Consumer Behaviour and Insight Report for Hospitality Industry

This report provides a comprehensive analysis of consumer behavior within the hospitality industry, using Brown's Hotel as a case study. It examines the influence of cultural, personal, social, and psychological factors on consumer decision-making. The report delves into the changing consumer trends driven by digital technology, exploring the consumer decision-making journey, path mapping, and the importance of purchase decisions for marketers. Furthermore, it contrasts the hospitality decision-making processes for B2B and B2C contexts and explores various market research approaches and methods. The report concludes by discussing how marketers can influence different stages of the hospitality decision-making process, providing valuable insights into consumer behavior and marketing strategies in the industry.

Hospitality Consumer
Behaviour and Insight
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Different cultural, personal, social and psychological factors that influences consumer
behaviour.....................................................................................................................................1
P2 Consumer trends are changing due to impact of digital technology......................................2
Task 2...............................................................................................................................................3
P3 Consumer decision making journey and path mapping.........................................................3
P4 Map a path to purchase are important for marketers..............................................................4
Task 3...............................................................................................................................................6
P5 Compare and contrast the key difference of hospitality decision making process for B2B
and B2C.......................................................................................................................................6
P6 Different approaches to market research and methods of research........................................7
Task 4...............................................................................................................................................8
P7 Marketers can influence the different stages of hospitality decision making process............8
CONCLUSION................................................................................................................................8
REFERENCE................................................................................................................................10
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INTRODUCTION
Hospitality consumer behaviour is the main activity in which a customer a buying decisions
by identifying their needs and wants. Whenever persons go outside and spend their time then
they selects hotel and services which can help to increase the business performance. This is
important for organisation to get information what people wants and how they can be satisfied
(Ayik, Benetatos and Evagelou, 2013). To understand about this and increasing knowledge
about customer insights Brown’s hotel has been selected that is five star hotel in London. This
was opened in 1837 under the watchful eye of lady Bryon’s maid , Sarah. Different topics are
covered in this report such as social, personal, psychological and cultural factors that influences
consumer behaviour. Consumer trend that is changing due to digital technology, journey and
path making, why purchase is important and different approaches in relation to market research
and method of research.
Introduction about organization
Brown’s hotel is a five star luxury hotel which was founded in 1837 by James and Sarah
Brown. This is well designed and distinct from other hotel in which different hotel products and
services are provided to customers. It is larger in size that offer variety of services by using
online mode. It also provide a easy and convenient ways to customers to booking the hotel by
using online method that helps to increase the organisational productivity and profitability More
than 500 employees are working and it is placing at different area of London and increase the
profitability (About Brown’s Hotel, 2020).
Task 1
P1 Different cultural, personal, social and psychological factors that influences consumer
behaviour
The needs and wants of people is totally different where they are demand different types of
products and services. This is important for organisation to understand about people needs and
provide them kind of products and services which helps to maintain the business effectively. the
behaviour of consumer involves interest, values, beliefs, trust and attitudes which helps to select
the best decision. There are many factors such as personal, social, psychological, and cultural
which affects consumer behaviour:
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Psychological – This comprises perception, experience, attitudes and motivation level
where people obtain products and services. This mainly related with people insights which help
to get services again if customers are satisfied, Such as Brown.s hotel is providing special
(online booking, equal treatment to all customers, all clean environment etc.) features of services
and food which make happy to tem and encourages to make plans for further getting this services
(Bilgihan and et. al., 2016). This influences consumer behavior for instance management should
fill the baisc needs of their customers in relation to security, social, esteem and self actualization
etc. that helps customers to make buying decisions.
Cultural – People who are belonging to different culture are required to different services
that involves culture, sub culture, social status etc. which affects the people. Subculture is
classified as group that involves traditions, customs, values, religion etc. that influences
consumer behaviour. For example, different people are having different culture who are
demanding different products and hotel services that are providing by Brown’s Hotel that helps
to increase the business performance. This influences consumer behaviour such as a person who
belongs to different culture and social class are focused by management in order to run their
business effectively. The managers are focusing income level and traditions of customers that
helps to increase the their satisfaction level and maintain profits (Hall, 2013).
Social – This is connected with society where different types of people are living, is
important for management to provide kind of products and services. Some people who have
taken the services from Brown’s Hotel share their feedback in reference group which influences
people and get ready to buy services more (Xiang, Magnini and Fesenmaier, 2015). This factor
influences consumer behaviour for instance chosen organisation is providing hotel services as
per reference group, role and status and family staying that make buying decision again and
again because customers feel happy and satisfied by getting the services.
