Analysis of Consumer Behaviour in the Tourism Industry: Trailfinders

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This report examines consumer behavior within the tourism industry, using Trailfinders as a case study. It investigates the influence of social, cultural, personal, and psychological factors on consumer attitudes and behaviors. The report analyzes how digital technology is reshaping consumer trends and explores the stages of the consumer decision-making process, emphasizing its importance for marketers. It further delves into market research methods used to understand consumer decision-making, compares B2B and B2C hospitality decision processes, and evaluates how marketers can influence consumer decisions. The report also assesses the application of theories, concepts, and models impacting tourism decision-making, providing a comprehensive overview of the topic.
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TOURISM
CONSUMER
BEHAVIOUR AND
INSIGHT
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Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
TASK 1 ...........................................................................................................................................4
P1) Investigate the different social, cultural, personal & psychological factors that impact
consumer behaviour & attitudes with a tourism context .......................................................4
P2) Define how user trends are altered due to influence of digital technology.....................5
M1 Assess how cultural, social, personal as well as psychological factors that increase direct
effect on consumer behaviour and attitude are changing and driving trends within tourism
sector. .....................................................................................................................................6
P3 Determining stages to purchase and understand decisions making journey of consumers in
tourism sector.........................................................................................................................6
P4 Importance of mapping consumer path of purchase and understand their decision making
process in tourism industry.....................................................................................................7
M2 Evaluation of how marketers are responding to customer purchase decisions processes
with example in travel industry..............................................................................................8
TASK 3...................................................................................................................................9
P5 Compare and contrast among hospitality decision processes based on key differences in
relation with example of B2B & B2C commerce..................................................................9
P6 Various methods of market research and its approaches for understanding procedure of
consumer decision making...................................................................................................10
M3 Evaluation of different factors impacting consumer behaviour and their decisions for
purchasing.............................................................................................................................11
Task 4.............................................................................................................................................11
P7 Evaluate influence of marketers towards different stages of consumer decision making
with relevant examples.........................................................................................................11
M4) Evaluate how marketers can influence stages of decision making process in context with
applied methods and models................................................................................................12
D2 Evaluate the application of theories, concepts and models which influence and impact the
procedure of tourism decision making.................................................................................12
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CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Consumer behaviour is termed as the study of individuals, groups, organisation and other
activities related with buying, use as well as disposal of products as well as services. Along with
this, consumer behaviour within the tourism industry consist of wide scope that is visitors
attraction, tourist destination, tour operations and so on. For the present report, Trailfinders is
chosen as a base company. It is a British travel company in Ireland and United Kingdom. The
company was founded in year 1970 and is offered wide range of services in tourism sector. The
report will cover different social, cultural, personal and psychological factors which impact on
consumer attitude and behaviour. Along with this, there is a discussion about how consumer
trends are changing due to digital technology. Moreover, stages of consumer decision making
process along with its importance for marketers is described in the report. Furthermore, various
approaches to market research used for understanding decision making process is elaborated in
the report.
MAIN BODY
TASK 1
P1) Investigate the different social, cultural, personal & psychological factors that impact
consumer behaviour & attitudes with a tourism context
It is determined that there are different factors that influence on the consumer behaviour
as well as their attitude in an effective manner. This factors are persona, social, psychological
and cultural factors that has direct influence in both positive and negative manner. The factors is
given below in context to Trail finders:
Cultural factor: It involve aspects such as attitude, norms, beliefs, values as well as
ideologies of an individual. In addition to this, it is analysed that such factors are different as per
the perception of others (Tung and Law, 2017). For example, the people of UK prefer to make
use of advanced and innovative technology and for this, it is important for respective
organisation to focus on using new technologies that help in attaining competitive edge at
marketplace.
Psychological factor: It involve learning and experience, individualistic perceptions,
motivation and so on. With reference to make improvements, it is important for an organisation
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to conduct market research as it assist in gaining insight about customer choices and taste which
assist in taking effective decision for both company and customer as well.
Social factor: It consist of aspects such as educational level, demographics, income level
and many more. In addition to this, it is determined that such factors brings an obligation on the
management of organisation (Su, Huang and Hsu, 2018). For instance, people in UK prefer to
visit laces that is adventurous but people in India prefer to travel at religious places. So, it is
important for company to focus on developing those strategies which consider all such factors in
an effective manner.
