Hospitality Consumer Behaviour and Insight: Decision-Making Analysis

This report provides an in-depth analysis of consumer behaviour and insight within the hospitality sector, focusing on the Dorchester hotel as a case study. It examines the cultural, social, personal, and psychological factors influencing consumer behaviour, as well as the evolving consumer trends driven by digital technology. The report details the stages of the consumer decision-making journey, mapping a path to purchase for the hospitality sector and highlighting the importance of this process for marketers. It also compares and contrasts the decision-making processes in B2C and B2B contexts within hospitality, discussing various market research approaches and methods. Furthermore, the report assesses how marketers can influence the different stages of the hospitality decision-making process, providing relevant examples of effective strategies and responses to consumer behaviour.

Hospitality Consumer Behaviour
and Insight

Table of Contents
Introduction .....................................................................................................................................1
Task 1 ..............................................................................................................................................1
Assess various cultural, social, personal and psychological factors influencing consumer
behaviour and attitude............................................................................................................1
Discuss how the consumer trends are evolving due to the impact of digital technology.......2
Task 2 ..............................................................................................................................................3
Explain the stages of consumer decision-making journey and map a path to purchasing for a
hospitality sector.....................................................................................................................3
Describe why it is important for marketers to map a path to purchase and analyse consumer
decision-making.....................................................................................................................4
Task 3...............................................................................................................................................6
Compare and analyse the main difference of the hospitality decision-making process in
relation to B2C and B2B .......................................................................................................6
Discuss the various approaches to market research and methods of research used for analysing
the decision making process...................................................................................................7
Task 4...............................................................................................................................................8
Assess how marketers can influence various stages of hospitality decision-making process
using relevant examples.........................................................................................................8
Assess how marketers are responding to the decision-making process using suitable examples
................................................................................................................................................8
Conclusion.......................................................................................................................................9
References ....................................................................................................................................10

Introduction
Hospitality is defined as the positive form of relationship among the guest and the host,it
also includes the process of being friendly and welcoming the guests and visitors. The hospitality
also defined as the kind of business which includes offering accommodation services, food and
drink services to its customers in order to enhance their overall satisfaction level (Ahn and Seo,
2018). For this report the Dorchester is taken as the base organisation. The Dorchester is one of
the top international five star hotel in London UK. It is one of the most luxurious and expensive
hotel offering quality services to their customers. It was started in 1931 by the Brunei Investment
agency. This report includes the various cultural, social, personal and psychological factors
influencing consumers behaviour and also the change in the consumers trends because of change
in the digital technology. And the various stages of the consumer decision making journey and
its importance for analysing consumer decision making is also highlighted. Effective analysis of
hospitality decision-making process and various approaches to market research used for
decision-making process is also highlighted. In addition to this various stages of hospitality
decision-making process influenced by the marketer is also highlighted in this report.
Task 1
Assess various cultural, social, personal and psychological factors influencing consumer
behaviour and attitude
The term consumers behaviour is defined as the process of analysing and evaluating the
buying behaviour of the consumers and how various factors direct influence their behaviour.
Analysing the consumers behaviour helps the organisation to understand what a consumer
desires and can accordingly offer than quality product and services satisfying their needs and
wants (Domínguez-Navarroand González-Rodríguez, 2020). In case Dorchester, hotel regularly
evaluate the changing behaviour of their target customers and accordingly offer them quality
goods and services satisfying their needs and wants. There are various factors that directly
influence the behaviour of the consumer as mentioned below:
Cultural factors: The cultural factors plays an essential role in analysing the behaviour of
the consumers. The culture prevailing in an particular area largely influence the needs and wants
of the customers as it influence the value, perception, liking and behaviour of an individual. Each
culture prevailing includes the sub culture that offers various identification and process of
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socialising. The sub culture involves the nationality, religion, racial, geographical area and so on.