Personal - This factor comprises with occupation, financial situation, age group,
personality and lifestyle which attracts people to avail products and services from organization.
This is related with personal a characteristic that involves financial situation, occupation, age
group, personal and lifestyle of people that attracts people to encourages customers. For instance,
the managers of Brown’s Hotel are focusing on people demand for extra facilities and
accommodation which is provided by them, influences consumer behaviour. When customers get
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personal care and services which they wants then it influence the consumer buying decision
positively and they select further more to such organisation for getting services.
P2 Consumer trends are changing due to impact of digital technology
Technology is a greater thing which is changing day by day which is changing consumer
trend also, this is important for organisation to adopt new technology and run their business
effectively. In consumer trend digital technology is playing hard hitting role which helps to
understand what should be introduce and how a business can be grow. The impact of digital
technology on consumer trend is defined below:
Peace of mind and convenience – With the help of digital technology the life of people
become more easy and peace fully as this helps to select the best hotel and services in less time
period. Such as people who wants to select a best hotel and have queries regarding Brown’s
Hotel services and facilities then it get inquiry at same moment with the help of digital
technology. Moreover, management of such organisation provide discount and other services
through this system which increases organisational capabilities (Prebensen, Chen and Uysal,
2018).
Communication gap – This is crucial problem for every organisation that there is
communication gap due to which customers are not receiving products and services as they
wants. After introducing digital technology, communication gap between employer and
customers has been reduced and there is direct relation has been maintained which helps to
provide them accommodation services which are customer demanding. Therefore, digital
technology is impacting on consumer trend continuously (Tresidder and Hirst, 2012).
Current trend in hospitality industry
According to changing environment hospitality industry become a part of life that make
happy to customers by providing different type of food products and staying services. In current
trend hotels and restaurants are growing rapidly as people wants to spend their holidays in
visiting so they book hotel for living and spending time as they wants. This industry also
contributing in economy as it give the chances to earn foreign currency that uses in other purpose
and increase the country image. Now hospital industries are brining new technology and
innovation which make easy ways for customers to select the best hotel and enjoy their precious
time with friends and family.
How consumer trends are changing due to the impact of digital technology?
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The consumer trend are changing due to impact of digital technology as customers are
demanding different types of food and room facility then they uses online methods that make
easiest way for customers to select the best hotel. Borown’s Hotel London is using digital
technology by providing smart devices, wireless shape consumer lifestyle, fulfilment solution
drive, booking online and getting answers of query that helps to manage the business
performance in competitive business environment. Consumer trend are changing the impact of
digital technology as they booking online by visiting sites, demanding robot delivery, wifi
facility and well modern structured room that provide satisfaction and increase the workings of
hotel and customer feel happy.
LO2
Task 2
P3 Consumer decision making journey and path mapping
Consumer decision making is the continuous process that follows a long term chain and
procedure by customers at the time of buying something. When a customer goes outside then it
needs different types of products and services which are provided by organisation and helps to
increase the organisational productivity. Consumer makes buying decision by following all these
phases that are as defined:
Need recognition – Before buying something, this is important for people to identify their
needs and wants, what they want that helps to select the best products. For instance, consumers
have identified their needs that they are searching a 5 Star hotel to stay and attaining best
accommodation which can make their holidays preciously and memorable by getting good
services.
Information search – After getting needs regarding a 5 Star hotel people started to search
the information about all 5 Star hotels including Browns hotel, Merriott, Hilton etc. that could
help to take right decision while buying services. Therefore, consumers are using internet,
customer care, websites etc. to get the information about hotels services (Ee Kim and Lehto,
2012).
Evaluation of alternatives – This is next step where people have select best two option to
buy the products and services. In this, customers get deeply information and uses referral code to
know the about services of hotels that can helps to take right actions. For instance, consumers
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who have identified their needs and search information needed to evaluate the alternatives that
can help to make right business decision. Customers evaluate the alternatives such as Brown’s
hotel and others that states which is beneficial for them. In this, they evaluates costm services,
accommodation, room services, breakfast, accommodation and extra services which they wants
then make decision to buy.
Purchase decision – Once consumers have evaluated the services and cost of alternative
then it became easy to make right buying decision for customers that help to increase the
satisfaction level and make further decision if they are fully satisfied. This is major step which is
done by people who have selected the Brown’s hotel by comparing that helps to make right
business decision. Herein, customers decides to book room in Brown’s hotel where management
provide information availability and other services which attracts them.
