Hospitality Consumer Behaviour, Decision-Making & Marketing Impact

This report provides an in-depth analysis of consumer behaviour within the hospitality sector, focusing on the factors that influence consumer attitudes and decision-making processes. It examines cultural, social, personal, and psychological factors, highlighting the impact of digital technology on consumer trends. The report maps the consumer decision-making journey, from problem recognition to post-purchase evaluation, and explores the importance of marketers understanding this journey to effectively target and influence consumers. It also compares the differences in decision-making processes between B2B and B2C contexts within the hospitality industry, and discusses various market research approaches that aid in the decision-making process. Furthermore, the report evaluates how marketers respond to and influence different stages of the consumer decision-making process, providing examples from the Intercontinental Hotel Group (IHG) plc. The report concludes by emphasizing the importance of understanding consumer behaviour for hospitality businesses to succeed in a competitive market.

HOSPITALITY CONSUMER
BEHAVIOUR AND INSIGHT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1:.................................................................................................................................................3
Description of factors influencing hospitality consumer behaviour and attitude.......................3
LO 2.................................................................................................................................................4
Examining stages of consumer decision-making journey and map a path for purchasing given
hospitality service.......................................................................................................................4
Exploring why it is important for marketers to map a path to purchase & comprehend
customer decision-making in the hospitality industry................................................................6
Evaluating how marketers are responding to decision-making procedure.................................7
LO 3.................................................................................................................................................7
Comparing the differences of hospitality decision-making process in context of B2B & B2C. 7
Explaining different approaches of market research that helps in decision-making process.....8
LO 4.................................................................................................................................................9
How marketers influence the different stages of hospitality, consumer decision-making
process.........................................................................................................................................9
Evaluating how marketers are responding to decision-making process...................................10
Critically evaluating how marketers can influence each phase of decision-making procedure
with reference to suitable methods............................................................................................11
Critically examine application of theories and models that influence and impact on hospitality
decision-making process...........................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Consumer behaviour has been stated as study of individual's, groups & companies
regarding, how they choose, buy, utilize and dispose commodities, services, ideas, etc. for
satisfying their needs. Moreover, it reflects to be more than buying of goods and these processes
will have a great impact on societies as well as consumers. Intercontinental hotel group plc, is a
multinational hospitality company established with a purpose of providing true hospitality to
their customers. Further, we can also track their performance through market as it is listed on
London stock exchange. Hence, the following project report will consist of factors influencing
hospitality consumer behaviour & attitudes along with forms of research to understand how it's
impacts one's decision-making. Besides this, report will also include about how marketers
influences different stages of hospitality decision-making process along with their respond on
such through relevant examples from hospitality sector.
LO1:
Description of factors influencing hospitality consumer behaviour and attitude.
Cultural, social, personal and psychological factors influencing consumer behaviour &
attitude in context of hospitality sector.
In the context of hospitality sector, factors influencing hospitality consumer behaviour &
attitude are as follows:
 Cultural factor: The components that affect the consumer's decision-making includes
buyer's culture, subculture and social class. Therefore, IHG plc must provide their
customers with good facilities so that it can satisfy individuals needs and wants &
influences them to select their hotel only.
 Social Factor: In regard to IHG plc social factor will affect the consumer behaviour
significantly, as selecting hotel will be influenced by various factors like family,
reference group, roles & status (Ahmad and et.al., 2020). Therefore, IHG must provide
facilities with respect to their customer's status, lifestyle, etc. to attract them for choosing
their hotel.
 Personal factor: The two base which influences the individual to select hotel firms
depends upon personality and self concept, as well as brand personality. Hence, IHG,

