Report on Consumer Behaviour and Decision-Making in Hospitality

This report provides a comprehensive analysis of consumer behaviour within the hospitality industry, specifically focusing on how factors like cultural influences, social trends, and personal preferences impact consumer decisions. It explores the influence of digital technology on evolving consumer trends, highlighting the shift towards online hospitality businesses and the increased expectations of customers. A critical evaluation of these trends reveals their effect on the profitability and sustainability of hospitality businesses, as well as the increased emphasis on health and well-being. The report also delves into the stages of consumer decision-making, emphasizing the importance of marketers mapping this path to effectively meet consumer needs and enhance customer experience. Furthermore, it distinguishes between B2B and B2C approaches in the hospitality sector, outlining different market research methods used to understand the decision-making process. By providing insights into how marketers can influence various stages of the decision-making process and adapt to changing consumer behaviours, this report offers valuable guidance for businesses in the hospitality industry aiming to optimize their strategies and improve customer satisfaction. The Four Seasons hotel is mentioned as an example of a leading company focused on understanding and addressing consumer perceptions to enhance their decision-making process.

HOSPITALITY CONUMER
BEHAVIOUR AND
INSIGHT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Factors influencing consumer behaviour....................................................................................3
Impact of digital technology on changing consumer trends.......................................................4
Driving trends with changes in consumer behaviour..................................................................4
Critical analysis of the trends in consumer behaviour................................................................5
Stages of consumer decision making .........................................................................................5
Important for marketers to map the path.....................................................................................6
Marketer responding to the decision making process.................................................................6
Key differences between B2C and B2B......................................................................................7
The different approaches to market research and methods of research used for understanding
the decision-making process.......................................................................................................7
Evaluation of how different factors influence decision making and buying behaviour.............8
Marketers influencing various stages of decision making process.............................................8
Ways in which marketer are responding to the decision-making process..................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Consumer behaviour refers to the complete study of the aspects or perceptions that a
buyer possess while making the decisions regarding the purchase of goods and services.
Consumer decision-making process plays an important role in deciding the purchase power of
the customers. Along with this, the decision-making and behaviour of the buyer affects the
decision-making policy of the organization as well. In terms of hospitality industry, the hotel
four seasons is one of the leading company which is putting a keen focus on the buyer behaviour
in order to understand their perceptions. This report will illustrate the concept of buying
behaviour and the ways through which the hotel four seasons is addressing their consumers in
order to have the consumer behaviour in their favour. The report will also describe the
approaches adopted by the organization in order to understand the buying behaviour and also the
market research approaches that has been adopted by the hotel for capturing the large share of
consumers.
MAIN BODY
Factors influencing consumer behaviour
Consumer behaviours is a study of people; how they buy, what they buy, why and when
they buy (Nguyen, 2020). In other words, it is an analysis of consumer's processes of what they
choose and consume. There are various factors that influence the behaviour of consumers such
as:
 Cultural factors influence the behaviour of consumers significantly as it affect their
preferences. Culture factors includes the beliefs, customs, tradition and values that
influences the behavioural pattern of consumers. It also includes the social class factors
that are; income, occupation and wealth of consumers. Four seasons hotel operates more
than 100 hotels around the world with the value of promoting cultural diversity and
influencing the behaviours of customers.
 Social factors play a vital role in affecting the behaviours of consumers. The most
important social factor are family, role and health status and reference groups (Loxton
and et.al., 2020).

