Consumer Behaviour and Decision-Making Analysis in Hospitality (HNC)

This report offers a comprehensive analysis of consumer behavior within the hospitality sector, focusing on the consumer decision-making process. It begins with an overview of consumer buying behavior, detailing the stages from problem recognition to post-purchase evaluation. The report then analyzes factors influencing consumer decisions, including business-to-business and business-to-consumer approaches, with examples from 'The Royal Horseguard' hotel. Various market research methods are examined, such as surveys and interviews, to understand consumer preferences. The report further explores how marketers influence consumer behavior through the Input, Process, and Output model, emphasizing the impact of marketing strategies on consumer choices. The conclusion highlights the importance of understanding consumer behavior for effective marketing and business development in the hospitality industry. The document also includes references to support the analysis.

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Analysis of consumer behavior

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Table of Contents
Activity 2: Report on consumer decision making......................................................................3
Introduction................................................................................................................................3
Analysis of the stages of consumer behavior.............................................................................3
a) Problem recognition:.......................................................................................................3
b) Information Search:.....................................................................................................3
c) Evaluation of alternatives:...............................................................................................3
d) Selection Stage............................................................................................................4
e) Evaluation of decision:....................................................................................................4
Path of a consumer decision making journey:.......................................................................4
Conclusion..................................................................................................................................6
Activity-3: Influencing factors on decision making process......................................................6
Introduction................................................................................................................................6
Analysis of influencing factors..................................................................................................6
 Business to business approach........................................................................................6
 Business to consumer approach......................................................................................7
Different approaches of market research...............................................................................7
Conclusion..................................................................................................................................8
Activity 4: Analysing the marketer’s influence on the consumer decision making process.....9
Introduction................................................................................................................................9

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Analysis the influence of marketers.......................................................................................9
The Input, Process and Output model of consumer behaviour..............................................9
a) Input:........................................................................................................................9
b) Process:..................................................................................................................10
c) Outcome.................................................................................................................10
Conclusion................................................................................................................................10
References................................................................................................................................12

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Activity 2: Report on consumer buying behavior
Introduction
In this report a brief analysis will be done over the various stages of consumer purchasing
process. It is very important for the companies to know the buying process of consumers in
order to enhance their sale. Factors that influence the purchase decision of the consumer will
be critically evaluated for knowing the process related to decision of a buyer. Research will
be done over the famous hotel of London named as ‘The Royal Horseguard’, in order to
know the factors affecting consumer behaviour with respect to hospitality sector.
Analysis of the stages of consumer behavior
Whenever a consumer wants to purchase any product or services, he has to go through
various stages of decision making process. These different stages are as follows:
a) Problem recognition:
Realization of a particular type of problem is the first step of consumer purchasing process.
Need is generated inside the customer and in order to fulfill his need, he decides to purchase
the product (Flyckt, et al., 2019). For example: If a person has to go in another city for some
business work, he will be looking to book any hotel with certain facilities (M, et al., 2019).
b) Information Search:
The next stage is to search necessary information about the products or services. Usually the
secondary information sources are analysed at this phase. Various search engines and website
are used to search the required information. In this age of digitalisation, the purchase decision
of a person is highly depends upon the information he received from various electronic
sources. Moreover, some consumers also get the information from various social groups like
friends and families (Marianna Sigala, 2019).
c) Analysis of alternatives:
This is the most critical part of process of consumer purchase decision. A critical evaluation
of the available alternatives will be done on the bases of various factors like quality, public

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image, price and reviews (Liu, 2019). For example: If a person wants to book a hotel, he has
to be ensuring about the facilities and services provided by the hotel. He would analyse the
public image of the hotel and feedback of the customers will also be evaluated at this phase
(Anon., 2019).
d) Selection Stage
After evaluating various criteria of the products or services, the consumer decided to
purchase the product from a company. This stage occurs after a critical evaluation of the
various factors related to different companies (Varsanis, et al., 2019). For example: If a
person wants to book a hotel, He came across to evaluation of different factor of comfort and
convenience. The services and information given by the company played an important role at
this stage (Park, et al., 2018).
e) Evaluation of decision:
Once the purchase has been made, the consumer starts to evaluate the purchase decision.
Sometimes the consumer became satisfied with the quality and services of the product
whereas sometimes consumer feel disappointed because of the poor quality of products and
delayed services. Sometime the difference between the information provided in
advertisement and the received quality and services of the product is found (DianaGavilan, et
al., 2015).
Path of a consumer decision making journey:
For booking a hotel named as ‘The Royal Horseguard” is as follows:

