hospitality consumer behaviour and insight assignment

Consumer Behaviour and Insights in Hospitality Industry

Contents in this Page

Introduction

Consumer Behaviour and Insights in Hospitality Industry will be evaluated in this report by applying the required theories and models. A comprehensive understanding of Consumer Behaviour (CB) within the hospitality industry plays a crucial role in the process of business growth. The aim of this study is to produce an insight into consumer behaviour from the perspective of marketing analyses working in the hospitality industry. Premier Inn, a UK-based hospitality industry, is the largest hospitality service provider serving a wide range of consumers by providing a range of facilities with 72,000 rooms and 800 hotels in the UK, Ireland, Germany, UAE, and Qatar (Premier Inn., 2020). The hotel company is owned by Whitbread Plc. Overall, the implication and influence on the business growth of this selected entity have been observed and illustrated here in light of the concept of consumer behaviour.

You may feel interested to read below blogs: Tourism strategies for Broadstairs coastal area Importance of Managing Service Quality in the Tourism Sector Resort Management Strategies of One&Only Sustainable Tourism Planning for Costa Rica Customer Service Management of Premier Inn

Impacts of cultural, social, personal and psychological factors on consumer behaviour and attitudes

Consumer behaviour represents buying behaviour of consumers, and analysis of this is a beneficial approach to understanding the buying intention of a consumer or a group.

Cultural Factors : Culture is defined as a distinctive way of life in society (Kotler & Armstrong, 2010). People grow up with certain norms, values, attitudes, and beliefs of a particular environment, those sets of norms, values and beliefs are their culture. Consumer behaviour and attitudes will widely vary based on cultural differences. Wang &Yu (2017) reported that consumer behaviour and attitudes in the hospitality industry are even more complicated in terms of cultural variations. The reason is that the hospitality industry is service-oriented and people of different cultures have different values and perceptions towards services. For example, an Asian family even living in the UK would believe in a joint family because Asians demonstrate higher scores in collectivism as per Hofstede’s Cultural Dimension Model (Kotler & Armstrong, 2010). Such families would be looking for group (family) packages and benefits in hospitality company such as Premier Inn. In contrast, a British or American family are more likely to demonstrate individualism and would prefer small (consisting of parents with one child) offers and packages.

Social Factors : Social factors include reference groups (friends, followers, co-workers etc.), family members, status in society, and role in society (Panwar et al., 2019). The Decision-making process of consumers in the hospitality industry is highly influenced by social factors and the social role and status to which the person belongs. While making the decision to consume hospitality services, people widely use word of mouth (WoM), and they ask co-workers or fiends about the services of a certain companies. In such case, ranking in social media (such as Trust Pilot or Facebook reviews) by reference groups highly motivate people to make hospitality consumption decision.

Personal Factors : This includes Occupation, Life cycle and age, Lifestyle, and Personality of the consumer (Dixit, 2017). Personal factors are the most potential and influential factors to motivate consumers to behave in certain ways in making consumption decisions in the hospitality industry. For example, occupation determines the income level and types of jobs a consumer performs. For example, a business executive requiring frequent foreign travel will look for business class suits located in urban areas for convenient business meetings.

Psychological Factors : Motivation, perception, experience and learning gathered from previous incidents, beliefs, and attitudes are the most prominent sub-factors of psychological influence affecting consumer behaviour (Nash, 2019). For example, a previous customer of Premier Inn, being highly satisfied with the excellent services of the hotel group, will demonstrate a high probability of selecting Premier Inn again in upcoming stays. The reason is that the hotel group impressed the customers with a positive attitude and sustainable influence on consumer psychology.

How consumer trends are changing for the influence of digital technology

Technological advancements not only several institutionalized shifts in the operational process of the hospitality industry but also impacted consumer behaviour and its trends. Kanagal (2016) revealed that technological advancements and their incorporation into the tourism and hospitality industry have a significant impact on consumer behaviour. The evolution of digital technologies has changed consumers’ habits of how they book services, how they control room devices, and how they manage surrounding foods and services. The digitization process in the hospitality industry is making the entire process a smoother one, and an easy booking process is an example of such transformation. As demonstrated by Sudha & Sheena (2017), it is time to bring digital transformations to the organizational periphery to cope with changes occurring around the globe. In this perspective, if Premier Inn is not able to cope with the same, consumers are facing dissatisfaction and causing a significant lowering in business level.

The evolution of digital technologies has motivated consumers to check rates online and to make bookings online along with taxicabs booking from the airports (Bowie et al., 2016). Premier Inn has responded accordingly. The Telegraph (2014) reported that Premier Inn invested £35 million in high-tech making the hotel one of the most technologically advanced hotel groups. The hotel group introduced a mobile-based app called Hub which can manage to book, and control room devices (temperature, lighting etc.), working as an alternative to a local guide through navigating surroundings and local foods and cultural sites and heritages. For instance, a consumer can use the app to book a nearby restaurant for dinner, or the consumer can change room temperature through the app. All these changes and the evolution of technology have happened due to the worldwide development of digitalization. All these initiatives taken by the hotel group have significantly affected consumer perception and decision-making.

