Maham Hashmi CONSUMER BEHAVIOR AND INSIGHTS

STUDENT ASSESSMENT SUBMISSION AND DECLARATION

When submitting evidence for assessment, each student must sign a declaration confirming that the

work is their own.

Student name: Abdul Hadi Ahmed Assessor name: Maham Hashmi

Issue date: 24thNovember2020 Submission date: 25th December Submitted on: 25th December 2020
2020

Programme:

PEARSON BTEC HIGHER NATIONAL DIPLOMA IN BUSINESS (RQF)

Unit: CONSUMER BEHAVIOR AND INSIGHTS

Assignment number and title: DEVELOPING INDIVIDUALS IN AN ORGANISATION

Internal Verifier : Muhammad Ali Iqbal Raja

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I certify that the assignment submission is entirely my own work and I fully understand the
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Presented by: Abdul Hadi Ahmed
Maham Hashmi CONSUMER BEHAVIOR AND INSIGHTS

Student signature: Date:

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Maham Hashmi CONSUMER BEHAVIOR AND INSIGHTS

Contents

Introduction.................................................................................................................................. 4

L01.............................................................................................................................................. 5

Analysis of the vital factors that effectively impact on the behavior of consumers....................5

Discussion on the transitions in consumer trends as a consequence of technology

development............................................................................................................................ 5

Evaluation of the impactful factors of the transitional trends of the behavior of the tourists......6

L02.............................................................................................................................................. 7

Assessment of the significant steps of the path of consumers’ decisions and mapping of a
way to purchase a tourism service...........................................................................................7

Exploring why marketing people need to identify a path to buy and fully comprehend
consumer decision making......................................................................................................8

Appraisal of the marketers' feedback approach in addition to consumer decisions and

implementation of certain tourism industries............................................................................9

L03............................................................................................................................................ 10

The consideration of certain circumstances of the tourism sector, similarities and correlations
between the critical differences of hospitality assessments for B2B and B2C........................10

Investigation of different market research strategies and extensively researched frameworks

important for the planning and assessment of the decision-making process..........................10

Assessment and rationale of different influencing factors in tourism strategic planning and
purchasing patterns in the tourism sector with appropriate contexts......................................12

L04............................................................................................................................................ 12

Assessment of the mechanism used by advertisers to affect the key steps of the decision-
making cycle on tourism with the help of specific circumstances...........................................12

Essential assessment of the mechanism used by advertisers to successfully control each

stage of the process of decision-making, providing instances strategies and approaches.....13

Conclusion................................................................................................................................. 15

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Maham Hashmi CONSUMER BEHAVIOR AND INSIGHTS

References................................................................................................................................ 16

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Maham Hashmi CONSUMER BEHAVIOR AND INSIGHTS

Introduction
The satisfaction of consumers is the secret to increasing their income. I have chosen “Rehman
Travels” in this assignment. In running a tourism company, business owners must emphasize
the essential factors to determine the impact on customers' decisions. The assessment of these
variables is highly important for the tourism business's successful activity.

Company and its product

Rahman Holidays is a tour company of the Rahman Group of Companies that provides Pakistani tours
and tours in Pakistan. Pakistani travel packages range from northern region tour packages, summer tour
packages to winter tour packages and also including city tours and historical tours in the region, and
Pakistan tours and packages offered by Rahman Tours range from weekend trips to honeymoon trips to
the more rugged adventures Tours as well as tours tours in Pakistan. Blessed with a 4-season climate,
Pakistan offers exciting tour packages to the northern regions of Pakistan during summer holidays as well
as winter sports. Additionally, one can experience the cultural and historical tours offered by Rehman
Holidays. The product that i have chosen fromthis company is their tourism services.