P2) Define how user trends are altered due to influence of digital technology
In current environment of organisation, consumers or user focus is on taking decisions as
per prevailing trend within market place during particular phase of time period. In addition to
this, the technology must be transformed that help in implementing different activity within
organisation and also provide allowance to them to reach on broad range that imposes positive
effect on growth as well as sources of business organisation. For this process, it is necessary to
assess trends that impose direct effect on operation as well as digital technology over
performance of Trail finder that is going to be mentioned below:
Change in behaviour of user: it is assess that digital technology is determined as a most
appropriate for consumer in order to make or provide online payment as well as booking in better
way. In addition to this, it also offers the ability to user to make sure that their booking must be
confirmed that improve trust in respect of particular brand (Su, Hsu and Boostrom,2020). It is
also helpful in increasing brand image and reputation of company in front of customer at
marketplace. It will aids assistance in increasing sales and profit margin in future period of time.
Therefore, the management team of chosen company focuses on providing effective services to
its user according to their need that helps in enhancing loyalty or trust of user in front of them at
marketplace.
Technology explosion: In current business environment, the user focuses on adopting
comfort by using different kind of application as well as website and smart phones. In addition to
this, by considering mobile application related to Trail finder that allow organisation to provide
benefit or advantage to user in order to offer convenience in their booking during particular
phase of time period.
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Improve expectation of buyer : Digital technology focuses on implementing operation
and function of organisation by offering online platform that is effective as well as they provides
quality as well as quick service to its clients. Therefore, the management team of chosen
organisation focuses on entering into online market and improve on application for offering best
services as well as facility to its user at global level. Hence, it is important to assess need and
wants of user in order to fulfil their need and wants that helps in increasing sales and profit
margin in future period of time.
M1 Assess how cultural, social, personal as well as psychological factors that increase direct
effect on consumer behaviour and attitude are changing and driving trends within tourism sector.
It is assessing that above given element imposes direct effect on administration as well as
planning related to tours that is implemented by Trail finder (Walters, Wallin and Hartley, 2019).
In assistance of this, it is considered that the chosen organisation determine element for new
places that assists in fulfilling need as well as want of user in proper way. It is also helpful in
retaining user for a longer period of time.
P3 Determining stages to purchase and understand decisions making journey of consumers in
tourism sector
Consumer decisions mainly depend on their perspective towards product or service
offered by company. Hereby , before purchasing any commodity from market it is important for
organisation to develop effective strategies for fulfilling customer demand and preferences.
There are multiple stages involved in decision making process of customers mentioned in
following:
Brand awareness:This is first step where customer start researching about product brand
or service provided by organisation. Also they relate all details of it to know whether particular
commodity or service is fulfilling their basic requirement need or not (Strandberg and et.
al.,2018).
Information research: In this stage, consumer does detailed analysis on various
alternative options they have in market other than preferred product. This help them gather
information about various company offering with respect to substitute goods or services.
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Evaluating alternative options: After getting proper knowledge about availability of
various chosen goods or service in industry, buyers compare alternative goods with one another
based on their quality of service, value preposition and total price etc.
Final purchase: This step consist of final selection of commodity or service that
consumer decide to buy for fulfilment of their satisfaction from product.
Evaluating post purchase of product: After successful delivery of product and its
consumption, consumer evaluate quality or satisfaction level derived from particular service in
terms of its quality, efficacy, packaging, etc.
Customer feedback: This step help customer give honest review about how was their
experience after using particular product or service. In context with Trail finders, this step help
managers know if their product service was delivered according to requirement of consumer or
not. This help chosen firm improve their standard of performance and increase level of
productivity.
