Consumer Behaviour and Insight in hospitality

Consumer Behaviour and Insight in hospitality

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 Consumer Behaviour and Insight in hospitality

Table of Contents
Consumer Behaviour and Insight in hospitality..............................................................................3
Introduction......................................................................................................................................3
Overview of Stoke Park hotel......................................................................................................3
Task 1: Essay...................................................................................................................................4
Investigate and critically analyse different factors and trends that influence customer behaviour
and attitude...................................................................................................................................4
Provide exploration of how the impact of digital technology is changing customer trends........6
Task 2: Report..................................................................................................................................7
Examine the stages of the consumer decision-making journey and map a path to the
purchasing for a given hospitality service....................................................................................7
Explore why it is important for marketers to map a path to purchase.......................................10
Evaluate how marketers are responding to the decision-making process, applying relevant
examples from the hospitality sector.........................................................................................11
Compare and contrast the key differences of the hospitality decision-making process in the
context of B2C and B2B, using specific hospitality examples..................................................11
Evaluate the different approaches to market research and methods of research used for
understanding the decision-making process..............................................................................14
Explore the factors that influence the different stages of the process........................................15
Illustrate how elements of the marketing mix influence the decision-making process, supported
by examples................................................................................................................................16
Critically evaluate how marketers from different hospitality organisations are responding to
the hospitality decision-making process and buying behaviour................................................17
Critically evaluating how marketers can influence the different stages of the hospitality
decision-making process............................................................................................................17
Conclusion.....................................................................................................................................18
References......................................................................................................................................19
 Consumer Behaviour and Insight in hospitality

Consumer Behaviour and Insight in hospitality

Introduction

Customers play a major role in the success of any business organisation. With this, it is important

for hospitality businesses to acquire clear insights into how consumers behave and the factors

influencing their behaviour. Doing this will help them provide joyous experiences to customers

which in turn will lead to profitability and growth. This paper will address the concept of

consumer behaviour and insight in the context of Stoke Park hotel. The paper will examine the

factors that influence hospitality consumer behaviour and attitudes, demonstrate the ability to

map a path to purchase in a hospitality context, including the decision-making process, evaluate

appropriate forms of research to understand influences on the hospitality consumer decision-

making process and evaluate how marketers influence the different stages of the hospitality

decision-making process.

Overview of Stoke Park hotel

The Stoke Park hotel is one of the luxurious hotels located in Buckinghamshire, England. The

hotel is comprised of a country club resort and a spa which altogether gives customers an

experience that motivates them to remain loyal to the hotel. The hotel is located approximately

35 minutes from London and 7 miles away from Heathrow making it convenient for people from

different regions to access it without any difficulties. It has a total of 49exquisite bedrooms, 27

championship golf courses, and 13 tennis courts, a state of art gymnasium and an awarding Spa.

Based on the information on the hotel’s website, the hotel offers an extensive range of treatments

for both men and women at a reasonable cost. The Spa is fitted with several treatment rooms, hot

tubs and sauna, large relaxation and reception area. The success of the hotel can be attributed to
 Consumer Behaviour and Insight in hospitality

its friendly employees who are committed to giving customers an experience that goes beyond

their expectations.

Task 1: Essay

Investigate and critically analyse different factors and trends that influence

customer behaviour and attitude

Definition of consumer behaviour

As noted above, consumers play a critical role in the success of any business. In this context,

consumers are the people who purchase goods and services for consumption purposes. On the

other hand, consumer behaviour is the study of how consumers at an individual level choose,

purchase, use and dispose of goods and services to meet their needs and wants. It is majorly

focused on the motivations, psychology, and behaviours of consumers. Typically, consumer

behaviour is the study of consumer actions in the marketplace and the decisions they make to

meet their needs. According to Dixit, Lee and Loo (2019), consumer behaviour is important

because it enables Stoke Park hotel to have a clear insight into what influences the buying
 Consumer Behaviour and Insight in hospitality

decisions of its customers. With the information, the hotel can easily fill the gap and determine

the products and services its customers require to meet their needs and wants. Moreover, the

information enables the hotel to enhance its products and services to create a lifetime impact on

its customers.

Factors that influence consumer behaviour

At Stoke Park hotel, consumer behaviour is influenced by various factors which include;

Cultural factors: According to Ramya and Mohamed Ali (2016), culture plays a critical role

when it comes to acquiring a clear insight into the needs and requirements of a person. This

means that consumers behave the way they do because of their culture. Culture is a composition

of all the values, beliefs, attitudes, customs, and traditions among others. In this case, Japanese

people visit the Stroke Park hotel in groups as it is their tradition to do so. However, Americans

visit the hotel individually because their culture is more individualistic than communal. With

this, the values, customs, culture, and traditions of people influence the manner in which they

behave when making purchase decisions.

