Consumer Behavior in Tourism: Application of Key Theories

This essay delves into understanding consumer behavior within the context of tourism theory, emphasizing the significance of customer relationship management (CRM) for business success. It explores both micro and macro aspects of consumer behavior, highlighting the importance of analyzing external environmental factors, social aspects, and individual consumer traits. The essay discusses the application of consumer behavior theory in business, focusing on enhancing customer satisfaction and achieving sustainable growth through effective marketing and resource allocation. It also touches on the role of technology, ethical practices, and continuous feedback in shaping consumer behavior strategies. The ultimate goal is to provide a comprehensive understanding of how businesses can leverage consumer behavior insights to gain a competitive edge and ensure long-term success.

Understanding customers

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
ESSAY.............................................................................................................................................4
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In a business organisation it is important to understand the behaviour of customers as well as
employees in order to gain success at the marketplace (Fasi, 2017). Company should keep a
precise focus on developing effective functions related to customer relationship management to
increase their satisfaction. A business must also consider an effective approach in order to
understand the consumer behaviour in both micro and macro aspect. This project contains an
essay on understanding consumer behaviour in tourism theory. In this project different theories
and their application in developing understanding consumer behaviour.

MAIN BODY
ESSAY
The consumer behaviour is considered as trends and perceptions of the customers in order to
gain market development in a set period of time. It is very much important for a company to
keep focus on maintain regular relationship with the customers for overall development. In the
corporate world, it is major responsibility of a business to develop assessment and evaluation to
understand overall development of organisation in set period of time. The business organisations
at the marketplace hire a separate team for understanding consumer behaviour in order to seek
their attention. It is essential for a business entity to deploy effective technology that is helpful in
various operations related to maintaining customers. The macro aspect of consumer covers
external environment related to factors that are long term success of the company. It is
compulsory for a company, to develop a precise business strategy that is helpful in gaining
attention of customers (Gbadamosi, 2017). It is also major responsibility and top level
management of the company to understand and analyse external environment related factors.
Companies in international and national marketplace, mainly focus on social aspects in order to
understand society and its system in a systematic approach. It is major role of a company to
analyse the living standard of the society in order to understand needs and preferences of the
customers. A business firm should analyse all practical aspects of consumer behaviour for
company’s success. The macro aspect also covers understanding beliefs and wants of the
customers in order to establish ethical business.
In the recent times, it is very much crucial for the management of a company to focus on
development of customer behaviour’s macro aspects. This approach and its effectiveness help
the business to overcome various challenges that arise in the international marketplace. Business
organisation should include all the major factors in order to calculate the impact of micro
environment. The micro environment of a company should be present in company to analyse
different consumers on the basis of traits and characteristics. The business entity should keep a
focus on all the components in understanding consumer behaviour for business development.
Many different companies covers micro environment of customers in order to understand all the
prediction about developing consumer relationship (Gupta, 2018). Micro aspect of consumer
behaviour includes business development as the key priority by taking feedback towards the

customers. It is major responsibility of a business to focus on micro aspect of customer
relationship in order to gain expansion and growth at the marketplace. The micro aspect of
consumer behaviour also includes personality of consumer in order to understanding their
buyer’s trends (Parisi, 2020). The social trends which are present in the natural environment of a
company should be developed as micro aspect in order to gain competitive advantage. Different
customers have separate buying trends and preferences in order to gain desired growth. The
business organisation should also focus on achievement of short term objectives related to
consumer growth in order to increase stability (Pramanik, 2021). Companies should also focus
on understanding behaviour of different customers in order to lead the marketplace. The internal
environment or work place management of a company should be competent enough to handle all
the major factors. Companies in recent times take help of strategic management in order to grow
with major expansion and development.
Consumer behaviour theory and its application in the business world is compulsory for
serving customers with professionalism. Consumer behaviour theory is helpful in delivering
effective practices related to handling customers with topmost priority. This supports a business
to serve customers with world class standards in order to seek competency edge. The business
organisations like Tesco and Marks and Spencer should include different parameters of CRM
development in order to seek attention of the customers. Consumer theory is also related to
understanding customers need using professional approach in order to gain the market share.
This whole process in a business to increase potential of customer for sustainable growth of
business. The sustainability of a business majorly helps it to overcome various challenges and
issues in a set period of time. In the retail industry, there is a major efforts developed by all
levels of management to allocate resources. The marketing management of a company should
also understand key trends of customer relationship management in order to use this approach
effectively (Rehman, 2017). The business entity in the marketplace is using the assistance of all
employees in a decision making for sustainable growth of company. Companies should also
focus on giving a brief emphasis on CRM management for the achievement of desired goals and
objectives. Also the company should include all aspects of maintaining effective relationship
with customers to gain marketing related goals. Also in the marketplace, there are various
companies which use advanced computer systems and software to develop all the resources in a
dominant manner. The business organisations in the corporate world can incur investment on

