Consumer Behavior and Decision-Making in the Tourism Industry Report

This report delves into the multifaceted realm of tourism consumer behavior, examining the various cultural, social, personal, and psychological factors that significantly influence consumer attitudes and choices within the hospitality sector, specifically using the InterContinental Hotels Group (IHG) as a case study. It explores the impact of digital technology on evolving consumer trends, highlighting how consumers now leverage online platforms for research, comparison, and decision-making. The report dissects the stages of the consumer decision-making journey, mapping the path to purchase for tourism services and underscoring the importance for marketers to understand and influence this process. Furthermore, it contrasts the decision-making processes in B2C and B2B contexts within the hospitality industry, using specific examples, and evaluates different market research methods for understanding consumer behavior. Finally, the report assesses how marketers can effectively influence the various stages of the consumer decision-making process to enhance customer satisfaction and drive business success. The report provides insights into the current trends of consumer behavior and how businesses can adapt to the changing market conditions.

Tourism Consumer
Behavior and Insight

Contents
INTRODUCTION.......................................................................................................................................4
TASK 1.......................................................................................................................................................4
P1: Investigate the different cultural, social, personal and psychological factors that influence consumer
behavior and attitudes with a tourism context..........................................................................................4
P2: Explore how consumer trends are changing due to the impact of digital technology........................5
TASK 2.......................................................................................................................................................6
P3: Examine the stages of the consumer decision making journey and map a path to the purchasing for
a given tourism service............................................................................................................................6
P4: Explore why it is important for marketers to map a path to purchase and understand consumer
decision-making in the tourism sector.....................................................................................................8
TASK 3.......................................................................................................................................................8
P5: Compare and contrast the key differences of the hospitality decision-making process in the context
of B2C and B2B using specific tourism examples...................................................................................8
P6 Evaluate the different approaches to market research and methods of research used for
understanding the decision making process.............................................................................................9
TASK 4.....................................................................................................................................................11
P7: Evaluation related to how marketers of company can influence different stages of decision making
process in tourism industry....................................................................................................................11
CONCLUSION.........................................................................................................................................12
REFERECES.............................................................................................................................................13

INTRODUCTION
Customer insight is basically the interpretation of customer behavior generated in form of
data as well as feedback derives out to develop the product and support favorable responses.
Effective study of the consumer behavior assists Tourism company to cater the wide response of
public and deliver them supreme level of services in form of accommodation, travelling,
availability of hotel, food and beverages (Basiony, 2014). For the better understanding of report
InterContinental hotels group has been selected which is the hospitality company of UK and
offer the diverse hotel and service facility for the convenience of customer. This report cover
topics like different factors which can influence the tourism customer behavior and insight.
Demonstrate the ability to map out a path to purchase in a tourism context and its affect on
decision making processes. Along with that evaluate different type of research that can influence
the decision making process of tourism company. Further, evaluate how the marketer can
influence different stages of tourism decisions making.
TASK 1
P1: Investigate the different cultural, social, personal and psychological factors that influence
consumer behavior and attitudes with a tourism context
The role of external factor directly as well as indirectly influences the activities
associated with the tourism company and leads to the evolution of business on the basis of
identification of future trend. It is vital to explore the external situation and take advantage of
opportunities in terms to enhance the efficiency and productivity of business. Explanations of
some factors that can affect tourism sector are listed down below:
Cultural and social factor: It includes cultural values, social environment, education
level, custom as well as tradition which are responsible to influence the attitude of people
towards tourism activities (Heavey, 2013). Tourism company whether it function in national or
international periphery needs to remained updated about the cultural values so that they can cater
better needs of the people. In term of the IHG Company collect insights about the potential
customer before expanding their business worldwide. Accordingly it offers different packages