Due to the rise in the sub culture there is increase in the multicultural marketing, involving the
social satisfaction and lower, upper, working classes. In case of the Dorchester, which is a five
star hotel, these classes which directly influence the customers choices in choosing the hotel or
restaurant for themselves (Fyall and et. al., 2019).
Social factors: The another factor that directly influence the behaviour of the consumer
are the social factors. It includes the groups, family, social roles and status directly influencing
the behaviour of the consumers of a particular group. The most essentials part of these groups
includes the family, friends, neighbour and co-workers. In case of Dorchester, the hotel follows
all the social norms and regulations while offering required services to their target customers.
Personal factors: It includes the age, taste and preferences of the customers that directly
influence the buying behaviour of the customers. The various personal factors influencing the
customers behaviour includes the occupation, economic condition, personality, personal values
and spending capacity of an individual. All these factors plays an essentials role while deciding a
particular place of accommodation by the customers. In case of Dorchester, not including the
personal factors of the customers while offering the services will directly influence the
performance of the organisation.
Psychological factors: These are the major factors influencing the behaviour of the
customers, these factors are hard to be measured but has huge impact on the buying behaviour of
the customers. These factors includes the motivational factors, attitude, beliefs, perception of an
individual. In case of Dorchester, the hotel offers quality services to their customers which helps
in enhancing the their satisfaction level and building loyal customer base also. It also helps in
creating positive perception towards the hotel (Hwang and Lee, 2019).
Discuss how the consumer trends are evolving due to the impact of digital technology
The growing use of digital technology is becoming the part of modern business life, large
number of people are using digital technology and adapting to the technology changes
effectively. Use of digital technology such as the social media, smartphones, digital telephonic
and so on helps the business organisation to directly interact and attract large number of
customer's leading to enhance their overall performance. In case of Dorchester, change in the
consumer trends due to the impact of digital technology are mentioned below:
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Consumers are more connected: With increasing use of the digital technology, allows
the the customers to easily interact and communicate with each other and also become more
connected. In case of Dorchester, the hotel uses various social media platforms like Instagram,
Facebook, Twitter in order to directly interact and connect with the customer's and satisfy their
needs (JangChen and Miao, 2019).
Availability of information: With the increasing use of the digital technology, it has
become easier for the customer to get the required information more easily and effectively. In
case of Dorchester, hotel offers required information about their services using various social
media platforms and their website to their target customers.
Impact of using smartphone: With changing digital technology, large number of
smartphone users are increasing, the trends of using smartphone among the customers rather than
the normal phone is evolving due to the various functions it offers. In case of Dorchester, they
offer facility like booking reservation using smartphone making it easier for the customers to
book hotel, or any kind of accommodation services.
Growing impact of social media: There is growing use of various social media platforms
such as Facebook, Twitter, Instagram among customers. These platforms makes it easier for both
buyer and seller to communicate and interact with each other. The hotels like Dorchester uses
these platforms to make consumers aware of their services and influence their opinions. It helps
them to directly interact with the organisation and vice versa.
In case of the Dorchester, the hotel is using advance technology in their operations in
order to keep up with the changing consumer trends and satisfy their needs and wants. The
organisation has clearly analysed that consumers trends are changing due to the changes in the
digital technology and accordingly they are adopting technology to satisfy their customers
changing needs (Joshiand Gupta, 2021).
Task 2
Explain the stages of consumer decision-making journey and map a path to purchasing for a
hospitality sector
The consumer decision-making process is defined as the process that consumer goes
through in deciding what to buy, including the problem that he goes through. It is the process
which helps consumers in analysing their needs, collecting required information about the
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product, evaluating various options available and then taking the final decision. In case of
Dorchester, the various stages consumer goes through in deciding what to buy is mentioned
below:
Need for recognition: This is one of the most essentials process of consumer decision-
making process as the consumer journey begins with the analysing the need for the purchasing a
particular product or services from the consumers end (Linand Hanks,2019). In case of the
Dorchester, the manager needs to mapped the target market in such a way that it is leading to
satisfy the needs of the target customers. They needs to ensure that opportunities are offered as
the requirement of the customers also making it easy for the customers analyse their needs.