Customer base and Customer behavior

Customer behavior is considered as highly significant in the tourism industry to decide whether and how
tourists have an interest in choosing a certain place for their tourism and whether a visitor's thought
process encourages him to pick and purchase a visitor package depending on his desire (Crouch, 2004).
When potential customers retrieve and contrast the relevant data they need according to their
requirement's entire method is called the decision-making process of customers. So, following the
decision making processes of the customer, tourism marketers need to define the road to buying and to
recognize the whole mechanism so that optimum competitiveness is reached on competitive markets. This
allows advertisers to have a thorough understanding of customer needs. In the optional evaluation phase,
marketers need to analyze case studies and enhance the information of their publicity based on market
research on consumer behavior. Clients can benefit customers through available tour options. There are
different approaches and methods for conducting this researches on the market. The most widely known
form of research in market surveys. Questionnaires by all kinds of business organizations are used to get
the consumer response and suggestions (Panda and Mishra, 2006). The purchasing behavior and decision-
making cycle of the customer in the hospitality and tourism industry are experiencing constant
transformation in this age of technological innovation. If the advertisers can not satisfy this shift in tastes,

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Maham Hashmi CONSUMER BEHAVIOR AND INSIGHTS

tourism companies cannot achieve their productivity objectives. Marketers probably remain a step ahead
of potential customers by enhancing their internet-based marketing campaigns. They also provide
numerous choices, so that potential customers can make their own decisions and can schedule the tour as
they feel necessary. The consumer trends and widespread choices are now selected through online
reviews and opinions. Such tourism firms should strive to be aware of the customer's expectations and
evaluate their purchasing habits to readily understand the tourism patterns in the business world and tap at
consumer analysis by performing efficient market research (Chen, 2012). Efficacious assessment of
consumer trends, being advanced in using modern technologies and using the best judgment while
approaching the consumers can help the marketers of tourism industries to have noticeable
accomplishments and beat the competitive companies to increase the profitability.

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Analysis of the vital factors that effectively impact on the behavior of consumers
Importance of understanding consumer decision making for marketers

A qualified marketer and his accomplishment in the tourism organization is based on his comprehension
of the most important factors which have a very efficacious influence on consumer behavior. The
psychoanalysis of consumers is an important topic. For this reason, the collection of values and the basic
criteria adopted by customers is extremely relevant. A tourist would usually choose based on the
information available he has about a specific tourist destination (Chen, 2012). Thus, if a marketer can
assist the person in analyzing the information and making a decision in favor of the marketer’s intention,
after that his career can be seen as prosperous. Some socioeconomic forces are also present. Of one, the
number of family members, tour party choice, economic standing as well as market competitiveness have
a significant effect on this entire procedure (Chaudhary, 2010).

A growing person has his / her own beliefs and principles. For instance, if you follow your faith, you can
visit somewhere with a religious significance rather than normally visit a place of entertainment. These
religious factors also affect the consumer's decision-making process. A person's personality, wages,
investments, and desires for money consumption have a significant effect on this too. These economic
concerns ascertain the tourism experience and its placement during decision making (Crouch, 2004).

Discussion on the transitions in consumer trends as a consequence of technology

development
Transition in the data collection method

Throughout the area of tourism industry developments, the growth of new technologies, and the use of
digital resources to gather insights on tourism industries have created tremendous changes. The consumer
trends and widespread choices are now selected through online reviews and opinions (Bhatt, 2006).

Excessive alternatives

Furthermore, increased use of internet services and the continued development of internet advertising
offered consumers plenty of choices available because the majority of tourist organizations used
promotional opportunities on internet-based platforms, for example, social media, online mainstream
media blogs, and forums (Panda and Mishra, 2006).

Rivalry for huge marketing and business

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Citizens are becoming more separate from the internet and promotional efforts of various tourism
organizations to determine their destinations and promote tours using their research. So, for tourism, all
these mechanisms of transitioning the demographics in tourism were very complicated. Tourism vendors
face more challenges than ever to satisfy their customers' desires and aspirations (Noel, 2018).

The leadership of the customer

The latest developments in Digitalization are often regarded as empowering consumers to make choices
by becoming fully aware of the entire situation of the tourism sector. If a tourist place is congested or
online, they can conveniently find details.

Evaluation of the impactful factors of the transitional trends of the behavior of the tourists
Thanks to the emergence of new technologies, the influences that have major impacts on customer
behavior and mindsets today experience a transformation. There have been major improvements and
adjustments in market decision-making compared with the previous patterns (Chen, 2012).

