Hospitality Consumer Behaviour and Decision-Making Process Report

This report provides an analysis of consumer behavior within the hospitality sector, using NH Hotel Group as a case study. It examines the consumer decision-making process, including problem recognition, information search, evaluation of alternatives, purchase decisions, and post-purchase behavior. The report differentiates between B2B and B2C models, highlighting key differences and providing examples specific to the hospitality industry. It also evaluates various market research approaches, such as public records, government agencies, questionnaires, and personal interviews, and their impact on understanding consumer preferences. Furthermore, the report explores how marketers can influence different stages of the decision-making process, emphasizing the importance of customer journey mapping and strategic marketing to enhance customer satisfaction and loyalty.

Hospitality Consumer
Behaviour and Insight
Table of Contents

INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Covered in PPT.......................................................................................................................4
TASK 2............................................................................................................................................4
P3 Examination of various stages that relate with consumer-decision making.....................4
P4 Importance of marketers for mapping a path to understand the process of consumer-
decision making from perspective of hospitality sector.........................................................5
TASK 3............................................................................................................................................6
P5 Key difference between the model of B2B and B2C with specific example of hospitality
sector.......................................................................................................................................6
P6 Evaluation of different approaches that are related with process of consumer-decision
making....................................................................................................................................8
TASK 4............................................................................................................................................9
P7: Examine how marketers can influence different stages of decision making process in
relation with hospitality..........................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
The term consumer behaviour is explained as the analyse of individual behaviour and
market for analysing how individuals select, purchase and sell products or services to the
customers to satisfy individual need and wants. With the study of consumer behaviour
organisation identify clues that introduce and improve products and services in market to
perform work as per marketing activities. One of the main reason to study consumer behaviour is
to analyse that how customer think, feel and respond towards different brands, products and
company. This report is written from perspective of NH Hotel Group which is an international
hotel company and it's headquarter is situated in Madrid (Arneth, Brown and Rounsevell, 2014).
Moreover, this report will focus on cultural, personal and social factor to understand their
influence on consumer behaviour and attitude of a hospitality organisation. Change in consumer
trends which take place due to aspects of digital technology will also cover in this report.
TASK 1
Covered in PPT
TASK 2
P3 Examination of various stages that relate with consumer-decision making
The process of Consumer decision-making refers to identify needs and collect
information about the person and market requirements. Identification of alternatives and
purchase of decisions by evaluating are the steps that are related with consumer-decision making.
 Problem recognition- This is first and most important stage of process related with
decision-making because no purchase is done unless consumer identify the need related
with service and product. NH hotel group formulate service that satisfies customer's
needs and wants in an effective manner. In this they examine the issues that are face by
customers related to offering services.
 Information search- To recall about the process of information search that stores
information in memory to obtain major benefit of information search (Lu, Chang and
Chang, 2015). NH hotel group search all information because it supports management to
perform their work according to current requirements. In this stage manager of company

focus on searching the information that helps in solving the customers issues so that they
will retain with the company for a longer period of time.
 Evaluation of alternatives- This is the third stage which is related with consumer buying
decision process. As per this stage consumer evaluate all services and products to identify
that which services are most effective and match with consumer or buyer requirements.
In this manager of NH hotel emphasis on several alternatives so that best one is to be
choosing to solves the customers issues related to hotel offerings.
 Purchase decision- When the purchase take place buyer focus on formulating intention
that is used by individuals to gain most preferred brand. NH Hotel group focuses on the
consumer-decision making process because all available alternatives are already
identified by buyer to seek and gain better value.
 Influence on purchase decision- Review matter for deciding the purchase of services
and products. A lot of individuals consume the services of NH Hotel Group so it is relates
with purchase decisions that helps to make decisions as per persons review. From the
perspective of company decisions this is analyse by buyer that review leads individuals to
make purchase.
NH Hotel group analyse the process of consumer decision-making because it helps marketers to
gain understanding related with buying experience. This is also related with the customer's
perspective that help persons to take action according to needs of customer's. NH Hotel group
focus on problems which create barrier for individuals (Samanez-Larkin and Knutson, 2015).
Strategy and work methods are designed by NH Hotel Group to minimise the problems of buyers
as it helps individuals to enhance their customer base. Developing a customer journey path is
very crucial for marketers because it helps in identifying the issues that customers faces along
with several solution to that problems so that company can influence the customer buying
decisions. It also helps the marketers to get the loyal customers so that high profitable results are
enjoyed by an organisation. This path is useful to understand the customer journey because
evaluating their issues to influence them for purchase.
P4 Importance of marketers for mapping a path to understand the process of consumer-decision
making from perspective of hospitality sector
The journey of the consumer decision-making process is simple and accurate that is
offered by the organisation among market. According to the detail journey related with customer

