Consumer Behaviour and Insights in the Hospitality Industry Report

This report delves into hospitality consumer behaviour, examining the factors that influence consumer choices, including psychological, social, and cultural aspects. It explores the impact of technological advancements like virtual communities, augmented reality, robots, and artificial intelligence on consumer trends. The report maps the customer journey, outlining pre-purchase, purchase, and post-purchase stages, and analyzes different levels of consumer decision-making, such as extensive decision-making, limited problem-solving, and routine response behaviour. It also discusses various models of consumer decision-making, including economic, passive, cognitive, and emotional models. Furthermore, the report highlights the significance of customer journey mapping and how marketing mix elements, along with new technologies, affect consumer decisions. Finally, it differentiates between B2B and B2C marketing models within the hospitality industry, emphasizing their distinct approaches to sales and customer interaction.

HOSPITALITY
CONSUMER BEHAVIOUR
AND INSIGHT

INTRODUCTION
Consumer behaviour relates with consumption of commodities and services. It is termed
out as customer purchase behaviour that is done in order to meet the needs of consumers
(Murphy and Dweck, 2016). In industry as hospitality, consumer behaviour mainly concerns
with analysing and understanding about what consumer wants, how much they can pay and how
they end up to process of buying. However, behaviour of consumer can get influenced by several
components as social, cultural and personal factors.
The present report is based on topic as hospitality consumer behaviour. Therefore, the
report will lay emphasize on components that influence hospitality consumer behaviour and their
attitudes. Additionally, assignment will demonstrate the ability to map a path to purchase in
hospitality context including decision-making process.
However, study will also consider over the various forms of research to understand the
influence of process of consumer decision-making. Lastly, different stages to the decision-
making will be defined to understand influencing purchasing decision of consumer.
LO 1
P1
Consumer behaviour termed out as study of individual consumers, groups and
organization to select, use, dispose ideas and services to full-fill their requirements (Stephen,
2016). This is defined as observation study to examine the behaviour of consumer in market.
Herein, there are some common factors that determines the influence of consumer behaviour as-:
Components influencing consumer behaviour-
Psychological factor- It is also termed out as human psychology that plays crucial role in
designing the preference of consumer, likes and dislikes for specific commodity and services.
Behaviour of consumer get influenced with number of psychological components (Godey and
et.al., 2016). There are number of dominants under this and it includes motivation, perception,
beliefs and learning etc. Additionally, it is very tough to find out the impact of psychological
components as this is internal but much powerful to control person and buying choices.
Henceforth, common psychological components that impact the choices and preferences ate
defined as-
 Motivation

 Perception
 Learning
 Attitude and belief.
Social factor- The changes in social environment affects the mindset of customers (Trianni,
Cagno and Farné, 2016). Thus, human beings live in complex social environment in which they
surrounded by the wide range of individuals who have varied purchasing habits. It can be true to
stated that man is kind of social animal who prefers to acceptable by all tries to imitate the
behaviour that can be socially acceptable. Hence. Some common social factors defined as-
 Family
 Role and status
 Group references
Cultural factors- An individual learns from values, behaviours, principles and preference at a
early stage of childhood from people especially. Henceforth, the several culture factors are
defined as-
 Culture
 Sub-culture
 Social class.
Personal factor- An individual passes through various phases of life cycle such as infant,
teenager, child and old. Therefore, personal components highly influence the buying decision of
customers. These as are-
 Age
 Income
 Occupation
 Lifestyle
Henceforth, it can be concluded that the above mentioned has significant impact on
buying habits of consumer's. Thus, choice and preference of consumers impacts the demand of
hospitality industry.