Simple connectivity

Tour organizing has also been encouraged. An online experience can simply be generated by a
community of friends or a wide number of colleagues. They can easily talk about the plan and share their
opinions and suggestions so that others can view it at all times. The psychological side of tourism trends
is now also affected by internet-based tourism promotions (Chaudhary, 2010).

Tools for Transaction

Besides, he can pay for his expenses with the credit card. Likewise, everyone around the globe has now,
through the Internet, become a world citizen.

Financial choices

An individual can get a loan to schedule his trip from a financial services firm. Like before to schedule an
easy tour for him, he does not have to rely entirely on his earnings (MacLean, 2010).

Cultural obstacles overcoming

When selecting the location, anyone will now gain awareness of cultural aspects and rich heritage. The
Internet has allowed a person to successfully transcend obstacles to multiculturalism and communication
gaps.

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Maham Hashmi CONSUMER BEHAVIOR AND INSIGHTS

Assessment of the significant steps of the path of consumers’ decisions and mapping of a
way to purchase a tourism service
When potential customers retrieve and contrast the relevant data they need according to their
requirement's entire method is called the decision-making process of customers. The following figure
illustrates the five steps of consumer decision - making and their compatibility.

Figure 1: Stages of Consumers’ Decision making Process (MacLean, 2010).

First of all, if the consumer can recognize his needs in dealing with a particular question, some additional
details may be necessary to fill out his knowledge. The tourism organization marketers must take this into
account and encourage their activities to help consumers make their choices (Crouch, 2004).

Furthermore, when customers select to consider their choices and assess the possible drawbacks of their
choice, they must be encouraged so that they do not reconsider it subsequently.

Thirdly, there may be uncertainty between customers when determining the choices open to him to make
the right decision. Marketers must have evidence that their offering is viable for customers and satisfy
their preferred choices (MacLean, 2010).

Fourthly, after all the previous steps have been taken, the consumers decide to buy. In this step, the
marketing people must simplify the circumstance to the purchaser as much as necessary. The transaction
process and paperwork for buyers must be made simpler. The satisfaction of consumers is the secret to

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increasing their income. In running a tourism company, business owners must emphasize the essential
factors to determine the impact on customers' decisions. (Chaudhary, 2010).

Finally, after the buying of a particular service is over, advertisers need to help customers reach the
customer by delivering the appropriate tools to distribute positive feedback and to make a suggestion to
those that are also essential for the potential buyers (Chen, 2012).

Exploring why marketing people need to identify a path to buy and fully comprehend
consumer decision making
How marketers respond to the decision making process of consumer

Following the decision making processes of the customer, tourism marketers need to define the road to
buying and to recognize the whole mechanism so that optimum competitiveness is reached on
competitive markets. This allows advertisers to have a thorough understanding of customer needs (Bhatt,
2006).

The primary objective of this project will be to concentrate on factors that apply to tourism customer
behavior, to chart a path of procurement in a tourist context including the decision-making process, to
carry out viable analysis to ascertain the impact of the factors addressed and to examine how advertisers
affect important phases within consumer decision-taking The investigation and analysis would, therefore,
encompass tourism's contemporary developments (MacLean, 2010).

The marketing people can understand the impact and start taking necessary steps to improve the
purchaser; touring experience. It helps organizations to organize their services, offers, and promotions in
line with potential consumers' perspectives. If tourist organizations become able to gain insights into the
customer's prevalent perspective, this offers them an important opportunity to overcome the limitations to
locate themselves on the market sustainably (King et al., 2009).

It allows for establishing long-term relationships between hospitality companies and consumers.
Customers then act on behalf of a specific tourism firm and retain their credibility for prospective
customers with suggestions that are much more efficient and viable than market promotional activities
(Panda and Mishra, 2006).

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Maham Hashmi CONSUMER BEHAVIOR AND INSIGHTS

Appraisal of the marketers' feedback approach in addition to consumer decisions and

implementation of certain tourism industries
Tourism association marketers have taken care of the phases of this process and reacted to the decision-
making phase for the clients. They analyze in-depth the data obtained from customers' general attitude in
a certain business such as the tourism business and provide a viable framework to develop new products
and services to increase their profit margins (Chaudhary, 2010).

For starters, in buying a tour package to visit a sea beach, a buyer fulfills his duty to give his valued user
both sides of a coin. When the customer chooses in summer then his decision will be respected, and other
choices that may be affordable in that season will typically be given to him.