Information search: This stage includes identifying and collecting required information
about the product and services by the customers which will help them to fulfil their needs and
wants. In case of Dorchester, the hotel offers required information using digital platforms, email
marketing and their company's website to their target customers.
Evaluates the alternative: The another step includes the evaluating various options
available in order to take the best decision. The customers clearly evaluate the various options
available to them in order to choose the best option which will help in satisfying their needs and
wants. In case of Dorchester, this stage leads them engaging when the customers starts
comparing their services, products, price with other hospitality sector. Hotel tries to offer best
services in order to satisfy their customers.
Purchase decision: After evaluating various options available, the customer finally
reaches to this stage where he takes the decision of buying the products. In case of Dorchester,
the hotel offer quality services to the customers helping them to get the product and services as
per their choice.
Post Purchase behaviour: The last stage is the post purchase behaviour, under this stage
quality services are offered to the customers by the chosen hotel after the purchase is done in
order to retain them for long period of time. In context to Dorchester, hotel offers after services
such as check out services in order to retain them (Mandićand Praničević, , 2019).
Describe why it is important for marketers to map a path to purchase and analyse consumer
decision-making
Mapping a path to purchase is one of the essential process which allows the business
organisation to determine where target customers interact with their business. It also focuses the
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organisation analyse where customers interact with the business. There are various path that can
be used by the customers in order to make the purchase such as use of various social media
platforms and companies website (Nilssen, Bickand Abratt, 2019). It mainly includes five stages
which helps marketer to analyse the needs of the customers and creating direct impact on the
decision-making process as mentioned below:
Awareness: Under this stage the customers get aware of their needs and wants through
various sources. In case of Dorchester, the hotel make the customers aware of their quality
services using various social media platforms.
Engagement: Once the customers are aware of the companies product and services the
next step involves making them engage in the process. In case of Dorchester, the hotel identify
the various sources or the path used by the customers to determine the hospitality services. The
marketer ensures to effectively target that sources in order to attract customers.
Interest: this includes using various activities in order to build the interest of the
customers in their services. In case of Dorchester, hotel offers unique offers like additional
services, vouchers or discount to the customers in order to keep them interested in the services.
Retention: Under this various marketing and promotional activities are taken into
consideration by the marketing manager in order to satisfy the needs of the their customers. In
case of Dorchester, hotel offers unique and quality services to their customers in order to satisfy
their needs, which will automatically lead to retaining them for long.
Post Purchase: In this case the customers finally takes the decision of buying the
product. In case of Dorchester, quality services offered by the hotel leads to attracting large
number of customers (Okumus, 2020).
From the above analysis, in case of the Dorchester it is analysed that path to purchase
helps the hotel to analyse the needs of their customers and satisfying them. In case of hospitality
sector like the Dorchester analysing the customers pain points will help in enhancing customers
experience effectively. The hotel is using various social media platforms in order to attract large
number of customers and directly interact with them. Also they are offering quality services such
as check in and check out, front office services and also quality food to the customers in order to
satisfy their needs and enhance their experience.
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Task 3
Compare and analyse the main difference of the hospitality decision-making process in relation
to B2C and B2B
Basis B2B B2C
Definition The Business to business is
defined as the type of business
where one business offers
goods and services to the other
business.
Whereas the business to
customers is defined as the
type of business where the
goods and services of the
business are offered to
customers.
Need recognition This helps the analysing the
required needs. In case of
Dorchester, marketing
department plays an essential
role in analysing the needs and
bring business.
It includes customers identify
their needs and what they are
required to buy. In case of the
Dorchester, the reference from
the loyal customers of the
hotel can bring business to the
hotel (Olsonand Park, 2019).
