Consumer Behaviour Analysis: Center Parcs and Hospitality Industry

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This report delves into hospitality consumer behavior, examining factors influencing consumer attitudes and the impact of digital technology. It assesses consumer decision-making stages, emphasizing the importance of understanding the path to purchase for marketers. The report compares B2C and B2B hospitality decision-making processes, analyzes market research approaches, and explores how marketers can influence consumer behavior at various stages. The study uses Center Parcs as a case study to illustrate consumer behavior. It covers topics like consumer behavior, marketing strategies, and the influence of personality and motivation on purchase decisions, with references to academic research.
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Hospitality Consumer
Behaviour and Insight
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1 ................................................................................................................................................3
P 1. Different factors which influence the behaviour and attitude of consumers........................3
P 2. Changing consumer trends due to digital technology...........................................................3
LO 2.................................................................................................................................................3
P 3. Assessment of the stages of customers effective decision making process..........................3
P 4. Analysing why is it important for marketers to determine the path to purchase..................5
LO 3.................................................................................................................................................6
P 5. Compare the various differences of hospitality decision making process in terms of B2C
and B2B.......................................................................................................................................6
P 6. Analysing different approaches to market research for decision making process................7
LO 4.................................................................................................................................................8
P 7. Determining how the marketers can influence the various stages of hospitality in decision
making process.............................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
Consumer behaviour is referred to as the in- depth study on how an individual will select,
use, purchase and dispose off the goods and services in order to satisfy their particular needs. It
is very crucial in determining the underlying motive of the consumer to purchase specific goods
and services. It helps marketers in determining the goods needed in marketplace and also
examine the effective way to present such goods to the consumers. It will further demonstrate,
the stages of customers which leads to effective decision making process. This study will
critically examine the various forms of research which in turn largely influence the decision
making of the hospitality consumer. Lastly, this study helps in determining how the marketers
can influence the various stages of hospitality in decision making process.
Center Parcs is a luxurious hotel in UK. It was founded in the year 1968 by Piet Derksen.
It offers effective hospitality services and accommodation facilities to the consumers in order to
provide them luxurious staying experience.
LO 1
P 1. Different factors which influence the behaviour and attitude of consumers.
(Covered in ppt)
P 2. Changing consumer trends due to digital technology.
(Covered in ppt)
LO 2
P 3. Assessment of the stages of customers effective decision making process.
Kotler and et.al., (2017) consumer decision making process is based on determining the
various possible aspects in order to effectively solve the issues in an appropriate and systematic
manner.
Consumer decision process
Problem/ Need recognition: The first stage of the model helps in critically evaluating the
problem and motive of the particular customer. In order to understand the needs of the
customers, the marketers must focus on critically examining the physical and psychological
needs of the customers (Rita and et.al., 2018). The consumer needs tends to continue one after
the other.
Information search: Once the need of the individual is recognized, then the consumer
must focus on searching the more information of the particular products and services in order to
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satisfy customer needs. The individual tends to focus on personal and commercial sources in
order to gain relevant information to fulfil the set desires of an individual.
Evaluation of alternatives: The next step after collecting all the relevant information is
that the customers must focus on determining the pros and cons of the particular set of goods and
services. The customer tends to compare the services offered by the hospitality industry and
tends to choose the best which matches the needs and requirements of the consumer.
Purchase: After the customers makes up the mind that the particular goods and services
match the needs and requirements of the customers. This in turn results in purchase of particular
goods and services in order to gain effective experience.
Post purchase: This is one of the most crucial stage after the purchase of particular set of
goods (Xiang, Magnini, . and Fesenmaier, 2015). Center Parcs must take reviews and feedback
from the customers and in case of deficiencies it also helps the company in making
improvements in the particular segment.
Extensive problem solving: This is the factor which occurs when the customer has not
purchased the particular set of goods and services. It helps marketers to identify the customers in
order to sell the goods and services which can match their needs and requirements.
Levels of hospitality consumer decision making
Routine problem solving: This is a situation where the individual tends to purchase those
goods and services which has been frequently purchased by the customers. This in turn is useful
for the marketers in targeting the particular set of customers in order to sell the particular goods
and services.
Limited problem solving: This is the situation where the consumers are not in a condition
to strictly evaluate the outcome and instead take a strategic decision in order to arrive at the
simple purchase decision.
Four views of consumer decision
Economic: This model tends to state that consumer is a rational person and he usually
takes rational decision. The customer tends to compare the products and services with the other
company and evaluates its pros and cons in order to make a purchase decision.
Passive: This model states that consumer takes decision in accordance to the various
promotional efforts taken by the competitors. This model states that consumer tends to buy the
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product by critically evaluating the current market position and promotion of the set goods and
services.