P2
Consumer behaviours defined as decision-making of people in spending the resource's
lifetime, money and consumption related component (Delbos and et.al., 2016). In hospital
industry there are significants impacts and disruption over the last two decades. In this, the
influenced of consumer trends on technological advancement is emphasized as-
Virtual communities- The tools as social media and Trip-advisor has huge impact on
consumers. It leads to provide more transparency and also improved the service quality offered
by hospitality companies (Karimi, Papamichail, and Holland 2015). Therefore, this trend has
significantly impacting the choices and preferences in hospitality industry. It is technological
advancement that has capability to digital change the entire surrounding of an individual.
Augmented reality- It aids to create innovative digital environment for users that mainly fouced
on increasing real world environment with help of information about graphical overlays. It is
framed for the consumers so that they can gain whole infornation with just point with help of
phone at restaurants to have idea about the closing and opening time. Additionally, hotels and
other accommodation highly prefers tools as augmented reality to offer interactive tourist
information maps to attarct customers and to create fun opportunities for business enterprise
(Stankevich, 2017).
Robots- One of the most effective hospitality trend that is impacting on consumer mindset is
Robots. It is machine that is manifactured to carry out typical task in easiest mode. Thus, its also
interlinked with the artificial intelligence also assist in operating hospital management activity
with help of enhancing speed, cost or commodity and improvment in accuracy (Zhang and
Benyoucef, 2016). For example- Hilton has currently introduced robot concierge that able to
respond human speech and questions.
Artificial intelligence- It is also vital technological advancement tool as this assist in to improve
customer experience. Henceforth, this is useful in chatbots, online customer interactions, offer
swift and intelligent response to questions.
Smart hotels- It is hotel that make the use of internet devices that aids to send data from one
place to another However, smart hotel many uses the internet iof things to provide excellent
customer satisfaction. Thus, it offers various beneficial aspect to customers as this allow guest to
operate things with their phone as controlling the tempreture of heating and cooling and to on TV

by giving voice command to start voice speaker. Additionally, it also aids to automatically adjust
things as brightness if bulb, temperature control and also maintains optimal conditions.
Henceforth, this can be stated that technological advancement highly impacts the
consumer trends in hospitality industry. Therefore, the services they provide to the customer
affects the many aspects of guest cycle and experience.
LO 2
P3
Consumer decision-making journey defined as model that define how customers that aids
to make purchase decision ( Moraes and et.al., 2019). This is termed out as visual presentation
with brand that defines the long term relationship. Additionally, consumer decision-making
journey map defined in below contexted manner as are-
Activities Pre-purchase Purchase Receive Post purchase
In case of
booking room on
digital platform
At this stage, the
consumer log in
to the travel page
and search for
accommodation
as per his need
and wants. Thus,
consumer does
the following
things as-
 Visits
number of
hotel
pages to
find out a
facility as
per his
desires.
 In this,
consumer
purchase
the
accommo
dation
after
getting
satisfied
with
requireme
nt as per
his
demands.
 Therefore,
customer
pay price
for the
 At this
stage,
consumer
physical
visit the
location
he
selected.
 Consumer
leads to
identify
the gap at
time of
booking
accommo
dation and
physical
verificatio
 In this,
entity who
has
rendered
services
takes the
feedback
from
customer
about the
services
and his
experience
.
 As per the
feedback,
the
controllin

 Customer
check out
the prices
of hotels.
 After,
satisfying
with all
the
necessities
consumer
clicks on
to
purchase
page.
service. n of
product.
g action
will be
taken to
undertake
corrective
action.
Levels of consumer decision-making defined as-
 Extensive decision-making- This is use in marketing to define decison of customner in
relation to purchase of cimmodity. Henceforth, highly involved decision surrounds
around the purchases that might be expensive and out of the ordinary for customers.
 Limited problem solving- This term cannot be used to motivated to search for
information and regorously evaluate the each alternative. instead of this they undertake
simple decision as to reach at a purchase decision (Anninou and Foxall, 2017).
 Routine response behaviour- It is defined as purchasing scenario in which the purchase of
the product or service has past experience. Therefore, the automatically makes decision
relates with purchase the commodity again. Additionally, brand recognition plays the
crucial role in routine responsive behaviour.
Models or four views of consumer decison making-
 Economic view model- This model is defined as unrealistic as there are number of
individuals in which an individual are limited by skills, habits, values and perception.
 Passive view model- It is model that assumes takes the decisons as per the promotional
efforts of marketers. Therefore, this is also unrealistic model as consumer become