must serve their customer's with good environment by considering health safety because
during this time of Covid, individual has become more health conscious.
 Psychological factor: Consumer attract towards those hotels which matches to their
perception, beliefs and attitudes along with social, safety, psychological needs.
(Dhaliwal, Singh and Paul, 2020) Therefore, for attracting individuals at large,
Intercontinental hotel group must provide good amount of discounts on stay according to
their policy during off-seasons.
Change of consumer trend due to impact of digital technology:
During today's era digital technology like e booking, websites, artificial intelligence, etc.
are playing very vital role due to the effect of Covid 19 on each country's economy as a whole.
Therefore, now every individual is shifted towards using high & sophisticated technology tools
for getting their wants to be satisfied (Hoyer and et.al., 2020). Hence, IHG plc., should start
focusing on current market demand and start adopting artificial intelligence techniques like use
of robots for serving food or cleaning suite after check out, etc. Besides this, hotel must also
make available to their customer's with a facility of booking their rooms online through mobile
application from any place, anytime by looking at the images of the interiors, services they are
providing, customer's ratings, etc.
LO 2
Examining stages of consumer decision-making journey and map a path for purchasing given
hospitality service
Customer buying decision journey related to products and services provided by
Intercontinental group Plc, is defined throughout the stages that describe how a guest reach to
accommodation and other types of services offered by chosen hotel.
Recognition of problem-
According to the first stage of customer decision-making process, a consumer before
taking decision to buy anything, may attempt to determine need in their life regarding a service
or item (Hu and Yang, 2020). They effort to make realization and making up mind to purchase
accommodation services of Intercontinental group plc, which falls under the category of leading
hospitality organizations in the UK.
Information search-

After recognizing specific need related to holiday or accommodation service, individual
person effort to gather information about sources, through which they may obtain satisfaction in
term of fulfilling their needs (Yost and Cheng, 2021). They approach to varied sources for
example, customer care service department of hotel, friends who may take pleasure of spending
their holiday and stay within organization, etc. These approaches may contribute to collect useful
and valuable data, which may help to take better decision in term of selecting great
accommodation service that is accessible in bulk.
Evaluation of alternatives-
After obtaining important information about accommodation service provide by chosen
hotel, customers may effort to evaluate that with alternative options just to make ensure that they
may select the best one for themselves and family as well.
Purchase decision-
The comparison and evaluation stage drive the attention of guest towards taking final
decision related to taking pleasure of accommodation service of hotel (Jessen and et.al., 2020).
The suggestions and positive reviews of loyal guests may help to take judgement of connecting
with brand service and refer other to do so.
Post purchase evaluation-
As it is the last stage of customer decision-making journey, where people may examine
the real outcomes with desire needs in term of conducting detailed analysis that help them to
stuck with their decision, instead of switching to another.
Path to purchase organization service-
Awareness-
The path to obtain benefits of accommodation service offer by hotel is being with
awareness, which means a customer may aware themselves about what they actually want and
seek to purchase exchange of money (Tsohou, Siponen and Newman, 2020). They may
recognize their need, when someone make discussion with them on the basis of taking pleasure
of chosen service, which generate great awareness among individual, and then they switch to
further phases.
Familiarity-
Individual guest effort to get familiar with their needs in term of recognizance, which
drive their focus towards collecting info about sources through which it is quite easy for them to

fulfil their demand. They may find out data via online website of hotel and other sources like
family members, friend.
Consideration-
At this phase, hotel help customers to buy its service via providing the full information
about everything in term of technology source.
Purchase-
The above stages help customer to take decision, and pleasure of being a loyal guest of
Intercontinental hotel.
Loyalty-
The satisfaction that each guest may obtain, helps to become a loyal customer and drive
the attention towards conducting word of mouth promotion.
Exploring why it is important for marketers to map a path to purchase & comprehend customer
decision-making in the hospitality industry
There are several reasons exist in the world of business that define importance for
mapping a path to purchase and understand customers decision-m making journey, for marketers
of Intercontinental Group plc. For example, organization attempt to build wide customer base in
order to grow rapidly and give touch competition to its rivals (Boffelli and et.al., 2020). For this
reason, it is quite important for its marketer to map a path to purchase accommodation service in
the context of individual guest. As it allow them to gain the attention of profitable and loyal
buyers who seek to buy a great service and product of hospitality industry and suggest other after
obtaining full on satisfaction from it.
With the help of understanding overall process in hospitality sector, marketer may easily
effort to reach to target audience and influence them to consider their services and make clear
comparison, which may contribute to take right decision related to service purchase. Mapping
and comprehending of customer buying decision process may help them to step into their
purchasing judgement in term of reaching at each stage where they may drive customers
attention towards purchasing brand service.
By conducting above two practices and activities, they may obtain change to engage
individual guest within acceptance of hotel services. Furthermore, they may also gain chance to
retain potential as well as loyal guests, who are capable to promote their venture globally.