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step 1
Problem recognition
Realisation of requirement to book a hotel in London for two night stay because of some
business work (Pelegrín-Borondo, et al., 2016).
step 2
Information Search
In the evaluation process, the consumer found that the hotel ‘The Royal Horseguard’ is at
the centre of the London; he can reach to his business place in considerable time.
step3
Evaluation of available alternatives
The hotel is situated at the bank of’ Thames’ river. An attractive cite locations like ‘The Big
Ban’, ‘House of Parliament’ and other lovely cite locations are available to visit (Pelegrín-
Borondo, et al., 2016).
Although so many hotels are available at the website but they are lacking behind in location
point of view.
The hotel has a five star rating which represent the excellent facilities provided by the hotel
related to food and lodging.
step 4
Decison making stage
Finally the consumer decided to book the hotel for two nights
step 5
Post evaluation of decision
After spending two nights and three days inside the hotel, the person realised that the food
offered by the hotel was satisfactory but room services are not up to the satisfactory level
(M, et al., 2019).
He realised that cleanliness services should be improved by the hotel and quick room
services are required to fulfill the need of the consumers (CHEN, 2019).

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Conclusion
For making the business profitable and in order to enhance the sales, a marketer has to
critically evaluate the path of consumer buying process so that he would be able to present his
services and products in an effective manner. Evaluation of the path of consumer decision
making, helps the marketers to provide the relevant information to the future customers about
their products or services with appropriate sources like advertisement on TV, Website and
other social sites. It helps the marketer to improve the quality of his services in order to cater
the need of the consumer.
Activity-3: Influencing factors on purchase decision of consumer
Introduction
In this report, the various factors influencing the purchasing decision of a buyer will be
analysed. The process of purchasing products or services is affected by many negative and
positive factors. The approach of business to business (B2B) and the business to consumer
approach (B2C) in context to hospitality sector will be discussed in this report (Mallik &
Farhan, 2018).
Analysis of influencing factors:
Many factors influence the buying decision of a buyer. Some of the factors will be analysed
over here with respect to the following approaches in context to hospitality industry:
 Business to business approach
Business to business is a process of attracting the customers by making collaborations with
another company in order to promote and support the business of one another (CHEN, 2019).
It refers to a process in which company sell its services to another company rather than to a
person (Ufuk Durna, 2015). For example if the B2B approach is analysed with the hotel ‘The
Royal Horseguard’, the hotel is overbooked in the festive seasons or other occasional

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seasons, in this case the hotel can pass its customers to any other reliable hotel after letting
the customer know about this shifting. This would be highly beneficial for the business of the
hotel, (HILL & ALEXANDER, 2017).
 Business to consumer approach
In this approach a hotel directly contact to its customers with the help of online booking
websites and direct booking by its official website to promote its business. Phone booking are
available by directly contact to the customers by providing them maximum information about
the hotel. ‘The Royal Horseguard’ hotel is providing advertising on many booking websites
of tourism management and also provide online and phone booking services to the consumers
(Roya Rahimi, 2016).
Different approaches of market research
There are many methods can be adopted by the hotel ‘The Royal Horseguard’ in order to
know about the process of decision making by consumer:
a) Survey: A brief survey can be done over the different type of consumers booking
rooms in different hotels. The age group, class, education level and occupation of
consumers will be analysed in the survey in order to find a trend in the consumer
behaviour (Pelegrín-Borondo, et al., 2016).
b) Focus on groups: By having a discussion with the various social groups the marketer
may receive the considerable information about the preferences of various types of
consumers. This information may be used in improving the business of the company.
c) Personal interviews: Personal interviews of different type of persons and customers
should be taken in order to know the interest, opinion and mind-set of customers
(Haddad, et al., 2015).

