Hospitality Consumer Behaviour and Insight: Decision-Making Process

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This report provides an in-depth analysis of consumer behavior and decision-making within the hospitality sector, focusing on the Savoy Hotel as a case study. It investigates the cultural, social, personal, and psychological factors that influence consumer attitudes and behaviors, while also exploring how digital technology and emerging trends impact consumer choices. The report examines the stages of the consumer decision-making journey, highlighting the importance of mapping the path to purchase for effective marketing strategies. It contrasts the decision-making processes in B2C and B2B contexts within the hospitality industry and evaluates different approaches to market research for understanding these processes. Furthermore, the report assesses how organizations can influence the various stages of the hospitality decision-making process, providing relevant examples and measuring the responses of marketers to these processes, ultimately providing a comprehensive overview of consumer behavior in the hospitality sector.
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Hospitality Consumer
Behaviour and Insight
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
TASK 1............................................................................................................................................3
Investigating the different cultural, social, personal and psychological factors that influence
consumer behaviour and attitudes...............................................................................................3
Exploring how consumer trends are changing due to the impact of digital technology.............4
TASK 2............................................................................................................................................5
Examining the stages of the consumer decision- making journey..............................................5
Exploring the importance for marketers to map a path to purchase and analysing consumer
decision- making.........................................................................................................................6
Task 3...............................................................................................................................................7
Compare and contrast the differences of the hospitality decision- making procedure in the
relation to B2C and B2B.............................................................................................................7
Evaluate the different approaches to market research and methods of research used for
understanding the decision-making process................................................................................8
TASK 4............................................................................................................................................9
Evaluate how organisations can influence the different stages of the hospitality decision-
making process by giving hospitality examples..........................................................................9
Measure how marketers are responding to the decision-making process.................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
Customer experience can be defined as providing best value to the customers as per their
requirements. The company works to analyse the needs and wants of the customers and provide
them best services that will satisfy them (Han, 2021). In hospitality sector, there is key role of
providing best to the customers so that they are become loyal for the company. This report is
based on Savoy hotel. It is a luxury hotel that was established in 1889. This report has evaluation
regarding the factors that have influence on consumer behaviour and attitudes. There is
evaluation regarding the stages of the consumer decision- making journey and the important of
mapping them in appropriate manner. There is difference in decision making of B2B and B2C
that is also mentioned in the report. In the end of this report, there is discussion regarding
hospitality decision making process.
MAIN BODY
TASK 1
Investigating the different cultural, social, personal and psychological factors that influence
consumer behaviour and attitudes
There is key role of analysing the factors that have impact on the consumer behaviours. The
hotel that is able to keep their customers satisfied o that they are unable to attain advantage.
There is need of tracking the requirements of the customers on regular basis so that they are able
to know about their level of perception (Dixit, Lee and Loo, 2019). In regard to Savoy Hotel,
there is need of analysing the requirements of customers and checking the factors that impact
them. the factors are mentioned below:
discussed below:
Cultural factors: There is direct impact of cultural factors on the buying behaviour of the
customers. The values and background that they come from let them make the purchase
decisions. They prefer the hotel that provides them food and other facilities related to their
culture. In regard to the Savoy Hotel they work to analyse the culture and background of their
target customers so that they are able to attract them and keep them satisfied.
Social factors: The society also plays a major role in influencing the behaviour of cust9omers.
The friends, family and relatives impacts the decisions made by the person at the time of
selecting hotel. The Savoy hotel provides quality services to the customers so that they are able
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to refer the same to their relatives (Ulker-Demirel and Ciftci, 2020). The positive image of hotel
in society is important for the Savoy hotel and their success.
Personal factors: The person has, his own choices and preferences. The personal factors
also influence them to select the hotel. The people that prefer luxury lifestyle prefer to go at the
Savoy Hotel. The hotel provides better quality services to their customers so that they prefer the
brand. The Savoy hotel provide different rooms and conferences to the customers so that they are
able to avail the services.
Psychological factors: The perception level of the customers directly impacts their decision
making. The Savoy hotel understands the phenomenon and that is the reason they take feedback
from the customers. This assist them to develop relations with customers and retain them.
There are regular changes that take place in the market. By having proper knowledge
regarding the trends in market so that they are able to analyse the factors and their impact on the
customers. There is key role of communicating regularly with the customers so that their
requirement is known to the hotel.
Exploring how consumer trends are changing due to the impact of digital technology
The nature of business environment is dynamic. There is need of analysing the current
trends so that the customers are provided with better services (Filimonau and Todorova, 2020).