Social factors: Here, customers at the hotel behave the way they do because of their status,

reference groups, family members and social roles. In this case, people from different parts of the

world make decisions to visit the hotel because of the reference groups or a recommendation

from family members and friends. With this, the hotel has put in place various strategies to

ensure that they deliver a good experience to customers to increase the number of references.

Personal factors: these factors include; the age of the consumer, his or her occupation, level of

education and income, personality and lifestyle (Desai and Mistry, 2017). With these factors,

consumers make decisions to purchase from Stroke Park hotel because their level of income can
 Consumer Behaviour and Insight in hospitality

allow them to do so. Moreover, they do so because the hotel offers goods and services that match

their personality and lifestyle.

Psychological factors: Consumer behaviour at the Stoke Park hotel is influenced by a number of

psychological factors including motivation, perceptions, ability, and knowledge among others

(Rani, 2014). In this case, consumers from different walks of the world make decisions to

purchase from Stoke Park hotel because of the motivation and the good perception they have

about the hotel.

In the case of trends, the internet is one of the trends that is influencing consumer behaviour in

the industry. According to Ramya and Mohamed Ali (2016), the internet is one of the

technologies that is immensely influencing the behaviour of consumers in the hospitality

industry. The majority of hotels including the Stoke Park are into using cyber marketing to reach

out to customers as well as enhance their promotions. Moreover, many people all over the world

are on the internet meaning that the kind of information Stoke Park hotel providers on the

internet influences the manner in which people make decisions. This trend has been regarded at

the hotel as being powerful than the cultural, personal and social factors in influencing consumer

behaviour.

Provide exploration of how the impact of digital technology is changing customer

trends

Digital technology has been associated with various impacts some of which are positive while

others are negative. Today, the impact of digital technology in the hospitality industry is

changing customer trends greatly. For instance, digital technology has led to an increased need

for personalization in the industry. Digital technology has led to a decline in personal contact
 Consumer Behaviour and Insight in hospitality

between customers and hospitality organisations. This is because information is shared on the

websites, social media, and other platforms that do not create a personal interaction (Kim and

Jung, 2018). This has led to an increase in the need for personalization in the industry and

hospitality organisations should address this to attract more customers.

Another way digital technology is changing customer trends is by easing access to information.

With digital technology, customers today can access information regarding the Stoke Park hotel

from anywhere and at any time. Here, customers don’t need to visit the hotel physical to make a

decision on whether to purchase from the hotel or not. They can do this by clicking on the hotel’s

website and evaluate the kind of products and services offered, prices, its nature and whether it

meets their needs and wants. In this context, digital technology is making customers rely heavily

on the internet and other social media platforms to make decisions.

The other way is the manner in which hospitality organisations are marketing their products and

services. Today, hospitality organisations market their products and services through social

media platforms such as Facebook, Twitter, and Instagram among others and via the internet.

Marketing in this manner has led customers in shifting from the traditional methods of

purchasing products and services in the industry to social media and internet purchasing. With

the internet, customers can easily click and book a room at the Stoke Park hotel. This is one of

the major current trends in the industry.

Task 2: Report

Examine the stages of the consumer decision-making journey and map a path to the

purchasing for a given hospitality service

Map out the path to purchase for customers of Stoke Park hotel
 Consumer Behaviour and Insight in hospitality

According to Temkin (2010), acquiring a clear understanding of a customer’s purchasing path is

crucial in the current competitive landscape. Here, a path to purchase for customers refers to the

various channels that a customer uses to purchase an item in a given organisation. The path to

purchase for customers of Stoke Park hotel is as follows;

Awareness Consideration Conversion Evaluation

What the hotel offers hotel research products to purchase experience

Product research feedback
From the above map, it can be noted that the path of purchasing for customers at Stoke Park

hotel begins with Awareness. Here, the hotel makes its products known to customers through its

website and other social media platforms. Upon creating awareness among customers, the next

stage is the consideration and this entails the customer researching the hotel and the products it

offers to get a clear understanding on the internet or on review sites. In the next step, the

customer makes a decision of where and when to purchase the hotel’s products and services.

Upon purchasing, the next step is evaluation where customers evaluate their experiences and

provide feedback to the hotel (Temkin, 2010).