Emotional: This model states that the consumer tends to make an impulsive purchase
when they relate with the set goods and services (Campos and Oliveira, , 2018, March).
Cognitive: This is referred to as one of the best model where consumer purchase
particular products based on their own understanding and interest.
P 4. Analysing why is it important for marketers to determine the path to purchase.
Gursoy, (2019) said that, it is very crucial for the consumers to determine the path to
purchase in order to critically examine the current market trend and buying behaviour of an
individual. It helps marketers in optimizing the local channel by effectively determining the path
to channel of an individual. Path to purchase helps marketers in providing value to the customers
when and where they need the most. It helps marketers to be conceptual, influential and valuable
to customers. This in turn helps them in generating more interest for the particular set of products
and services (4 Examples of How Technology Is Changing Consumer Behavior, 2019).
The influence of heuristics in the decision making process is very useful in making
purchase decision. It helps marketers in resolving various issue and problems in order to make
judgements efficiently. The hospitality industry must focus on developing a shortcut decision
making rules in order to reduce the process and in turn leads to instant purchases.
Decrop and Woodside, (2017) sought to determine the fact that, marketing mix elements
helps in influencing the decision making process of the consumers.
Product: The hospitality industry marketers must focus on delivering those goods and
services which match the needs and requirements of the individual. The company must focus on
furnishing the adequate information to the consumers about the services offered by the Center
Parcs.
Price: Center Parcs charges adequate prices for the particular goods and services. It must
set a price which a customer is willing to pay.
Place: The marketer must focus on establishing its business to a place which is
convenient for the customers to reach (Schuckert, Liu and Law, 2015).
Promotion: The marketer must focus on making people aware about the particular goods
and services with the help of advertisement and promotional platforms in order to r each higher
customer base.
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LO 3
P 5. Compare the various differences of hospitality decision making process in terms of B2C and
B2B.
Bharwani and Jauhari, (2017) said that, Business to customers is referred to as the
procedure of selling goods and services are sold directly to customers. On the contrary, business
to business is based on selling of goods and services from one business to another business
entity. The decision making process in the B2C is quite simple.
Particulars B2B B2C
Meaning Business to business is based
on selling of goods and
services from one business to
another business entity.
Business to customers is
referred to as the procedure of
selling goods and services are
sold directly to customers
Key focus The key focus is on the
company.
The key focus is on the end
user i.e., customers.
Creation of brand worth The brand value is created
through mutual relationship
and trust.
The brand value is created
through promotional and
advertisement activities.
Decision making process Business to business decision
making process is more
complex. Decision making is
based on logical and planned
reasoning.
Business to customers decision
making process is easy and
convenient. Decision making
is based emotional and
personal interest.
Critical analysis of market research between B2C and B2B
Research methodology: The consumer research process tends to focus on more specific
research technique. In the B2B research, the objectives of the company are wide reaching and
focus on agencies reaching particular set of objectives through research technique. On the
contrary, B2C market research agencies which tends to focus on using different methodological
technique.
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Different skill set: The B2B market research must have different skill set by complying
with various level of responsibilities. Telephone interviewers tends to face with wide range of
challenges like finite sample size, unknown respondents, while working B2B project.
Sample size: The sample size for the B2B is quite smaller. The sample size in case of
B2C is quite large.
Tele- depth interview: The tele- depth interview tends to work effectively because it is
less costly and helps in reaching large number of customers from across the globe. It helps in
gathering quality information within the stipulated time (Su and et.al., 2017).
Pareto principle: Pareto principles is more useful for B2B research as it helps in
determining 80/20 rule. In case of B2C, 20% of the customers tend to account for 80% of the
revenue which in turn needs to be treated differently.
P 6. Analysing different approaches to market research for decision making process.
The decision making process of the individual is based on personality, self- interest and
motivation of the customers in the hospitality industry.
Personality: This factor plays a very crucial role in decision making as it is very useful in
influencing buying behaviour of an individual. It helps hospitality industry determine whether
the individual make decision on in an emotional or rational manner (Shen and Yeh, 2017).
Combined level of experience, maturity, proactive self awareness leads to strategic decision
making.
Self- interest: It is based on personal choice, needs and interest of the consumer in order
to gain particular set of services within the hospitality industry.
Motivation: Encouraging others to take a specific decision. It helps in effectively
establishing the base for the particular decision making.
There are various measures of consumer learning which mainly includes:
Recognition and recall: It helps in determining how often customer purchase from the
specific brand.
Behavioural: It is based on the observable responses to the particular promotion of the
goods and services.
Attitudinal: It is mainly concerned with the overall feeling of the customers related with
particular goods and services.