The Savoy hotel works to check the needs and wants of the customers so that they are able to
serve the requirements of the customers. It is the time of digital technology and the hotel must
adopt the change so that they are able to deal with the consumers effectively. There is
requirement of understanding the use of latest technology so that the needs of customers are
being analysed in appropriate manner. The Savoy hotel works to know about the latest trends and
use them to satisfy the customers. The new and latest trends in digital technology are as follows:
Facial recognition: It is one of the widely used example of digital technology that is used.
This helps the customers to reduce the waiting time and they do not have to wait in long lines.
The customers can access their rooms by the use of facial recognition and this enhances the
security as well.
Voice control rooms: It is the time of using latest technology and voice control is an
option that is provided by the Savoy Hotel. The guest is able to use the facility and get all their
queries solved. This is a personalised services provided by them to customers. The customers use
the voice controls as guide to know about every thig related to hotel and its facilities.
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Robots: Nowadays the use of robotics is also done by the hotels The robots are widely used by
hospitality sector in order to deal with customers effectively (Sharma, 2020). It is necessary to
understand that they work more accurately and there are less chances of mistake while working.
The Savoy hotel is able to use robots and this helps to treat the customers effectively.
Internet connectivity: It is a basic facility that is required by the customers in hospitality
industry. There is need of providing internet access to the customers so that they are able to carry
on their business meetings effectively as well as connect with their relatives and friends. It has
positive impact on the customers and they become loyal for them.
In todays’ time, there is key role of using latest technology. The savoy hotel is famous for
using the digital technology so that they are able to provide luxury services. It helps them to
retain the customers and make them loyal for the brand.
TASK 2
Examining the stages of the consumer decision- making journey
In the Hospitality industry the main focus is to provide the effective services to the
consumers. Most of the companies wants to become more superior with the changing marketing
conditions and become more competitive with the changing market scenario. There are various
stages in which the consumers choose the path towards the process of buying the products or
services (Filimonau, 2021). The customers stages is been described below:
Problem recognition – This is the stage in which the customers evaluate their needs. The
product will satisfy their needs in an effective manner. It is important for the problems of
Savoy to identify multiple factors and provide the best services to the customers which
will help them to enhance the overall sales in the market.
Information search – This is the stage in which the customers try to solve various
complex problems. They can research on multiple areas and do the effective research
about the desired products or services. Savoy hotel services are unique which will help
them to gain the competitive advantage. There are multiple solutions which can be
provided to them with the help of new tools. The website of the Savoy hotels is filled
with the effective services which needs to be utilised by the customers.
Alternative evaluation – This is the stage in which the customers find out multiple
alternative solutions which can help them to identify the quality and services of other
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products. In the hospitality industry the threat of substitute products is generally high
(Min, So, and Jeong, 2019). The customers can choose form various services, Savoy
hotel needs to enhance new ideology and make the services more better which will help
them to attain great results in the future.
Purchase decision – This is the stage in which the customer decision is final. On the
other hand, they purchase the products or services be evaluating every factor in a
strategic manner.
Post purchase behaviour – With the help of stage the individual provides the general
feedback to the organisation. Savoy hotel can improve the areas in which they are lacking
and attain the effective growth in the market. This will benefit the organisation to
maintain valuable customer base.
Exploring the importance for marketers to map a path to purchase and analysing
consumer decision- making
Mapping the customer journey plays the crucial role for the organisation. It will help
them form to overcome multiple challenges and provide the quality products and services to the
customers. There are various stages in which the customers can take better decisions
appropriately. There are multiple purchase decisions which is been taken which the help of
multiple components it is been described below:
Due to the changing market scenario there are various decisions which is been taken by
the individual. There are multiple factors which can affect the decision making of the
person (Rai, and Nayak, 2019). There are better products and services which needs to be
provided by the organisation in order to enhance the overall sale s in the market. Savoy
needs to attract new customers with the help of new and effective techniques. They need
to make focus on evolving the services in a better way and attain the effective growth
over a period of time in the hospitality industry.
The marketing managers of Savoy hotels needs to use new techniques in order to enhance
the services in multiple regions. They can use the new social media platforms which
includes Facebook, Instagram etc. This will help them to attract the new customers. They
can also become more competitive with the new marketing factors and attain the outputs
in an better way.
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There is the positive relationship which needs to be developed with the customers. This
could be only possible with the help of making the new engaging content. The experience
of the customer’s needs to be uplifted with the premium quality services, due to the ethic
and values the practices of savoy hotel is quite impressive (Tuomi, Tussyadiah, and
Hanna, 2021). They only provide the quality services and the target the customer base
which have high level of income. This will also help them to generate more revenues in
the market.
The marketing managers needs to analyse multiple factors which can affect the customer
decisions. They needs to make better strategies which can help them to attain better
results in the market. In relation to Savoy hotel they need to focus on multiple aspects
which will help them to grow further and provide the effective services to the customers
which is present in the market.
