Consumer Behavior and Insights: TUI Travel Plc Analysis Report

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This report provides a comprehensive analysis of consumer behavior and insights within the tourism industry, focusing on the context of TUI Travel Plc. It explores the various cultural, social, personal, and psychological factors that influence consumer attitudes and behaviors, examining how digital technology has reshaped consumer trends. The report delves into the stages of the consumer decision-making journey, mapping the path to purchase for tourism services and emphasizing the importance of understanding this process for marketers. It compares and contrasts the tourism decision-making processes in B2C and B2B contexts, evaluates different market research approaches, and assesses how marketers can effectively influence each stage of the decision-making journey. The report concludes by summarizing key findings and implications for TUI Travel Plc and the broader tourism sector.
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Consumer Behavior and
Insights
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Table of Content
INTRODUCTION.......................................................................................................................................2
TASK 1.......................................................................................................................................................3
P1 Different cultural, social, personal and psychological factors that influence consumer behavior and
attitudes with a tourism context...............................................................................................................3
P2 How consumer trends are changing due to the impact of digital technology......................................4
TASK 2.......................................................................................................................................................5
P3 Stages of the consumer decision-making journey and map a path to the purchasing for a given
tourism service........................................................................................................................................5
P4 why it is important for marketers to map a path to purchase and understand consumer decision-
making in the tourism sector....................................................................................................................6
TASK 3.......................................................................................................................................................7
P5 Compare and contrast the key differences of the tourism decision-making process in relations to
B2C and B2B...........................................................................................................................................7
P6 Evaluate the different approaches to market research and methods of research to be used for
analysing the decision-making process....................................................................................................9
TASK 4........................................................................................................................................................10
P7 Evaluate how marketers can influence the different stages of the tourism decision-making process10
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................12
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INTRODUCTION
The tourism is mainly regarded as an act of travelling to the different location for
pleasure or business purpose. It may be defined as the act of travelling to other environment for
at-least a duration of 24 hours but not more than one year either for the purpose of business or
pleasure. The customers are the king of this industry as they are the one who makes the tourism
sector. It is important for the businesses to identify the customer insight and behavior so that they
can plan the strategy as per their needs and wants (Lin and et. Al., 2019). It is a very vast field
which covers many sectors such as airline, transportation, railway, etc. the organization chosen
for this report is TUI travel Plc which is British leisure travel group situation in Crawley, UK. It
was founded in the year 2007. This report shall cover the factors which influence consumer
attitude and behavior, the ability to map the path to purchase in tourism industry and forms of
research to make understanding of influence on decision making of tourism. At last, it will cover
different stages of tourism decision making and it influences marketers.
TASK 1
P1 Different cultural, social, personal and psychological factors that influence consumer
behavior and attitudes with a tourism context
Customer attitude consists of behavioral intention, beliefs, and feelings towards the
offering. Belief is an important aspect as it plays an important role for consumers because it may
be negative or positive towards the offering. In the tourism sector, there are many factors which
influences the consumer attitude and behavior. In context to TUI Travel Plc, it is discussed
below-
Cultural factors
It refers to the set of values, attitude, belief and customer which characterize the society.
The consumer behavior is determined gradually by the culture of customer as the standards and
norms guide it. The cultural norm has the impact on consumer perception and expectations. The
person who comes from different cultural background has different perception and image of the
destination.
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Culture affects not only the way in which the people interpret the offering or experience
about it but it also affects their decision making and the choice of destination. The culture of the
people plays an important role in shaping the consumer behavior regarding any destination as it
influences the decision to visit any place for not
Social factors
It consists of reference groups such as ethic, religion or family group, roles and status,
family, etc. The person’s social network that provides them with the first-hand information
regarding any place may change the decision of person for visiting such place or not.
Personal factors
It includes the life cycle stage, age, economic circumstances, occupation and personality
which shape the consumer behavior. It is common that personal factors play a vital role in
consumer behavior as it tends to influence the decision of visiting any destination. For instance,
the people of same age group tends to have common thinking of visiting a place while the
economic circumstance of people also shape their behavior as people visit such places which are
supported by their financial budget.
