Consumer Behaviour and Decision Making in the Hospitality Sector

This report provides an analysis of consumer behavior and insights within the hospitality sector, with a specific focus on InterContinental Hotels Group (IHG). It examines the consumer decision-making journey, from pre-purchase to post-purchase evaluation, highlighting the significance for marketers in understanding these processes. The report contrasts B2B and B2C decision-making, evaluates the role of market research, and explores how marketers respond to consumer needs. Key factors influencing buying behavior, such as technology, culture, and personal preferences, are discussed. The application of relevant theories and models further enhances the understanding of consumer behavior in the hospitality industry, ultimately aiming to improve customer satisfaction and drive revenue growth for companies like IHG. Desklib provides access to this and other solved assignments for students.

Hospitality Consumer
Behaviour and Insight

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A ..........................................................................................................................................3
Covered in PPT............................................................................................................................3
PART B............................................................................................................................................3
Decision making journey of customer.........................................................................................3
Significance for marketer to understand customer decision making...........................................4
Evaluate the response of market research used in decision making process...............................5
Marketers are responding to decision-making process, apply relevant examples ......................6
Different factors that influences decision making and buying behaviour...................................7
Application of appropriate theories, concepts and model that influence and impact upon
hospitality decision making process............................................................................................7
CONCLUSION................................................................................................................................8
REFRENCES...................................................................................................................................8

INTRODUCTION
Consumer behaviour and insight assist the organisation to leverage all the essential
information regarding the buying pattern or preferences of target audience. It basically offer the
better approach that is required to carry out communication with current as well as prospective
customer effectively (Björand and Kauppinen-Räisänen, 2015). The traditional strategy of the
business that mainly focuses to gain the maximum ROI is not longer function now due to
immense competition. As customer has wider optional choices so the organisation needs to
identify and respond the client accordingly. For the better understanding of report
InterContinental hotels has been selected which is multinational hospitality company of UK. The
company offer various hotel resort or accommodation facility for the convenience of national
and international travellers. This report cover topic like external factors that influences the
customer behaviour and its attitude. Determine the path of purchases within the hospitality sector
through decision making process. Along with that evaluate the significant form of research that
can influence the decision making process of hospitality consumer. Further, influence of
marketer in different stages of the consumer's decision making process are covered in this report.
PART A
Covered in PPT
PART B
Decision making journey of customer
Customer decision making is the process that help the customer to make final decision
regarding the buying of goods and services (Chathoth and et. al., 2016). The buying behaviour is
influenced by various factors like the taste and preference of customer, educational level, referral
influence, financial status and so on. Thus, this process for IHG company comprises of various
stages that is defined below:
Pre purchase: At this stage the consumer behaviour makes the decision about product by
generating suitable idea or information regarding product as well as services. The way an
individual generate the knowledge regarding availing services from IHG company eventually
generate the interest of customer. Like, in terms of services most of the people view the website

of company to read out the feedback of customer and compare the prices of different services
with other hotels.
Purchase: On the basis of information the traveller makes the final decision and avail the
services of the company by booking the rooms online. As IHG company are more inclined
towards technology so once the reservation is done they remain in contact with client by sending
them the confirmation message via email. Along with that company with the help of direct
interaction IHG can cross sell its other services also like food and accommodation.
Receive: Here at this stage the customer build their own experience because they actually
usage the services of company. So within this stage the different department of IHG company
like receptionist or house keeping department perform their responsibility perfectly and greed the
customer by making their desirable experience. Hence, this can also help the company to build
positive publicity and generate word of mouth advertisement.
Post purchase: This is the after sales service under which customer post their valuable
feedbacks on the website of company to demonstrate their experience by availing the services
from company. So the IHG group need to make effective action and try to minimise the chances
of dissonance in order to meet the expectation of customer.
Significance for marketer to understand customer decision making
The marketer need to understand the customer behaviour so that they can map the path of
purchases and conduct decision making within hospitality sector. As customer determine various
factors or figure out facilities while availing the luxury services (Del Chiappa and Dall’Aglio,
2012). So by understanding the whole decision making process the firm can develop the suitable
product or service that can meet the customer need. Herein, IHG company with the help of
research and development department understand the decision making process in order to
prioritize various level of product or services. Based on this the company can design marketing
campaign in order to capture large market by influencing the customer through effective
promotion strategy. Like, company can use the social media, affiliated media, SEO in order to
engage the customer and retain their trust towards company. Therefore, such actions can help the
company to take immense place while making the decision amongst competitors.
Compare and contrast the key differences between B2C and B2B decision making process
In the hospitality industry the decision making process varies with the section for which it
is taken and those who will be effected by same. Judgments that are made by business for other

business are different and for those taken for the customers are different. Better understating of
same can be done from the tabular analysis given below:
Basis B2B B2C
Meaning Business to business are the
decisions that are taken within
the two commercial units.
This on the other hand are
the decisions that are taken
by the business against its
targeted customers.
Affected party Under this concept the
ultimate party that will be
affected by the decision taken
is also a business unit.
Here the people that will be
affected are the potential
customers of the business.
Stress On In B2B, more importance is
given on maintaining or
developing connections with
the other business.
On the other hand, in B2C
the decisions are taken
which laid more importance
on the focused customer
group.
Relationship Decisions are made with a
view of developing
connections that lasts for long
duration (Gao, Mattila and
Lee, 2016).
Choices made in context of
customer by business need
not to be always focusing a
long term relations and may
end when a sale is made.
Above discussed are the differences in the B2B and B2C decision making process. There
are also many similarities in both like each judgement is made keeping the profit of own business
at priority. Also in both the cases deep research and analysis of the market is required.
Evaluate the response of market research used in decision making process
Market research is responsible to analyse the data and evaluate best possible method by
which the company can understanding latest trend of industry and expand its operations
effectively. Like, on the basis of research hospitality company can find the potential investor that
can willingly invest on company and help the firm to diversify. Mostly the companies which
have diversified their business in international market can determine the external market on the

basis of research and make the decision to expand (Gibson and O’Rawe, 2018). This is the
essential aspect that help to reduce the chances of business risk by understanding the dynamic
environment and willingly participate to adopt the best possible changes. Moreover, it help to
cover different aspects of bushiness like distribution network, customer need and requirement in
hotel, pricing, competitors strategy and so on. The prime relevance of market research is that it
help the company to bring significant alterations and meet the upcoming and existing needer of
customer. Along with that it determine distinguish ways based on which company can
differentiate its brand in comparison to other competitor within the market. Therefore, it help to
maintain the goodwill of brand by retaining the satisfaction for existing and potential customers.
Marketers are responding to decision-making process, apply relevant examples
Marketers play important role in decision making procedure related to marketing strategy
and way to attract customers for product and services offering by company. In hospitality
industry also marketer's play essential role because they help in analysing customers
taste,preferences as well as problems facing by them (Tresidder and Hirst, 2012.). So that,
organisations working within it can modifying their strategies as per demand of customers and
make them satisfy. There are several stages of decision making explanation of these are as
follows :-
 Need recognition – After surveying about demand of customers within hospitality sector
that can be possible by taking feedbacks from customer that will assist in implementing
such strategies which make them satisfy such as pick and drop facilities from airport
(Mohammed, Guillet and Law, 2015).
 Search for information – Through websites hotels can offer attractive offers and detail
about price. So that, complete information will available and help in decision making.
 Alternatives – Along with these it is necessary to identify some other alternative for
attracting more and more customers in effective manner.
 Purchase decision – Marketers easily influence purchase of hotel by giving detail about
all the facilities which will be provided to them while taking purchase decision.
 Post-purchase evaluation - This can be done by evaluating feedbacks taken from
customers and making valuable changes in the strategies so that customers can be
influenced in future decisions.

This is decision making process which help hospitality sector in offering products and
services to customers within effective manner.
Different factors that influences decision making and buying behaviour
Technology or innovation has significant helped the organisation to shape consumer
behaviour as it allow to integrate with different people and help in smooth functioning of
business. Most of the customer have become prone to technology so with the help of digital
media they access all the vital information regarding the company. Further, the hospitality sector
need to use advance technology like the use of computer can help in quick process due to which
customer does not have to wait for the longer duration which is time and cost effective process
(Sigala, Christou and Gretzel, 2012). Herein, IHG company extensively use digital platform to
deliver the vital value and conduct the communication with both national and international
consumer.
Cultural and sub cultural is an external factor that influences the hospitality
organisation to understand the behaviour of customer and expand the operations accordingly.
Like, this may affect the choices of customer in terms of food consumption so the hospitality
services make sure it analyse the geographical market effectively. Based on customer behaviour
the company need to make the effective decision so that they can cater the large market
effectively.
Personal Factor: Within personal factor the consumer makes the vital choice on the
basis of their disposable income, occupation, lifestyle and so on (Varkaris and Neuhofer, 2017).
These factors help the customer to set criteria and make the choice among different hospitality
companies. On other side the company too analyse and function on the basis of personal factor
so that the customer avail the particular company irrespective of other industries.
Application of appropriate theories, concepts and model that influence and impact upon
hospitality decision making process
Different theories, models and concepts can be implemented in order to influence as well
as impact the hospitality sector decision-making process related to customers and businesses.
For instance, the concept of bounded rationality states are dependent on cognitive and
environmental issues which determine the decision-making. Through this theory complex
business problems can be divided into small manageable segments where the needs and wants of
the customers can be satisfied. Also many other theories can influence the behaviour of

customers so that they can compare all the available options and choose the best one according to
their requirements (Xiang, Magnini and Fesenmaier, 2015). So that, sales will get enhance by
fulfilling demand of customers and making them satisfy. Thus, it result in generating more and
more revenue which help in long term stability of company.
CONCLUSION
From the above report it has been concluded that customer behaviour is a valuable part of
an organisation that need to be clearly studied by an organisation in order to prepare best suited
strategy. The hospitality industry need to analyse the external factor effectively so that they can
bring the best possible changes in the functioning of an organisation and target the market
effectively. Along with that the company need to use advance technology so that it can anticipate
the changes, help to identify customer trend and remain competitive by promoting the brand
successfully. Moreover, decision making is the process to choose best alternative which
comprises of various stages that is crossed by the consumer to get the best deal at best prices. In
this case the company can fulfil all the essential requirements of customer which can assist the
company in terms of positive referral.

REFRENCES
Books and Journal