and enmities like swimming pool, exercise corner and so on to positively affect the attitude and
behaviors of people towards tourism company.
Personal factor: It comprises of total number of population and their demographic
factors like age group, occupation as well as preferences which influence tourism activities and
highly structure quality of services. As mainly young and adults are the main customers of
tourism company ad they have different taste and preference. The tourism company designs
various packages like family trip, solo trip and package for spouse to cover diverse need
successfully. This appeal the interest of diverse category of people as which as builds favorable
attitude in terms to take the actions effectively.
Psychological factor: Psychological factor means dealing with human behavior as here
company needs to understand the perception, attitude and with that give their customers a
motivation so that they can opt for the package. Herein, IGH company connect within their
public emotionally and provide desirable experience like imposing discounts during offseason
due to which they can get positive feedback to build favorable publicity. Mentally connecting
with public consistently help tourism company to maintain everlasting relationship which help
them to gain more interested traveler from potential market.
P2: Explore how consumer trends are changing due to the impact of digital technology
Dependency on digital technology has increased a lot in modern era as customer has
become so used to it and it is spreading with the rapid speed all around the world. The Impact off
increased usage of digital tool and technology in terms of IHG tourism company are as follows:
 Nowadays customer likes to set their own benchmark as they have the option to make
comparison from various websites and they will go for one which suited their preference
and budget most. So IHG company needs to bring on their A game to convenience
customer through website and e mail to avail their service.
 With digital technology word of mouth or referral opinion is also comment to pictures. In
this digital technology these forms of publicity mean reviews of user and experts, ratings,
testimonials. To make a decision about product customer goes though the reviews and
then simultaneous decision are made for which product tor services they want to do to

(Huang, Chang and Chen, 2017). In relation to IHG company focus to build the favorable
response of customer due to which they get constructive feedback from customer.
 Digital technology has also encouraged customer to do experiments as nowadays
customers are willing to avail new dealings like if services or quality which company are
offering acts as a stimulus for stakeholders. As the customer can go through all the
aspects about the new offering, further then decision can be made that what they want to
avail the service or not (Ferrerand Medhekar, 2011). Herein, IHG company are putting
immense efforts in terms to make their website attractive so that services offered are
made more transparent to the public which may promote them to opt if they are looking
any trip or tour. Today’s customer don’t believe on the policy of sticking with one
product as lots of options flooding around them so they are ready to switch whenever
they are getting a better deal. Thus, it has become feasible to attract public by providing
with affordable and premium packages.
TASK 2
P3: Examine the stages of the consumer decision making journey and map a path to the
purchasing for a given tourism service
When customers are going to buy something new then it need to go through various
process which can help to make right business decisions. To take right action and decision there
is need to face various stages which help to people to buy products and services effectively. This
is main issue for people to buy products and services without their choices that make unhappy
and increases the conflicts. In context to IHG hotel, decisions are made by customers by
evaluating all processes that are as defined below:
Problem recognition: Most choice-making begins with some kind of issue. The
customer creates a need or a desire that they want to be fulfilled with. Sometime consumers feel
that something is missing and there is need to address to get back to feel normal (Heavey, 2013).
In other words, needs and wants are identified by customers and then evaluate the opportunities
accordingly. For instance, customer wants to book a hotel as they are going to visit the place in
London. So they are needed to get the good hotel where their wants will be complete.

Identifying needs / search process: This is the process of identifying the process and
various options to select the best one that helps to get the best decisions. In the quest process, we
are searching for goods or services that can meet or fulfil our needs. Social networks have been
primary response research tool. It's a fast and convenient way to find out what customers looking
for. For instance, customers identify the various hotels and services along with prices that help to
get the best option. Herein, customers get information regarding their needs and select best
services.
Evaluating alternatives: Different types of options are available to customers out of
them on need to select that helps to make right decisions. The customers who want to avail hotel
services evaluate varieties 0of options as they have and take an action regarding them. For
instance, people evaluate and compare IHG hotel services with other hotel then make a clear
judgement that helps to attain the right decisions. In this process, various processes are identified
by themselves which helps to take good decisions.
Pre purchase: This process is related with purchasing that means some activities should
be done by customers to make buying decisions. Sometime organisation gives trial and samples
to customers which help to make buying decisions. For selecting best hotel customers looking
towards reviews and experience of existing customers and get their perception which helps to
make right business decision.
Selection process: This refers as process which mainly used to select the best option
which helps to feel good and better. For instance, after comparing and evaluating various options
which they have and make right business decisions (Basiony, 2014). Such as customers feel
happy and satisfied by selecting IHG hotel by evaluating reviews and other options which helps
to make right business decisions and increase the experience level.
Post purchase: This is also important process which is used by customers after getting
products and services. In this, organisation provides facility to customers as they can share their
experience and feedback which helps to bring improvements and attracts customers more. Such
as customers who avail services gives their feedback and helps to improve the profits. The
manager of IHG hotel provides services by getting customer feedback.