Psychological factors
It is one of the most difficult to understand and complex factor which consist of
motivation, learning, perception and beliefs. The people who visit a particular place may
influence their decision making to visit that place again only if they had a good experience there
which motivates them to make a second visit. Moreover, the reviews also shape their
psychological thinking to take decision as it directly affects their perception towards the
destination.
P2 How consumer trends are changing due to the impact of digital technology
Technology plays an important role in the tourism sector as it has brought multiple things
to the fingertip of consumer. The coming of latest technology has placed the greatest impact on
this sector, especially in phase which is prior to purchase process. The upcoming digital
technology have made the consumers king of the market as they can look at anything from
anywhere and book anytime anywhere (Varadarajan, 2020). The TUI travel Plc makes use of the
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digital technology to provide the consumers with whatever information they want as it shapes
their behavior. The companies have to make sure that they put everything on the digital media so
that consumers can get what they want before they avail service. The change in consumer trends
due to the digital technology is illustrated below-
Quick planning- Technology have made the trips planning very easy. In order to plan the
perfect trip, every information is now available on the internet. The consumer just has to
give few hours and all essential information are found for the chosen destination. TUI
Travel Plc helps the consumers to give all the information so that they can plan the best
trip.
Easy booking- The technology has made easy for the people to book accommodation,
flights and the desired activities in just minutes. The best accommodation and flights are
easy to find due to internet. TUI Travels gives the best options to the customers to make
the booking in just few clicks. There is no to bring print out rather e-tickets have made
easy for the consumers to travel from one place to another.
Great travelling experience- The efficient travelling is made easy by the technology. The
customers do not have to worry about reading maps or getting lost as now the Google
maps has made it easy to reach any destination. The language barrier is also one of the
issue which is hindered by the technology as there are many translation applications
which makes the communication easy with natives.
Personalized experience of travelling- The perfect travelling experience is to have the
unique and personalized experience and technology advancement has made it possible.
There are many chat-box, blogs and applications which help in planning the perfect trip.
TASK 2
P3 Stages of the consumer decision-making journey and map a path to the purchasing for a given
tourism service
The consumer decision making process is defined as the process which is adopted by
customers in order to make decision from various options which are available in the market. This
process depends upon the demand, requirement and needs of the consumer. There is a five stage
process of consumer decision making is illustrated below-
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Problem recognition- It is the first step in the decision making as the consumer either
recognizes the issue which is required to be solved or the need which is required to be
fulfilled. The consumer is searching for the solution to satisfy its issue or need. The TUI
Travels Plc makes sure that it has in-depth knowledge of purchasing behavior and makes
it the competitive power in the purchase circumstances.
Information search- The next step is to gather relevant information which is available
about the solution. The consumer is required to collect all information regarding its
problem or need satisfaction so that it can take the appropriate decision to solve it. The
TUI Travel Plc must make sure that it provides all the information to the customers so
that they can get want they want through the search engine optimization.
Alternative evaluation- It is the third step in consumer decision making which is an
evaluation process. The consumers generally set the criteria which must be met in the
solution and the businesses have to make sure that it is on the list(de Paula and et.
Al.,2019). TUI Travel must make regular communication with customers by sending
effective emails or making the personalized website so that the consumers can get want
they want in a single click.
Purchase- This step requires the consumer to make the decision after scanning all the
options. Here the consumer makes up the mind to bring solution to the problem. The TUI
travel Plc takes the regular feedback from customers so that they can make changes in
their services so that customers get want they want.
Post purchase- The consumer decision making does not end at purchase step rather it is a
beginning of value of the customer for the company. The role of TUI Travel Plc begins to
create the long term relationship with customers and ensure that they get the most of the
value of customers. The feedbacks collected must be analyzed and evaluated so that the
decision can be impactful so that demands of the customers are met.
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From the above picture, it is depicted that the customer journey begins before the actual
beginning of the decision of customer. In the before phase, the customer plans for the destination
and make reservations for the planning and lastly reaches it. Then in during phase, the customer
begins with its tour which involves undertaking activities or availing services. Then the tour is
ended. Lastly, the after phase begins wherein the company takes review and feedback from
customer regarding their experience and tries to make improvement in their services.
