Customer Behavior Analysis and Marketing Strategies for Ritz London

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This report provides an analysis of customer behavior and decision-making processes within the context of Ritz London, a prominent hospitality brand. It explores the stages of the consumer decision-making journey, emphasizing the importance of understanding customer needs and mapping the path to purchase. The report examines the differences between B2C and B2B decision-making in hospitality, evaluating various market research approaches and methods used to understand customer behavior. Furthermore, it assesses how marketers can influence different stages of the decision-making process, considering theories like cognitive and behavioral learning. The study highlights the significance of adapting marketing strategies to meet evolving customer expectations and emphasizes the role of customer insights in the hospitality industry.
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Understanding the customer
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Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
TASK 2............................................................................................................................................4
P3 Examine the stages of the consumer decision making journey and map a path to the
purchasing for a given tourism service...................................................................................4
P4 Discuss why it is necessary for marketers to map a path to purchase & understand
consumer decision making in hospitality industry.................................................................5
TASK 3............................................................................................................................................6
P5 Compare & contrast the major differences of hospitality decision-making procedure in the
context of B2C and B2B.........................................................................................................6
P6 Evaluate the various approaches of market research & methods of research used for
considerate the decision-making procedure...........................................................................7
TASK 4............................................................................................................................................8
P7 Evaluate how marketers can impact on the various stages of decision-making procedure8
CONCLUSION................................................................................................................................9
REFERENCE.................................................................................................................................10
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INTRODUCTION
Customer behaviour is part of organisation and individual study that is par of selection of
products and services according to customer needs. It is crucial to understand the customers as it
posses a major impact on their satisfaction level in the changing macro environment. Present
report deals with Ritz London that is a well known hospitality brand of UK. There is analysis of
the cultural and social factors affecting customer attitude and behaviour. Further there is analysis
of the different level of decision making in hospitality industry.
TASK 1
(Covered in PPT)
TASK 2
P3 Examine the stages of the consumer decision making journey and map a path to the
purchasing for a given tourism service
Consumer behaviour is defined as a concept that emphasis on various segments of buyers
which are groups, individuals & organisation as well (Zhong, 2019). The main idea of consumer
behaviour impact on the decision making and attitude of buyers towards the brand. Some of the
steps of consumer decision making journey that are important to analyse by Ritz London for
mapping the path, which are as follows:
ï‚· Need Recognition- It is the first stage of consumer decision-making journey and herein
need and requirements is analysed. In relation to Ritz London, its higher authorities
ensure in-depth understanding of buying behaviour of consumers in order to offer them
products as well as services as per the requirements.
ï‚· Collecting Information- In this stage, consumer search for the products they required
with the help of newspaper, internet and so on. It is significant for Ritz London to ensure
that its website contain all the information about its offering in a proper manner.
ï‚· Evaluating Alternatives- Herein, consumers find the alternative of their chosen product
and compare it with the quality and price so that they can deal or buy product at best
price. Ritz London offers best deals and service to customers along with the customised
service that help in attracting people to take decision of buying.
ï‚· Selection Stage/Purchase- The buying decision take place at this stage and consumer
purchase those product which satisfy their requirements. In relation to Ritz London, it
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track the people who are looking on their website and then provide them best offers that
leads to purchasing decision by customer.
ï‚· Evaluation of Decision/Post Purchase- The last stage of consumer journey that take
place after the goods and services purchased. In involve after sale service, feedback,
connecting with consumers in a proper manner (Laroche and Teng, 2019). This help Ritz
London to develop an effective relationship with customers and enhance brand image at
marketplace.
P4 Discuss why it is necessary for marketers to map a path to purchase & understand consumer
decision making in hospitality industry
It is crucial to understand the process of decision making of customers.
ï‚· It leads towards understand the reason behind purchasing of a product or services
(Volgger and Pfister, 2019).
ï‚· Marketing department can prepare their marketing strategies according to customer
buying behaviour.