The present era of transformation with a digital driver is making the process of customer desire-centric methodology. Within this perspective, organizational changes are also to be done so that it can contribute rationally towards changed perception evaluation of consumers. By identifying social networking systems as the most prone and cumulative approach towards the digitization process, Ruiz-Mafe, Chatzipanagiotou, & Curras-Perez (2018) have stated that sharing of information from one consumer to another through social media has become important affecting consumer behaviour. This, in turn, is creating a more comprehensive perspective towards the attainment of a higher degree of customer appreciation. As the information-sharing process is becoming easier in the context of customers, the management authority of Premier Inn is focusing on the maintenance of tremendous social support by analysing changes in trends in regard to social, cultural, personal and psychological aspects.

Stages of consumer decision-making journey:

The figure demonstrates the stages involved in the consumer’s decision-making journey.

Consumer’s decision-making journey ( McKinsey & Company, 2019 )

Initial-Consideration Set : Identification of need and initial research for brand consideration is the first stage for recognising actual needs in the hospitality industry (Liu et al., 2017). Feeling the need for hospitality service, such as a need for a vacation in the countryside, customers look for offers of hotels. Searching for information depends on the customer’s experience with the product and visibility on the internet. Visibility on the internet, Word of Mouth, and recommendations by peer groups play a great role in selecting a specific brand.

Active Evaluation : Customers find a range of brands providing the desired services. Alternative evaluation represents a specific state in which a consumer seeks alternatives that can provide the same quality services for fulfilling their own needs (Jahauri, 2017). After the customers receive information, they evaluate the alternative services offered in the hotel and finally select a brand for final purchase.

Moment of Purchase : The third stage is about purchasing decision-making in which a consumer can select Premier Inn as a desirable lodger which can provide desirable services within the budget range. The customer decision can be affected by advertising, recommendation of the hotel, their website, social media etc.

Post-purchase Experience: In the end, the fifth or last stage comes that aligns with post-purchasing evaluation, in which consumers can evaluate services provided by Premier Inn authority. For evaluating customer experience effectively and to deliver better services based on the experience-sharing process of consumers, Premier Inn always asks for feedback for its potential users.

Mapping a path to the purchasing decision in the hospitality industry:

The part of purchasing decision refers to the complete scenarios a customer passes while completing the transaction, from feeling the need to post-purchase behaviour. Mapping a part to the purchasing decision plays important role in the hospitality industry mainly because it provides the evaluated way of how a customer makes a purchase decision (Horner & Swarbrooke, 2016). Below, diagram shows that there are four stages in the map to path consumer decision-making.

Awareness : At the first stage, customers grow awareness through browsing a number of communication mediums such as social media (such as Facebook, twitter, LinkedIn etc.), review sites (such as Trust Pilot), internet searches, and past experience in the same company (if any). In the case of the hospitality industry, such as Premier Inn., review sites, social media reviews, and active participation in social media play the most important role because customers highly value the opinions of the people who have already experienced the services (Parsons, Maclaran, & Chatzidakis, 2017). The reason is that the hospitality industry is highly dominated by personal reviews, which motivate new customers to make their decision.

Consideration : After being aware of the information and preferred services, a consumer does an active evaluation of the information and data (Zsarnoczky, 2018). Among the options, customer reviews which offers are more suitable than others and which hospitality company provides an excellent customer service experience than others. Reviews in the sites such as Trip Advisor, Yelp, and Trust Pilot are critically evaluated by customers who experienced services at certain hospitality organizations in the past. The customers carefully read the reviews, and these significantly affect the decision-making of the customers.

Action : This is about getting the real experience which starts with booking certain services at Premier Inn. A hospitality company should critically analyse how customers prefer to place orders and why certain order-placing methods are not adopted; it is important to understand the bottleneck of the certain process to streamline the service delivery process (Sudha & Sheena, 2017). Customers come into direct contact with the services and employees of the hospitality industry, and they develop a certain level of customer experience. A hospitality company must review the customer experience map to identify the touch points and the reasons for customer dissatisfaction.

Loyalty : The level of customer loyalty is demonstrated through the post-purchase behaviour of the customers (Liu et al., 2017). Customers who experience positive customer-experience are more likely to be loyal customers. Premier Inn must review the number of repeat customers and new customers. It is also important to understand why customers are dissatisfied to help the company solve the complications.

Importance for marketers to map a path to purchase and consumer decision-making in the hospitality sector

Understanding the consumer’s decision-making process and path to purchase plays a significant role for every marketer; it is even more important for hospitality companies. The reasons are analysed below:

Firstly, the Mapping path to purchase and consumer decision-making process allows a marketer at Premier Inn to know the touch points where customers contact the company in making decisions. This knowledge helps Premier Inn to optimize the Excellency of those touch points to motivate the customers to make a positive purchase decision.

Secondly, Mapping the path to purchase and consumer purchase decision allows Premier Inn to understand the pitfalls of the operations. It helps the company to optimize the drawbacks and attract more customers to obtain services for the hotel group.

Thirdly, it allows Premier Inn to identify the most important review sites and dominate social media forms where customers collect information while making the purchase decision. Consequently, the company can concentrate on developing the reviews and ranking in the dominating review sites. This affect consumer purchase decision positively.

Liu & Mattila (2017) stated that anticipated actions or barriers faced by decision-making processes, a mapping perspective allows responsible departments to ensure and project the best out of components considered by a consumer while making a purchasing decision. Above all, consideration of the opinion of Richard & Masud (2016) shows mapping process is also the easiest way to identify barriers that are hindering consumers from taking decisions in favour of a business entity.