P4 why it is important for marketers to map a path to purchase and understand consumer
decision-making in the tourism sector
Marketing is considered as the most essential department which consists of effective team
that makes the path for the purchasers so that their decision making is influenced by emphasizing
on many factors in decision making process of customers. This functional are must develop and
execute such plans and promotional activities which can keep the customers informed, attracted
and influenced for making purchase of the services which are provided by the TUI Travel Plc.
It is essential for the marketing department to understand the decision making of
consumers as they play the important role in mapping the path to the purchase understand this
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process. The analysis is illustrated below by concentrating on stages of decision making journey
by few examples-
Need or problem recognition- The marketers of TUI Travel Plc must do the deep
analysis of the market in order to identify the customer needs and trend. This steps helps
the marketers to find out what is actually needed in the market.
Information collection- The marketers of TUI Travel Plc must make such promotional
plans which can be used to attract all customers. They must identify their target segment
and make their focus on them.
Evaluating alternatives- The marketing unit of TUI travel Plc must plan and evaluate the
mapping path for the customer by giving them best offers and information which can
attract them and help them to gain the loyalty towards the brand.
Purchase- In this marketing must work on to leave the positive impact on the customers.
They must work on to take feedbacks from customers to know their experience through
offline and online offering.
Post purchase- The marketing unit of TUI Travelers must make sure that it renders
services of after sale so that they can give best experience to the customers. It will also
help in knowing the lacunas in the services so that the improvements can be made
accordingly.
TASK 3
P5 Compare and contrast the key differences of the tourism decision-making process in
relations to B2C and B2B
In the context of business organisation, use difference between the business to business and business
to consumer business that are operating their business the consideration of their purposes and objectives.
Business to business offers their product directly to the other business and business to consumer sell their
products to their customers. B2B marketing strategy that is used in different businesses and b2c is a
marketing practices that used by the organisation in order to attract customers. In regards to this, there is
the huge difference between these two which are given below:
Basis of difference Business to business Business to consumer
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Buying behaviour and
decisions
In relation to TUI, there offering
a quality product and services to
their customers and also
considering up effective pricing
strategy and the taste and
preferences of their customers
so that they can get higher
profitability in their business.
Customers are the one who
can judge the quality of the
product in terms of cost
effective and tends to remain
competitive in the large
market. It is very important
for the form to take less time
in order to use the various
promotional technique so that
they can reach to their
potential customers.
Analysed requirements In relation to B2B, organisation
needs to identify the trends in
the marketplace so that they can
meet the changing demand of
their customer. This can help in
meeting the potential customers
in the effective manner.
In relation to B2C, there
tends to analyse the
requirement of the potential
customers so that they can
cover a large geographical
area and also take the
valuable feedback in order to
understand the high demand
in the market.
Market scope The main scope of the TUI is to
understand the needs and wants
of their customers so that they
can meet the changing demands
of them.
In context to B2C, they are
reaching towards their
potential customers in order
to understand their needs and
wants. Organisation is
searching for the ability and
their power of their potential
customers so that they can get
better results.
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P6 Evaluate the different approaches to market research and methods of research to be used for
analysing the decision-making process.
There are different type of businesses which are tends to use the different approaches
research in order to take the better decision that is explained as follows:
Research approach for B2C businesses:
The organsiation uses various kind of approach in order to collect the information in the
data and the approaches are as follows:
Survey: the organsiation collects the information by understanding the needs and
preferences of the potential customer so that they can remain more competitive in the large
market.
Interview: this considered as a best way in order to understand the interest of their
potential customers and in context to TUl UK, they are having face to face interaction with their
customers in order to ask the effective question from them.
Market research in terms of B2B businesses:
There are various factors which are help in collecting the prominent information by using
the secondary sources like books journals and government publication. In relation to TUI UK,
various factors are explained as follows:
Books and Records: B2B business tends to collect the various information that is
available in the large market with cost effective measures. With the help of available public
records, organisation able to collect the prominent results in order to develop their product and
services. In context TUI UK, using this method in order to develop the desired product for their
potential customers.
Government Publications: it helps the company to get the significant knowledge and the
data used by the potential significant documents. In relation to this there are different types of
drugs which help in getting the enhancement of life of the individual. In context to TUI UK, they
are opting the the secondary sources to become more competitive in the market.