 Personal factors include life style, economic situation and life cycle stage. In the times of
pandemic, four seasons hotel providing top most priority to its customer’s health and
safety provide environment with safe and clean stay with efficient social distancing.
Impact of digital technology on changing consumer trends
Trend is a change or development in the way that people behave. A consumer trend is a
habit or behaviours which is prevailing in the consumers for goods and services. It is formed on
the basis of new attitudes and opinions of the consumers (Sharma, 2020). It is very important for
hospitality businesses to understand these trends for sustainability of business. With the
emergence of digital technology, it has impacted the consumer’s trends rapidly. It has
fundamentally changed the purchasing decision making of consumers. With the technology
advancement, consumer have access to more information that is they can compare different
hotels and have variety of options to choose from hence changing their desires.
Also, now with the digital advancement it has raised the consumer expectation. That is
with access to information available online thorough internet, consumers have become more
sceptical with high expectations. Four seasons hotel realising the impact of digital technology on
consumer behaviour, provides its customers with smart hotels where the desires of customers are
fulfilled and their expectations are met. It provides with technology advancement services like
contactless payments and mobile check-ins so that guests feel satisfied.
Driving trends with changes in consumer behaviour
With the changes in the consumer behaviour factors such as cultural, psychological,
social and personal, leading to changes in the consumer's desires (Stankevich, 2017). With the
emerging trend of online hospitality business, consumer have wide variety to choose from which
has risen their expectations. Also, with the use of smartphones, it has made customers more
curious and anxious that is they want instant solution to their problem. But, it has also ease the
process of making bookings and reservations. Four seasons hotel, offers online booking services
where on some click consumers can make reservations.
Also, it has led to introduction of smart hotels. That is a hotel which provide smart room
services, that is automatically adjusting the brightness of lights, smart switch panel that can be
controlled by voice command. It is a type of hotel where maximum control is given to the
customers. Four seasons hotel, knows that services are paramount in hospitality industry. It

provides its customers with the concept of smart hotels keeping customer convenience as top
priority.
Critical analysis of the trends in consumer behaviour
With the emerging trend in the consumer attitude and behaviour, it can be critically
evaluated that it has affected the hospitality industry in many ways. It has affected the
profitability and sustainability of the hospitality business (Li, 2020). Also, it has helped in
increasing the efficiency of the organisation by providing quality services to their customers.
That is, four seasons hotel is using artificial intelligence to increase its efficiency and providing
guests with higher satisfaction by providing online customer interactions and removing lengthy
waiting times.
Also, with the increased emphasis on well-being and health, it has led the industry
towards wellness tourism among services. It means travelling with an intent of maintaining
health. Four season hotel keeping this in mind provides its customers with yoga spaces, healthy
food options and vitamin infused shower water that helps consumer maintain their health and
thus attracting more customers and increasing its profitability.
Stages of consumer decision making
Consumer decision making is a process of identifying the needs of consumers, collecting
information on how to provide for these need, evaluating various alternative options and finally
making a purchase decision and afterwards evaluating the purchase (Li, 2020). It is a five step
process used by consumers in buying a certain goods and services.
 The first step is the identification stage that is it is one of the most crucial stages that is to
identify the needs of the consumers. Without identification of the needs, there cannot be
purchase made.
 Second stage is the information search that is collecting information about what
consumer wants to fulfil its needs.
 Third stage is the evaluation stage that is one of the most important stage where the
consumers evaluate various options on scale of attributes that could deliver them the
highest satisfaction.
 The fourth stage is the decision making, after evaluation consumers forms an intention to
buy the most preferred product.

Keeping in mind, the stages of consumer decision making process, four seasons hotels
maps a path by identifying the needs of consumers. Also it helps in developing priorities. This
helps four seasons hotel in gaining an insight into customer decision making points and helps in
improving customer experience.
Important for marketers to map the path
The most important objective of hospitality marketing to reach to its consumers at
moments that influence their decision the most (Pidada, 2020). Mainly, customers start at the
beginning of the process and move forward while reaching their satisfaction level but many
customers enter the buying process through different stages. So it is very important for marketers
to create strategy which responds to the needs of customers at every stage of the decision making
process. It helps marketers in capturing the needs of the consumers. Four seasons hotel uses
various tactic that helps them to identify the needs of its customers and uses various means of
promotion, advertising so that they can grab the attention of its targeted audience and fulfill
optimum levels services.
Also, it helps marketers in increasing the efficiency of the organisation in providing
quality services that is it provides consumers with information when and where they need it. For
example; four more seasons, with the use of digital technology it uses AI chatbots that provides
consumers with optimal satisfaction hence increasing its brand loyalty. And also, it uses digital
social media platforms to attract more customers and promote its business.
Marketer responding to the decision making process
Developing a thorough knowledge of how consumer makes purchase decision is the first
step that a marketer needs to do (Stankevich, 2017). Consumer decision making is a five stage
process where consumers enter according to their wish. So, it becomes important for marketer to
develops strategies at every stage fulfilling the needs of the consumers. To respond to the needs
of consumer decision making it is important for marketers to position the product or services in
the minds of the targeted audience, that is standing out among competition is not only enough to
attract maket.
For example; Four seasons hotels marketers engage themselves in middle of funnel
marketing and optimise their websites so that consumers can easily find them and decide on the
appropriate services they want. Also, it creates customer's guides and question and answer pages