Differences between B2B and B2C in the hospitality decision-making process

B2B stands for business to business in which the products and services are sold directly to the business entities and are used by them as final goods or as an intermediary (Bowie and Buttle, 2011). For example, Premier Inn’s business relationship with a corporate customer seeking regular accommodation support on a large scale is considered a B2B relationship. B2C stands for business to customer, in which the products are sold directly to customise and aims to build better relations with them (Bowie and Buttle, 2011). It is regular relations of Premier Inn with their individual customers.

The most prominent similarity in the consumer decision-making process between B2B and B2C is that both aim to meet a need through making the purchase decision. Both follow the same decision-making process. However, how they follow the stages and their relative perceived importance in each stage are different.

B2B relationship is small-scale oriented and this is for a niche market where niche focus (as per Porter’s Generic Strategies) gets priority (East et al., 2016). As a result, customers in B2B look for cost reduction and such customers would conduct a wide range of possible options from other companies. For example, the previously mentioned corporate client would look for cheap room rent from Premier Inn because they would rent rooms on regular basis without adding much value. In contrast, B2C is dominated by a large-scale market because there are a large number of customers seeking hospitality services (Alavi et al., 2016). Consequently, such a market is dominated by differentiation and added values where customers are ready to pay premium prices. For example, individual customers would expect added values such as state-of-the-art technologies from Premier Inn. Since the impact of decisions in B2C is less impactful than in B2B, customers are B2C conduct fewer searches than those done in B2B.

Another potential difference is that customers at B2B directly contact the hospitality company because such customers have high bargaining power. In contrast, customers at B2C have relatively less bargaining power over the hospitality company because individual customers are less important than the bid-sized customer. As a result, a B2B customer directly deals and negotiates with a Hospitality Company; and individual customers in B2C take help from social media, and review sites to assess the credibility and service quality. To illustrate, the corporate client would directly negotiate and contact Premier Inn to settle the prices because it has high negotiation power. On the other hand, customers in B2C need to check Trust Pilot, Trip Advisor, and social media reviews to make decisions.

Different approaches to market research and methods of research to understand the decision-making process

Understanding the decision-making process in the hospitality industry would require either primary or secondary research. In both cases, the research approach and research methods are important elements.

Approaches to market research: Inductive and Deductive

Research approach refers to the research styles which will be followed to conduct the research (Guercini, 2014). Marketing researchers generally follow two types of research approaches: inductive approach and deductive approach. If the research hypothesis is not outlined at the beginning of the marketing research, an inductive research approach is used and it aims at conducting in-depth research to generate theories (Krafft et al., 2015). The advantage of this approach is that it conducts in-depth analysis and evaluation. However, a drawback is that this approach is little probability of yielding a research outcome. On the other hand, the deductive research approach is used when the research hypothesis and theories are outlined, and the research aims to check if the theory is right (Guercini, 2014).

The selection of a research approach depends on the type of research. For example, if research on the consumer decision-making process follows the qualitative research method, the approach would be inductive because the qualitative method conducts in-depth analysis and evaluation. On the other hand, it would follow a deductive research approach is the method were quantitative.

Methods of market research: Qualitative, Quantitative, and Hybrid

Research methods refer to the way through which research will be conducted. The figure shows different research methods available to use for research in the hospitality industry domain.

Qualitative methods have different options, such as interviews, open-ended questions, focus groups, oral history, content analysis etc. (Baron, Warnaby, & Hunter‐Jones, 2014). The advantage of these methods is that it is broad and conducts extensive analysis. However, the problem is that it cannot yield a quantitative result.  The selection of a certain method depends on the research topic and research objectives. Quantitative methods also offer a range of options, such as polls, questionnaires, and surveys. The advantage of the quantitative method is that it comes with quantifiable outcomes. The drawback is that it cannot include detailed feedback from the respondents (Malhotra, Birks, & Wills, 2013). However, hybrid methods use both quantitative and qualitative methods, and it overcomes all the barriers experienced by each method individually.

For research in the hospitality domain, the selection of the research method is completely dependent on the research objectives and expected outcomes.

How marketers influence different stages of the hospitality decision-making

In the hospitality industry, marketers can play a significant role in every stage of the consumer decision-making process. The influence can start with the initial-consideration stage when consumers feel a need and check the available options to meet their needs (Szmigin & Piacentini, 2018).  For example, markets at Premier Inn could make the advertisement and exposure in a such an excellent manner that customers feel the need to experience the service even if this is not mandatory for them. Thus, it can be seen that markets can motivate customers to avail a new need even if that is not mandatory.

Secondly, marketers can play a role in making them the most visible and attractive company among all available options (Gavilan, Avello, & Martinez-Navarro, 2018). For example, marketers at Premier Inn can do SEO to represent themselves at the top of search engine results, can do Google advertisements to increase visibility, and can be highly active on social media in attractive ways. All of these options can play an important role in motivating customers to act in a certain way in making decision.

Thirdly, marketers can increase their rating on the review sites by motivating and providing lucrative offers to past customers to post their good experiences at the review sites on the internet (Hu & Yang, 2019). For example, Premier Inn can motivate its previous customers to put positive reviews on Trust Pilot, Yelp, or in Trip Advisor or in Facebook with an offer of 10% discounts for all reviewers. This would significantly change the company’s outlook on social media and motivate customers to make a consumption decision in favour of the brand.

