Whitbread: Understanding Consumer Behaviour in Hospitality (Report)

This report examines consumer behavior within the hospitality industry, focusing on the British multinational hotel and restaurant company Whitbread. It explores the phases of consumer decision-making, emphasizing the importance for marketers to map purchase paths and understand consumer needs and perceptions. The report contrasts B2C and B2B decision-making processes, highlighting differences in purchasing behavior and market research approaches. It further assesses how marketers influence different stages of the decision-making process, including the impact of marketing mix elements and new technologies. The report provides insights into how factors like heuristics, marketing mix elements, and new technologies influence consumer choices within the hospitality sector.

Hospitality Consumer
Behaviour Insight

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Covered in PPT.......................................................................................................................3
TASK 2............................................................................................................................................3
P3 : Phases of consumer decision making and path of purchase...........................................3
P4 Define why it is important for marketers to map a path to purchase and understand
consumer decision- making ...................................................................................................5
TASK 3............................................................................................................................................7
P5 : Comparing between hospitality decision-making process in context of B2C and B2B 7
Decision making process in B2B and B2C ...........................................................................8
P6 : Approaches of market research and methods of research in decision making process. .8
TASK 4............................................................................................................................................9
P7 : Assessment of how marketer influences different stages of decision making ...............9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Consumer behaviour is related to evaluate the behaviour of individuals and groups
related to purchase, use and disposal of products and services in order to satisfy their needs and
wants. Investigation of consumer behaviour for an organisation is essential as it helps them in
operating their all business activities as per market segments which enables them to cover a big
marketplace in a limited period of time. In context with hospitality industry, they are providing a
range of services to the customers related to accommodation, food, recreation, entertainment etc.
which makes it essential for them to establish proper coordination between all the services by
analysing consumer behaviour. This report is based on the Whitbread which is a British
multinational hotel and restaurant company that headquarters are situated in UK and Dunstable.
This following assignment will cover about the several factors which have great influence on the
consumers behaviour and significance of map a path to purchase in order to assess the consumers
perception and needs. In addition to this, the difference between concept of B2B and B2C in
relation to take the decisions also will consider in this file.
TASK 1
Covered in PPT.
TASK 2
P3 : Phases of consumer decision making and path of purchase
Customer decision-making process considered as a most appropriate process which
describing all the stages form which a customers gone through before, during and after the
purchase a product or service. As each customer have different needs and perception due to
which it becomes more complex as it contains several activities like identify the need of product,
comparing it, selecting and purchasing from a range of available options. Moreover, their
decisions have affected by various factors like social, physiological, emotional which needs to be
considered by the manager of organisation so that they will be able to operate business
operations appropriately(Ashman, Solomon and Wolny, 2015). The stages of consumers
decision-making process is mentioned below:

Illustration 1: Stages of Consumer Decision Making Process
Source: Stages of Consumer Decision Making Process. 2016.
 Need Recognition : This is foremost step as in this customers take decisions related to
that they have need of the products or service or not. The internal and external factors
have huge impact on their decision at this stage as at the time various alternatives option
are available in the market(Bereznoy, 2019).
 Searching and gathering information: After need recognition, customer will go ahead
to collect information of several hotels with the help of public resources, personal
contacts, advertisement etc.
 Evaluation the alternatives: In this step, after gathering information customers will
evaluate each hotel from the both aspects positive and negative aspects in order to select
a most perfect option for themselves in every way cost, quality, ambience etc.

 Actual Purchase of product or services : Herein, finally customers purchase the
product after analysing the product and service of each brand. In other worlds, customers
make decision to take advantage of taking the services of a particular hotel.
 Post-purchase evaluation: It is last phase, where customer give their feedbacks and
reviews about the product or services or take the decision that they should use
commodities in near future or not(Carpenter and Yoon, 2015).
P4 Define why it is important for marketers to map a path to purchase and understand consumer
decision- making
As the customers are the most important part of an organisation due to which it is
necessary for manager of Whitbread to assess the purchase path of customers in order to stand on
their expectations and achieve effective business outcomes. Also, it will helps them in
determining all the factors which lead impact on their decision-making. In this context four
stages are given which are describing beneath:
 Pre-purchase : This is initial stage in which customers stay focus towards collecting
information or data of number of hotels so that most perfect hotel can be selected. In
terms to increase the chances of selection manage of Whitbread must give their emphasis
on creating positive brand image in the market.
 Purchase : After collecting information of all alternatives customers will come up with
best decision related to hotel which can provide them best services. Herein, marketers of
Whitbread must ensure effectiveness of their services which will help them in gaining
higher customers attention and curiosity.
 Receive : Herein, customers will finally ready to take benefit of hotel services like if
they will select Whitbread hotel and this hotel is able to render facilities as per their
expectations then they will be able to attract a range of customers towards their
hotel(Frederiks, Stenner and Hobman, 2015).
 Post-purchase : It refers to the situation that is occurring after using the services. This
phase pertains that if a customers give their positive reviews towards the hotel then it
will lead the direct impact on the profitability and sustainability of the organisation.