Importance of mapping a path to purchase:
It is important for the management of Ritz London to map the purchasing path of customers that
is part of consumer decision making:
Economic view: It is a view that is customers having perfect knowledge base and accurate level
of judgements.
The emotional view: In this the customers are responding according to the inner drive and state
of mood (Warnaby and Shi, 2019).
Passive view: It provides insight of different customer view points so that future marketing
strategies can be formed.
Importance of consumer decision making-
There are three levels of customer decision making that is assisting in solving of different
associated problems:
Extensive problem solving: In this stage the customers have not established specific criteria of
product evaluation.
Limited problem solving: At this stage the customers are using a problem solving approach
where there is establishment of brand preferences (Gejke, 2018).
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Routine response behaviour: At this stage the customers already has experience of various
product categories in order to evaluate the product. Small scale research is conducted at this
stage (Borden, Coles and Shaw, 2017).
Above mentioned are stages where management of Ritz London will take timely decisions to
map the customer journey.
TASK 3
P5 Compare & contrast the major differences of hospitality decision-making procedure in the
context of B2C and B2B
In an organisation, there is a big difference between decision making procedure in relation
of B2C and B2B that exist for meeting purpose & objective as well. The difference among B2B
and B2C is given below:
Basis B2B B2C
Buying behaviour and
decisions
In context to Ritz London, it
offer quality services and is
also started providing
customization service to
customers. In addition to this,
it focus on fulfilling the
requirements of customer that
develop positive mind-set of
customer towards brand and
impose to take buying decision
in favour of organisation
(Shin, 2018).
In business to business,
consumer plays an important
role as they analyse the
offerings in context of pricing
and quality as well. In addition
this, Ritz London make use of
various promotional
techniques that enhance its
customer base level and help
company to earn higher profits
as well.
Analyse requirements In context of business to
business, it is significant to
analyse market trends so that
they can deal with other
business in an easy manner by
offering them products as well
Herein, the main focus is to
analyse important areas which
are need in order to provide
appropriate and prominent
services. In addition to this, it
involve wide areas that is
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as services as per market
trends.
demand and supply, customer
needs, market trends, new
technology and many more.
Market scope The scope of Ritz London is
wide as it focus on maintaining
relationship with other
business people and also offer
them services as per market
trends considering values and
regulations as well.
In terms of business to
consumer, they tend to reach
towards potential outcomes for
analysing customer
requirements that is significant
for the future growth.
In terms of this, companies
also find out for prominent
bargaining ability & buying
power for attaining positive
results.
Therefore, from the above discussion it is analysed that both forms of business are
significant and is helpful in offering products and services as per the customer requirements as
well as market trends.
P6 Evaluate the various approaches of market research & methods of research used for
considerate the decision-making procedure
It is important for an organisation to conduct market research as it assist in gaining insight
about customer requirements as well as market trends that leads to effective decision making. In
context to this, different forms of businesses are there such as business to business and business
to customer which make use of different approaches to conduct research as per the nature and
objective of business:
Research approach for Business to Consumer businesses:
Survey: It is consider as an important approach for collecting relevant information and
gain knowledge about preferences and taste of consumers. Herein, the information is collected
from large number of people that help in developing effective strategy for offering product as per
the requirements.
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Interview: Another way to collect information is interview and herein an interaction take
place among the customer and marketing person of Ritz London with a view to gain insight
about is requirements and the improvements they want to change within the service of respective
organisation.
Market research in terms of B2B businesses:
Books and Records: Herein, the data is gathered with the assistance of prominent records
which are available at marketplace. With the help of this information, an organisation is able to
find our prominent outcome for developing effective strategy for better decision making. With
reference to Ritz London, it can make use of such method for developing required products for
customers.
Government Publications: It is beneficial for an organisation to admit important
information by studying and reviewing important documents in a proper manner (Taufique and
Vaithianathan, 2018). In relation to Ritz London, it make use of secondary data collection
sources for gaining information in order to attain competitive position and maintain it in a proper
manner.