Finally, marketers can continue regular communication with the customers to keep them informed and motivated. As a result, past customers will be repeated customers, and customer loyalty will be high.

Aspiration to produce an understandable account regarding consumer behaviour and decision-making process as well as purchasing intention drove this study towards the analysis of several factors and components associated with the hospitality industry. In this perspective, the evaluation of the contemporary practices of Premier Inn has entrenched consideration of consumer buying behaviour analysis as an essential part of business outcome evaluation. Terrestrial digital transformation is bringing several changes in the consumer behaviour process, and this has been illustrated by involving a process map for the decision-making process. However, on completion of the evaluation, consumer behaviour can be considered the most prominent controlling factor of business in the hospitality industry.

Alavi, S. A., Rezaei, S., Valaei, N., & Wan Ismail, W. K. (2016). Examining shopping mall consumer decision-making styles, satisfaction and purchase intention.  The International Review of Retail, Distribution and Consumer Research ,  26 (3), 272-303.Bowie, D., Buttle, F., Brookes, M., & Mariussen, A. (2016).  Hospitality marketing . Taylor & Francis

McKinsey & Company, (2019). The consumer decision journey. [Online] Available at: https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-consumer-decision-journey   [Assessed date 01 August 2020]

Premier Inn., 2020. About Us. [Online] Available at: https://www.premierinn.com/gb/en/why.html [Assessed date 31 July 2020]

The Telegraph (2014). Premier Inn goes high-tech [Online] Available at: https://www.telegraph.co.uk/travel/news/Premier-Inn-goes-high-tech/   [Assessed date 31 July 2020]

Zsarnoczky, M. (2018). The digital future of the tourism & hospitality industry.  Boston Hospitality Review ,  6 .

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LO1: Examine the factors that influence hospitality consumer behaviour and attitudes

19: Hospitality Consumer Behaviour and Insight

Introduction

Consumer behaviour is the study of individuals and organisations and how they select, buy, use and dispose of goods, services, ideas, or experiences to satisfy their needs and wants (Kotler and Keller, 2006). 

Studying consumers provides organisations with clues for improving, or introducing, products or services, setting prices, devising channels, crafting messages, and developing other marketing activities (Kotler, et al., 2008).

It is mainly concerned with psychology, motivations, and behavior. The study of consumer behavior includes:

-       How consumers think and feel about different alternatives (brands, products, services, and retailers).

-       How consumers reason and select between different alternatives.

-       The behavior of consumers while researching and shopping.

-       How consumer behavior is influenced by their environment (peers, culture, media).

-       How marketing campaigns can be adapted and improved to more effectively influence the consumer.

Unlike other business organisations that deal mostly in tangible products with service coming second, the hospitality industry is mainly concerned with services first, and their products might be seen as secondary to the services that they provide. The consumers will be satisfied by the quality of the service provided as compared to the quality of the products in other business environments.

It is therefore important for managers in the hospitality industry to understand how consumers make decisions on the types of services they need and where to obtain the services. 

While realising that creating memories and joyous experiences for consumers is a key dimension affecting the profitability and growth of any hospitality organisation, the aim of this assessment is to appraise students’ knowledge and understanding of the consumers’ decision making process. The assessment will enable students to exhibit their comprehension of the factors that influence customers’ decisions.

Students are expected to relate real world examples including their own personal experiences in doing this assignment.

Knowledge and understanding will be assessed in the context of the students’ presentation and report to fulfil respective learning outcomes

Scenario and Activity

You have been appointed as a marketing analyst for a UK-wide hospitality organisation. Your remit is to monitor the purchasing decisions of the organisation’s customers. In your role as a market analyst you will also need to understand how your organisation’s customers think and feel about different alternatives of products and services, and how marketing campaigns can be adapted and improved to more effectively influence them.

Your line manager has asked you to give a presentation for departmental managers to demonstrate your understanding of consumer behaviour.

Submission is in the form of a 15-minute group presentation using relevant software, with five minutes allocated for questions. (5 students per group). The presentation slides and speaker notes should be submitted as one copy. You are required to make effective use of Microsoft PowerPoint headings, bullet points and subsections as appropriate. Research should be referenced and bibliography provided using the Harvard Referencing system. It is recommended that you provide not more than 20 slides with introduction and references.

The presentation will:

• Investigate the different cultural, social, personal and psychological factors that influence consumer behaviour and attitudes within a hospitality context.
• Explore how consumer trends are changing due to the impact of digital technology.
•  Undertake an analysis of how cultural, social, personal and psychological factors that influence consumer behaviour and attitudes are changing and driving trends in hospitality.

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Consumer Behaviour and Insight

University: DOCKLANDS ACADEMY

• Unit No: 19
• Level: High school
• Pages: 9 / Words 2277
• Paper Type: Assignment
• Course Code:
• Downloads: 587

This assessment will cover the following questions:

• Intercontinental Hotel is the luxury hotel of United Kingdom . Identify the forces that influence hospitality consumer attitude and behaviour and its impact on the process of decision making.
• Differentiate between the Business to consumer(B2C) and Business to Business (B2B), with the help of specific example from the hospitality industry.
• Identify the various theories, approaches and methods that influences the decision-making process of the Intercontinental Hotel.