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d) Observation: By observing the existing customers in the hotel, the hotel may develop
an idea about the choices and satisfaction level of consumers.
e) Feedback: With the help of feedback taken by the hotel of consumers, the hotel may
know about the feelings and negative points of their services. They can improve their
services on the bases of feedback (Leung, et al., 2013).
Different approaches used to determine consumer behaviour:
According to the model of Edelman’s customer decision journey, the purchase process is
becoming very dynamic now days because of the globalisation of hospitality sector. The role
of digital marketing and social websites has increased up to a great level. ‘The Royal
Horseguard’ hotel should go for digital marketing in order to enhance its sales. Digital
marketing is best method to recognise the consumer behavior. The particular type of
information customer required, may be analysed through various digital websites and
sources. A research can be also done over the rival companies in order to know the decision
process of consumers (Kreft, 2019).
Conclusion
Different approaches and models may be used in order to understand the process of consumer
behavior while purchasing the services of the hotel ‘The Royal Horseguard’. After knowing
the consumer behaviour on the bases of various methods of market research, the proper
marketing strategies could be made which is highly beneficial for the business of the
company (DianaGavilan, et al., 2015).
Activity 4: Analysing the marketer’s influence on the consumer
behavior

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Introduction
The influence of the marketer will be analysed with the help of models in order to understand
the effect of marketing strategies on the behavior of consumer while decision making. The
different and appropriate marketing strategies may attract the consumers and change his
decision to buy any product. Altered and customised services are the key factors in attracting
the clients. In the field of hospitality sector, by doing various changes in the field of customer
satisfaction according to consumer behaviour will results in customer’s acquisition (David
Bowie, 2016).
Analysis the influence of marketers
Marketers may adopt proper marketing strategies for enhancing their sales by attracting
buyers. These strategies may even change the mind-set of the consumer (Youcheng Wang,
2011).
The Input, Process and Output model of consumer behaviour
This model emphasis over the three stages, on the bases of these stages the behaviour of
consumer will be influenced by the marketer (Research, 2015).
a) Input:
Input for the consumers is the efforts of marketing by the company. This involved the
appropriate offering of the product or services according to the 7P’s of marketing named as:
Product, Price, Place, Promotion, Packaging, Positioning and People. By offering quality in
products and services, the purchase decision of consumers may be influenced. Suitable and
affordable price strategies attract the clients of hospitality sector. Providing the product or
services within the range of clients with a proper medium will attract the clients. Promotion
events and advertisements have the capability to impact the buying decision up to a great

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extent. Correct positioning of the services and products in the eyes of consumers will make
the customer interested in purchasing the services or products. The alteration of services
according to people and social culture will attract a large group of customers (Kanten &
Darma, 2017).
b) Process:
The process refers to the evaluation and change process take place in the mind of consumer
while analysing the inputs of the different companies. On the bases of different criteria, the
consumer analyse the services of the firm and find out the suitable purchase decision
(Research, 2015).
c) Outcome
Outcome refers to the final decision of the consumer. The effectiveness of the input and
marketing strategies of the company is analysed by the final decision of the consumer
(Haddad, et al., 2015).
For example: If a person is looking to buy a hotel for spending his weekend, He would be
looking for a hotel having attractive infrastructure and eye capturing cite location of near
places with delicious food. The websites which having display of these entire factor will be
getting competitive advantage over other website of hotels. So the attractive display would be
the suitable marketing technique will impact over the consumer decision making process
(Božič & Cvelbar, 2016).
Conclusion
The decision making process of consumer is influenced by so many factors. The companies
should adopt suitable marketing techniques in order to influence the buying decision of the
consumer. Moreover by having a proper understanding of consumer decision making process,

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a company may adapt changes in their service for the future development of the company.
The behaviour of the consumers may be influences up to a certain level by critically
analysing the consumer decision making process. Using various digital and latest techniques
and by interacting the clients in an effective manner, the company can recognise the exact
need of the consumers and by providing them particular features in the services, the company
can attract the customers at a massive level.