On the other hand, if the same choice is made another season, the vendor generally values the decision,
this time showing its affordability and providing other choices available that may be advantageous for
that season even with their advantages and disadvantages (Crouch, 2004).

The consideration of certain circumstances of the tourism sector, similarities and

correlations between the critical differences of hospitality assessments for B2B and
B2C
Difference between b2b and b2c decision making process

Previously, hotels have offered main rooms for two different modes of travel: B2B and B2C. The number
of people using the internet through mobile devices is growing in the context of increasing tourism in the
worldwide market, resulting in a strong rivalry in the B2C retail sector for online hotel reservations
through the internet agent. Hotels will also consider different methods of connecting to their clients
before the market threatens them (Crouch, 2004).

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Figure 2: B2C vs. B2B Marketing in Hospitality Industries (Chaudhary, 2010).

(Business to Consumer Marketing):

Imagine a person who decides to visit his spouse on a romantic getaway. Then he may have had problems
selecting a destination that could be excellent for his goal. Financial considerations and the interests of the
client and his wife should be taken into account (Chen, 2012).

Context evaluation and approach variance

Then an experienced and professional marketer from a tourist company will most likely give the pair
some reasonable choices to schedule their romantic holidays, taking account of their tastes and
affordability. This can be defined as the decision-making process from enterprise to customer in the
hospitality and tourism sense.

The customer support environment has been revisited in recent years. Customers now are not like they
were five years before. Second, certain companies provide clients with outstanding support and use these
interactions to judge others. We trust the email provider to do the same as the deliverer from FedEx goes
with a sense of anticipation. Furthermore, clients are required to use their buying experience as their key
discerning resource even more than ever before. The consumers today are far more sophisticated shoppers
than their predecessors. The Web has been a dominant tool of information in real-time (Bhatt, 2006).
This has also been an instant assessment device. The web-based knowledge with ratings by forty-eleven
past guests is immediately accessible.

(Business to Business Marketing):

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Again, if the same individual wishes to buy for his work trip then the romantic act would not necessarily
be part of the choice. In turn, the senior officials and employees will have to approve the payment which
will include many certificates which invoices (Bhatt, 2006).

Context evaluation and approach variance

In this case, the marketing partners of the tourism organization, rather than cost-effectiveness and
contentment, must highlight comfort and time-saving. This could be further categorized as the decision-
making process for companies in the hospitality and tourism sector.

Contrary to the selling system of B2C, on any room they rent the hotel may forfeit some fee with a B2B
platform and the hotel has a clear deal and will bargain according to specifications. The hotel will raise
the cost of a room considerably for collaborator supplying the site. Within the retail category B2B, a lot
of travel agencies and tourism startup firms will be the customers. The more hotel rooms they get the
more benefits the more rooms the increased demand for rooms would offer. The cheaper they will be,
particularly in the peak season. Nonetheless, despite the number of rooms sold as well as the opportunity
to connect to other suppliers, the online market share remains quite lucrative, big and minor tour
operators both enjoy the revenues (Crouch, 2004).

Investigation of different market research strategies and extensively researched

frameworks important for the planning and assessment of the decision-making process
Business analysis surrounding business decision-making in a single commercial organization assists the
company's communications division by providing important insights that are particularly successful for
evaluating and recognizing the entire cycle. Decisions are not taken based on the market research findings
explicitly. Furthermore, it will never guarantee its performance and viability. It should be recalled that
market analysis is used to reduce rising mistakes and structural mistakes affecting decision-making
(Chaudhary, 2010).

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Figure 3: Methods of tourism market research (Chen, 2012).

There are different approaches and methods for conducting this researches on the market. The most
widely known form of research in market surveys. Questionnaires by all kinds of business organizations
are used to get the consumer response and suggestions. Sometimes, if the data collector agrees to help
consumers by sharing their insights, consumers are interviewed. Business assessment and field trials of
companies or goods are both very popular approaches for analysis into demand development and
customer decision-making (King et al., 2009).

Assessment and rationale of different influencing factors in tourism strategic planning and
purchasing patterns in the tourism sector with appropriate contexts
There are several important factors in the consumer's purchasing behavior that impact consumer decision-
making as well as the aforementioned variables.