is complex and quite and it also exists among different varieties. NH Hotel group implement
consumer decision-making process to formulate an accurate base which leads customer's to
purchase individual requirements. The term customer journey mapping is to put about all shoes
that is related with customer's to try and it also leads organisation to analyse and understand path
to follow till management get it's business (Simonson, 2016). Moreover, the idea is to get the
perfect method or process which enhance overall customer's experience from initial period to
finish.
Enhances ROI- In this mapping the customer journey reflect the positive purchasing pattern of
customers. Due to this company targets the customers effectively. This helps the NH hotel to get
high returns so that ROI will maximise.
On the other side, another important aspects is to enhance the customer experience and
this is used to create and formulate customer service as per requirements of individuals. With the
analyses of customer's management make products to understand and improve the buyer related
experience for managing and delivering the competitive edge to manage work according to
effective results.
TASK 3
P5 Key difference between the model of B2B and B2C with specific example of hospitality
sector
Almost each organisation implement the model of B2B and B2C for performing their
work sell and purchase related activities. Within Business-to-business model trading is done
between merchandise to perform their action in an organised manner. On the other hand, B2C
method focus and emphasis on selling products and services directly to the final consumers
without involving any intermediaries. Both these techniques can be utilised by the marketer in
their business as these kinds of businesses are much effective and leads enterprises to achieve
strong position in market (Sinha and Sandhya, 2019). Here are the key differences between B2B
and B2C along with their process of decision making:
Basis B2B B2C
Purchase related decision In this, decision taken in respect
of buying products is based on
the prices of product, goodwill
It includes less time to frame a
buying decision as it entirely
based on their taste and

of firm etc., so that gathered
data can be used to set up the
prices on the basis of rivals
pricing strategies.
preferences.
Decision related to the
Marketing strategy
In this, no marketing strategy is
used as they mainly focus on
adopting strategy of personal
contact, interior sales in the
business etc. with the purpose
of serving other business with
better quality.
In this, businesses use
marketing tools and techniques
to influence buying behaviour
of targeted customers. These
techniques include social media
marketing, advertisement etc.
Decision related to market
size
To drive the business for
further expansion by
conducting market research
where their products and
services could be sell more
(Smith, 2017).
To drive business to identify
targeted customer along with
its needs and preferences.
Identifying requirements In this, requirement of business
are determined with an
objective of framing an
effective strategies and plans
for further growth and success
in future.
Here B2C mainly emphasis on
identifying the needs and
preferences of customers along
with the factors that influences
their buying behaviour so that
further plans can be
implemented for example,
marketing tools, lowering
pricing of products etc.
Concept It refers to that business where
commercial transactions are
It refers to that business when
transactions are taken place

taken place between the
organisations. For example- NH
hotel buy their linen stock with
linen making company.
between customers and
business. For example- NH
hotel offers their services like
accommodation etc. to
customer for earning profits.
Customer In this customers are business
parties who need products and
services of NH hotel to manage
and organise their business
activities effectively.
In this business, customers of
NH hotel are those people who
want to spend their leisure time
with families, friends, want to
do a business meetings etc. are
buy services of hotel.
P6 Evaluation of different approaches that are related with process of consumer-decision making
Conducting market research is important for an organisation to identify the current
market situation and fluctuation in needs of customers. It enables management of NH Hotel
Group to make proper decision regarding making changes in their current offerings with an
objective of maximizing satisfaction level of targeted customers.
Market research approach in B2B: In this, business mainly emphasis on using secondary
sources for purpose of collecting relevant data in order to make quick better decision for the
betterment of an organisation. Business uses secondary sources as it consumes less time and cost.
 Public records: The main focus is depend on the decision taken regarding trading with
other business firm and it can be possible by organising and arranging public record of
respective firms. Collecting data from public record helps business to make decision
more effectively (Tiago and Veríssimo, 2014).
 Government and non-government agencies: Under this, an organisation operate their
business with engagement of other business that conduct research with an objective of
understanding information related with all government and non-government agencies so
as to undertake at the time of decision making process regarding trading with other
businesses.