INTRODUCTION

CB also known as Consumer Behaviour refers to attitude and perception of customers or individual regarding the purchase of products, goods or services. If behaviour of the customers is good towards offerings of company, this means their business is performing well. Behaviour of consumers is associated with customer's actions in marketplace and reason behind those behaviours (Shih, and Ke, 2014). This assignment report is prepared in context with Holiday Inn, a America based hotel chain which is owned by Britain. This hotel is a subsidiary of Intercontinental hotel groups and headquartered in Buckinghamshire, UK. This hotel mainly serves in European, Middle East, Africa and Asia-Pacific region. This report is going to mention about different circumstances and their impact on the customer behaviour along with their attitudes. Changes in customer trends due to digital technology are discussed. Also, stages to customer decision-making and appropriate purchasing path will be explored. At last, role of marketers in impacting customer decision making is discussed.

P1 Describe Various Social, Personal, Cultural & Psychological Factors Which Impacts Attitude And Behaviour of Customers in Hospitality Sector

(Covered in PPT)

P2 Mention How Trends of Customers Are Changing Due to The Influence of Digitalisation of Technology

P3 define aspects for customer decision making process and present purchasing way for selected hospitality service.

Customer decision-making is a process where individuals take decision if they are interested in buying an offering of a firm or not. There exist multiple factors and stages which has a deep impact on CB (Shaw, McMaster and Newholm, 2016). Below are mentioned some stages related with customer's decision-making journey: 

• Need Recognition : This is the foremost stage where consumers analyse as well as identify & acknowledge their needs according to their expectations.
• Searching and gathering informatio : After analysing their needs, clients will start collecting information about all those products and services which can serve their purpose though online, digital and traditional media (Petersen, Kushwaha and Kumar, 2015).
• Evaluation the alternatives : Here, screening of all alternatives will be done so that most desired service or product can be selected in terms of durability, time and cost.
• Actual Purchase of product : In this aspect, customer will purchase most suitable product so that their expectation can be fulfilled without any compromise.
• Post-purchase evaluation (PPE) : It is the final stage in which end user decide if purchasing product of service of a company is useful or not. If satisfaction level of customers is less they will not purchase the same product again in future.

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There exist some stages which are followed by customers while mapping a purchasing path. These stages are discussed below:

• Pre purchase: Here, the customers will identify those hotels where they want to stay for their vacations or business purpose. To collect information about different hotels, internet and newspapers can be used.
• Purchase: After analysing all the hotels, customers will select a hotel such as Holiday Inn as their utmost choice so that all their needs can be fulfilled properly. Holiday inn is a four star hotel which offer standardised service to customers (Nagengast and et. al., 2014).
• Receive: Here, customers are using the chosen service or product. In case of Holiday Inn, at this stage customers will be staying there and demand services as per their choice and requirement.
• Post-purchase: In this stage, the consumers will identify if Holiday Inn is capable to provide expected services or not. If hotel has provided satisfactory service to customers then they will prefer repeat visits otherwise they will switch their preference to other hotel.

P4 Describe The Value For Marketers to Present a Purchasing Path And Acknowledging Decision Making of The End Users

Main goal of business firms is to make the satisfaction level of customer at higher scale so that sales and revenues are earned in appropriate manner. It is essential for business in Holiday Inn to map a path to purchase. Importance associated with this aspect is mentioned below:

• Increases ROI: Map to purchasing path benefits in acknowledging expectation and purchasing pattern of customers. By this, targeting customers in right manner is easy. This will helps Holiday Inn in earning high revenues and profits due to which ROI will also increase.
• Unifying consumer information: Mapping purchasing path helps Holiday Inn in arranging information and data of customers in systematic manner. By this, aligning needs of people in different sections is easy. By this, each customer can be given expected service without any compromise (Mortimer, Bougoure and FazalEHasan, 2015).

Also, mapping for purchasing path helps a company to understand different levels which are faced by customers at the time of product purchase. Some of these levels are discussed beneath:

• Extensive problem solving: Here, customers takes longest time to purchase products as they have no idea about the offerings of company.
• LPS (Limited Problem Solving): In this, customers already know about entities with offerings of a firm and other present alternatives. Here, Holiday inn need to put extra efforts to grab attention of Customers (Mihaela, 2015).
• Routine problem solving: In this level, customers purchases a product for large number of time and they don't require additional efforts from company.

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P5 Differentiate Decision Making Processes Associated With B2B and B2C, Including Hospitality Examples

B2B and B2C are two ways by which an organisation can perform commercial transactions. In B2B, a company tries to sell their offerings to another company whereas in B2C, an organisation tries to sell their maximised services and products to their customers. Comparison in B2B and B2C are stated below:

P6 Mention Various Methods to Conduct MR And Different Research Methods to Understand Decision Making

Organisation cannot perform their functions as well as operations in appropriate manner without MR. Market research is very essential for a company as it benefits them to identify and acknowledge the changing demands & requirements of customers in a proper way. There exist different approaches and methods to conduct research. In context with Holiday Inn, these approaches are listed below:

Market research for Business to Business: In this kind of research, a company perform research to analyse the needs of other organisations so that a business contract can be signed with them. In this context manager in Holiday Inn can use secondary resources to collect information about other companies. With the help of secondary research, all information about a firm can be acknowledged. In this context, different source to collect information are stated below:

• Government agencies: Collection of data via governmental agencies and officials is the best way to gather authentic information about another company. This source will help Holiday Inn in identifying trade and laws related information of different firms (Hofacker, Malthouse and Sultan, 2016).
• Internet: By using internet, official website of a company can be checked so that all important data about them can be attained properly. Also, internet will help manager of cornered hotel in analysing reputation of another organisations so that they can decide if wooing them for business is beneficial or not.