Financial assessment

First of all, to assess potential customers, the quality of the service is critical. If a buyer is not willing to
afford a pricey travel package then the theory does not matter. It is prudent to make those options open to
him in compliance with his financial situation (Chen, 2012).

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Strengthening Trends

Another important factor in the impact of the purchasing behavior of the consumers is the buzz for
business, adequately manipulating groups such as friends, colleagues, and neighbors. In this scenario,
stressing individual prejudices such as morality, values, and priorities is also effective (Crouch, 2004).

Consumer trust

One of the most significant aspects of this discourse is the economic situation. Positive economic
conditions increase consumer confidence and motivate consumers to buy services as they can. Marking
campaigns and tourist organizations 'promotions also have a major impact on consumers' buying habits
(King et al., 2009).

Assessment of the mechanism used by advertisers to affect the key steps of the decision-
making cycle on tourism with the help of specific circumstances
Recognition Needed

The advertisers will take the opportunity to identify the desires through attractive advertising deals
through enticing buyers. The advertisers must solve the challenges and answer the questions that
customers may have at this point in mind. It would certainly help them to obtain the loyalty of the
consumers for a long time.

Searching for information

The most efficient approach for clients to find information in the information search process is to make
their brand more broadly accessible on digital platforms. Marketers must recognize the challenges they
already have and fix them through their advertising material. The information has become the most vital
factor of this whole process of decision making (Bhatt, 2006).

Evaluation option

In the optional evaluation phase, marketers need to analyze case studies and enhance the information of
their publicity based on market research on consumer behavior. Clients can benefit customers through
available tour options. Providing as many options as possible helps the marketers to prove their credibility
to potential consumers (Chen, 2012).

Choice on purchasing

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To purchase as flat and practical as possible for consumers by offering them all potential alternatives for
compensation and other equipment, the main aim is to make the buying decisions. Providing discounts,
incentives and other types of marketing stunts help effectively to make such choices (Chaudhary, 2010).

Relation after-sale

To ensure a smooth consumer-tourism agency partnership, advertisers will rely on the long term
relationship, by reconnecting with it periodically.

State the psychological and behavioural theories

The theory of planned behaviour

In connection with consumer behaviour, there is often a mention of the theory of planned behaviour
(TPB). This was created as an upgrade of the theory of reasoned action. The TRA assumes that the
individual’s behaviour in the decision-making process is under the supervision of their intentions, and that
it generally stems from the intensity of their efforts to reach a specific decision (Murphy, 2007). In
accordance with this theory, individuals behave rationally and according to motivation in the decision-
making process, and are ultimately able to reasonably choose between different options. The TPB, as an
extension of the TRA, also includes unintended behaviours. In addition to the control of intentions, we
therefore also need to account for unintentional behaviour when examining the behaviour during the
process of determination. For individuals, this means that they may be able to have greater control over
one behaviour than another.

the TPB model to the field of tourism, more specifically to the spare time activities of the individuals. The
study showed that the behavioural, normative, and control beliefs constitute the foundations for views,
subjective norms and perceived behaviour control. Correlations between individual beliefs and activity
have indeed proved to be weak, but in most cases statistically significant. An analysis of the responses
showed that respondents participate in recreational activities, especially when they expect certain benefits
from being supported by friends and family. At the same time, respondents believe that they possess
enough resources to actively participate in activities.

Role of verbal and non verbal communication

Communication is a pillar of the tourism industry. Without being able to communicate properly
with our guests, we will fail in our mission to provide exceptional service. As an industry, we
need to focus on observing our guests’ body language and reacting accordingly, while also

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keeping a close watch on the signals our bodies are sending them (Reisinger, 2008). With the
right nonverbal cues, we can ensure that our guests feel welcome and travel with us. As
important as it is to monitor our guests’ body language, we also should be aware of the messages
that our bodies are sending. One of the easiest and most effective things we can do is maintain
friendly eye contact when speaking to someone. This shows a guest that we are genuinely
interested in what they have to say and that we are giving them our full attention. 