It has been evaluated that the customer making journey of the customer’s needs to be
identified properly (Thøgersen, 2021). Through this the organisation can provide better services
to the customers. Savoy hotel can provide various discounting options and services which can
help them to survive in the new marketing conditions.
Task 3
Compare and contrast the differences of the hospitality decision- making procedure in the
relation to B2C and B2B.
Hospitality industry comprises of different types of decisions in relation to the various operations
on continuous basis. Firm management have to ensure that the decisions which are formulate
made with full accuracy so that appropriate revenues can be generate. Business to Business and
Business to Consumer perform their functions as per the requirements that comprises of
differences in their decisions (Kaur and et. al., 2021). B2B paid focus on dealing with other
companies of same industry in relation to their goods and services so that good relation
relationship can be developed between them. They paid emphasis on working on wider platforms
and not deal with the end consumers. On the other hand, business to customer’s company deals
directly with the end consumers they directly provide services to them. They paid emphasis on
delivering goods as well as services as per the need and demand of customers so that loyal and
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trustworthy relation can develop with target customers. Following are the basis on which the
differences in decision making process can be compared: -
Customer relationship: -the factors that develop good relationship with customers affect
the decision making of hospitality industry. B2B mostly paid focus on developing good relation
with other business organisation of same field so that large number of transaction can be carry
out on continuous basis. Whereas, B2C always give importance on developing good relationship
with end consumers so that high profit margin can be earned with appropriate transactions. Their
main focus is on understanding the needs, demand and behaviours of their customers so that stay
in the competitive market for long period of time.
Branding: during decision making, B2B mostly paid emphasis on sustaining their place in the
competitive market by delivering goods and services constantly in the market. For B2B brand
recognition is very important. During decision making this plays a very crucial role for them. On
the other hand, B2C give priority to their message. Their main motive is to develop an emotional
connection with their customers so that they can make them loyal towards the company products
and evaluate their behaviour as well as buying pattern (Huang and et. al., 2019).
.
Evaluate the different approaches to market research and methods of research used for
understanding the decision-making process.
In order to carry out all the operations in appropriate manner and develop perfect decision,
information must have to be present in proper manner. With the help of appropriate information
strategies can be formulate properly so, this act as foundation for them. Immense market research
is needed within the hospitality industry so that behaviour as well as preferences of targeted
customer can be easily identified. In relation to the Savoy hotel, management do the appropriate
market research so that they can easily compete with their rivals and provide services as per the
need of customers. Variety of approaches in relation to the market research is opt by the
respective company management so that they can effectively recognise the decision making
process. The approaches which are used by the Savoy hotel for market research are discussed
below: -
Surveys: - in this research method, firm approach to various customers as well applicants to
get the answer of their questions. Within the hospitality industry surveys are done in various
forms like person survey, mobile survey, online survey, mail survey and many more. This
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method is very costly and time consuming but assist in gathering accurate and appropriate data to
understand the decision making proper.
Qualitative interviews: in this method, firm paid emphasis on both i.e., groups as well as
individuals. Open ended questions are asked by them from the target audience and they record
their responses which assist them in their decision making process. This not only give them in-
depth understanding but also provide them knowledge about their customers that helps hotel in
giving good quality products.
TASK 4
Evaluate how organisations can influence the different stages of the hospitality decision-
making process by giving hospitality examples
Different platforms are used by the organisations in order to promote their products in the market
this influence the decision making process in effective manner. establishment of effective
relation with audience evaluate their mind set in optimistic way that result in increasing the sales.
Offering goods and services which are differ from the competitors allow firm to attract the large
base of potential and loyal base of customers towards them (Lee and et. al., 2019). For
hospitality industry, it is essential to develop different strategies and policies which can effect
business organisation without adopting other tools and techniques. Management team of the
organisation identify the customers requirements and needs on the basis of individual customers
background, their lifestyle choice and personality by which employee can offer product
according to their choice. Savoy hotel employee make an strong relationship with their
customers so that they can offer them best travel facilities by guiding and supporting employee
and make them comfort during their travel journey.
Organisation should have to focus on providing effective and positive environment to the
customers during their travel experiences by which they can feel more comfortable and safe. It is
necessary for business environment to focus on providing best quality service to the customers
which can increases number of consumer (Carvalho and Alves, 2022). Business organisation
provide the right and relevant information among the customers on regular interval time which
can increase number of customers and make them satisfied by providing best travel experiences.
Savoy Hotel uses various online website to provide information of their organisation by which
customers have choice to make right decision towards as per their requirements. Customers
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observe the positive review by which they make the decision by which hotel gain more profit and
enhance the potential growth of the business. Customers also suggested some negative reviews
by which organisation bring some improves in their services.