The stages of the consumer decision-making journey

 Consumer Behaviour and Insight in hospitality

Consumer decision-making journey at the Stoke Park hotel is made up of five stages which

include;

Need recognition: This is the very first stage of the consumer decision-making journey at the

hotel. It involves customers realising they have a need for a certain product or service offered by

the hotel. According to Solomon et al. (2014), a customer needs recognition occurs when a

person experiences a difference between an actual state and a desired one. A need for a product

or a service can occur immediately or after some time and this can be a result of an internal

stimulus or external stimuli like a recommendation from a friend or a family member.

Information search: Upon establishing a need, a customer moves to the second stage of the

journey which is an information search. Here, customers search for different alternatives they

can purchase to meet the identified need. They can make use of internal research which entails

using past experiences or external research which involves asking family members, friends or

searching online Mau, Schramm-Klein and Reisch, 2014).

Evaluation of alternatives: at this stage, customers examine the different alternatives along with

the product lifecycle. This is to help them select the best alternative that will effectively meet

their needs.

Purchase decision: This is the stage where a customer makes a decision to purchase a product or

a service to fulfil the identified need. This happens after a customer has evaluated all the

alternatives and made a logical conclusion. The consumer purchase decision is influenced by a

number of factors including cultural, personal experiences and emotions among others (Darley,

Blankson and Luethge, 2010).

 Consumer Behaviour and Insight in hospitality

Post-purchase behaviour: This is the last stage of the journey and it involves the customer

examining whether the purchased products or services effectively satisfied the identified need. In

this case, if the product meets the need, then the customer can become a brand ambassador for

the organisation and the reverse holds.

Need Information Purchase Post

recognition search Evaluation decision purchase

Internal stimulus internal search Different alternatives purchasing reviews

External stimulus external search feedback
Explore why it is important for marketers to map a path to purchase

As stated above, mapping a path to purchase for customers is critical in the hospitality industry.

It is important for the Stoke Park hotel’s marketing department to map a path to purchase for its

customers because it will help the hotel determine the major touchpoints of customers with the

business. Moreover, it will help the hotel highlight areas that need to be enhanced. Mapping

customers will enable the hotel to establish whether the customer journey is in a logical order or

not. Also, it will enable the hotel to pay attention to the particular needs of customers at various

stages of the purchasing funnel. Furthermore, it will enable the hotel to identify the gap between

the desired customer experience and the actual experience received (Alhelalat, 2015). However,

for the hotel to enjoy all these benefits it has to include all the customer touchpoints in its

operations.
 Consumer Behaviour and Insight in hospitality

Evaluate how marketers are responding to the decision-making process, applying

relevant examples from the hospitality sector

According to Bronner and De Hoog (2010), Stoke Park hotel responds to its customers’ decision-

making process in various ways including determining when customers develop needs for their

products and services. Establishing this enables the hotel to put in place viable marketing

strategies as well as determine the ideal time to market their products and services to the target

customers. In the case of information search, the hotel provides all the necessary information

about its products and services on its website, social media and other marketing venues. At the

evaluation stage, the hotel responds by providing a lifetime experience to the customer for

positive reviews. Positive reviews lead customers into selecting the hotel and its products as well

as the services. This, in turn, increases the sales and profitability of the hotel. With the purchase

decision stage, the hotel responds by producing products and services that match the age,

income, lifestyle, level of education, and status among others. Producing products that match the

demographic characteristics of customers leads to an increase in sales and productivity. Finally,

the hotel responds to the post-purchase stage by providing lifetime experiences to customers.

This has enabled the hotel to maintain positive reviews as well as attract more customers

annually.

Compare and contrast the key differences of the hospitality decision-making process

in the context of B2C and B2B, using specific hospitality examples

The main aim of a commercial operation is to sell goods and services either directly to

consumers or to other businesses. In this case, selling goods directly to consumers is referred to

as Business to Consumers (B2C) while selling to other businesses is referred to as Business to

Business (B2B) (Kumar and Raheja, 2012). In the hospitality industry, the decision-making
 Consumer Behaviour and Insight in hospitality

process to purchase between B2C and B2B is different although they both follow the same

stages. Various studies have shown that rational and emotional factors play a big role when both

consumers and businesses make purchases. In the case of businesses, they put in place several

strategies and create processes that enable them to make rational decisions. On the other hand, a

business makes advertisements with the aim of influencing the emotions of consumers to

purchase particular items to meet their needs and wants. In this context, the B2B decision-

making process is complex as compared to that of the B2C. According to study, the purchasing

decision-making process is similar for both business buyers and consumers but major differences

exist at different stages.