that optimises search. So that when customers are looking for additional information they can
easily access it. It also sends follow up emails that thank the customers for making a purchase of
their services which results in long term loyalty of customers and increasing the sales of the
organisation.
Key differences between B2C and B2B
Business to business means selling of services and goods between two businesses.
Whereas business to consumer means selling of goods and services by the business to the
consumers (Nabeeh and et.al., 2019) In B2B organisations are itself customers whereas in B2C
customers are the end users. The main focuses of B2B is to building relationship whereas in
B2C, it focuses on the product. In B2B the buying decision are planned and logical based on the
requirements of the business on the other hand in B2C the decision of buying is based on
emotions and desires that need to be fulfilled.
Four seasons hotel evaluates various supplier while decision making of B2B processes. It
obtains quotes from three different suppliers before making a purchase and evaluates each quotes
ans also assesses the reputation and reliability of their suppliers for better relationship. On the
other hand, it provides various services in the process of B2C. It provides customers to check out
products and services online and likely to read reviews and make comparison for fulfilment of
their needs and requirements. And also, provide them with after sales support enhancing brand
loyalty and gaining trust of the consumers.
The different approaches to market research and methods of research used for understanding the
decision-making process
Market research is a systematic collection, design, reporting and analysis of findings and
data relevant to the market situation faced by the organisation (Gerrits, 2017). It helps in
spotting the upcoming and current problems in prevailing market. It helps in identifying sales
opportunity by developing action plans. There are various different approaches that are used in
market research for B2B and B2C. For example; in B2B, it is more likely to involve telephone
and emails as here the participants are business professional, often management level. So it
becomes more cost effective and practical for organisation to use these methods. On the other
hand, in B2C, it uses focus groups and personal interviews, so that there can be better
understanding about the needs and requirements of the consumers.

Four seasons hotel also uses incentives as a means of market research in B2C that is it
provides rewards such as gift cards, special discounts and so on to increase its reach. And in B2B
market research it provides different skillset at various levels of responsibilities. And one of the
element of successful B2B is its expertise in telephone interviews and professional mails.
Evaluation of how different factors influence decision making and buying behaviour
There are various factors that influence the buying behaviour and the decision making of
consumers. One of the most important factor that affects the buying behaviour is culture. It
affects how consumer use the services they buy and how they dispose it. It explains why some
product are sold well in certain region but not elsewhere. Four seasons hotels spend great time in
studying the effects of culture on the behaviour pattern of consumer as it is a multinational
company and work with diversified series of culture and backgrounds. It caters to specific
cultural behaviours by offering various different version of the same services, which are tailored
to appeal to targeted customers for attaining significant growth.
The factors affecting the consumer buying behaviour is mainly governed by the
preferences, needs and tastes of the consumers. Also, it is influenced by the buying capacity of
the consumer, availability of choices, product perishability and the customer requirement of
services. Four seasons hotel, further aims to enhance new vision competencies, for scaling up
new expertise dynamically and gain customer reviews upon working engagement effectively
within longer run.
Marketers influencing various stages of decision making process
There are various stages in the decision making process. Marketers need to influence
each stage of the decision making process as consumers enter at different stages of the process.
So it becomes necessary for marketers to influence each and every stage so that they can fulfil
the requirements and needs of the consumers by providing at most satisfaction.
At the recognition stage of the decision making marketers need to influence the
consumers by capturing their attention by using various strategies of advertising and promotion.
At the information stage, it is one of the most crucial stage, marketers need to influence this
stage establishing and attracting attention by creating brand visibility through blogs, posts,
interactive contents etc. In the evaluation stage, marketers need to position their product and
services in such way that influences the decision making of the consumers.