As it has been discussed that mapping a path of purchase is required for the manager
of Whitbread as it will give them higher benefits which can be understood by following points:
 Increases ROI : ROI within the hospitality industry refers to the return on investment
which can be attained only when a hotel will provide a range of services as per the
demand and needs of the customers(Gensler and et. al., 2015).
 Unified Customer Data and continued engagement : With the help of mapping path of
purchase manager of Whitbread will be able to many disunited data into one which will
enables them to take best decisions related to provide better travel experience to their
guests.
By mapping path of purchase manager of Whitbread also can acknowledge the level of decision-
making process of customers.
 Extensive Problem solving : Here decision-making process is lengthy as customers in
this are not aware from the products due to which they have to give their more focus on
researching methods for collecting information of different products and services in the
marketplace.
 Limited Problem solving : In this, consumers already have well-introduced with
availability of various products so as to in this they have to give their more time and
efforts to select a most suited option for them.
 Routine Problem solving : Decision-making process is very simple here as customers in
this always prefer to purchase that products which they have already used due to this
research does not take place here.
Four views are defining below which will describe the consumer decision-making within the
hospitality industry:
 Economic View : It is an effective model which pertained that a customer will give their
preferences to only those products which will give them high range of services at lower
price. This model assist the marketers of Whitbread in ascertaining that they will be able
to attain higher profitability only when they give their focus on rendering hotel services
at lower price(Mihaela, 2015).
 Passive View : This model refers to the adoption of new techniques and methods within
the organisation so that organisation can provide best quality services to their customers.

Also, it stated that consideration of effective promotional tools is also essential for the
organisation in terms to attract a range of customers towards the hotel facilities.
 Cognitive View : The decision-making process here based on the interest, perception and
requirements. Due to this, management of Whitbread must provide resort packages as per
their needs and requirements so that satisfaction of guests cam be raised(Petersen,
Kushwaha and Kumar, 2015).
 Emotional View : Here, customers take decisions as per their emotions without being
practical. As in this they does not give their emphasis on that they have need a particular
product or not.
Factors which have impact on the decision-making of customers:
 Influence of heuristics: It refers to the emotional of a person which force them to choose
a particular hotel.
 Influence of Elements of Marketing Mix: Marketing mix consist various factors like
price, promotion, place etc. which also lead impact on decision-making. For instance, a
customers feel price of product affordable then he will seek to take advantage of it.
 Influence of new technologies: Development of technologies like digitalisation services
related to booking, personalisation services, online appearance etc. also have positive
impact on consumers. For example, if a customers find the positive reviews about hotel
form the social sites then customers will desire to get experience of their services(Ramya
and Mohamed Ali, 2016).
TASK 3
P5 : Comparing between hospitality decision-making process in context of B2C and B2B
The concept of B2B and B2C is different from each other in every aspect as B2B refers
to the business to business commercial transactions whereas B2C is general business formation
in which an organisation makes transactions with customers. Here are defining difference
between decision-making process of these both formation:
Basis B2B B2C
Purchasing
decisions
In this, decisions related to deal with
another organisation is taken after
considering brand image, service
Here, decision regarding to purchase a
product in a predominant way as in
this the products and services are

quality and pricing strategy. deliver to the customers directly.
Decision
related to
marketing
strategy
Organisation which is operating their
activities under this category is using
social medial marketing, event
marketing, video marketing and other
channels for attracting their customers.
Here main motive of the business is to
attract various customers due to this
organisation which is in B2C is using
various strategic strategies like social
media, direct selling, dual distribution
and many others,
Decision
related to
marketing size
In this, an organisation is operating
their activities after considering choice
and demand of small group of people
Herein, the main focus of them on
covering a big marketplace by offering
a range of products and services in the
marketplace.
Decision making process in B2B and B2C
Decision-making process within the both B2B and B2C is different as in B2B the
judgement procedure is bit difficult as in this researcher using secondary approach whereas
researcher in B2C is utilising primary approach. Along with this, in B2B all subordinates are
included in decision-making process which create conflicts sometimes whereas in B2C decision
are formulating by involving some of the people. For instance, in B2B a firm have to think about
the quality, price and marketing strategy of various firms whereas in B2C decision taken only
after considering the perception, needs and expectations of the customers which enables them to
come up with best decision in a limited period of time(Rezaei, 2015).
P6 : Approaches of market research and methods of research in decision making process
Consideration of an effective market research is necessary for an organisation in order to
conduct all the operations according to the market. In context with this, research methods which
are using by B2C and B2b are as follow:
Market Research approaches in B2B : In this B2B organisations secondary approach is
taken into consideration as in this information or data is already in existence which enables them
to ascertain the value or image of another organisation in market. The number of respondents in
this are higher. For collecting the second hand data various sources can be used by them.