Comparing and contrasting major differences and similarities of B2C and B2B

Need identification: For both cases, the purchasing decision-making process begins with

identifying a need. In the case of B2C, consumers identify a need by either an internal stimulus

or an external stimulus such as advertisements, references from friends, families among others.

For example, a customer can say that “I need to visit Stoke Park hotel and enjoy its wonderful

products and services.” Here, the consumer has identified the need for visiting Stoke Park hotel

and this can be as a result of the consumer's internal stimuli or recommendations from friends. In

the context of B2B, businesses proactively identify a need as part of their overall business

strategy. For instance, the Stoke Park hotel can make say that “we need to acquire more

computers to enhance our overall stock ordering process.” Here, the hotel has identified a need

which is to acquire more computers to enhance its operations. In this context, both the consumer

and the Stoke Park hotel have identified a need. However, they are not the same as the hotel

seeks to make its processes better while the consumer seeks to meet personal needs directly.
 Consumer Behaviour and Insight in hospitality

Information search: At this stage, both consumers and businesses will search for alternatives

available to meet the identified need. However, the searching tactics will not be similar as the

business will focus on different alternatives than those of consumers.

Evaluation: here, both the business and consumers analyse the alternatives they have to select the

best for their identified needs. For a business, suppliers will be evaluated to access their

reliability and reputation. They also assess the creditworthiness or the governance of suppliers

before choosing. Consumers tend to rely more on brand reputation and comparison shopping. In

case they are making smaller purchases, they will make an online comparison of different

alternatives to get the best. However, if they are making expensive purchases they will read

reviews and online articles about the identified alternatives to select the best.

Purchase decision: at this stage, both businesses and consumers make a decision to purchase

from the selected alternative. For businesses, a purchase decision is normally made after a long

process of consideration and a discussion with the committee (Kumar and Raheja, 2012). For

consumers, the purchase decision is purely an individual decision although they can talk with

family members and friends about the challenges. With this, consumers are more likely to make

impulse purchases than businesses.

Post-purchase: This is the last stage for both B2C and B2B and it entails reviewing and giving

feedback regarding the experience received and level of satisfaction achieved regarding the

purchase of products and services. For both B2C and B2B, after-sales service is critical to retain

both the business and consumer for long. At this stage, the business customer examines the

products both from the supplier to determine its effectiveness while consumers evaluate the

experience they received upon purchasing products and services from the selected alternative. In
 Consumer Behaviour and Insight in hospitality

case of anything, they will make a complaint in which organisations should quickly respond to

minimise negative impacts.

As can be seen, both B2C and B2B follow the same stages in making a decision to purchase. The

difference is that B2B is more complex as involves the whole business as well as the committee.

This means that a lot of consultation is involved before a particular product or service is

purchased. However, B2C is a bit simpler as the consumer him/herself is making the decision.

Although he can consult from family, friends among others, it is not complex like the B2B.

Evaluate the different approaches to market research and methods of research used

for understanding the decision-making process

Market research is a term that is commonly employed to refer to a systematic process that

involves collecting, analysing and interpreting information related to target markets and

consumers (Sarstedt and Mooi, 2014). In the case of Stoke Park, the hotel employs market

research to acquire concrete information about their target customers and then use the

information to put in place various strategies to meet the set goals and objectives. There are

different approaches and methods to market research that Stoke Park hotel employs to

understand the decision-making process of consumers. They include;

Surveys: here, the hotel creates a concise and straightforward questionnaires to analyse a selected

sample of the target market. The hotel particularly employs in-person surveys, mail surveys,

telephone surveys, and online surveys. In-person surveys are used in high traffic locations and

they are essential because they give the hotel an opportunity to showcase their products and

services to customers directly. Surveys are the most used method in the hotel as it is less

expensive and it can be used to acquire accurate information about the target market.
 Consumer Behaviour and Insight in hospitality

Focus groups: This method entails a moderator leading a discussion among a group of people

using a scripted series of questions. Focus groups take up to a maximum of two hours and it

requires two to three groups for valid information. The focus group enables the hotel to gather

detailed information about the target market including their perceptions, feelings about the

hotel’s products and services. It is also less expensive compared to interviews and offers the

hotel an opportunity to seek clarification.

Observation: This method entails the hotel observing the target group without them noticing.

With this method, the hotel acquires accurate information as people will exhibit their actual

behaviour unlike in the case of focus groups and surveys.