Market Research for Business to customers: In this research, response and expectations of customers towards the offerings of company is identified so that required changes can be carried out properly. Also, this research will help Holiday Inn in identifying the changing needs of customers so that they can be provided modern products (Gargiulo, Natale and Russo, 2015). In this context, primary research method is best as it helps in collecting latest information about customers without any ambiguity. Sources in this context are written below:

• Questionnaire: This will help the manager in acknowledging choice of customers from a group of alternatives. By this, preference of maximum customers can be given priority. This will help the hotel in retaining customers for long time.
• Interviews: In this method, marketing team of Holiday Inn will ask multiple questions to their customers via face to face meetings. By this, changing needs of customers can be identified and they can be provided with right products and services.

P7 Analyse How The Marketers Can Impact Various Aspects of Decision Making

In order to achieve expected success and growth, managing behaviour of customers is essential for every organisation. This is because customers are the major earning source for an organisation. In context with hospitality industry, a marketer is needed to evaluate every business stage so that clients can be provided right services and overall profits of organisation will rise. In case of Holiday Inn, the marketer plays an essential role as in influencing decisions of the customers by implementing innovative strategies on regular basis. Manager in Holiday Inn is already providing pick and drop facility to the clients at airports and other travelling stations so that they can have comfortable experience with the hotel. This strategy of marketers in Holiday Inn distinct the hotel from their rivals and helps them in gaining competitive advantage in marketplace (Gargiulo, Natale and Russo, 2015).

Also, customised menu is offered to customers during their stay which motivates the customers to have repeat visits. In this way, marketer in Holiday Inn impacts the decision-making of customers and divert it positively towards the concerned hotel. Hence, it can be said that Marketing manager of Holiday Inn is needed to adopt new strategies so that customised services can be offered to clients according to their requirements. By this, right customers can be targeted for the right product. Getting right product will allow the customers to think positive about the hotel. By this, DM of customers can also be affected positively and profit as well as revenue is gained by Holiday Inn.

Also Read :- Consumer Behaviour and Decision Making

As per this assignment, it has been concluded that it is necessary for a company to check the attitude and perception of customers towards their products on regular basis. Appropriate behaviour of clients will assure high sales and revenues to the concerned company. Different factors like cultural, social and psychological aspect influence the mind state of customers in high manner. Changing trends related with hospitality industry are highly skilled staff, technological advancement, high activeness of customers etc. Also, best approaches to carry out market research are qualitative and qualitative approach. Also, it is acknowledged that market research is essential for a firm as it assist in acknowledging the needs of end users appropriately.

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Unit 19: Hospitality Consumer Behaviour and Insight

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Introduction Consumer behaviour is the study of individuals and organisations and how they select, buy, use and dispose of goods, services, ideas, or experiences to satisfy their needs and wants (Kotler and Keller, 2006). Studying consumers provides organisations with clues for improving, or introducing, products or services, setting prices, devising channels, crafting messages, and developing other marketing activities (Kotler, et al., 2008). It is mainly concerned with psychology, motivations, and behavior. The study of consumer behavior includes: - How consumers think and feel about different alternatives (brands, products, services, and retailers). - How consumers reason and select between different alternatives. - The behavior of consumers while researching and shopping. - How consumer behavior is influenced by their environment (peers, culture, media). - How marketing campaigns can be adapted and improved to more effectively influence the consumer. Unlike other business organisations that deal mostly in tangible products with service coming second, the hospitality industry is mainly concerned with services first, and their products might be seen as secondary to the services that they provide. The consumers will be satisfied by the quality of the service provided as compared to the quality of the products in other business environments. It is therefore important for managers in the hospitality industry to understand how consumers make decisions on the types of services they need and where to obtain the services. While realising that creating memories and joyous experiences for consumers is a key dimension affecting the profitability and growth of any hospitality organisation, the aim of this assessment is to appraise students’ knowledge and understanding of the consumers’ decision making process. The assessment will enable students to exhibit their comprehension of the factors that influence customers’ decisions. Students are expected to relate real world examples including their own personal experiences in doing this assignment. Knowledge and understanding will be assessed in the context of the students’ presentation and report to fulfil respective learning outcomes LO1: Examine the factors that influence hospitality consumer behaviour and attitudes LO2: Demonstrate the ability to map a path to purchase in a hospitality context, including the decision-making process LO3: Evaluate appropriate forms of research to understand influences on the hospitality consumer decision-making process LO4: Evaluate how marketers influence the different stages of the hospitality consumer decision- making process. Scenario and Activity You have been appointed as a marketing analyst for a UK-wide hospitality organisation. Your remit is to monitor the purchasing decisions of the organisation’s customers. In your role as a market analyst you will also need to understand how your organisation’s customers think and feel about different alternatives of products and services, and how marketing campaigns can be adapted and improved to more effectively influence them. Your line manager has asked you to give a presentation for departmental managers to demonstrate your understanding of consumer behaviour. Submission is in the form of a 15-minute group presentation using relevant software, with five minutes allocated for questions. (5 students per group). The presentation slides and speaker notes should be submitted as one copy. You are required to make effective use of Microsoft PowerPoint headings, bullet points and subsections as appropriate. Research should be referenced and bibliography provided using the Harvard Referencing system. It is recommended that you provide not more than 20 slides with introduction and references. The presentation will: • Investigate the different cultural, social, personal and psychological factors that influence consumer behaviour and attitudes within a hospitality context. • Explore how consumer trends are changing due to the impact of digital technology. • Undertake an analysis of how cultural, social, personal and psychological factors that influence consumer behaviour and attitudes are changing and driving trends in hospitality. • Perform a critical analysis of the emerging trends in consumer behaviour and attitudes using specific examples from the hospitality industry to support your arguments/presentation. LO1 Examine the factors that influence hospitality consumer behaviour and attitudes P1 Investigate the different cultural, social, personal and psychological factors that influence consumer behaviour and attitudes within a hospitality context P2 Explore how consumer trends are changing due to the impact of digital technology M1 Analyse how cultural, social, personal and psychological factors that influence consumer behaviour and attitudes are changing and driving trends in hospitality D1 Critically analyse the emerging trends in consumer behaviour and attitudes using specific examples from the hospitality industry to support your arguments LO2 Demonstrate the ability to map a path to purchase in a hospitality context, including the decision-making process P3 Examine the stages of the consumer decision- making journey and map a path to the purchasing for a given hospitality service P4 Explore why it is important for marketers to map a path to purchase and understand consumer decision- making in the hospitality sector M2 Evaluate how marketers are responding to the decision-making process, applying relevant examples from the hospitality sector D2 Critically evaluate the application of appropriate theories, concepts and models that influence and impact upon the hospitality decision- making process, supported by specific hospitality examples and contexts LO3 Evaluate appropriate forms of research to understand influences on the hospitality consumer decision-making process P5 Compare and contrast the key differences of the hospitality decision- making process in the context of B2C and B2B, using specific hospitality examples P6 Evaluate the different approaches to market research and methods of research used for understanding the decision- making process M3 Provide a coherent and justified evaluation of how different factors influence hospitality decision-making and buying behaviour, supported by specific hospitality examples LO4 Evaluate how marketers influence the different stages of the hospitality consumer decision-making process P7 Evaluate how M4 Critically evaluate marketers can influence how marketers influence the different stages of each stage of the the hospitality decision- decision-making process making process giving with reference to relevant specific hospitality methods and models examples