 Government agencies: With the help of these agencies an organisation can get more
accurate and relevant data which helps them in deciding that they should deal with
another organisation or not.
 Public records: In this, utilisation of magazines, newspaper, reviews are included in
terms to ascertaining value of other firms in market(Shankar and et. al., 2016).
Market Research approaches in B2C : Herein, the primary research method is using by the
firms in terms to collect more relevant and fresh data about the customers by considering some
of the respondents. Various resources for gathering the primary data are as follow:
 Questionnaire : This method allows them in analysing the perception of different
customers regarding the quality, features and prices of products and services.
 Interviews : It enhance the open-end conversation between interviewer and interviewee
which enables asker to deeply evaluate dynamic consumers behaviour.
TASK 4
P7 : Assessment of how marketer influences different stages of decision making
Customers are the most integral part of an organisation as the overall activities which are
conducted by the business in only with the motive of providing products and services to the
customers. In this aspect, evaluation of customers behaviour have great significance. For this,
different theories can be utilised like behavioural and cognitive in which behavioural theory
helps business manager in identifying behaviour and belief of a customers towards company
service. Other, cognitive approach enables them in determining the mind set and mentality of a
customers towards purchasing a product. On the other hand, culture and sub-culture also lead
impact on customers as culture reflects values, norm and belief of whole group whereas sub-
culture give their emphasis on some of the people(Shih and Ke, 2014).
In this, a opinion leader have huge role as he is only responsible for influencing
behaviour and attitude of a person by using their expertise. Apart from this, marketers also needs
to give their focus on using innovative techniques in their organisation so that they can render a
range of quality services to their customers. For instance, if a market will formulate a strategy
relation to customize services then in this case leader will guide and motivate subordinates so
that they can give their higher contribution in giving their best to provide best experience to their
guests.

An organisation which is comes under hospitality industry also can lead huge impact on
judgement process of customers by giving them digitalisation services like online booking
service, payment service, check-in facility, look to websites service and many more so that
guests can easily take advantage of hotel services and can increase their satisfaction. This will
enables the organisation in attaining higher success and sustainability in the marketplace.

CONCLUSION
From the preceding study, it can be concluded that due to the cut-throat competition and
globalization study of consumer behaviour is essential for an organisation in terms to survive and
perform their activities effectively and to achieve the desired outcomes. As a consumer decision-
making process is affected by several factors like technological, personal, social and many others
which makes it essential for the organisation to operate all their activities after considering all
these factors. Along with this, the detailed description of B2B and B2C is also have been
analysed with its affect on decision-making of an organisation so that all the operations can be
carried out significantly.

REFERENCES
Books & Journal
Ashman, R., Solomon, M. R. and Wolny, J., 2015. An old model for a new age: Consumer
decision making in participatory digital culture. Journal of Customer Behaviour.14(2).
pp.127-146.
Bereznoy, A., 2019. Catching-up with supermajors: the technology factor in building the
competitive power of national oil companies from developing economies. Industry and
Innovation. 26(2). pp.127-157.
Frederiks, E. R., Stenner, K. and Hobman, E. V., 2015. Household energy use: Applying
behavioural economics to understand consumer decision-making and behaviour.
Renewable and Sustainable Energy Reviews. 41. pp.1385-1394.
Gensler and et. al., 2015. Listen to your customers: Insights into brand image using online
consumer-generated product reviews. International Journal of Electronic
Commerce.20(1). pp.112-141
Mihaela, O. O. E., 2015. The influence of the integrated marketing communication on the
consumer buying behaviour. Procedia economics and finance. 23. pp.1446-1450.
Petersen, J. A., Kushwaha, T. and Kumar, V., 2015. Marketing communication strategies and
consumer financial decision making: The role of national culture. Journal of Marketing.
79(1). pp.44-63.
Ramya, N. and Mohamed Ali, S. A., 2016. Factors affecting consumer buying behavior.
International journal of applied research. 2(10). pp.76-80.
Rezaei, S., 2015. Segmenting consumer decision-making styles (CDMS) toward marketing
practice: A partial least squares (PLS) path modeling approach. Journal of Retailing and
Consumer Services. 22. pp.1-15.
Shankar and et. al., 2016. Mobile shopper marketing: Key issues, current insights, and future
research avenues. Journal of Interactive Marketing.34. pp.37-48.
Shih, T. Y. and Ke, S. C., 2014. Determinates of financial behavior: insights into consumer
money attitudes and financial literacy. Service Business.8(2). pp.217-238.
Wang, Y. and Yu, C., 2017. Social interaction-based consumer decision-making model in social
commerce: The role of word of mouth and observational learning. International Journal
of Information Management. 37(3). pp.179-189.
Xiang, Z., Magnini, V. P. and Fesenmaier, D.R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal
of Retailing and Consumer Services.22. pp.244-249.
Online
Difference Between B2B and B2C. 2019. [Online]. Available Through:
<https://keydifferences.com/difference-between-b2b-and-b2c.html>.