Field trials: with this approach, Stoke Park hotel introduces a new product into the market to

determine the response from customers. This method is important because it enables the hotel to

make product adjustments and adjust the prices.

Explore the factors that influence the different stages of the process

There are various factors that influence the different stages of the consumer decision-making

process and they include;

Economic factors: this refers to the financial abilities of the consumer to purchase and item. In

this context, consumers will only purchase what they can afford (Mandl et al., 2011).

Functional factor: with this factor, consumers will make a decision to purchase an item if meets

the identified need.

Marketing mix factors: the characteristics of the product, place of sale, promotions and pricing

matter a lot to consumers when making purchasing decisions. In this case, if the features of a

product do not meet the identified need then a consumer cannot buy the product.
 Consumer Behaviour and Insight in hospitality

Social factors: these are major factors that influence the different stages of the purchasing

process. The views from family members, friends or reference groups as well as social status can

prevent or motivate a consumer to purchase a product.

Personal and psychological factors: here, the motivation, perception, age, level of education

along with lifestyle can immensely affect the process (Mandl et al., 2011). For instance, if a

person is motivated to buy a particular product from Stoke Park hotel, he will do so and vice

versa.

Illustrate how elements of the marketing mix influence the decision-making process,

supported by examples

There are four major elements of the marketing mix which are; product, price, place, and

promotions. These elements influence the decision-making process in various ways including;

Product: this refers to the items that Stoke Park hotel offers to customers. With the product, if the

characteristics do not match what customers want they will not buy from the hotel and the

reverse holds. In this case, the hotel should ensure that it produces products and services that

match the needs of customers effectively.

Place: this refers to the distribution of products. If there are no proper and convenient ways for

customers to access products and services at the hotel then they will not purchase and the reverse

holds. In this case, the hotel should provide its products at convenient locations to allow

consumers to access them.

Promotion: this refers to the activities that the Stock Park hotel has put in place to promote its

product and services. Consumers tend to be influenced by promotional activities like

 Consumer Behaviour and Insight in hospitality

advertisements when making a purchase. With this, the Stoke Park hotel should make use of

promotional activities to influence as many customers as possible to purchase from the hotel.

Price: this is a critical element of the marketing mix and it refers to the value of the product. If a

product is valued so low it makes customers question its effectiveness while pricing it too high

makes them feel it is overpriced and unnecessary to acquire. With this, the hotel should price its

products and service appropriately to attract customers.

Critically evaluate how marketers from different hospitality organisations are

responding to the hospitality decision-making process and buying behaviour.

Consumer decision making process and buying behaviour is critical in the hospitality industry.

Understanding the process and behaviour has enabled marketers from different hospitality

organisations to respond in various ways including producing products that match the needs and

requirements of consumers (Rani, 2014). Doing this motivates consumers to make a decision to

purchase from them. Another way they are responding is by putting in place strategies to

effectively address the various factors that influence buying behaviour and decision making. For

instance, they have put in place viable communication strategies and promotional activities to

reach as many people as possible. This enables them to meet the needs and wants of consumers

effectively.

Critically evaluating how marketers can influence the different stages of the

hospitality decision-making process

According to Darley, Blankson and Luethge (2010), marketers can influence the different stages

of the decision-making process in various ways. At the Stoke Park hotel, marketers influence the

different stages of the consumer decision-making process through promotional activities such as
 Consumer Behaviour and Insight in hospitality

advertisements, irresistible offers, creation of flyers and banners (Rani, 2014). Advertisements as

well irresistible offers influence people to make a purchase from the hotel leading to increased

sales and profits. The other way the hotel’s marketers influence the process is by creating a

personal connection with consumers. Here, the hotel makes use of sales representatives who

reach out and engage directly with consumers. Dealing with a consumer directly increases the

opportunity of consumer purchasing as there is power in the word of mouth. Another way is by

providing detailed information about the hotel’s products and services on the website and other

social media platforms. Consumers tend to purchase from businesses that offer extensive

information about their products. Doing this motivates consumers to purchase from the hotel.

Displaying reviews and other positive comments are the other way marketers influence the

decision-making process. Positive reviews and comments motivates customers to purchase from

the hotel leading to increased sales and profits.

Conclusion

From the above discussion, it can be concluded that understanding consumer behaviour is critical

in the hospitality industry. With this, it is important for hospitality businesses to acquire a clear

insight into their customers including their behaviours as well as the factors influencing the

behaviour and decision-making process. This will enable them to match their products and

services effectively with the needs and wants of customers leading to an increase in productivity.
 Consumer Behaviour and Insight in hospitality

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