increasing the competitive strength of company. It is also majorly important for the business
entity to focus on all factors that are present in external and internal environment to gain desired
growth. Companies should also focus on developing group and individual identity in order to
achieve customer attention.
The customer satisfaction increasing in an effective manner is the major priority of every
company. In the era of stiff competition between different companies, it is crucial for the
company to take into consideration implementation of proper plan. The technical and non-
technical issues which are handled by top level management of a company are helpful in long
term growth. Also the business organisations keep an eye on developing customer relationship
management for the desired success of business. In order to plan strategically for the customer
relationship management, it is topmost priority of a business to maintain database of customers.
The big data technology is used by a company to analyse data related to general and target for
the customers in order to lead competitive market. The companies should also focus on
developing effective supervision and control on decision making for business growth. It is very
much essential for a company to increase customer satisfaction by maintaining overall business
development. In order to increase parameters of CRM, it is major responsibility of a company to
hire skilled and trained personnel in the IT management. Also the business will take into
consideration deployment of effective manpower in order to gain market share. Business entity
should frame an action plan for a set period of time in order to gain marketing objects. At the
starting of the financial year (Zander, 2018), it is important for the company to analyse all the
techniques and tools of CRM for desired success. The companies should mainly evaluate
universally adopted models and theories for systematic development in a set period of time. The
risk management for the customers and maintaining quality in products and services for
company’s benefit. Board of directors of a company should follow ethical and sustainable
practices for systematic and long term business development practices. It is also the main
responsibility of marketing management to formulate and develop an effective survey for all
round development. The consumer behaviour development is the major priority of a company to
deliver sustainable practices that are helpful for future generations. The companies should
regularly take feedback from different customers in order to develop desired modifications in the
product or service. Companies in global market focus on developing an effective business plan
which contains welfare and development of the customers. In the corporate world the trend of

serving customers with effective services including various customer welfare and development.
Main priority of all business entities is to identify target customers, then develop effective
approach and strategy to maintain healthy relationship with customers.

CONCLUSION
From the above discussion it can be concluded that it is important for the company to
develop brief understanding consumer behaviour. In the long run of a company, it is very much
crucial for the business to establish CRM using customer relationship management related
software. Also in the functioning of a company, it is major responsibility of HR manager to focus
on developing CRM. Human resource management of the company is responsible for developing
effective consumer behaviour by maintaining customer development. This project concludes the
role played by consumer behaviour in supporting business development by increasing sales.

REFERENCES
Books and Journals
Fasi, M., 2017. A Conceptual Understanding of Consumer Behaviour. Sankalpa, 7(2), pp.45-53.
Fujak, H., Frawley, S.. and Adair, D., 2020. Consumer behaviour toward a new league and
teams: television audiences as a measure of market acceptance. European Sport Management
Quarterly, pp.1-21.
Gbadamosi, A., 2017. The changing landscape of young consumer behaviour. In Young
Consumer Behaviour (pp. 3-22). Routledge.
Gupta, S. and Verma, H.V., 2018. Consumer mindfulness. In National Conference on Rethinking
Management Education in Digital Age, New Delhi.
Parisi, O., 2020. Understanding consumer behaviour towards electronic word of mouth during
the online accommodation booking process (Master's thesis, University of Malta).
Pramanik, A., Mohanty, N. and Karmakar, S., 2021. Understanding Consumer Behaviour with
Respect to Availability of Two Tax Regime in India. In Interdisciplinary Research in
Technology and Management (pp. 279-282). CRC Press.
Rehman, V., 2017. Looking through the glass of Indian culture: Consumer behaviour in modern
and postmodern era. Global Business Review, 18(3_suppl), pp.S19-S37.
Zander, K., Schleenbecker, R. and Hamm, U., 2018. Consumer behaviour in the organic and
fairtrade food market in Europe. Fair Trade and organic agriculture: A winning combination,
pp.51-60.