capable of collecting and evaluating informatioon about the product alternative to make
purchase.
 Cognitive model- In this, consumer make decison on the basis of own interest and
understanding abiout the market demand. Under this, marketer assist the customer to
develop or adopt short cut decison rules that also narroer down the decison making
process (Šálková and Hes, 2015).
 Emotional model- It is model that defines the impusive purcahse of consumer.
Henceforth, commodities that has nehative emotions are avoided and product that comes
in with positive emotions get purchased.
P4 Description on significance to map a path to purchase and understand consumer decision-
making.
The customer journey map aids to gain insights about the common customer pain points
and this also leads to know about to bring improvement on customer experience, prospective
customers and requirement in order to complete a purchase. Additionally, consumer decision-
making can be understood with following factors as-
Influence of Heuristic decision-making- It mainly affects the type of mental shortcut in which
an individual make decision that can be heavily influenced with help of current emotions. It
plays the crucial role in choices and decision made by the customers (Gursoy, Decrop and
Woodside, 2017).
Influence of marketing mix on decisions making- The marketing mix is one of the crucial
components and it also impacts over the purchase of commodity. These are as-
 Product- The type of commodity and service offers by hospitality industry affects and
influenced the decision-making process of customers.
 Price- The cost of the services taken by the hospitality industry also impact the mind set
of the customers. Henceforth, quality and affordability is one of the crucial components
that aids to attract customers.
 Promotion- The type of promotional method uses by hospitality industry also aids to
attract the consumer attention towards commodity or service.
 Place- The location plays the crucial role in order to attract the customer's mindset
towards the commodity. Thus, views, surrounding all are key components that aids to
attract customer to purchase commodity.

Influence of new technologies- The technical advancement as Augmented reality, Robots,
Artificial intelligence and Smart hotels all are the toll that aids to attract the customers.
Additionally, technical tool aids to attract the customers as this aids to provide better experience
to customer.
LO 3
P5
B2B and B2C are the two forms of commercial transaction. However,, B2C stands for
business to consumer and also defined as process of selling products directly to customers.
Henceforth, this is defined as procedure that aids to selling products and services to other
business. Additionally, B2B, B2C supports the communications, sales administration and
transactions that differ in complexity, scope, scale and cost to implement the right system for
customers (Murphy and Dweck, 2016).
Marketing involves the broad spectrum of activities and their ultimate goal is to sale
services. Additionally, B2B and B2C are the two business marketing models in which sales are
end result. This is defined as commercial transaction in which purchasing and selling of
merchandise can be performed in two business houses. Thus, differences defined in below
contexted manner as are-
Basis for comparison B2B B2C
Meaning This tern defined as selling of
goods and services between
two business entities and this
known as business to business.
The transaction in which entity
can sell the commodities and
services to consumer termed
out as business to consumer.
Customer They have company as
customer.
They have end user has
customer.
Focus They primarily focus on
relationship.
They put their major focus on
to the end user.
Relationship Horizon They have long-term
relationship of horizon.
It related with short term
provision.
Buying decision The decision-making process It is based on needs and wants

is as planned, logical and
based on requirements.
of customers.
However, key differences in decision-making process relate with B2B and B2C defined as-:
Differences in purchasing process- Consumer purchase commodities and services for personal
uses. In B2B process of purchase is quite typical. Herein, decision-making group inclusive of
operational , technical and financial departments (Stephen, 2016). Under it, customer select the
commodities that do not have authorization to buy and also might not have the responsibility to
undertake the decison of purchase.
Payment and pricing differences- In B2C transactions, the consumer can choose the
commodities and payment use to be made at the time of sales with use of payment mechanism
such as debit cards, credit, cheques and cash. Under Business to Customer price may get change
by customer. Therefore, in B2B transaction is quite typical process. In this, consumers selects the
commodities, book their order and arrange deliver with help of better and agreed supplier
channel (Godey and et.al., 2016). In this, consumer need not to pay at the time of ordering
things, but they get an invoice which they have to settle with the agreed payment terms.
B2C E-commerce process- B2B transactions requires more complex business system. It is
process that is widely capable of accepting the orders in the varied formats as electronic orders
email and documents. Thus, it connects with order captures with administrative system such as
invoicing, records of consumers and accounting.
B2b E-commerce process- It is business system that selects appropriate commodities to display
while customers logs in. Additionally, this is defined as streamlined process for business
customer as they do not have to browse a complete catalogue to identify the commodities.
Henceforth, it can be stated that this two business model has emphasized on complete
process of business at time they bring together. B2B is considers for those entities that sell
commodities with help of adding value to the other businesses (Trianni, Cagno and Farné,
2016). On the other hand, this is for enterprise that are engaged in the sale of their commodities
to final consumer who are going to resell the commodities.
P6
Market research is set of the process that aids to determine the best way to introduce the
products to customers. Henceforth, there are some of common components that defines the