For this, additional research methods are discussed below:
Economic view model: It assumes that customers are rational & take logical decision at
the time of buying a product as well as services. In addition to this, it also tends to apart different
products for identifying advantages and benefits that help in gaining positive outcomes
Passive view model: According to this model, the buying behaviour of customer also affect
the marketing, selling & other important efforts of business. In addition to this, it also tends to
drive by undertaking sales appeal which is offered via marketers.
TASK 4
P7 Evaluate how marketers can impact on the various stages of decision-making procedure
Marketers plays an important role in consumer decision making procedure as it assist in
educating customers after analysing their requirements from the starting process. In addition to
this, after identifying the requirements to purchase hotel service, marketers have the
responsibility to offer best plan to them in context of price, quality and service as well. In context
of attaining the important task, they also have priority for implementing effective work by
gaining information about early experiences, buying behaviour, customer choice and so on.
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Furthermore, after analysing the data undertaking significant perspective from different areas.
With reference to Ritz London, it make use of social media applications, e-mails for gaining
interest of customers towards brand and to develop awareness among the, in addition to this,
with the help of showing pop ups, Ritz London also try to interact customer in continuous basis.
In relation to this, two prominent theories were discussed below:
. Cognitive learning: As per this theory, marketers get an effective idea that is associated
with the present trends of consumer behaviour. In addition to this, by considering the prominent
information of organisation & its design strategy is helpful in order to gain information about
customers and also assist in enhancing brand image in this complex business environment (De
Mooij, 2019). Moreover, it also assist respective organisation to attain competitive advantage at
marketplace and retain in market for longer time period.
Behaviour theory: The main focus of this theory is to improve or enhance the buying
behaviour of customer & influence their decision-making ability in a positive manner. It is
analysed that because of effective behaviour associated with particular attitude and
characteristics help in developing prominent market area. Moreover, it is also analysed that
behavioural theory which company adopt help in determining as well as dealing with the
requirements and preferences of customers.
CONCLUSION
It can be summarized from the above made discussion that in hospitality brands it is necessary to
develop insights of customer behaviour so that there can be proper forecasting of future customer
demands and expectations. It leads to timely and proper formulation of strategies according to
changing customer expectations. It is necessary to map the purchasing path of customers so that
the way they are making decisions can be properly ascertain in the specified time period.
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REFERENCE
Books & Journal
Warnaby, G. and Shi, C., 2019. Changing customer behaviour: Changing retailer response? The
potential for pop-up retailing. Journal of Customer Behaviour, 18(1), pp.7-16.
Gejke, C., 2018. A new season in the risk landscape: Connecting the advancement in technology
with changes in customer behaviour to enhance the way risk is measured and
managed. Journal of Risk Management in Financial Institutions, 11(2), pp.148-155.
Borden, D.S., Coles, T. and Shaw, G., 2017. Social marketing, sustainable tourism, and
small/medium size tourism enterprises: challenges and opportunities for changing guest
behaviour. Journal of Sustainable Tourism, 25(7), pp.903-920.
Volgger, M. and Pfister, D. eds., 2019. Atmospheric turn in culture and tourism: place, design
and process impacts on customer behaviour, marketing and branding. Emerald Publishing
Limited.
De Mooij, M., 2019. Consumer behavior and culture: Consequences for global marketing and
advertising. SAGE Publications Limited.
Taufique, K.M.R. and Vaithianathan, S., 2018. A fresh look at understanding Green consumer
behavior among young urban Indian consumers through the lens of Theory of Planned
Behavior. Journal of cleaner production, 183, pp.46-55.
Shin, Y.H., and et. al., 2018. The theory of planned behavior and the norm activation model
approach to consumer behavior regarding organic menus. International Journal of
Hospitality Management, 69, pp.21-29.
Zhong, Q., and et. al., 2019. Using online reviews to explore consumer purchasing behaviour in
different cultural settings. Kybernetes.
Laroche, M. and Teng, L., 2019. Understanding the global consumer culture: Views from eastern
and western scholars, an introduction to the special issue. Journal of business
research, 103, pp.219-221.
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