Evaluating how marketers are responding to decision-making procedure
It is quite easy for marketer to respond to each stage of customer buying decision
journey, as they may reach at single phase and attempt to drive target market attention by using
varied tools, techniques and strategies. For example, they may respond to awareness and search
stages of overall process in term of providing useful information via developing a website, social
media account and placing contact number of travel website, where customers prefer to reach for
purpose of gathering information about a service or product in which they are taking interest to
purchase.
They may give respond to third and first stage of buying decision in term of permitting
guest to make a comparison between hospitality services offered by intercontinental and other
companies on the basis of reviews and comments given by the customers. This action make
decision-making attempt worthy in form of selecting chosen hotel service.
LO 3
Comparing the differences of hospitality decision-making process in context of B2B & B2C
Basis B2B B2C
 Meaning In B2B, products or services
are transacted between two
business organization.
Here, products or services are
directly sold to consumers who
are the end users.
 Customer The customer is another
company who uses it further n
production process.
The consumer is the final user
of the services.
 Focus on The company tries to build
healthy relations with another
company so that there is
regular supply of goods and
services.
Hospitality company focuses
on selling its product or
services to consumers.
 Quantity purchased The transactions take place in
bulk quantities.
Final consumer purchases
small quantity to satisfy his
urgent needs.

 Brand Value Business try to create brand
value by making trustful &
mutual long term relations so
that organization on both ends
can benefit in longer periods.
Heavy advertising and
promotional practices are used
to create brand value between
customer and business.
 Decision-making Business take longer time to
decide about purchase because
they undertake in-depth
research process before
making final decision.
The consumer instantly decide
whether to buy a product or
not and does not take complete
research about company before
buying goods & services.
 Influence by The decision to buy is
influenced by full planning &
in logical sense after
evaluating price, etc.
The consumer emotionally
take a decision to buy a
product or service.
Explaining different approaches of market research that helps in decision-making process
There are various methods of collecting information about market which helps hospitality
industry in framing decisions. These methods are as follows:
Primary research: In primary data collection, data is collected for the first time, that is,
researcher undertakes research process themselves. This type of research can help
Intercontinental Plc to discover customer satisfaction & perception levels of their brands and also
position it as powerful figure in the field. Primary research is of again different types which are
discussed below: Interviews: It happens as a conversation between two or more person in the form of
questions & answers. Intercontinental Plc can make use of interviews to gather
information from specialist about market trends. Surveys: Surveys are conducted, mostly online, to collect information about various
topics. Company can create logical surveys so that participants can answer them easily
and accurate information is generated about the key issues.
Secondary Research: This research involves utilizing the existing data which is already
summarized and collected. Such research material is published in reports or documents which

has been already used for other studies. Secondary data is much used by company because it is
cost effective and consume less time. Popular secondary research methods are: Internet data: A common way to collect secondary data is from the internet. On a click of
a button, lot of information can be cited and downloaded which is free of cost. However,
intercontinental Plc should assess the authenticity of information before using it. Government agencies: A lot of data can be mined from Government & non-government
agencies such as UK government reports, etc. Such reports provide valuable & relevant
data which can be processed by Intercontinental Plc to conduct research successfully.
 Public Libraries: These libraries have copies of important research and large collection of
government publications that can be extracted and utilized for market research.
LO 4
How marketers influence the different stages of hospitality, consumer decision-making process.
Evaluation of marketers influence on consumer's decision-making:
Marketers can influence and change the perspective of individual through using 7
elements of marketing mix process:
 Product: Consumer's decision regarding selection of hospitality sector depends upon one
of the major factor i.e., Product. Therefore, IHG must offer good package to customers
for staying, along with casinos, gym, bar, clubbing, food & beverages, etc. facility for
spending good time and meeting customer's satisfaction with good/ positive experience.
 Price: This is the main component which influences customer's decision before choosing
any products or services, so hotel industries must focus on this to attract individuals
towards their company and not others (Koc, 2020). Hence, IHG may use cancellation
policy or discount code to stimulate direct bookings and enhance revenue with the help of
this.
 Promotion: Correct way of promoting hotel industries can help the company to stand
different amongst competition, attracting more no. of customers and boosting up revenue.
Therefore, Intercontinental hotel group should introduce a theme of carrying on events,
like music concert, organizing festive events, etc. to attract and create strong customer
base.