We should refrain from hunching our shoulders forward and crossing our arms, as these postures
make us appear “closed-off” or unfriendly. Additionally, we need to make sure that we aren’t
saying one thing while our body language indicates another. When presented with two
conflicting signals, individuals are more likely to listen to nonverbal cues than verbal ones. 

Essential assessment of the mechanism used by advertisers to successfully control each

stage of the process of decision-making, providing instances strategies and approaches
The purchasing behavior and decision-making cycle of the customer in the hospitality and tourism
industry are experiencing constant transformation in this age of technological innovation. If the
advertisers can not satisfy this shift in tastes, tourism companies cannot achieve their productivity
objectives. Consumers always have certain unfulfilled wishes. Marketers also take note of these desires
and inspire them to perform their business. Tourist industry consumers are likely interested in
exploration. Marketers initiate their research by providing the options available, which will lead
consumers to explore the world (Chen, 2012).

Marketing campaigns and recommendations

A person depends not just on friends or neighbors' recommendations, as in previous days. He uses search
engines to search for details. Marketers probably remain a step ahead of potential customers by enhancing
their internet-based marketing campaigns. They also provide numerous choices, so that potential
customers can make their own decisions and can schedule the tour as they feel necessary (Bhatt, 2006). A
qualified marketer and his accomplishment in the tourism organization is based on his comprehension of
the most important factors which have a very efficacious influence on consumer behavior. The
psychoanalysis of consumers is an important topic. For this reason, the collection of values and the basic
criteria adopted by customers is extremely relevant. A tourist would usually choose based on the
information available he has about a specific tourist destination. Marketers typically collect contact

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Presented by: Abdul Hadi Ahmed
Maham Hashmi CONSUMER BEHAVIOR AND INSIGHTS

information from their buyers and connect with them to establish a long-term relationship with
consumers, by giving them welcoming during celebrations and holidays.

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Maham Hashmi CONSUMER BEHAVIOR AND INSIGHTS

Conclusion
Tourism organizations have been harder in recent years to grow and maintain a sustainable position in the
competitive market of today. Throughout the area of tourism industry developments, the growth of new
technologies, and the use of digital resources to gather insights on tourism industries have created
tremendous changes. The consumer trends and widespread choices are now selected through online
reviews and opinions. Such tourism firms should strive to be aware of the customer's expectations and
evaluate their purchasing habits to readily understand the tourism patterns in the business world and tap at
consumer analysis by performing efficient market research.

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Presented by: Abdul Hadi Ahmed
Maham Hashmi CONSUMER BEHAVIOR AND INSIGHTS

References
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Chen, J., 2012. Advances In Hospitality And Leisure. Bingley: Emerald.

Chaudhary, M., 2010. Tourism Marketing. New Delhi: Oxford University Press.

Craig-Lees, M., Joy, S. and Browne, B., 2005. Consumer Behaviour. Brisbane: Wiley.

Crouch, G., 2004. Consumer Psychology Of Tourism, Hospitality And Leisure. Wallingford,
Oxfordshire: CABI Pub.

King, C., Shoemaker, S., Kandampully, J., Lovelock, C., and Kotler, P., 2009. Hospitality Marketing.
Sydney, NSW: Pearson/Custom Pub.

MacLean, M., 2010. Sustainable Hospitality And Tourism Management.

Murphy, L., Benckendorff, P., and Moscardo, G. ,2007. Linking Travel Motivation, Tourist SelfImage
and Destination Brand Personality. Journal of Travel & Tourism Marketing, 22(2), 45- 58.

Noel, H., 2018. Consumer Behaviour. Lausanne: AVA Publishing SA.

Panda, T., and Mishra, S., 2006. Tourism Marketing. Hyderabad: ICFAI University Press.

Reid, R., and Bojanic, D., 2001. Hospitality Marketing Management. New York: J. Wiley.

Reisinger, Y. and Moufakkir, O., 2008. International Journal Of Culture, Tourism And
Hospitality Research.

Roberts-Lombard, M. and Parumasur, S., 2005. Consumer Behaviour.

Schiffman, L., 2010. Consumer Behaviour. Frenchs Forest, N.S.W.: Pearson Australia.

Sinha, P., 2011. Tourism Marketing. New Delhi: Anmol.

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