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Unit 19: Hospitality Consumer Behaviour and Insight

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Psychological Factors

Unit 19: Hospitality Consumer Behaviour and Insight plays a pivotal role in understanding customer behavior.  Human psychology is a chief determinant of customer conduct. These elements are hard to degree however are effective sufficient to steer a shopping for selection.

Some of the critical mental elements are:

I. motivation.

When someone is prompted sufficient, it affects the shopping for conduct of the individual. A individual has many wants consisting of social desires, fundamental desires, safety desires, esteem desires, and self-actualization desires. Out of some of these desires, the fundamental desires and safety desires take function exceptionally different desires. Hence fundamental desires and safety desires have the energy to encourage a customer to shop for merchandise and services.

ii. Perception

Consumer belief is a chief component that affects customer conduct. Customer belief is a method in which a patron collects statistics approximately a product and translates the statistics to make a significant photo of a selected product.

When a patron sees advertisements, promotions, patron reviews, social media feedback, etc. referring to a product, they increase an affect approximately the product. Hence customer belief will become a outstanding affect at the shopping for selection of consumers.

iii. Attitudes and Beliefs

Consumers have positive attitudes and ideals which affect the shopping for selections of a customer. Based in this mindset, the customer behaves in a selected manner toward a product. This mindset performs a substantial position in defining the logo photo of a product. Hence, entrepreneurs strive difficult to apprehend the mindset of a customer to layout their advertising and marketing campaigns.

Social Factors

Humans are social beings and that they stay round many folks who affect their shopping for conduct. Humans attempt to imitate different human beings and additionally desire to be socially established within the society. Hence their shopping for conduct is motivated via way of means of different humans round them. These elements are taken into consideration as social elements. Some of the social elements are:

Family performs a substantial position in shaping the shopping for conduct of someone. A individual develops possibilities from his adolescence via way of means of looking own circle of relatives purchase merchandise and keeps to shop for the equal merchandise even if they develop up.

ii. Reference Groups

A reference institution is a set of humans with whom someone pals himself. Generally, all of the humans within the reference institution have not unusual shopping for conduct and affect every different.

iii. Roles and reputation

A individual is motivated via way of means of the position that he holds within the society. If someone is in a excessive function, his shopping for conduct may be motivated in large part via way of means of his reputation. A individual who`s a Chief Executive Officer in a employer will purchase in step with his reputation whilst a workforce or an worker of the equal employer could have one-of-a-kind shopping for pattern

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Unit 19 – Consumer Behaviour and Insight in Hospitality

Factors and trends that influence customer behaviour and attitude.

The mind functioning of an individual customers has to understood efficiently by an organisation or a marketing personnel for mapping out their decision making process. By understanding mind functioning of a customer regarding a product or service purchase is termed as consumer behaviour which is influenced and shaped by some factors availing in surrounding (Decrop, 2011). However, the importance of consumer behaviour is also identified in the hospitality industry where the organisations need to identify and evaluate those influencing factors. The consumer behaviour is considered a crucial aspect of business marketing where this directs an individual in making a purchase decision in hospitality industry. There are several factors and trends that influence and affect the consumer behaviour in making purchase decision including social, cultural, psychological and personal along some trends in the market such as technology, knowledgeable customers etc. (Wilson et al., 2016).