impact on the decision makers and different approaches to market research defined in below
contexted manner as are-
Influence on decision-making-
Personality- It is defined as inner psychological characteristics that provides consistent response
to environment stimuli and patterns of behaviour that are consistent and enduring. Additionally,
an individuals' personality assist to marketers to defined consumer segments and it offers orderly
and coherently related behaviour and experience.
Self and motivation- Decision making is process that depends primarily on knowledge,
experience, skills, attitudes and values etc. Additionally, decision-making process mainly affects
the motivation mindset of decision maker. Herein, motivation has effect over the final wording
of decision.
Measures of consumer learning-
Recognition and recall- The variation between the recall and recognition is that recall the
procedures in which subject is the first given set of information and then given some cue to
retrieve and report that information.
Attitudinal- Customer attitude towards the commodity has powerful influence on behaviour of
customers. This aids to know about that how attitude of customer tends to change and influence.
Behavioural- This is defined as process in which learning is defined as process by which
consumer acquire the information that they apply to future purchase behaviour.
Understanding aspects of consumer perception-
Dynamics- The one of the potential aspect of dynamic perception from consumer is the ability to
determine how the commodity is perceived by actual product consumers and it connects with
dynamic perception data such as liking and purchase behaviour.
Imaginary and Risk- this is defined as process that visualize sensory information in working
memory. It is one of the crucial perceptual tool in promotion.
LO 4
P7
Consumer learning defined as process of with help of which they acquire information and
experience about the consumption of commodity. It is also defined as change in content of long

term memory and behaviour. Market influences the different stages of hospitality decision-
making process as-
Behaviour learning- This is approach that is connected with the responses and stimulus of the
behaviour. It is also termed out as learning theory that based on human development that studies
the observable behaviour of an individual (Delbos and et.al., 2016). Thus, behaviour approach to
the management aids to focus on human relations and employee well-being.
Cognitive learning- It is also defined as learning theory that mainly focus on consumer thinking.
Therefore, this mainly emphasize role of mental process rather than the repetition and association
towards rewards with stimuli (Karimi, Papamichail, and Holland 2015). The need of this learning
occurs when consumer is unfamiliar and involved with product and services. Additionally, this is
related with active, constructive and long-lasting. This can be defined as idea in which consumer
can acquire knowledge with help of own information processing, they learn in their buying
decisions.
Hospitality organizations influence decision-making process-
The social, psychological and culture factor impact on the choices and preferences of
customers. Therefore, the patterns of income, choices and preference, cultural demands highly
influence the decision-making process.
CONCLUSION
From the above aforementioned report it can be concluded that consumer behaviour can
get influenced by the number of components as social, cultural and personal factors. This is
based on the study of individuals, groups or organization in which all activities linked with
purchase and use and disposal of goods and services.
The present report is based on Hospitality consumer behavioural insights. On the other
hand, report has laid emphasized on activities as to influence hospitality consumer behaviour, the
consumer mapping has been defined to analyse customer journey consumer decision journey
from pre-purchase, purchase, receive and post-purchase.
Moreover, comparison has been defined between Business to Consumer and Business to
Business decision-making processes. Lastly, approaches to consumer learning and use of digital
audience research development define to influence consumer behavior.