P4 Importance of mapping consumer path of purchase and understand their decision making
process in tourism industry
Perception of consumers towards company product or service is very important to know
their journey of purchase decision making. There are many importances of mapping purchase
path of consumers discussed below in following:
Importance of marketers path mapping for consumers
Path mapping of customer purchases help marketers identify actual demand for their
service of products. Also it help them determine various challenges faced by customers before
and after purchasing particular commodity or service. In relation with Travel-finders have come
up with various levels of path mapping as well as problem solving for consumer buying:
Extensive resolving of customer problems: This step is to identify actual need of
customer as they are completely unaware of product offerings by chosen firm. In relation with
trail finders, marketers hear to consumer problems and help them come to a conclusion of buying
particular product (Soldatenko and Backer,2019). Since buyers in this initial stage take a lot of
time to purchase product or avail service, it takes extensive efforts of marketer to resolve
consumer issues.
Limited resolution to customer challenges: In this stage of decision making , consumers
are half aware about product or service offerings. Since buyers have little knowledge about
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company product , they try to find out various ways such as comparison of two or more products
to select best option for them to purchase. In relation to Trail Finders, marketers segment their
consumer based on various offerings from product that includes its quality, price, service etc.
Marketers educate their potential customers based on their requirement for retaining them in long
run.
Consistent routine problem solving: This is final step of path mapping by marketers in
which consumers are well aware about company product or service. These potential buyers are
retained by Trail-finders by consistently providing various attractive deals and after-sale services
for maintaining strong relation with customers.
Importance of buyers decision making process for marketers
Consumer decision making play a major role in marketing operations of an organisation.
Marketers are able to identify actual need of consumer based on their decision and retain them
for long period by actively solving their queries.
Increase in profit sales: Customers in tourism sector help marketers with enhancing their
profitability as their decisions help them create better plans for future. In context with trail
finders, managers have assigned tour operators to effectively help customers in decision making
process before availing service or buying any product (Smit and Melissen, 2018).
Customer base maximisation: Organisations have been successful in widening their
customer base by solving their decision making problems. In relation with trail-finders, loyalty
towards company services as well as raising their satisfaction level have been an effective tool
for chosen firm in retaining potential and current employees.
M2 Evaluation of how marketers are responding to customer purchase decisions processes with
example in travel industry
There are various strategies adopted by trail-finders to analyse consumer requirement for
a product. The above importances consist of different form of problem solving techniques used
by marketers of chosen firm to help their consumers take appropriate decision and increase sales.
The analysis is done on basis of different customer perspective about particular brand. In order to
know what exactly consumer want from a product or service, trail finders have supported
consumers in making good decisions through extensive, limited and routine problem solving
techniques.
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TASK 3
P5 Compare and contrast among hospitality decision processes based on key differences in
relation with example of B2B & B2C commerce
Processes of consumer
decision making
B2C B2B
Consumer need analysis Buyers aim at identifying their
actual need with respect to any
product or service. Travel
finders main purpose is to
establish their brad image by
systematic study of consumer
needs and behaviour for
decision making procedure.
Companies lay emphasis on
analysing purchase process of
consumers for effective
achievement of business
objectives.
Comparing alternatives After identifying what
consumer actually wants, they
compare products with others
in market on basis of their
quality and price (Nusair, Butt
and Nikhashemi, 2019).
In relation with trail-finders,
manager compare various
suppliers base don their
product cost, quality, budget
and service offerings etc.
Choosing from alternative
options
Customer choose best suitable
product or service from
various alternatives available
in market. In relation with trail
finders, it is important for
consumer to know all details
of tour plans offered by
company to select appropriate
one form various options.
Organisation choose most
appropriate supplier providing
them with good facilities and
products for sale in
marketplace. Managers of
chosen firm does proper
analysis on bargaining power
of suppliers & substitutes
available in market to get
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resources with excellent
quality and minimum cost
expenditure.
Outcome analysis Here buyer does detail analysis
on weather their expectations
were met by product or not as
per product ordered or bought.
During this phase,
organisation face different
challenges with regards to
proper communication with
supplier.
P6 Various methods of market research and its approaches for understanding procedure of
consumer decision making
Research is conducted on basis of data collection that consist of both primary and
secondary data (Moutinho and Vargas-Sanchez,2018). In context of Trail finders, thee are
various form of market research tools used by marketers such as questionnaires, online surveys,
direct consumer observation and buyers experience etc. In addition with various decision making
processes of consumers ,there are many approaches used by marketers discussed below:
Economic model: Organisations use this model approach to differentiate customers on
bases of various market segments. These sections are created based on factors such as area of
interest, income of individual, capacity to buy and availability of substitute goods preferred by
them. In relation with trail finders, marketers here does critical analysis of real life situations that
affect consumer behaviour economically.
