience level. Along with this, different
concept of B2B and B2C within the hospitality industry also will consider in this report. Also,
the role of different marketers and their impact on each phase or stage of decision-making and
different theories, models and concepts will consider in this file.
LO 1
TASK 1
Covered in PPT.
TASK 2
P3 : Stages of consumer decision making and path of purchasing for a hospitality service
Consumer decision-making process is a most effective and useful process as it contains
all those phases within from which a customer go through at time of taking the decision of
purchasing a product and service from the market. This is considered as complex process as it
comprises various activities such as determine need of product, make comparison, select and buy
it through various available options. The decision of a customers related to purchase a product is
also gets affected by several factors like physiological, social, emotional etc. that required to be
considered by Hilton in operating all the activities. Here are defining stages of consumers
decision-making process:

Illustration 1: Stages of Consumer Decision Making Process
Source: Stages of Consumer Decision Making Process. 2016.
 Need Recognition : It is first stage of this process in which a customers identify the
needs of the product. Decision related to recognise the needs affected by external and
internal factors as in this time a range of alternative options are accessible in the
marketplace (Del Chiappa and Dall’Aglio, 2012).
 Searching and gathering information: Herein, customers give their focus on collecting
the information and data of various hotel by using personal contacts, public resources
and advertisement.
 Evaluation the alternatives: After collecting information of all hotels a customers will
give their emphasis on evaluating positive and negative aspects of a hotel. This will
enables them in selecting a most perfect hotel for themselves on the basis on cost,
ambience, quality services etc.

 Actual Purchase of product or services : In this stage, a customers will finally select a
hotel from the available all options and take advantage of the services of that specific
hotel (Mo Kwon, Bae and Blum, 2013).
 Post-purchase evaluation: This stage comes after taking benefits of hotel services where
customers will give their feedbacks and reviews to about hotel services in order to make
decision related to that they should select the hotel in near future or not.
P4 Explore why it is important for marketers to map a path to purchase and understand consumer
decision- making
Customers are the most integral part of an organisation which makes in essential for the
organisation like Hilton to take into consideration mapping path of customer. As define the cycle
from which a customer gone through while taking the decision of purchase something, narrowing
the alternatives and buying the product. By assessing the map path to purchase Hilton will be
able to meet the expectations and demand of the customers effectively which lead the positive
impact on their decision-making. In this regard, four stages are given which are as follow:
 Pre-purchase: This is the first stage, in which customers give their emphasis on
gathering information or data about hotels in terms to select a most appropriate hotel for
themselves. In this regard, manager of Hilton needs to make their higher efforts in order
to ascertain the needs of customers which they wants to satisfy from the products.
 Purchase : Herein, customers will make decision related to a specific hotel which is
able to render them sufficient services. At this stage, marketers will determine that what
creates value for the customers so as to ensure the effectiveness of their facilities among
the customers (Osman, Johns and Lugosi, 2014).
 Receive : In this stage, customer starts to take advantages of the hotel services which
they have selected before stage. In case, if the organisation will be able to meet the
expectations and needs of the customers than they will be able to increase their interest
as well as their brand value which results higher profitability of them within a limited
period of time.
 Post-purchase : It depicts to that phase which is incurred after taking the advantage of
hotel services. In case, if customers will give their positive reviews and feedbacks for the
hotel facilities then it will impact on the sustainability and profitability level of the

company. Herein, marketers will be able to determine that what improvement can be
done in the products so as to attain higher customers satisfaction.
As value of mapping a path to purchase is immense as it allows the Hilton to carry out
all the activities in a most significant manner. It has huge importance or benefits for the
business which can determined by the following points:
 Increases ROI: ROI stands for return on investment which has great significance within
the organisation. It refers to achievement of profit from the above limit of investment
which can be attained by Hilton only when they give their emphasis on offering a range
of services to their customers according to their expectations and demand.
 Unified Customer Data and continued engagement : By mapping path to purchase
management of Hilton can unified their data of different streams which helps them in
formulating effective decisions for their business related to render best experience to
guests (Sasmita and Mohd Suki, 2015).
With the help of mapping a path of purchase manager of Hilton also will be able to recognise
level of decision-making process.
 Extensive Problem solving : In this, decision-making process of customers is lengthy
because here customers does not have any kind of knowledge of products due to which
they have to adopt effective research methods which will help them in gathering data of
different alternatives options appropriately.
 Limited Problem solving : Herein, consumers are well recognised with available
options which become profitable and sometime issue also as it requires more time and
efforts for selecting best option among all the alternatives.
 Routine Problem solving : The decision-making process here is simple as compare to
others as in this customers always prefers to select those product which they have
already used. This will save the time and efforts of them in researching all the alternative
options.
Four views of consumer decision-making process:
The four views pertained to the brief view or perspective which defines that why an
individual behaves in a specific manner (Gao, Mattila and Lee, 2016).

