Consumer Behavior in Hospitality: A TUI Group Report Analysis

This report examines consumer behavior within the hospitality industry, using TUI Group as a case study. The introduction defines consumer behavior and introduces TUI Group, a travel and tourism company. The report then delves into the customer decision-making process, outlining stages like need recognition, information search, product evaluation, purchase, and post-purchase evaluation. It analyzes factors influencing consumer decisions, including heuristics, marketing mix elements, and the impact of new technology. The report compares B2B and B2C decision-making processes, highlighting differences in purchasing decisions, needs assessment, and market segmentation. It explores market research approaches, including questionnaires and interviews for B2C, and secondary methods for B2B. The report concludes by discussing how marketers can influence consumer decisions, considering cultural influences and opinion leaders, and emphasizes the importance of understanding consumer behavior for organizational success.

Consumer
Behaviours

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
P3............................................................................................................................................1
P4............................................................................................................................................2
TASK 3............................................................................................................................................2
P5............................................................................................................................................2
P6............................................................................................................................................3
TASK 4............................................................................................................................................4
P7............................................................................................................................................4
CONCLUSION................................................................................................................................5
REFRENCES...................................................................................................................................6

INTRODUCTION
Consumer behaviour is considered as an evaluation of how a company, group of
customers or individual customer select, buy, use and dispose services, goods and ideas in order
to satisfy their requirement, need and wants (Bowie and et. al., 2016). Company on which this
report is based is TUI group that is operating in hospitality industry or travel and tourism sector.
Respective company is introduced in 1923 and its headquarter is located at Germany. Topics
included in this report are evaluation of ability to develop a path for decision making in
hospitality industry. It will also include factors which impact on hospitality customer decision
taking procedure as well as it consider how marketer influence different stage of hospitality
consumer decision making procedure.
TASK 2
P3
There are different stages which are essential to evaluate by TUI management because it
help in developing customer decision making journey and mapping of path for enhancing their
services, below stages are given that they need to consider:-
 Need Recognition: At this customer will analyse the need of better backpack in order to
travel over the country (Cetin and Dincer, 2014).
 Search for product information: After that they will search or look different options on
the web or internet, talk with friends or family about it and after that visit to travel and
Tourism Company.
 Product evaluation: In this stage customers will decide price which they want to spend
on their tour as well as they also develop specific criteria which you need in a backpack.
Then customer need to evaluate each product based on specific criteria.
 Product choice and purchase: In this stage customer or visitor will decide what are the
best backpack or package for them (Chan and Hsu, 2016). This will evaluate on the basis
of several criteria and decide whether to purchase package in effective price.
 Post purchase use and evaluation of product: In this customers will analyse that
backpack or package which they selected have each and every thing according to their
requirement.
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 Disposal of the product: In this visitor will decide whether specific tour and travel
company is best and they can purchase packages from them or not in future.
P4
In travel and tourism industry there is huge competition that affect the business functions
as well as profitability of a company, so it is essential for TUI to analyse map a path to purchase
as it help in identifying risk which may occur in implementation of process. Below some main
reasons of given which lead to risk:- Heuristics: It is a mental shortcut situation in which customer or individual develop
decision that highly impacted by its current emotions (Elnasr, Ritchie and Jones, 2012).
Mainly it will impact on the psychological term which related to emotional response
which impact on the decision making or choice of a person. In this respect TUI need to
develop have service according to which they develop new package at the time according
to visitor demand or requirement. Marketing Mix: It is considered as combination of core factors that affect marketing
strategies and customer purchasing decision. Along with this it will also help TUI in
develop proper decision through which they can offer right packages to the right
customers. In this both visitor as well as TUI will conduct planning by considering four
aspects i.e. product, price, place and promotions.
