MGBBT0UCT: Analyzing Consumer Behavior in the Tourism Industry

This report provides an analysis of consumer behavior within the tourism industry, highlighting the significance of understanding customer needs and wants for business success. It explores both micro and macro environmental factors that influence consumer decisions, such as psychological, social, economic, and cultural aspects. The impact of events like the COVID-19 pandemic on consumer perceptions and buying patterns is also discussed, emphasizing the need for businesses to adapt their strategies to address health and safety concerns. The report references real-world examples of tourism companies affected by these factors and concludes with the importance of continuous monitoring and adaptation to changing consumer behavior for sustained business growth and profitability. Desklib provides a platform to access similar solved assignments and past papers for students.

MGBBT0UCT
Understanding
Customers
B75215

INTRODUCTION
Customers can be defined as an individual who consume the products or services which
are produced by the business organisations. The various business enterprises produce the
products to satisfy the customers needs and wants. Customers are persons known as the
purchaser who basically purchase the products and exist as a buyer within the economy.
Consumer either be an individual or group of people who can purchase the product only for
consumption not for resale. So, the behaviour of the customers is very dynamic in nature due to
which it is important aspect for the business organisation to understand its customers.
Understanding consumer behaviour is the fundamental aspect of the business. It reflects the
study of how customers make purchase decision about what they purchase, need, want and act in
context to a service, product or organisation. If an business organization fails to understand its
customers and the buying pattern of customer or their reactions towards a product then there will
be a high chance of product failure(Piccialli and Jung, 2017). This report will included the
micro and macro aspect of understanding customers with using appropriate theories and example
ir relation to tourism industry.
TASK
Consumer behaviour refers to the understanding of persons, groups and companies and
all the activities which are linked with the shop, consumer and disposal of product and services.
It is all about understanding how the customer's attitudes, taste and preferences, and emotions
affect the buying pattern of customer. It is considered as an important aspect for the marketers to
understand its customers. This act as a key for the marketer which help them in identifying and
understanding the behaviour of purchasing pattern for the product by the consumer. With the
help of this the business enterprise is able to produce the products and services according to the
need and demand of an individual or group of persons. Consumer behaviour is not just about
attracting new customers but also about the retention of existing customers. When a consumer is
satisfy and happy for a specific product then he or she will definitely repeat the good. Hence,
advertisements should be done in such a manner that should convince the consumer to purchase
the product on regular basis. Consumer behaviour also deals with the prediction of market trend.
For example , the covid- 19 has impacted he economy and the perceptions of the consumers in a
different way. The first priority has been now heath and hygiene factor for every individual .

This has a huge impact on the tourism sector. These trends must be observed and analysed by the
marketers including tourism companies. So that they can better understand their consumer and
their buying behaviour. Understanding consumer behaviour is also fundamental to know the
answers of few questions such as “ is the consumer purchase products from the rivalries?, why
the customer is moving towards competitors?, what features attracts the customer to buy from
the rivalry product and many more. It is also important for the company to stay relevant in the
target market. They must analyse the rapid changes of the consumer behaviour. Also, consumer
behaviour affects by the various levels of customer service, understanding the variations will
facilitate the most appropriate service for the personal requirements(Dhisasmito and Kumar,
2020).
There are basically two aspects of understanding the customer behaviour such as micro
and macro aspects. Both of these factor are not in the control of marketer but at the same time of
decision making or producing the it is fundamental to understand the changing behaviour of
consumer to know about the wants and needs of customer as well as to understand how they are
responding to the new or innovative product and services. There are two aspects of consumer
behaviour that are micro and macro. For the businesses in any sector, it is quite essential to have
a knowledge of these factors.(Ali, and et.al., 2018). Both micro and macro environmental
aspects have a fundamental affect on the success of the marketing activities. It is important for
the strategic marketer to go through these factors in order to make an effective decision-making.
Therefore, by considering customer psychology and the forces behind the changing pattern of
purchasing, the organisations can develop new products and services, marketing campaigns and
boost the profitability of the business. Considering these aspects can increase the success rates of
marketing campaigns for any business and enhance the brand reputation for a longer period of
time. strategic market plan these factor directly impact the marketer and the business
organisations. Macro environment factor are basically those factor which affects the company
from outside and not in the control of the company where micro environment factor are those
factor which present within the company. Macro factor includes like political, social, economical
etc. whereas micro factor includes customer, suppliers, stakeholder and may more.(Rouquet,
Goudarzi and Henriquez, 2017).
The micro environment signifies various aspects such as psychological factors of
consumer that how they think, reason, feel and choose the product or services between various