Pre purchase – When consumers have selected to buy particular product then it need to
pay the amount for buying this, confirms that their product will be delivered and can get exact
time period which helps to maintain the customers regularly. Such as people make the payment
after selecting Brown’s Hotel which ensures that now they can enjoy products and services for
which they have paid amounts.
Post purchase – Now people are demanding this services also so they can share their
experience and feedbacks. This is important for organisation as well as customers as it attracts
people to make further buying decision. People who have taken the accommodation services
from Brown’s hotel share their experience which helps to bring improvements accordingly and
maintain the profitability (Bruwer, Lesschaeve and Campbell, 2012).
Levels of consumer decision making in hospitality industry:
There are different levels which are used to make decision in context to Brown’s Hotel
that are stated below:
Routine problem solving: This level is used by consumers to solve their routine
problems. Such as some people who wants hotel services on daily basis and alternatives
customers needed to focus their services and find out a lightest price hotel.
Limited problem solving: This means some people wants only branded hotel and luxury
services so they research deeply which helps to select best option and making right decisions
(Xiang, Magnini and Fesenmaier, 2015).
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Extensive problem solving: This involves new customers who are going to buy first
time then they think deeply which helps select right decision. In this level, customer look
towards economic decisions.
P4 Map a path to purchase are important for marketers
In a competitive industry, influencing consumers by drawing a route is essential to
advertisers, and influences consumer decision making. Consumer behaviour varies according to
time, fashion and level of status. Marketers are the people who sell or make attempts to promote
an organization's specific product or service. It is crucial to carry out appropriate data analysis to
map a path to purchasing, so that consumer perception and behaviour can be determined
Marketers play an significant role in identifying consumers 'changing preferences and providing
updated products and services to them according to their needs. In Brown’s Hotel, marketers are
playing important role as hen ever new services and packages are introduces by management
them marketers uses different sources to inform people and attracts the customers so purchasing
decision can be taken effectively (Motoaki and Shirk, 2017).
The importance for marketers to mapping a path while purchasing is defined below:
To ascertain the consumer perception – Path mapping is important because it uses to
know the consumer perception and their buying behaviour which helps to make the buying
decision accordingly. In Brown’s Hotel, marketers are playing a good or crucial role by
ascertaining the consumer perception which helps to know choices, likes and dislikes of
customers and then services are provided accordingly. For instance, if some customer wants
peaceful and fresh environment room for their business meeting, provided by management that
attracts them and make buying decisions (NS Robinson and Getz, 2014).
To influence consumers by offering – Marketers are those people who visit the market and
get information what is going on that helps to make plans accordingly in order to sale their
products and services by offering better offer and discounting products. For instance, the
management of Brown’s Hotel formulate a strategic plans for their customers to spend their
vacations in London and get enjoy luxury hotel services at discounting cost which influences
them. This helps to increase the organisational productivity by making decision to buy hotel
services and retain their customers on continuously basis. This is possible only through
marketers who are running their business activities by aware people.
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Fulfil customers demand and increase the organisational market share – Every
organisation wants to fulfil needs and wants of their customers so market share can be get and
profitability can be increased effectively. In Brown’s Hotel, managers are filling customers
demand so they give positive feedback and helps to increase the market share which helps to
improve the organisational productivity (Martin, Rosenbaum and Ham, 2015).
There are some factors which can influence customer decision
Marketing Mix – This is influencing factor which is used by marketer at the time of
influencing customers. This factor is used by marketers of Brown’s Hotel where they provide
appropriate information regarding product, services, price, place and others which influence
customers and helps to think about purchase if it is ok or reasonable.
Heuristic factor – The marketers of Brown’s Hotel understand the perception of customers
who have visited the hotel in order to obtain services. In this it attracts customers by providing
them best welcome, services and special arrangements which attracts customers and take action
(Varkaris and Neuhofer, 2017).
The steps of path mapping are as defined:
Dream plan – In this step, a dream plan is prepared by customers by identifying their
needs and wants.
Reserve – After identifying needs customers reserve the products and services which
they are demanding so right products can be select at right time.
Arrive – this step is related to arriving which is using by customers to arrive in the hotels
and restaurants.
Start guide tour – This is consider as during services which is adopted by customers to
start their guide such as they reach and go ahead for further activities.
Activity – In this step, customers make order to their products and services which they
wants in context to Brown’s hotel.
Stops – During getting hotel services consumers who are availing products and services
stops buying after satisfaction that can help to maintain the good performance.