Therefore, customers are making buying decisions according to such process which helps
to make right decisions by evaluating various options and opportunities that helps to increase
more experience level.
P4: Explore why it is important for marketers to map a path to purchase and understand
consumer decision-making in the tourism sector
Mapping a path means to identify the different ways and strategies to know the needs and
wants of customers so products and services should be provided to them accordingly. Marketers
are playing important role in travel and tourism sector as they identify what services are
expecting by customers and how they can be satisfied so they obtain services more in future
(Karimi and Naghibi, 2015). In context to IHG hotel, marketers are evaluating different ways
and option to know the wants of passengers which helps to bring hotel services accordingly and
maintain the profits. As customer pain points refer to the difficulties faced by customer while
availing particular services. So usually within hospitality sector the customer can face various
difficulties like access of complicated website, inadequate procedure to focus on the customer
feedback, late delivery of room services, untrained staff and so on. To overcome such and more
problems IHG constantly revise its procedure and accordingly promote training services which
are exclusively designed for existing and new staffs. Along with that the opinion of customers
and staff are discussed to bring out better revolution in the whole system appropriately. Thus, all
this process helps to reduce as well as address the possibility of customer pain points in order to
share desirable relationship with target market. There are different types of factors which can
affect marketers to make decision:
Marketing mix: Herein, marketers of IHG Hotel bring different element such as
services, price, place and promotional channel which helps to attracts customers and encourage
them to make buying decisions. The marketing mix of IHG company is listed down below:
Product: The manager of company makes immense practice in order to deliver the
unique product as well as services in order to satisfy the needs of customer. As it is a part of the
hospitality industry due to which product strategies are built on the basis of several factors like
quality, features, varieties, branding as well as augmented services.

Price: Pricing refers to the payments which customer needs to make in order to avail the
services of particular company. As Intercontinental hotel group comprises of lengthy chain due
to which it has effectively set both skimming as well as penetration price strategy. This helps to
attract the requirement of diverse customer and give tough competition to diverse competitors
functioning in different geographical area.
Place: In relation to Intercontinental hotel group the objective of company is to carry out
portfolio investment due to which the luxuries and supreme quality of hotels are effectively
located in major cities of both developed as well as developing countries. This helps company to
built global image and generates additional revenue successfully.
Promotion: Promotion is an advertisement technique that helps to built significant image
of brand in the mind of customers. The hotels extensively focuses in advertising the brand due to
which it sponsor various events, makes extensive use of digital media like website and email
marketing to attract the large customers significantly.
Physical evidence: It involves the physical infrastructure as well as environment of the
hotel that appeals the interest of customer and promote them to experience the services of these
luxurious hotels. The properties of Intercontinental hotel group are significantly designed as the
ambience plays a critical role in maintaining the quality of services.
Process: IGH is highly process-oriented due to which it has intensively managed the
functioning of luxurious hotels. It has successfully help the long chain of hotels to gain the
competitive advantage by carrying out detailed processes successfully.
People: People are considered as an important aspect of the marketing mix as they helps
to ultimately deliver the services to final customers. This has promoted the company to select
large pool of desirable personnel that successfully look after the need of customer. Along with
that job training is offered to the staff that helps to enhance the knowledge as well as existing
skills of people.
Heuristics factors: This factor is related to mental process of customers where marketers
of IHG hotel focus on customer’s behaviour and perception then offer hotel services resulting
clear judgement. It helps to increase the organisational productivity and profitability.