Market research approach in B2C: In this, the enterprise mainly emphasis on using
primary sources to collect information so that the accurate subject can be gathered regarding
customers’ actual taste and preferences. It consumes more time and cost but provide accurate
result thus possibilities of making corrective decisions are much higher in comparison with using
secondary sources.
 Questionnaire: It is form containing list of questions related with topic of research
which further distributed to the interested parties in order to identify their actual needs
and preferences (Wang and et. al., 2016). It assists management of COMPANY to make
corrective decision after analyzing the results.
 Personal interviews: It assist business to directly communicate with their targeted
customers and employees in order to identify the areas where business is lacking so that it
could be corrected by taking proper decisions and plans.
TASK 4
P7: Examine how marketers can influence different stages of decision making process in relation
with hospitality
The growth and success of an organisation are very much depend on the effectiveness of
decision making process that can be influenced by the marketers due to which it is important to
identify the impact of marketers on different stages of decision making process. Decision making
process is an activity involving various of ideas and suggestions with a clear objective of
maximising productivity of an organisation as well as satisfaction level of targeted customers. It
includes different stages such as need and problem acceptance, information investigation,
evaluation of option, selection and trial, purchase as well as post purchase behaviour. Marketers
have power to influence these stages of decision making as they bring critical information about
customers’ actual needs and preferences that changes on frequent basis. Here are the impact of
marketers on decision making process in the context of hospitality sector:
Effect of marketers on decision process is discussed below-
Need/problem recognition; Need/problem is necessary essential to recognise as it
influences sales and profit of an organisation. Marketers have easily influence buying behaviour
of customers by identifying and communicating problems/needs to management of NH Hotel

Group with the purpose of solving or meeting them with more effective and efficient manner
(Zhang, van Doorn and Leeflang, 2014).
Evaluation of alternatives: After conducting brief research by marketer, an organisation
enable to find out alternatives that can meet the needs of customers too. Availability of
substitutes shifted the buying behaviour of customers which in results brings negative impact on
NH Hotel Group’s sales and revenue. Thus, marketer can make both negative and positive
impact on overall sales and revenue of an organisation.
Information search: After recognising needs, information and specification about the
services is required by user. In this context, marketer uses distinct sources including newspaper
and magazine to transmit such information which results in increasing demand of products and
services of NH Hotel Group into the market. This leads increment in sales and profit of an
organisation.
Selection and trial: It is another stage of decision making process in which customers try
to use product or services for shorter time period in order to examine quality and duration. Under
this, marketer impacts customers’ decisions by communicating them about the benefits of
products using presentation/demonstration skills and allow them for trial.
Purchase decision: At this stage, customers took final decision of buying after
examining the benefits and duration of products and services. In this, marketer motivates
consumer to buy their products by giving them discount coupons.
Post purchase dissonance/ behaviour: Under this stage, consumers provides feedbacks
to an organisation about their experience after using product or service and suggest them for
further improvements. Marketer evaluates the satisfaction level of customers by providing them
feedback form so that their issues can be resolved and make further improvements to maximise
their satisfaction level.
CONCLUSION
It can be concluded from the above report that every business organisation examines the
needs and requirements of customers using different research methods. B2B uses secondary
sources to gather relevant data about the needs of other businesses whereas B2C uses primary
sources to identify the needs and preferences of targeted consumers. Marketers also play an
important role in effective decision making process by bringing crucial information about the
fluctuations in the preferences of customers and market. In last, this is also essential for

marketers to map a path for the purchase and understand of process related with consumer
decision- making of hospitality sector so that better decisions and plans can be formulated for
further growth and success of businesses.

REFERENCES
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