 Economic View : This view define that a customers will always choose those products
which are able to provide the variety of services at lower cost. This model is very helpful
for Hilton as this enables them to provide their services or facilities at marketplace so
that they can higher profitability and sustainability within the marketplace.
 Passive View: It is an effective model which pertains that adoption of updated
techniques is essential for the business in order to provide higher quality services. In
addition to this, it also consider appropriate promotional tool within which help the
business in gaining higher customers attention and interest towards their services.
 Cognitive View : This view is work of the basis of perception, needs and interest of the
customers. It insist the management of Hilton to provide effective resort packages to their
customers as per their requirements so that higher satisfaction of them can be attained.
 Emotional View : It define that a customers is not taking decision by remain practical
but they decision according to their emotions due to which they not giving their focus on
that there is requirement of that product or not (Chathoth and et. al., 2016).
Factors which have impact on the decision-making of customers:
 Influence of heuristics: It refers to the emotions of a person which enables insist them to
select a specific hotel.
 Influence of Elements of Marketing Mix: This concept comprises several factors like
product, price, promotion, place and many others which have a great influence on
decision-making. For example, a customer choice is always affected by price of the
product.
 Influence of new technologies: Enhancement in technologies always have huge impact
on decision-making. In respect to hospitality industry adoption of digitalisation services
are required like personalisation service, booking options, online appearance etc. As it
will enables the customers to get various benefits like if a customer will get positive
reviews about a hotel through various social sites then he will seeks to take advantage of
that hotel services.
TASK 3
P5 : Comparison between hospitality decision-making process in context of B2C and B2B
These both frameworks B2B and B2C create differentiate from each other on the basis of
various aspects as B2B stands for business to business activities whereas, B2C comes for

business to consumers transactions (Cohen, Prayag and Moital, 2014). These both consist
different decision-making process which can be understood by following points:
Basis B2B B2C
Purchasing
decisions
In context of B2B, decision related to
purchase the products and services of
other organisations is taken only after
seeing brand value, quality, prices and
distribution methods.
Herein, decisions related to deal with
customers only taking in a prevailing
manner as here products are direct
deliver to the customers.
Decision
related to
marketing
strategy
In order to enhance the awareness of
the products B2B organisations adopt
event marketing, social media, video
marketing etc.
For enhancing customers base and
market share an organisation adopt
direct selling method, social media,
member ship programs and many
others.
Decision
related to
marketing size
In this category decisions are taking
for various people on the behalf of
demand and needs of small group of
people.
The main focus of B2C organisations
on covering a big marketplace by
offering variety of services to the
customers.
Decision making process in B2B and B2C
Decision-making process within these two formations like B2B and B2C is differ from
each other as B2B decision-making process is more tougher as compare to B2C because B2B
consider secondary approach whereas B2C consider primary approach. Also, in decision-making
process of B2B various people are included whereas in B2C decisions are taking by involving
some people. For example, in the B2B an organisation have to give their focus on different firms
price, strategies, quality and marketing strategy. But in B2C decisions formulated only by
considering perceptions, needs, demand of the which helps the organisation in making effective
decision for their business (Minazzi, 2015).
P6 : Approaches of market research and methods of research in decision making
Market research refers to a process which is helpful for the business organisation in
collecting information about the target market or customers. It is essential for the organisation of