Cultural Factor:

This is also found highly effective in the consumer behaviour of a customer in hospitality industry. In this factor, there are two other sub-factors including sub-culture and social class that also shape the decision making process of a customer. For example, a customer with high social class will prone to visit five stars hotel such as Accor whereas the customers from middle class society will visit budget hotel such as Travelodge (Fratu, 2011). The social belief, cultural norms, learned values, symbol of society etc. affect the consumer buying behaviour of a customer in hospitality industry (Tsiotsou and Goldsmith, 2012). For example, the individualistic, freedom and achievement based culture of US influence people to explore the world than the collectivism culture of Indian subcontinent. And thus, a large number of tourists are found from America and Europe countries comparing to others that create much impact on the hospitality industry.

Social Factors:

An individual consumer of hospitality industry experiences influence from references group, roles and status, family etc. in making purchase decision for hospitality service (Horner and Swarbrooke, 2016). The roles and social status create demand for high end services with high quality and price, for example, a businessman or a leader of a society with high social status prone to visit costly tourists spot and having luxurious services for an organisation (Jauhari, 2017). On the other hand, the group in low or middle income chooses for getting reasonable or budget places to visit and accommodation to live in. The family and reference group also have high influence in the decision making process where learning and beliefs of a family shapes behaviour, for example, a conservative family in Saudi Arabia doesn’t allow women alone to visit around (Horner and Swarbrooke, 2016). In selecting a food outlet, the consumers seek suggestion from their friends or family who perform as reference group, for example, a customer receiving quality experience from Holiday Inn will surely recommend others of his or her known to visit.

Psychological Factor:

Personal beliefs, learning, motivation, perception of this factor influence an individual in selecting a product or service option to own, for example, an introvert person tends to avoid outing or get to gather with friends in a restaurants (Dixit, 2017). On the other hand, the customer with high needs and drives of exploring world and experiencing new food item in restaurants followed by strong motivation tends to increase purchase in hospitality industry. The personal belief and attitudes create loyalty in customers and also get them restrained from going a place, for example, non-vegetarian customers won’t visit a vegetarian-restaurant (Cohen, Prayag and Moital, 2014).

Personal Factor:

An individual customer experiences influence from age, occupation, life style, economic condition, personality, self-concept etc. while making a purchase decision in hospitality industry (Fratu, 2011). For example, wealthy customers hold preferences for visiting places at leisure period and outing for food comparing to a customer with low economic condition. The life style and personality also influences the consumer behaviour, for example, millennial customers are found tech oriented and they have changing preferences over purchasing.

Along with these core factors that influence the consumer behaviour and attitude, there are found some trends performing same responsibility. The technology influences mostly, for example, a restaurant having technology inside its service is able to attract more customers (Benckendorff, Xiang and Sheldon, 2019). The online delivery system, customer engagement over online platform and usage of digital marketing also influence consumer behaviour. The climate change urges for having green business activities and this also make influence. The customers are found much informed and knowledgeable about product or services or business where they should be treated efficiently.

How the digital technology is changing consumer trends

The digital technology has been changing the business process and operation radically where it has created revolution in the hospitality industry. For example, digital technology has increased the efficiency of organisations in attracting and connecting with customers than before, KFC can reach a large number of customers with its offering through social media platform (Stokes, 2011). The customers make demand for the organisations which have available service facility from technology such as Wi-Fi, online group, e-payment etc. On the other hand, the trend of developing technologically sound organisations in hospitality industry receives thrust from the advancement of technology. For example, Accor can provide available information to its customers regarding the services, destinations, transportation, accommodation, catering etc. for influencing them in making purchase decision (McCabe, 2014). In addition, this also records a high volume of information about the customers who have visited earlier to make further connection and remind them at their revisit to make them valued. This digital technology has also make demand of intelligent restaurants or hospitality organisation among the customers where such organisation will facilitate all its services from check in to check out with the support for technology (Chaffey and Ellis-Chadwick, 2019). The customers have also been changing their preferences keeping adjustment with technology, for example, online delivery system is at high where the customers prefer the organisations most for having this facility (Cohen, Prayag and Moital, 2014). For example, Pizza Inn has received much acceptance and increase in sales after introducing the online delivery service. In another context, customers now make decision analysing information over online and social media platform, for example, reference of McDonald in a food group on Facebook will incur interest of customers to visit them (Cousins, Lillicrap and Weekes, 2014). they customers demand of checking up the services and the facilities of an organisation in hospitality industry visually through online platform, for example, Accor has uploaded its services, inside view of the restaurants, destination scenario, food, other facilities over its website to influence the consumer behaviour of customers in hospitality industry for making purchase decision.

Introduction

Though there are some similarities in consumer behaviour between hospitality industry and other industry, some differences are identified in strategies and approaches to be adopted. This report focus on the decision making path journey of an individual customer, consumer behaviour, influencing factors, marketing elements, research approaches to identify proper strategies and decision making process in the hospitality industry in the light of Accor hotel, a leading hospitality multinational organisations serving with dignity, pride and strong service quality with high brand image.

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Hospitality Consumer Behaviour and Insight : Assignment

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