An Analysis of Consumer Behaviour in the Hospitality Industry (HNC)

This report analyzes consumer behaviour within the hospitality industry, focusing on the factors influencing consumer decisions when booking hotels and utilizing hospitality services. It explores cultural, social, personal, and psychological factors, alongside the impact of technological changes and digital marketing. The report highlights how digital platforms and changing consumer expectations are reshaping the industry, with consumers now relying heavily on online information and reviews. It also examines how digital marketing, including website presentation and information quality, influences consumer choices. Furthermore, it emphasizes the importance of understanding changing consumer trends, such as the desire for detailed information and the use of digital sources for comparing options. The report concludes by referencing sources that support the findings and provides examples of how these factors play out in real-world scenarios.

Consumer Behaviour

 Consumer behaviour is a process to analyse
the behaviour of consumer for purchasing a
products or services in order to fulfil their
need(Anon., 2019).
Definition and concept

 The attractive cite location and
infrastructure of the hotel.
 Affordable price and policies offered by the
hotel.
 Food and lodging services provided by the
hotel (Bozic & Cvelbar, 2016)..
Factors that influences behaviour
of consumer while booking a hotel

1. Cultural Factor
The consumer always prefer to buy the
services related to their culture like religion,
class, geographical area, age and gender etc
(David Bowie, 2016).
For example: A customer belongs to a higher
class always prefer a five star rating hotel
rather than any local hote (Liu, 2019).
Three factors that affect
consumer behaviour

2.Social factors:
The major social factors affecting the behaviour of
consumer are: Social groups, friends, family members,
reference groups and agents(David Bowie, 2016).
For example:
Usually the consumers prefer the hotel or restaurant
which is praised by his social group like friends or family
members (David Bowie, 2016).
If a friend provides the positive feedback of a restaurant,
the person always prefer the particular restaurant in
comparison of other options (Diana Gavilan, et al., 2015).
Factors Influencing consumer
behavior

3. Personal factors:
Personal factors are related to economic situation,
occupation, self-image and perception of the person
related to the goods or services(Haddad, et al., 2015).
For example:
Usually the person belongs from a sound economic
position always prefer the costly hotel while choosing
the options because the perception of the person is low
price hotel represent poor service qualities of the hotel.
Whereas the reality may be different from his
perception (Haddad, et al., 2015).
Factors influencing consumer
behavior

4. Psychological factors:
The psychological factors like learning
process, behaviour, mental state and
motivation of the person(Haddad, et al.,
2015).
For example: A person who want to enjoy his
weekend in a hotel, will more likely to choose
the hotel with attractive cite locations with
good food.
Factors influencing Consumer
Behaviour

Technological changes:
Technological changes create a challenging environment
for hospitality sector. Consumer decisions are changing
according to the digital changes (HILL & ALEXANDER,
2017).
For example:
If a customer is looking to book a hotel for relaxation
and cite visiting, his decision is highly depends upon the
presentation and information provided by the website.
Eye capturing presentation and sufficient information is
required for booking a hotel (HILL & ALEXANDER, 2017).
Factors influencing consumer
behavior

 Digital marketing defined as a process of
marketing of the products and services using
digital sources like television, mobile apps,
social websites and other electronic sources
(Leung, et al., 2013).
 Changing requirements of consumers: Due to
the lack of time, consumer want the detail
information about the product or services in a
short time period, which can be possible only
with the help of digital sources (Leung, et al.,
2013).
Digital Marketing

 Consumers are becoming more educated and
attentive now a days. They choose the product
and services after critical analysis of the
products or services.
 Many options of the same products or services
available in the market having different
features and characteristic. Consumer select
the product after evaluating many options of
the product, available in the market (Leung, et
al., 2013
Changing consumer trend

 If a consumer is looking for a hotel for two night stay for
enjoying his weekend.
 He would be having lot of options of different hotels on
different websites with different prices.
 In this case, he would definitely use any digital source to
analyse the various options of hotels and on the bases of
locations, food and lodging, cite visiting and ratings, he would
select the hotel.
 In this case, hotel having beautiful display with attractive
facilities and affordable price, will be selected (Leung, et al.,
2013).
Example of changing consumer
trend

 Anon., 2019. Effects of service experience on customer
responses to a hotel chain. International Journal of
Contemporary Hospitality Management, 31(1), pp. 389-405.
 Božič, V. & Cvelbar, L. K., 2016. Resources and capabilities
driving performance in the hotel industry. Tourism and
hospitality management, 22(2), pp. 225-246.
 David Bowie, F. B. M. B. A. M., 2016. Hospitality Marketing.
Third ed. London: Routledge.
 Diana Gavilan, Avello, M. & Martinez-Navarro, G., 2015. The
Impact of Brand Image on Consumer Behavior: A Literature
Review. Scientific Research, 3(1), pp. 58-62.
References

 Haddad, R. E., Hallak, R. & Assaker, G., 2015. Price fairness
perceptions and hotel customers’ behavioral intentions. Sage Journals,
21(3), pp. 262-276.
 HILL, N. & ALEXANDER, J., 2017. HANDBOOK OF CUSTOMER
SATISFACTION AND LOYALTY MEASUREMENT. Third ed. London:
Routlez.
 Leung, X. Y., Bai, B. & Stahura, K. A., 2013. The Marketing
Effectiveness of Social Media in the Hotel Industry: A Comparison of
Facebook and Twitter. Journal of Hospitality and Tourism research,
39(2), pp. 147-169.
 Liu, H. Y., 2019. The disappearing product: marketing and markets in
the creative industries. International Journal of Cultural Policy, 25(4),
pp. 543-545.
References