Hilton to adopt an effective research before conducting all their activities as it will help them in
carrying out all their functions as per the current market. In this regard, B2B and B2C is using
various methods which are as follow:
Market Research approaches in B2B : For collecting the data B2B organisations are
using secondary method in which information is already available in market which assist the
organisation in determining the brand value of other organisations. In order to collect the
secondary data various sources are available which are as follow:
 Government agencies: Through this an organisation can attain more reliable and
accurate information that helps them in determining that they should operate with other
organisation or not (Gössling and et. al., 2012).
 Public records: Herein, a firm will utilise newspapers, magazines, social media for
identifying value of other organisations.
Market Research approaches in B2C :In order to take appropriate decisions they are
using primary method which helps them in collecting more fresh and first hand data of the
customers demand and needs. Here are defining some of the resources of this which are given
below:
 Questionnaire : By using this method, researcher can collect information of different
customers perceptions towards quality, services, prices and features of the products and
services.
 Interviews : It increase open-end conversation among interviewer and interviewee which
allows the inquirer to examine in-depth dynamic customers behaviour.
Evaluating different factors influencing hospitality decision-making
Consumers analyse various factors before taking a decision related to book a hotel,
restaurant and resort. These factors includes social, psychologicals and cultural which have great
impact on their decision-making. For example, if their culture does not allows them to go in the
non-vegetarian hotel then in this case they have to look out a vegetarian restaurant. Along with
this, choice of a hotel also is greatly influenced by the financial condition of a person for
example, a person belongs from higher class family always choose five star hotel whereas, a
lower class will always give preference to three star hotel.

TASK 4
P7 : Evaluation of how marketer influences different stages of decision making
Customers plays an important role within the organisation as the success and growth of
the business depends on them. As the main motive of an organisation is to attract a range of
customers towards their product and services due to which it is essential for them to assess the
behaviour of customers first and then conduct all the activities. In this aspect, the behavioural
and cognitive theories can be used as behavioural theory will help them in ascertaining the
behaviour and belief of consumers whereas cognitive theory assist them in analysing mentality
and mind set of a consumer towards taking the decision of purchase a product. Along with this,
consumer behaviour is also affected by culture and sub-culture as culture represents values,
belief and norms of whole group and sub-culture contains some of the people.
In this regard, an opinion leaders plays a crucial role as they have the power to lead the
impact on the behaviour and attitude of a customer. Apart from this, in order to impact on
consumer behaviour, marketers also required to use innovative techniques in their business so
that they can offer a range of quality services to their customers. For example, in order to provide
higher experience to guests marketers have huge role in making decisions related to render
customize services so in this case leader will motivate and guide subordinates so that they can
give their best efforts in providing best services to the consumers (Wang and et. al., 2014).
Organisation like Hilton can also can lead impact on customers decision-making process
by rendering the digitalisation services like online booking service, location based service, guest
apps, check-in facility etc. as these all make easy for the customer to book hotel and take
advantage of it which will results higher satisfaction of customers as well as profitability of the
business.
Critical evaluation of influence of marketers on each stage of decision-making
As decision making process comprises various stages within like needs recognition in
which market will make effective strategies to find about the needs, wants and expectations of
customers from organisations, after than they will take initiative to collect information about the
availability of resources and customers perception. After this, evaluation of alternatives comes
where they will compare an organisation products and services form other rivals in which
manager needs to make their products attractive so that customers will select their products

among all the rivals and can give positive feedbacks for the products and services of the
company.
Critical evaluation of theories, concepts and models that influence hospitality decision- making
process
Different theories and models are existing in the present corporate world which has great
influence the decision process of consumers which needs to be analysed by the business manager
in order to provide higher satisfaction to the consumers. As the economy view model helps in
ascertaining the ways through which cost can be decreased while enhancing customers
satisfaction level. Cognitive view model help consumers by rendering them necessary
information about the products and services of a company. Along with this, Emotional view
model is helpful in increasing the emotional value of the products so that high satisfaction can be
provided to customers.

CONCLUSION
From the above file, it can be understood that assessment of consumer behaviour is
required for a hospitality industry in this cut-throat competitive market. As because it enables an
organisation in operating all their operations as per the customers demand and expectation which
ensure the success and growth of the company. Consumer decision-making is affected by various
factors like personal, social, technological and others due to which it is necessary for a firm to
evaluate so that the best strategies and policies can be formulated. Along with this, in order to
operate all the activities as per the market segments, adoption of effective research approaches is
essential for B2B and B2C organisations so that they can perform their job in a well manner.
This will help the business organisation in catering the customers in a most significant manner
which enables them to survive and sustain in the marketplace for a longer period of time.