Passive model: This model classify various ways in which organisation can regulate
purchasing behaviour of buyers. Some of these practices are income analysis, advertisements,
promotions and social media campaigns etc. For creating good promotional plans trail finders
have used this method in studying different behaviour of consumers. Based on buyers behaviour,
attractive promotional themes are organized by chosen firm to provide value to potential people
wanting to purchase their product resulting in brand strengthening.
Factors impacting consumer behaviour and their decision making
Income: Earning of an individual help organisation decide buyers capacity to purchase a
product. In relation with trail finders, marketers influence visitors in making good decisions by
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analysing their income budget. Selected firm offers different packages to travellers or tourists
visiting their hotel affordable for them to avail at reasonable prices rates.
Needs or want: This is an important factor to influence maximum customer base by
determining their area of interest. In relation with trail finders, it as been observed that many
consumers follow their passion or interest for particular brand that help them become
extravagant in maximum spending (Jackson, 2019). Therefore it becomes easy for seller to
convince or influence consumers during decision making procedures and simultaneously develop
positive mindset for specific brands.
M3 Evaluation of different factors impacting consumer behaviour and their decisions for
purchasing
There are multiple factors that affect decision making processes as per customer
behaviour or perception towards particular product brand. These factors are identified based on
different requirement, needs or want of consumers. Therefore, trail finders have used these
factors to know all those potential people who are willing to invest in a vacation or planning of a
tour. Organisation use digital platforms as well as social media to showcase different offerings,
discounting vouchers for tour packages, event coupons etc. to create a positive atmosphere in
consumer decision making process.
Task 4
P7 Evaluate influence of marketers towards different stages of consumer decision making with
relevant examples
Impact of marketer on various stages of consumer decision making process is high in
today times. Some of these determinants that describe marketers impact on customer perception
are discussed below:
Promotional amenities: Many visitors are travellers who have complete awareness about
hotel facilities (Huang,2021). These people generally prefer quality over price of packages that
includes various factors. In context of trail finders, marketers have observed that after sale
services, cleanliness of rooms, gesture of hotel staff etc. are some of factors that travellers
expect.
Behavioural theory: This theory defines study of individual personality based on their
characteristic traits. Categories under which maximum behaviour of individuals in market are
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differentiated into trustful, pessimistic, optimistic and envious consumers. Visitors at trail finders
visit hotel from different places, regions and come from different background. Organisation train
their staff members in such a manner that customer needs are fulfilled within no time helping
them decide what they want.
Cognitive knowledge theory: This theory provide a clear understanding about various
decision making procedures adopted by consumers within tourism industry. Based on various
personality of guests at selected hotel experience, marketer create log term plans or strategies
helping them create demand in market place (Dimitrovski and et. al., 2021). In this modern era of
technology, marketers use various software to track record of customer details, visitor reviews,
employee daily performances etc.
M4) Evaluate how marketers can influence stages of decision making process in context with
applied methods and models
Need recognition:- It is been determined that all marketers have to deal with a gain
insight in context with needs and wants of consumers.
Searching and collecting information:- All kind of necessary information is been
collected with the help of feedbacks as well as questionnaires.
Evaluating alternatives:- Every organisation has to make some kind of strategies
through which alternatives are analysed and is required during management of tour planning.
Purchasing product:- Organisations provides customers with the best possible services
and products and by attracting them they achieve their overall goals (Bruwer and Rueger-Muck,
2019).
Post purchase evaluation:- This is the last stage which involve feedbacks from
customers and according to those reviews and feedbacks companies improve and built up better
customer experience.
D2 Evaluate the application of theories, concepts and models which influence and impact the
procedure of tourism decision making
It is analysed that decision making is directly affected by behavioural theory due to which
it also affects tourism industries. It is necessary for organisations to enhance relationship on a
continuous basis as it will help them to establish a positive and effective behaviour in their
mindset sue to which their brand image and reputation also gets increased.
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