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Economic view model: Customers are the individuals logical decision at the time of
purchasing of their products and services. It also tends to separate various product in order to
identify their advantage and disadvantage so that they can come to the final conclusion in order
to buy that product. In relation to this customer various commodities according to their price and
quality. Hence, Economic view model helps in understanding the competition in the large market.
TASK 4
P7 Evaluate how marketers can influence the different stages of the tourism decision-making
process
Marketers have a significant role in guiding their customers and understanding their needs
and wants. They also help in meeting the different requirements in order to buy the tour package
for the potential customers and it becomes the duty of the market to offer the best plan with the
effective prices and services so that they cannot switch to the other brand (Herman and Nistor,
2020). In context to TUI UK and Ireland, they are using various social media platform in order to
attract and educate their customers and in terms of these two theories are explained as follows:
Cognitive learning: According to this theory, marketer gets innovative ideas which help
the individual to understand the current trends in the market so that they can design the strategy
that will be helpful in order to develop the effective brand image in the business environment. It
also helpful in achieving the competitive advantage and business can sustain in the market for a
longer period of time.
Behaviour theory: it is the theory which help in improving the decision buying ability of
the consumer as this analyses the conditions that leads to identify the effective interaction of
their customers in the large market so that they can satisfy their needs and wants. Effective area
is also concerned with the values characteristics and attitudes of their customers in the large
market area. It is suggested to the organisation to have the flexibility in their of decision so that
they can fulfill the needs and preferences of their customers.
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CONCLUSION
It is concluded from the above report that it is important for businesses to understand the
perception, attitude and behavior of the customers so that they can make their offering
accordingly. The consumer trends have taken a great turn due to the coming of digital technology
such as easy booking and planning of trips, perfect experience and many others. The consumer
decision making consist of five steps which helps the customers to make best decision before
making any purchase in order to satisfy its needs. It is important for marketing department to
take insight of this map so that they can plan their promotional activities accordingly. Further, it
is summarized that there are many factors such as social, cultural, psychological and personal
which shapes the customer attitude and behavior.
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REFERENCES
Books and Journals
Bendell, B.L., Sullivan, D.M. and Hanek, K.J., 2020. Gender, technology and decision-making:
insights from an experimental conjoint analysis. International Journal of
Entrepreneurial Behavior & Research.
Rezaei, S. and Emmi, M., 2017. Apps-commerce in emerging markets: insights and future
business models. In Apps Management and E-Commerce Transactions in Real-
Time (pp. 51-69). IGI Global.
Kip, S.M. and Ünsal, P.U., 2020. Exploring native advertising in Turkey: insights from digital
immigrants and digital natives. Qualitative Market Research: An International Journal.
Heist, H.D. and et. Al.,2021. Understanding the Donor-Advised Fund Giving Process: Insights
From Current DAF Users. Nonprofit and Voluntary Sector Quarterly,
p.08997640211011248.
Herman, R. and Nistor, C., 2020. The concept of innovation with some insights from resource-
based view and evolutionary theory. Manager, (32), pp.34-41.
Belyaeva, Z. and et. Al., 2020. Unpacking stakeholder relationship management in the public
and private sectors: the comparative insights. EuroMed Journal of Business.
Jaeger, S.R. and et. Al.,2019. Valence, arousal and sentiment meanings of 33 facial emoji:
Insights for the use of emoji in consumer research. Food Research International, 119,
pp.895-907.
de Paula, I.C. and et. Al.,2019. Are collaboration and trust sources for innovation in the reverse
logistics? Insights from a systematic literature review. Supply Chain Management: An
International Journal.
Teubner, T., Adam, M.T. and Hawlitschek, F., 2021. On the Potency of Online User
Representation: Insights from the Sharing Economy. Market Engineering: Insights from
Two Decades of Research on Markets and Information, pp.167-181.
Varadarajan, R., 2020. Advancing theory in marketing: insights from conversations in other
disciplines. AMS Review, 10(1), pp.73-84.
Chang, W.C., Khelil, N. and Hung, Y.C., 2020. Exploring the Differences Between Leaders’ and
Designers’ Communication Styles: Insights from Industrial Design Micro-Enterprises in
Taiwan. Journal of Enterprising Culture, 28(03), pp.201-221.
Lin, M.H.J. and et. Al., Applying EEG in consumer neuroscience. European Journal of
Marketing.
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