 New Technology: According to this in travel and tourism sector technology plays an
essential role because it help TUI and other companies to attract more and more
customers towards them (Gallarza and et. al., 2015). So it is necessary for TUI to adopt
new technology on regular basis so that enhance their customer's base as well as
profitability ratio.
TASK 3
P5
TUI conduct evaluation of difference between B2B as well as B2C on different aspects of
hospitality decision making, from which some are mentioned below:-
Factors Business to Customers Business to business
Purchasing decision B2C customer purchasing decision
will depend on offering or services
On the other hand purchasing
decision of these customers are
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provided by TUI (Hunt and Johns,
2013). Along with this these
customers mainly focus on factors
like adventurous location, hotel
near market, reasonable price
room and many more.
based on location which must
be peaceful, room having
proper facilities like internet
and so on.
Finding out needs According to this need and
demand of customers are totally
different from B2B customers. So
it is essential for TUI to find out
customers requirement and
develop package accordingly in
order to provide quality services to
them.
In respect of B2B customers,
their need, requirement and
reason for visiting a place is
totally different from B2C
customers. This is so because
these customers conduct
travelling for formal meeting so
their needs are also different.
Decision related to
market size
According to this, it is essential for
TUI to develop their decision
according to market size. This is
so because when company focus
on normal customers they need to
consider wide market size so that
they can offer huge services
according to market size.
In respect of B2C, TUI needs to
segment their business
customers in effective manner
so that they can provide
services according to the market
size as well as demand in
successful manner (Legrand,
Chen and Sloan, 2013).
P6
TUI may implement various tools as well as market research for knowing about procedure
of making decision. Moreover, respective firm may adopt diverse technique for B2B as well B2C
that are mentioned below:-
Market research approach at B2C
In order to this TUI may implement primary technique for gathering reliable as well as
effective information or data. For this they may adopt various sources, from that few are
mentioned below:-
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 Questionnaire: In this project manager may develop list of questions which are based on
topic on that they need to gather information (Mo, Bae and Blum, 2013).
 Personal interview: According to this approach interviewer or researcher will conduct
interview session in order to gather information or data.
Market research approach at B2B
For gathering information on respective topic project manager will adopt secondary method,
from several methods some are given below:-
 Public record: According to this researcher will gather information or data through pasth
record or data.
1. Non-Government as well as government agencies: In respective project, project
manager will gather information or data from record of government as well as non
government agencies.
TASK 4
P7
There are numbers of factors through that marketer may impact different phases of
hospitality decision making procedure, from which some major are given below in respect of
TUI group are given below:- Influence of culture and sub-culture: Culture is considered as shares of social traditions
which include aspects like language, social norms, beliefs, art, music, traditions, ritual,
knowledge and many more. On the other hand sub culture is defined as self organized
tradition in which sharing of interest, beliefs, lifestyle, norms, customs, style and other
aspects are done (Sigala, 2013). By considering this factor TUI can develop effective
strategies that impact on procedure of making decision or plan of customers because they
able to develop policies and package according to customers preference of culture and
sub culture.
 Role of opinion leaders: Leader of a company plays a essential role in influencing
customer's decision because good leader help in develop most effective strategy through
which employees can mould decision of customers in the way they want (Williams,
2012). In respect of TUI group, their leader will develop effective or packages by
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observing their visitor's preferences through which they can properly influence on the
decision making process of customers by showing them more effective package.
These are main points through which marketers of TUI can impact various phase of
procedure of decision making in hospitality industry. Such as marketer of respective company
will develop proper packages according to cultural preference of customers so that they can
convince them properly.
CONCLUSION
By evaluating above mentioned point it can be concluded that every organisation need to
do analysis of their customers behaviour because that may help them in understanding their need,
requirement and demand in effective manner through that they can develop proper decision.
During this they analyse various phases of customers decision making so they properly map a
path related to it as well as it is also essential for management to evaluate importance of
customer’s decision making process. Along with this there are various factors which influence
different stages of hospitality decision making procedure as well as they also need to conduct
key difference among B2C and B2B so that company target their customers and develop
strategies or products accordingly. Moreover, they also need to evaluate different aspects of
market research in order to develop proper understanding related to decision making procedure.
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