TASK 3
P5: Compare and contrast the key differences of the hospitality decision-making process in the
context of B2C and B2B using specific tourism examples.
Basis of difference B2C B2B
Meaning Here the sale is done to its
ultimate consumer.
If the sales of goods and services
is done between two business
entities.
Customer Person who is availing the
product or services like traveler in
tourism company
Company/Business
Decision making
process
In case of B2C the action will be
done relatively faster than B2B
because the research won’t last
for long as whatever services of
tourism customer are find attract
the target market will go for it
(FRENCH, 2014).
In B2B marketing company need
to focus on specific individual or
group of individuals. As B2B
will take significantly longer
time to make a decision. As their
will go through the site
thoroughly because it’s their own
tourism business and their need
to buy in bulk so the stakes are
little high.
Market size Market is potentially huge as it
focuses on individual, business
will look to provide services top
each potential individual around
the globe for them or their family
(Tsegaw, 2017).
Size of market is concentrated as
the customers are limited here
which are business entities
Focus To sell product to consumer Build relationship with other
companies

Contrast: Under IHG tourism company focus is given on both sides that is B2B and B2C
as the sole motive is to increase customer size which can be both individual and dealing with
other business entity. Company laid down their proposal while keeping both B2B and B2C in
mind. By B2B company will get few demands but of higher values and on other side that is B2C
tourism company sell multiple demands that is of lower values.
P6 Evaluate the different approaches to market research and methods of research used for
understanding the decision making process
Market research is very essential so that collection of facts and statistic can be done about
the customer, employee and competitors of company. Based on this figures or data company can
make better managerial decisions. The report is prepared with this statistic and management team
use the same report to take valid actions. Research is an essential part of a curriculum if a
company want to stay in the competitive market. There are two approaches and methods of
research that are listed below in context to tourism company:
Qualitative approach: It refers to research which apply to a range of qualitative methods
so that inductive exploration can be done and interpretation of the case can be done to understand
a given field understudy. In case of tourism sector qualitative research means knowing cultural
and social behaviors of public. The motive is to collect the information, material so that it can
become subject to interpretation. There are various methods of qualitative research amongst
them IHG company have successfully adopt interview and observational method to conduct B2B
and B2C business successfully. Under interview method randomly one respondent is taken at a
time and purely conversation is done so that company can get details from the respondent. By
this method company can gather precise data about the believe of people and what are the source
of motivation. Like questions will result in generating meaningful data. Along with that the
representatives of company can go through the interview and if any scope of improvement is
identified company can work on it. Further, within observation method the internal
representative of company like travel agent indentify the experience of customer and if any
deviation is found company works on its to overcome it, observation is made to carry out better
B2B and B2C business.
Quantitative approach: This research is defined as a systematic investigation or a
process of collecting quantifiable data and performing statistical, mathematical or computational

techniques. Different type of quantitative research includes survey and questionnaire method.
Survey research uses interviews, questionnaires and sampling pools to get a sense of behavior
with intense decision. There are several ways used by IHG company to conduct survey research,
it can be done in person, over the phone, through email. On other side, under questionnaire
methods list of question is prepared by the company in a sequential manner. Here the
respondents are selected on the basis of random sampling methods where respondent are selected
randomly to avoid the chances of biasness (Wales and et. al., 2015.). Along with that sample size
is selected that is the population of respondent amongst whom the data is generated. Collective
data helps in analyzing the response of the majority of the customer based in which amendment
are made to deliver viable services. Therefore, application of quantitive research assists both
B2B and B2C clients to deliver the favorable amount of services effectively.
TASK 4
P7: Evaluation related to how marketers of company can influence different stages of decision
making process in tourism industry.
In present era, tourism marketers makes huge efforts to influence decision making on
consumers in all the stages through which audiences passes to make final determination. In
context to InterContinenetal Hotel, followings are the ways in which huge attempts are made by
marketing team to influence distinct stages that are involved in decision making process of
tourism consumers:
Problem recognition: In this stage, a marketer helps consumers to indentify a problem in
form of need or want. Hereby, it is responsibility of organizational marketer to provide complete
information about the product or service. For example, marketers of InterContinenetal Hotel
provide new and detailed information about some tourism package that influence customers to
proceed towards further stage after recognising problem.
Information search: In this stage, consumers searches suitable information which is useful
to make buying decision. The marketers provide them the required information that acts useful in
solving problem. For example, marketers of InterContinenetal Hotel are interested in offering