Information search In case of the business to
business, the Dorchester will
analyse the services and
products of their competitors
leading them to enhance their
own services accordingly.
The customers of the hotel will
be offered required
information about their
product and services using
various social platform in
order to satisfy their needs.
Evaluation of alternative The Hotel will offer better
options to the small business
or suppliers in order to provide
them better opportunities.
Various services are offered to
the customers to enhance their
satisfaction level. The hotel
offers numerous options to
their target customers.
Purchase decision In case of business to business, Hotel offers quality services to
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this stage involves finally
taking the buying decision by
the business offered. In case of
Dorchester, hotel offers
various services to other
organisation.
their customers in order to
enhance their satisfaction level
.
Post purchase behaviour In case of business to business
this stage includes offering
after sale services to the
business organisation by the
chosen hotel (Rahmanand
Reynolds, 2019).
Dorchester offers various after
sales services to their
customers including the check
out services.
Discuss the various approaches to market research and methods of research used for analysing
the decision making process
Market research is defined as the process used in order to collect required information
about the target marketplace and the target customers. In case of Dorchester, different methods
of research used by the hotel are mentioned below:
Primary method: This includes kind of information collected by the individual by
themselves, it includes fresh information collected by the individual using sources like interview,
survey, questionnaire, focus groups in order to collect required information. The use of primary
method helps the hotel to collect required information about their customers needs and changing
consumers trends in the market (Rashid, 2018). In case Dorchester, the various approaches of
market research used by the hotel in order to collect the required information includes the
questionnaire, survey and feedback. Questionnaire includes asking several questions regarding
the taste and preferences to the customers leading to analysing their desired. The survey is used
by the hotel in order to determine the majority about a particular thing, and lastly the Dorchester
uses feedback, under this feedback is taken from the customers after services in order to analyse
their experience, and further requirements.
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Secondary method: The another market research method used by the hotel in order to
collect the required information is the secondary method, this includes collecting information
from the sources which are already available such as books, newspaper, journals, government
agencies report and so on. In case of Dorchester, the hotel uses this approach in order to collect
required information about the market and changing trends.
Task 4
Assess how marketers can influence various stages of hospitality decision-making process using
relevant examples
The marketers directly influence the various stages of hospitality decision-making
process, the various stages of hospitality decision-making process of the Dorchester is
determined on the basis of Behavioural approach and cognitive approach. The behavioural
approach, the behaviour of the individual directly influence the decision-making process of the
customers (Riasi Schwartz and Chen, 2018). In case of Dorchester, the marketer carefully
examine the behaviour of their target customers in order to analyse their needs and attitude. The
hotel also uses cognitive approach which helps them to analyse the various styles, view point of
the target customers allowing the marketer to take relevant decisions. In addition to this the
culture and sub culture factors also influence the various stages of the hospitality decision
making process. The hotel needs to analyse the various norm, values of the individual as these
factors directly influence the behaviour of the customers.
In case of the impact of the sub culture which is derived from the nationality and religion
of the customers directly influence the behaviour of the customers, the marketer of the hotel
needs to ensure the cultural barriers of the customers while offering them services. For example,
if the customers is vegetarian than the hotel needs to effectively consider his preferences while
offering the services. Additionally the behaviour of the customers also create huge impact on the
buying behaviour of the customers, the marketer of the Dorchester needs to analyse the taste and
preferences of the customers while offering them product and services. The marketer needs to
analyse the buying behaviour of the customers in order to satisfy their needs accordingly. For
example, if the customers desires to get high class services or high quality services than his
desires needs to be taken into consideration effectively (Tölkes, 2018).