substitutes (brands, goods and merchandisers). It can be also influenced by background of
consumer which involves family, culture, media and signs. It often includes the behaviour of
consumer while purchasing or making or making other decisions regarding marketing. The
Personal Variables model,when a customer gets influenced by this model the buying decisions
are based upon the internal factors which may include traditions, beliefs, goals, systems, personal
opinions or may other factor that motivates the buying decisions(Barari, Ross and
Surachartkumtonkun, 2020).
The Macro aspects of the consumer behaviour includes factors such as social factors that
has a momentous affect on the consumer behaviour in social traits. Social factor influencers are
the key aspect that can consist social interaction, person's family, school or work communities
and any group of individuals affiliates with. It may involve income, social class, education level,
living conditions. These factors are quite diverse and can be sensitive to analyse the when build
plans for marketing. Cultural aspect is also affecting the consumer behaviour which consists
preferences, tastes, values, behaviour and perceptions of society. Companies also needs to
acknowledge the cultural aspects of the consumer in order to make decision-making related with
marketing. Many companies fails to understand this aspect of tourist which may lead to different
cultural barriers. Black-Box Model, is based upon the outer stimulus responses that means that a
point triggers in the minds of consumer to make purchase decisions which is affected by various
factors such as marketing message, sampling, promotions and many more(Roy, and et.al.,
2017).
In relation t the tourism sector, the organisations dealing in the tourism industry has faced
very big challenge due t the pandemic. The business that are based on the travelling and the
hospitality has been shut down which has impacted and bear the loss to such organisations. Also
if it is identified and observed there is change in the perceptions of an individual after the covid
impact because now people are looking for the health factor at the top most priority. From this
point the businesses also now have to look for the heath and safety measures for its customers.
The many destinations where people use to travel for their vacations have been affected due to
the both micro and macro aspects which is beyond the control of the organisations. Industries
such as Ultimate travel Company, London Travel agency, Expat Export travel LTD and many
more companies is directly being affected by both the factor. The buying pattern of the consumer
is directly affect the working as well as the sales of these companies. The purchase decision of

the consumer directly reflects on the sales, stability, growth and profit of an organisation. The
covid– 19 has impacted the travel industry in a very poor condition. But now as if the situation is
been normal and there is change in the government guidelines, the places are bee4n visited but
still there is the fear in the minds of the customers about their health. The companies needs to
regulate their strategies and make believe that they are contributing and taking the safety
measures for their customers. Also the impact have created on the prices which need to be
modified by the business organisation. Many people have lost their jobs in the pandemic which
has affected in the spending of the consumers and purchasing the products or services(Ou, and
et.al., 2020).
CONCLUSION
From the above report it is concluded that it is very important for the marketer and the
business organisation is understand its customers. The behaviour and the purchase pattern affects
the business enterprise and its products and services. it is fundamental to understand the
changing behaviour of consumer to know about the wants and needs of customer as well as to
understand how they are responding to the new or innovative product and services. There are two
aspects of consumer behaviour that are micro and macro. For the businesses in any sector, it is
quite essential to have a knowledge of these factors. Both micro and macro environmental
aspects have a fundamental affect on the success of the marketing activities. It is important for
the strategic marketer to go through these factors in order to make an effective decision-making.
Therefore, by considering customer psychology and the forces behind the changing pattern of
purchasing, the organisations can develop new products and services, marketing campaigns and
boost the profitability of the business. Considering these aspects can increase the success rates of
marketing campaigns for any business and enhance the brand reputation for a longer period of
time.

REFERENCES
Books and Journals
Ali, T., and et.al., 2018, November. Understanding customer experiences through social
media analysis of three giants of soft drink industry. In 2018 5th International
Conference on Behavioral, Economic, and Socio-Cultural Computing
(BESC) (pp. 216-224). IEEE.
Barari, M., Ross, M. and Surachartkumtonkun, J., 2020. Negative and positive customer
shopping experience in an online context. Journal of Retailing and Consumer
Services, 53, p.101985.
Dhisasmito, P.P. and Kumar, S., 2020. Understanding customer loyalty in the coffee
shop industry (A survey in Jakarta, Indonesia). British Food Journal.
Ou, J., and et.al., 2020. Customer engagement and its outcomes: the cross-level effect
of service environment and brand equity. Journal of Hospitality & Tourism
Research. 44(2). pp.377-402.
Piccialli, F. and Jung, J.E., 2017. Understanding customer experience diffusion on social
networking services by big data analytics. Mobile Networks and Applications.
22(4). pp.605-612.
Rouquet, A., Goudarzi, K. and Henriquez, T., 2017. The company-customer transfer of
logistics activities. International Journal of Operations & Production
Management.
Roy, S.K., and et.al., 2017. Constituents and consequences of smart customer
experience in retailing. Technological Forecasting and Social Change, 124,
pp.257-270.