ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 33. Marketing Analytics and Insights

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Student Name Luong Trong Nghia Student ID GBH211408

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Table content

I. