Consumer Behaviour Analysis: Decision Making in Hospitality Sector

This report provides an in-depth analysis of consumer behaviour within the hospitality sector, focusing on the Montcalm Royal London House as a case study. It explains various elements that directly impact customer behaviour, including cultural, social, personal, and psychological factors. The report also examines the changing trends in customer behaviour due to digital technology innovations, such as access to analytics, evolving customer demands, and the use of social media for brand engagement. Furthermore, it details the consumer decision-making journey and the importance of mapping a path for marketers to understand this process. The distinction between B2B and B2C decision-making procedures is highlighted, along with an explanation of market research methods. Finally, the report discusses the impact of marketers at different levels of the decision-making route within the hospitality industry, emphasizing the importance of adapting strategies to influence consumer choices and build brand loyalty. This assignment is available on Desklib, a platform offering a wide range of study tools and solved assignments for students.

HOSPITALITY CONSUMER BEHAVIOUR
INSIGHT

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explanation of different elements which directly impact behaviour of customer..................1
P2 Changing in trends of customer due to innovation of digital technology..............................2
TASK 2............................................................................................................................................3
P3 Brief explanation of journey of consumer decision making & mapping of a path for this
hospitality service........................................................................................................................3
P4 Description of importance of map a path for marketers and understanding decision making
procedure.....................................................................................................................................4
TASK 3............................................................................................................................................5
P5 Distinguish between B2B and B2C in decision making procedure.......................................5
P6 Explanation of methods required for performing market research........................................7
TASK 4............................................................................................................................................8
P7 Impact of marketers at different levels of decision making route in relation of hospitality
industry........................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Consumer behaviour, this term is used to understand actions, though, view, perception of
customer while taking decision during the tie of buying products as services. To understand this
term regards with hospitality sector, Montcalm Royal has been taken. It is luxurious 5 star hotels,
which is situated in London. The organization is famous for providing best quality of food and
event services to their guest. This presentation is made to define factors which affect in decision-
making process, the way consumers take decision. Method of business used by managers after
revolution of digital technology and significance of map path process regarding with Montcalm
Royal. It also define tools use by manger for marketing research purpose so that business
corporation able to take best decision.
TASK 1
P1 Explanation of different elements which directly impact behaviour of customer
Hospitality sector is one of the most trending felid for running business at present time
period. Success in this sector totally depend on how well an organisation is able to relation their
customer. For this it is really essential to understand behaviour of customers. Following are the
factors which directly impact on the decision of purchasing power taken by clients in context
with The Montcalm Royal London House ( Björk, and Kauppinen-Räisänen, 2016).
Cultural factors: It considers beliefs, values of personal which directly affect and influence in
the environment they live. With the changing of item it diversifies.
Religion elements: Customers directly influence from the scripture of their religions. Their
decision regards with taking services directly influence by religion.
Status: Culture elements also include from the consumers belongs. Generally people with high
class required luxurious faculties, and top class service and middle or lower class people
purchasing decision depend on the money they able to fulfil their basis needs.
Social Factors:
Family: Customer, behaviour is influence from their family also. They learn basic concept of
living life from family. Thus individual positively influence by family.
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Social gathering: Customers met their relative at social parties, they to observe life style and
suggest each other regarding products and service, it also change perception of customers
regarding their purchasing decision.
Job and status: At workplace, informal groups are building up, these are also effect lifestyle,
and perception regarding product and service buyer influence to purchase. Montcalm Royal is
one of the famous luxurious hotel, most of their customers are those who have from high class
job profile.
Personal factors: Following are the factor individual which also affects their decision making
though regarding using service of hospitality sector
Age & life cycle: This is one of the most essential factor which directly impact on purchasing
power of buyer. As at different stage of life, and age personals demand and needs change, they
do not want luxurious service which they are teenagers, because they are at growing stage of
their life.
Job: The designation at which individual work, is help making individual capable to fulfil their
demands. It totally depend on their work profile how much personal able to spend on service
they want to received from service provider.
Psychological factors: Theses includes elements which directly impact on mental state of
personal (Sánchez-Franco, Navarro-García and Rondán-Cataluña, 2019).
Inspiration: Motivation is reality required for fulfilling future needs special in hospitality sector.
Personal select to hotel for their stay which have capabilities to satisfy the wants and needs. They
also get inspired by their role model as they positively includes on the life style of individuals.
Discernment: it is related with individuals mind thought, their perception, and personal view
regarding hotel. It is related with stereotyping theory, if customer make any positive and negative
though regarding hotel then t is become hard for manager to change their behavior regarding
service they offer in hotels.
P2 Changing in trends of customer due to innovation of digital technology
Digital revolution totally changes psychological thoughts and purchasing power of
customers. Management department of Montcalm Royal on the basis of digital trends update
their business polices to relation customers. Following are the trends define below
Access to analytics: With innovation of digital marketing now, manager of Montcalm Royal can
easily track customer’s preference on the basis of reviewing feedback on social media.
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Customers demand: Now guest get attracted and influence to stay in hotels which offers them
WIFI facility and digital events organised by hotel to their customer. Montcalm Royal start new
digital program to satisfy needs of their guest.
Change position of customer: Before digital technology comes, customer not has any source to
collect information regarding hotel in which they stay. Now easy availability of internet ad use of
digital platform, help them to understand what facilities hotel provides to customer, review of
previous guest, offer and food meal, service they give for guest. Digital technology revolution
comes in positive way for customer.
Platform of sue case: Guest have right to file
Use of social medial for brand relation: With the use of digital platform, hotel attract relation
customers by building strong reason through connect with customer via using, Facebook,
Instragram and other social media sites. It is useful in gathering information regarding client. On
the other site consumer, take review regarding facilities offers by hotel through analysing their
social medial profile.
Use of portable application: By using mobile application of digital technology, guest can easily
contact with hotel employees, and they pay bills through online payment mode. It useful in
saving time of mangers as well as customers also. Montcalm Royal provides facilities of mobile
applicant to connect with their guest (Bruwer, and Rueger-Muck, 2019).
Switching brands: Now customer are not loyal for particle brand, if they find better facilities in
anther hotel then they can switch to other one. Thus to attain potential customer for long time
purpose, management department of Montcalm Royal provides attractive offers so they not
attract towards rival hotels.
TASK 2
P3 Brief explanation of journey of consumer decision making & mapping of a path for this
hospitality service
Hospitality sector is related with services, thus it is really essential for every trade entity
to understand how consumer tae decision, factor influence them to choose service, for this
purpose they need to analysis process of consumer decision making. Managers of Montcalm
Royal have invested large amount of capital for researching how consumer behaviour and the
way they take decision by applying following steps
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Issue acknowledgement: At this stage, managers identify equipment and needs of guest. With
the changing scenario, customers preference has been changed, thus it is really essential for
hotels to identify what customer needs when they choose hotel for stay inn.
Data search: In this step, management department, collect data from their record ad market
research to understand, main facilities which satisfying them. Customers, by using digital
platform, identifying rates offer by hotels.
Assessment of choices: Personals have wider number of alternate available, special in UK, the
rate of competition on hospitality sector is very high.
Buy choices: Customer select thoes hotel which gives them attractive offer for staying and
organised events provides facilities. Guest takes decision by taking review from online sites.
Post buy conduct: his is the last stage, in which manager identified of satisfaction they proved
to their customer by taking feedback from their guest. It is relevant for organization to provide
best services that guest give them positive feedback which helps in building strong connection
with guest. It is useful for future branding and promotion of hotel.
After lockdown period it is really become hard to enhance sales of Montcalm Royal but to
maintain position in market, their manager by applying this strategy, make attracted marketing
strategies so that they can influence customer.
P4 Description of importance of map a path for marketers and understanding decision making
procedure
Mapping path help in tracking behaviour of customer so that managers can build future
strategies .This will useful for maintain strong position goodwill among market. It is required by
Montcalm Royal to apply map path strategy (Rather and Sharma, 2019)..
collaboration between customer &business:
Map path help in better understanding of consumer’s thoughts thus it will useful in making
attract communication with their customers. Manager of Montcalm Royal using planning
strategies can able to understand, customer have them advice, suggestion, and competent
regarding their hotel facilities. So that they can polices and marketing strategies of their hotel.
Map path useful in rating emopyee work on the basis of feedback received by clients.
Accentuates on client requirements: Map path useful in categorising guest on the basis of their
financial capability. Montcalm Royal is provides different offer on the basis of categorised
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customers. This will useful for them to making policies according to the category of customer.
To attract customer as organization is able to complete requirement of customer.
Separates hole between wanted & genuine experience of clients: Map path strategy is very
importance ad it play essential role in success of organization as by using this planning strategy,
organization will be able to separate their target market customer and genuine customers. The
build different strategies and polices to for them to take large part of market area. Manager of
Montcalm Royal use this strategy so they can relation their customers.
Perceives improvement needs: By analysing need of guest, organization will be able to make
offers so they can satisfy their relevant customer. In hotel industry it is really essential for
provides best kind of quality services regarding, food, and cleaning of rooms , providing full
security for their personal luggage. It helps Montcalm Royal to attain loyalty of customer, apply
planning tools.
Accommodating in picking up business knowledge: Map planning help in understanding
customer’s preference, it will useful in understanding knowledge regarding relevant business
sector. By applying planning strategy manner of Montcalm Royal able to take research regarding
every sector which is relevant for their hospitality business, They can also use it for environment
scanning procedure because it will useful in understanding requirement of external environment
and strategies use by rival industry. Planning useful in giving and providing full satisfaction to
customer through which they can build brand loyalty among market. It is relevant for
management department of this organization use map path to understand behaviour of how
consumer takes their decision (Morgan and Pritchard, 2019).
Moulding behaviour of customer: Map path is useful in identifying demand of customer and
on the basis of that , manager change their strategy and offers it help in influence customer and
the change their decision regarding making other hotel for their stay . Thus management
department of Montcalm Royal consider map path as relevant planning tool for their
organization.
TASK 3
P5 Distinguish between B2B and B2C in decision making procedure
Business to Business is consider as part of online trading. In this organizations through
digital platform, sell ad purchase relevant resource they required to run their business. On the
other side Business to Customer, is define as systemic way of internet marketing in which
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companies or organization directly contact with consumer through online platform . Both are
essential and relevant part of digital marketing tools as at present time period most of business is
done through online mode In context with Montcalm Royal their manager apply both method
for their online trading it will useful in gain market share in pandemic period of time. Following
are the difference among B2B & B2C
Basis B2B B2C
Customer In this mode of online trading,
business is treating as
consumer for other
organization. As they are
trading with each other.
Montcalm Royal needs raw
material for heir hotel industry
to fulfil requirement of
customer thus they deal with
other organization and
suppliers though Business to
Business mode (Pothitou,
Kolios., Varga, and Gu,
2016).
In this, customer is final
clients of organization which
their direct deal. Which takes
help to retailers or other
mediators, Organization direct
deal with their final clients
Criteria of Focus This type of E- Business is
based and focused on building
strong connection with suppler
and other organization so that
they can receive goods at low
cost. Manager of Montcalm
Royal deal and make
connection with hiring
organization’ s so they can
proved them best kind of
It is mainly focus on build
loyalty and trust among
customers by fulfilling their
needs. Because it is required
for satisfying customers to
maintain sustainability in
market sector. In context with
Montcalm Royal, they treat
their guest in positive ay and
ask the feedback to influence
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human resource as well as
suppers.
them .
Initiation of brand value To enhance brand value
among market, B2B is
focusing on gerante better
relation with entities.
Montcalm Royal provides
attractive offers to their
suppler for their better
connections.
In B2C , managers is mainly
focus on increasing brand
value by giving best serves
when their guest stay in their
hotel (Erickson, and
Rothberg,2017).
Sales drivers The main objective of
organization is to generate
worth by finding best supplier
and distributor for their trading
activities.
They focus on retaining client
and spread their target market
through influence new
customer.
Buying Decision making Decision is taken o the basis of
aching competitive advantage
by considering other rival
indirect Montcalm Royal
select those organization ,
which they help them to
enhance productively of
organization.
In Business to Customer,
mode, main focus on
increasing sales rate, thus
decision is taken on the basis
of requirement of clients.
P6 Explanation of methods required for performing market research
Market research is treat as must essential part of every organization .As it will help in
understanding present situation of each sector and element with effect organization finding
opportunities and threat in market. Following are the methods through which Montcalm Royal’s
management department use to research market
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Statistical surveying: This tool is used to determine they taking decision in related with B2B
mode is very flexible, procedure beau there are various elements which affect the process. At top
level of business hierarchy, they require market research regarding B2B field to understand and
take decision on the basis of their rival industries function and strategies they apply. For the they
apply following techniques
Rivalry examination: Managers of Montcalm Royal for understanding their competitive market,
analysis rival industries strategies, the way they work, suppliers with whom they take raw
material, and organization they trade due to supply their product and service. By applying this
technique manager can easily change their policies so that they can attain competitive advantage
with the market area.
Subjective investigation: This tool help in identifying n research each and every element which
direct related with business. Expert or committee is made which take decisions regarding factor
include business on the basis of their collection of data which give correct and necessary
information regarding rival industry (Yüksel, 2017).
Statistical surveying techniques under Business to customer: In this tools are utilized to
understand requirements of customer by using various technique of marketing research.
Survey: For understand requirement and needs of customer best way to conduct survey. This
method of research is stating with many years. But it is also a relevant way to recognise want of
customers, with by using tools of technologies. At present time, for customer survey. Manager of
Montcalm Royal use social media to conduct survey. It is useful in recognize their perception
regarding hotel facilities by customers feedback.
Meetings: Manager Conduct meeting for taking reports of marketing survey. In this meeting
experts come together and understand behaviour of customer. They way they behave when they
are in hotel, their experience, it will help in taking better decision which useful for future
business purpose.
TASK 4
P7 Impact of marketers at different levels of decision making route in relation of hospitality
industry
In hospitality sector it is relevant for every business to take decision at each and every level
of departments. Decision making not easy process. Manager’s capability’s on the basis of
decisions they take for their organization. It is really necessary for marketers to take decision on
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the basis of consider external and internal situation of organization. Following are the impact of
decision making on marketers of Montcalm Royal
Need: Marketers use decision making to understand requirement of client. There issue or
problem they face taking them feedback on the basis of their experience. They build strategies by
collecting request and feedback from their guests (Kitunen, Rundle-Thiele, Kubacki,. and
Dietrich, T., 2018).
Assessment of choices: After determining requirement and needs of guest. Marketers on the
basis of research of market, identify alternative and idea through which they can fulfil need of s.
Data search: Marketers of Montcalm Royal collected information regarding future clients from
using internet device, through books, articles of newspaper. They collect this information to
make future places for hotel management.
Buy choice: Marketers take decision on the basis of analysing all the alternative advantage and
drawback, which options helping garneting profit ad also fulfil needs of guest.
Post buy discord: Marketers of Montcalm Royal on the basis of feedback given by their guest,
change policies and organize new event, alter food menu so their number of receiving positive
feedback increase as compare to negative.
CONCLUSION
From the above analysis it has been concluded that to maintain strong position in hospitality
sector it is really essential for managers to understand the concept of consumer behaviour. There
will be many elements, like, social, cultural and persons which directly influence purchasing
power of customers, and digital technology also effect of change perception of customer
regarding hospitality sector. To understand behaviour, manager use map path method through
which they recognize the way customer take decision. Business Corporation’s engaged in
spreading their trade by engaged in Business2Business and Bsuiness2Cutomer market methods.
Business decision making is relevent process, managers to effectively take decision use ,survey,
meeting and subjective investigating. So that they can able to take favourable decision by
understanding demands of customers.
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