Measure how marketers are responding to the decision-making process
It is most essential for business organisation to focus on decision-making process because
effective decision enhance the potential growth of the business and promote at success level. For
hospitality industry it is necessary to focus on market trend and customers demand by which they
can attract customers easily and make them satisfied. By providing service according to
customers choice it will lead to give positive impact business performance. Savoy Hotel focus
on analysing the behaviour of customer and consider their choice and decision with respective
manner (Jain, Pamula and Srivastava, 2021) . Making strong relationship with customers reduce
the uncertainty from the business environment and enhance the number of customers. It is an
opportunity for business to analyse the customers review because it can helps in bringing
improvement and innovation which make customer satisfied.
Savoy Hotel bring more innovation and adopted advanced technologies which can helps
in making a brand identity at market place. Hotel should have to focus on achieving
opportunities by which they can participate in competitive advantages. Through various online
website customer’s give positive and negative review which is beneficial for the organisation to
get brand image in market place and with negative factors business can focus on making
improvement, it will lead to give positive impact on the business environment. Savoy Hotel give
quick response towards customers review and make changes according to their needs and
demand and deliver best quality service which can increases the potential growth of the business.
Savoy Hotel is more focused on analysing the needs and requirement of the customer’s and
delivery the services as per their choice which can increases the customer experience and loyalty
towards the organisation.
CONCLUSION
From the above report, it has been concluded that in the hospitality industry there are
various forces which can impact the customer decision. On the other hand, there is discussion
about the new values which can influence the customer decision and various values. The
changing customer trends will help the organisation to modify their services according to the
new changing needs. There is also the analysation of the multiple research methods which is
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been implemented by the individual in order to make the effective purchase decision. There are
various areas which can be improved by the form by implementing the effective process in the
workplace.
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REFERENCES
Books and Journals
Dixit, S.K., Lee, K.H. and Loo, P.T., 2019. Consumer behavior in hospitality and
tourism. Journal of Global Scholars of Marketing Science, 29(2), pp.151-161.
Filimonau, V. and Todorova, E., 2020. Management of hospitality food waste and the role of
consumer behavior. In Food Industry Wastes (pp. 451-466). Academic Press.
Filimonau, V., 2021. The prospects of waste management in the hospitality sector post COVID-
19. Resources, Conservation and Recycling, 168, p.105272.
Han, H., 2021. Consumer behavior and environmental sustainability in tourism and hospitality:
A review of theories, concepts, and latest research. Journal of Sustainable
Tourism, 29(7), pp.1021-1042.
Min, S., So, K.K.F. and Jeong, M., 2019. Consumer adoption of the Uber mobile application:
Insights from diffusion of innovation theory and technology acceptance model. Journal
of Travel & Tourism Marketing, 36(7), pp.770-783.
Rai, S. and Nayak, J.K., 2019. Hospitality branding in emerging economies: an Indian
perspective. Journal of tourism futures.
Sharma, T., 2020. What a waste: confronting consumer food waste behavior in hospitality
settings. Advances in Hospitality and Leisure.
Thøgersen, J., 2021. Consumer behavior and climate change: Consumers need considerable
assistance. Current Opinion in Behavioral Sciences, 42, pp.9-14.
Tuomi, A., Tussyadiah, I.P. and Hanna, P., 2021. Spicing up hospitality service encounters: the
case of Pepper™. International Journal of Contemporary Hospitality Management.
Ulker-Demirel, E. and Ciftci, G., 2020. A systematic literature review of the theory of planned
behavior in tourism, leisure and hospitality management research. Journal of
Hospitality and Tourism Management, 43, pp.209-219.
Jebarajakirthy, C., Yadav, R. and Shankar, A., 2020. Insights for luxury retailers to reach
customers globally. Marketing Intelligence & Planning.
Kaur, P and et. al., 2021. The value proposition of food delivery apps from the perspective of
theory of consumption value. International Journal of Contemporary Hospitality
Management.
Huang, Y.C and et. al., 2019. Examining an extended technology acceptance model with
experience construct on hotel consumers’ adoption of mobile applications. Journal of
Hospitality Marketing & Management, 28(8), pp.957-980.
Lee, M and et. al., 2019. Integrating technology to service innovation: Key issues and future
research directions in hospitality and tourism. Journal of Hospitality and Tourism
Technology.
Jain, P.K., Pamula, R. and Srivastava, G., 2021. A systematic literature review on machine
learning applications for consumer sentiment analysis using online reviews. Computer
science review, 41, p.100413.
Carvalho, P. and Alves, H., 2022. Customer value co-creation in the hospitality and tourism
industry: a systematic literature review. International Journal of Contemporary
Hospitality Management, (ahead-of-print)
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