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Assess how marketers are responding to the decision-making process using suitable examples
The marketer plays an essential role in determining and effectively responding to the
decision-making process of the organisation. Such as in case of need recognition stage, the
marketer uses the google optimisation tool in order to offer various options to the customers
according to their preferences on various social media apps making it easy for them to
recognition their needs (Wangand et. al., 2020). Also in case of information search, the marketer
ensures to offer various information related to the product and services through various social
media tools. This helps in making them aware of the product and services and attracting them
effectively. Having vast information about the required information makes it easy for the
customers to easy take the right decision. For example, in case of Dorchester, offering
information regarding their new services including discount offered to the customers will help in
attracting them. Marketer also ensure that best services are offered to the customers as compared
to their competitors making it easy for their customers to compare their services and take the
purchasing decision. The marketer also offers after sales services to their customers in order to
enhance their satisfaction level (Zhu, Freeman and Cavusgil, 2018).
Conclusion
From the above discussion, it has been concluded that hospitality plays an essential role
in offering quality and accommodation services to their customers. It also helps in enhancing the
overall satisfaction level of their target customers. This report helps in analysing that the cultural,
social, personal and psychological factors directly influence the consumer behaviour also due to
the digital technology the consumers trends such as more connected with technology, use of
social media and so on. Various stages of consumer decision-making journey and importance
path to purchase is also analysed in this report. In case of B2C and B2B, there is difference in the
decision-making process also the main approaches to marketing research such as primary and
secondary used is also analysed. In addition to this it is also analysed that marketer directly
influence the decision-making process.
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References
Books and Journals
Ahn, J. A. and Seo, S., 2018. Consumer responses to interactive restaurant self-service
technology (IRSST): The role of gadget-loving propensity. International Journal of
Hospitality Management, 74. pp.109-121.
Domínguez-Navarro, S. and González-Rodríguez, M. R., 2020. Social Media managerial
implications for budget accommodation venues: use of Social Media platforms more
effectively and efficiently. Quality & Quantity, 54(5). pp.1671-1689.
Fyall and et. al., 2019. Marketing for Tourism and Hospitality: Collaboration, Technology and
Experiences. Routledge.
Hwang, K. and Lee, B., 2019. Pride, mindfulness, public self-awareness, affective satisfaction,
and customer citizenship behaviour among green restaurant customers. International
Journal of Hospitality Management, 83. pp.169-179.
Jang, Y., Chen, C. C. and Miao, L., 2019. Last-minute hotel-booking behavior: The impact of
time on decision-making. Journal of Hospitality and Tourism Management, 38. pp.49-57.
Joshi, V.A. and Gupta, I., 2021. Assessing the impact of the Covid-19 pandemic on hospitality
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and Tourism Themes.
Line, N.D. and Hanks, L., 2019. The social servicescape: Understanding the effects in the full-
service hotel industry. International Journal of Contemporary Hospitality Management.
Mandić, A. and Praničević, D.G., 2019. Progress on the role of ICTs in establishing destination
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and Tourism Technology.
Nilssen, R., Bick, G. and Abratt, R., 2019. Comparing the relative importance of sustainability as
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Management, 26(1). pp.71-83.
Okumus, B., 2020. How do hotels manage food waste? evidence from hotels in Orlando,
Florida. Journal of Hospitality Marketing & Management, 29(3), pp.291-309.
Olson, E. and Park, H. J., 2019. The impact of age on gay consumers’ reaction to the physical
and social servicescape in gay bars. International Journal of Contemporary Hospitality
Management.
Rahman, I. and Reynolds, D., 2019. The influence of values and attitudes on green consumer
behavior: A conceptual model of green hotel patronage.International Journal of
Hospitality & Tourism Administration, 20(1).pp.47-74.
Rashid, A.G., 2018. Religious tourism–a review of the literature. Journal of Hospitality and
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Tölkes, C., 2018. Sustainability communication in tourism–A literature review. Tourism
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Wang, L., and et. al., 2020. Antecedents of green purchase behaviour: an examination of altruism
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Zhu, Y., Freeman, S. and Cavusgil, S.T., 2018. Service quality delivery in a cross-national
context. International Business Review, 27(5). pp.1022-1032
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