At the last stage of decision making, marketers at four seasons hotel uses effective
strategies that helps in influencing the decision making of their consumers. They use various
social media platforms to promote and advertise their services attracting customers by perfectly
positioning their services.
Ways in which marketer are responding to the decision-making process.
The marketing strategy of the organization helps in defining the demands of the consumer and
the approaches of their behaviour. It has been found from various studies that the hotel four
seasons has adopted a model of four views decision-making in order to grab the decision-making
of the consumer. (Kadekova and Holienčinova, 2018). The organization is highly focusing on
these four views of consumer decision-making in terms of providing response to them along with
influencing them.
Four views of consumer decision-making
The four views of consumer behaviour involves :
1. An economic view- This view says that the consumer spends on the goods and services
by keeping a focus on their income status The concept says that consumer only focuses
on those products which is affordable to them. The quality is not an important measure
for such consumer. The hotel four seasons believes in providing the large rate of
satisfaction to their consumers in an affordable price. So the consumer does not have to
go through longer decision process in order to make decision regarding having a good
hospitality from the hotel. The hoteliers get an assurance from the organization in terms
of providing good services in an affordable price. This technique of the firm helping them
in sustaining their existing consumers along with adding new customers.
2. The passive view- This concept is for that consumers who get highly influenced by the
promotional efforts of the marketers. These are those consumers who, follow-up the 4th P
of marketing strategy and that is promotion. The marketers of the organization
performing various promotional tools in order to capture the attention of the buyers and
for influencing their decision-making. (Harris, Ciorciari and Gountas, 2018). The
organization has adopted the form of online and offline promotion. In terms of online
promotion, the organization has its own website, under which the opinions and
suggestions of the consumers are put on the top. The firm is providing the advertisement
with the help of famous faces. Along with this the organization has adopted the complete

strategy of publishing the interviews of their customers while they experience the
services. In terms of offline promotion, the company is organizing various public
relations camp. All these steps by the company influencing the opinion of the consumers.
3. A cognitive view- This view says that the consumer searches for that goods which
provides them satisfaction and along with this enables them to enrich their life. The hotel
is giving an assurance to the consumers in terms of giving full satisfaction and along with
this to have a sense of luxury service. This strategy of giving satisfaction along with
enriching the life ultimately grabs the attention of the consumer and enables them to have
a decision in the favour of the company. (Joshi and Rahman, 2019). The interview
strategy under promotional technique of the firm makes consumer aware about the
combination of satisfaction with luxury experience. This leads to shaping the opinion of
the buyers.
4. An emotional view- The consumers who are emotionally driven are the part of this view.
Under this, the consumer does not analyse every information regarding the buying of
products. The consumer directly buys the product. The purchasing power of the consumer
is depends upon their current mood status. Especially in terms of hospitality sector, the
consumer makes decision on the basis of their experienced status or current mood status.
Therefore, the firm believes in the concept of shaping the emotional status of the
consumer in their favour. (Huang and Benyoucef 2017). The organization is doing this by
creating a positive image in front of the customers. The positive image of the firm
enables the positivity in the consumers and influence their decision-making power.
CONCLUSION
From the above it can be concluded that there are various factors that influence the consumer
behaviour in the hospitality industry. The cultural factors and social factors affect the behaviour

pattern of the consumers significantly. Also, it can be summarised that consumer trend plays a
very important role in the hospitality industry. With the emerging digital technology, it has led to
rapid changes in the consumer trend. It has made consumer more sceptical. It has also led to
driving trends in consumer behaviour that is it has led to innovation of smart hotel, giving
consumers maximum control. It can be also concluded that there are various stages of consumer
decision making and it is important for marketers to map the path for decision making for
identifying the needs of consumers. So that in can increase the efficiency in providing quality
services and lastly it can be concluded, there are different research methods that are used in
decision making of B2C and B2B processes.

REFERENCES
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