 Place: This is the most important factor that need to be taken care of during finding
location for establishing hotel industry, however, selection of good place leads in
boosting up revenue. Hence, IHG plc should come up in partnership with other profitable
hotels, located at good environmental places that can be reached by any individual either
for the meeting or holiday purpose.
 People: IHG must place a careful focus on their customers as they are the one who will
create & destroy the image of industry. However, for this purpose proper training session
must be provided to their present employees so that they can enhance skills and work
effectively towards development of hotel performance.
 Processes: For consistent growth, IHG plc must provide the best operation facility to
customers through communicating their employees each and every operational process
clearly (The 7 Ps of service marketing in Hotel Industry, 2019). Hence, all its stages of
operations, should be focused on maintaining standard & high quality products for
improving the hotel process.
 Physical evidence: IHG's physical appearances is important for its growth, so they
should have a good websites quality which must be clear and easy to understand by their
customers.
Evaluating how marketers are responding to decision-making process
It can be said that customer decision-making procedure is quite important for
organization management to take into their consideration, because it in return provide them
unpredicted benefits (Najafi-Ghobadi, Bagherinejad and Taleizadeh, 2021). For instance,
marketer can take each stage into their consideration and respond the same, in term of generating
awareness among individual guest by providing satisfactory service to potential guests who may
conduct word of mouth promotion and attract more people towards Intercontinental Group Plc.
In the recent time, marketer of chosen hotel are responding to customers products and
service purchasing decision process that encompasses key stages in term of using official website
of company. For instance, they respond to search and evaluation in form of adding additional
along with important information about accommodation service pricing, accessibility and
validity of current offerings. Furthermore,, along with above initiatives, marketer may also
respond in the context of same process by developing their understanding about how individual
guest select hotel offers and refer other to do so.

Critically evaluating how marketers can influence each phase of decision-making procedure with
reference to suitable methods
It can be critically evaluated that marketer of Intercontinental Group plc could influence
all the stages of customers decision-making process in term of using advance technologies such
as social media platforms. With the help of B2C, they may influence first stage that is issue
recognition, where customer attempt to determine their needs after hearing about service which
they may tend to obtain, but due to availability of alternative options they may miss it. This kind
of realization may drive their attention towards information gathering practice as second stage of
decision-making, where marketer may influence in form of creating account where everything
about hotel and its services available in access.
The process of influencing all phases is quite important for marketer to conduct and
accomplish as it may provide unpredicted advantages. On the other hand, it may create challenge
for them to complete so in term of consuming a lot of time to aware people and make their
decision in favour of chosen hospitality brand.
Critically examine application of theories and models that influence and impact on hospitality
decision-making process
Business to business and business to customers are one of those concepts and theories
that in the context of decision-making process utilize. Each concept may influence and affect
decision of hospitality in term of driving the attention of marketers and management towards
choosing the best approach that may help them to gain the attention of guests to make them a
loyal buyer. For example, B2B model encompasses varied stages, which make marketer unable
to reach at final target audience, who seek to take experience of better and satisfactory
accommodation service offer by the well-known hotel.
On the other hand, B2C is the best concept that impact hospitality decision making in
positive manner, as it enable management to directly communicate with target people instead of
mediates, who may unable to determine what actually a guest want.
CONCLUSION
From the project report it has been articulated that for attracting consumer behaviour
towards their industry they must have a proper cultural, personal, social & psychological factors
along with achievable distribution channel like B2C & B2B for having high pace of growth.

Further, IHG must also include and analyse the 7 marketing mix strategies along with methods &
models, through having in deep analysis of consumer's needs and wants by proper process so that
to attract more number of customers for accomplishing hotel's objective with individual's
satisfaction successfully. At last, it is concluded that for having a proper management and
working, leadership plays a vital role, starting from forecasting demand, stand by to its
competitors, and taking hotel towards a great height.

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