Understanding various aspects of consumer perception:
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Dynamics: The perception of the customers related with the particular goods and services
are changing continuously. It helps in determining how the product is actually perceived by the
product consumers.
Imagery: The brand image of the hospitality industry plays a very crucial role in the
decision making process (Beldona and Kher, 2015). It is referred to as the emotional perception
of the consumers in relation to the particular brand image.
Risk: This is referred to as the uncertainty of the customer in order to buy particular set
of good and services. It is related with the threat and hazardous activities.
LO 4
P 7. Determining how the marketers can influence the various stages of hospitality in decision
making process.
Xiang, Magnini and Fesenmaier, (2015) sought to examine that, Behavioural approach is
based on the observable responses to the particular promotion of the goods and services.
Cognitive model is referred to as one of the best model where consumer purchase particular
products based on their own understanding and interest. Cultural factors are useful in
encompassing the certain set of values, language and beliefs of an individual. It consists of
various ideologies where it is useful in influencing the buying behaviour of an individual. Center
Parcs must focus on analysing the needs of the customers in order to deliver the best quality
goods and services according to the individual preference and needs. The marketers should focus
on critically examining the culture trends of different cultural groups and countries (Zhang and
Benyoucef, 2016). There are certain set of language barriers which in turn affects the decision
making process. On the contrary, subculture is referred to as the distinct cultural group which
tends to exist based on unified characteristics. The subculture is classified on the basis of certain
factors such as social class, age, region and gender. There is a significant change in the consumer
behaviour of the individual with the growth in particular life cycle and change in the age trend.
The buying behaviour of the customer is largely influenced because of the buying preference of
the men and women. Use of advanced digital technology helps in effectively influencing the
buying behaviour of the consumers.
CONCLUSION
This study concludes that, Consumer behaviour is referred to as the in- depth study on
how an individual will select, use, purchase and dispose off the goods and services in order to
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satisfy their particular needs. The buying behaviour of consumer is influenced by various factors
such as social, personal, cultural and psychological. This study summarizes that, technology is
one of the most important element which is very crucial for the sustainable development of the
hospitality industry. It will further demonstrate, the stages of customers which leads to effective
decision making process. The influence of heuristics in the decision making process is very
useful in making purchase decision. The marketing mix of the company also influences the
buying decision. Lastly, this study also critically examine the various differences of hospitality
decision making process in terms of B2C and B2B.
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REFERENCES
Books and journals
Beldona, S. and Kher, H.V., 2015. The impact of customer sacrifice and attachment styles on
perceived hospitality. Cornell Hospitality Quarterly.56(4). pp.355-368.
Bharwani, S. and Jauhari, V., 2017. An exploratory study of competencies required to cocreate
memorable customer experiences in the hospitality industry. In Hospitality Marketing and
Consumer Behavior (pp. 159-185). Apple Academic Press.
Campos, J. and Oliveira, M., 2018, March. Exploring Decision Making on Hospitality Brands:
Emotional or Rational Factors. In International Conference on Tourism Research (pp. 15-
VIII). Academic Conferences International Limited.
Decrop, A. and Woodside, A.G., 2017. Consumer Behavior in Tourism and Hospitality
Research. Emerald Publishing Limited.
Gursoy, D., 2019. A critical review of determinants of information search behavior and
utilization of online reviews in decision making process (invited paper for ‘luminaries’
special issue of International Journal of Hospitality Management). International Journal of
Hospitality Management. 76. pp.53-60.
Kotler, P and et.al., 2017. Marketing for hospitality and tourism.
Rita, P and et.al., 2018. Mobile services adoption in a hospitality consumer context. International
Journal of Culture, Tourism and Hospitality Research.12(1). pp.143-158.
Schuckert, M., Liu, X. and Law, R., 2015. Hospitality and tourism online reviews: Recent trends
and future directions. Journal of Travel & Tourism Marketing.32(5). pp.608-621.
Shen, C. and Yeh, C., 2017. Destination Attracting from Online Imagination. J Tourism Res
Hospitality 6: 4. of. 5. pp.14-16.
Su, L and et.al., 2017. How does perceived corporate social responsibility contribute to green
consumer behavior of Chinese tourists: A hotel context. International Journal of
Contemporary Hospitality Management.29(12). pp.3157-3176.
Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal of
Retailing and Consumer Services.22. pp.244-249.
Zhang, K.Z. and Benyoucef, M., 2016. Consumer behavior in social commerce: A literature
review. Decision Support Systems. 86. pp.95-108.
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Online
4 Examples of How Technology Is Changing Consumer Behavior. 2019. [Online]. Available
through: <https://www.visioncritical.com/blog/4-examples-how-technology-changing-
consumer-behavior>
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