End guide tour – This steps is performing by completing the task and paying the
amounts for getting products and services in Brown’s hotel.
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Share / remember – After getting services this step is required to perform by customers as
to refer other customers and share the feedback which helps to bring improvements and increases
the business performance.
Map a path to the purchasing for a given hospitality service -
Nail down buyer persona – For mapping the path there is needs to first there is need to
understand the customers such as their like and dislikes. The management of Brown’s hotel
should identify the buyer person as what are their needs and expectation that helps to provide the
products and services accordingly.
Understand buyer’s goals – After having the buyer person, managers of Brown’s hotel
should understand consumer’s goals. For example, managers research the different options
which are available, ensuring that customers will pay the fair prices and providing necessary
information regarding a products and services that helps to map a path journey.
Map out buyer touch point – Touch point means any time customers comes in to contact
with the brand. The Brown’s Hotel is providing all services and good check in experience in
hotel chain by using online, digital ways and over the phone that helps to map the purchasing
pattern in hospitality industry.
Identifying customer pain point – This is another ways in which management of
Brown’s hotel should be identify the pain point of customers that should not be repeated while
buying hotel services that make happy and select furthermore by removing roadblocks.
Prioritise and fix roadblocks – After identified the road blocks the management should
take a step back and set the right ways that can help to remove the blocks. The Brown’s hotel is
focusing on this step and make a clear path for buying the hotel services.
Update and improve – This is ending step which is performing by Brown’s hotel by
updating the improving the customer journey. This helps to implement all changes and increase
the organisational profitability by mapping path.
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Task 3
P5 Compare and contrast the key difference of hospitality decision making process for B2B and
B2C
Decision making process is a continuous process where people think about continuous
decision whether buying something and selecting. This is important for organisation that their
customer lives healthy and safe by consuming their products and services. Decisions are
important that are needed to take right action in relation to needs and wants of customers.
Marketers are the link between B2B and B2C where they increases business activities and
production level. In Context to Brown’s Hotel marketing manager connected with travel agency
which helps to increase the number of customers as such agency suggest their customers to get
accommodation services from such hotel and make right decisions. On the other side, marketers
related to customers which helps to gather the information and maintain a business effectively.
Particulars B2C B2B
Meaning This means a person who is
running a business by connecting
with customers that helps to run
a business.
This means a person who is
running business with the help
of other business is consider
as B2B.
Purchasing decision In this, customers make direct
purchasing decision from
organisation. There is no
mediator is available to buy
products and services (Liu and
et.al., 2017).
When a organisation sales its
products and services to other
company that helps to run a
business effectively. In
Brown’s hotel, managers are
dealing with travel agency
which helps to run business
continuously.
Finding out needs The marketers of Brown hotel
are responsible to find out the
needs and wants of people.
Therefore, they uses sample
representation, promotional
channel and online methods to
In this, marketers of Brown’s
hotel are responsible to find
out needs of other business
such as travelling agency
where customers are
demanding different types of
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inform people and provide them
new services.
products and services which
are provided by them.
Decision related to
market size
The market size is large, because
marketers cover whole area to
aware people and influence them
them to make buying decision.
Market size in context to B2B
is small because marketers
focuses on particular area and
location to provide hotel
services.
For example, Brown's Hotel is using B2B and B2C approach for the purpose of selling
their hotel services and increases the business performance by maintaining good relations with
other organisation in relation to travelling and tour operators that suggest customers to use such
hotel for staying and getting better quality of food. In this, management of selected hotel are
proving a specific amount of interest as it help to maintain the operation by inviting customers
and deliver best services.
On the other side, B2C process is uses to creating good relations with customers by giving
then good experience and hotel services that attracts customers and make buying decision
further. For example, the management of Brown's Hotel are using sales promotion, marketing
stratgies and survey method to know about taste of customers then offer hotel services which
helps to increase the business performance.
From the above it has defined that market research in context to B2B and B2C is important
which helps marketers of Brown’s hotel to make right business decision effectively at the time of
buying hotel services.
P6 Different approaches to market research and methods of research
Marketing research is refers as study about trend and consumer behaviour that states what is
happening in market and what people wants which helps to introduce kind of products and
services effectively. In Brown’s Hotel marketing manager is using different methods to conduct
the research that is defined below:
Quantitative method – This method is related to business and customers where people buys
products and services effectively. In this method, theoretical data is present by marketers who
collects data by using different methods such as sample representation, observation survey
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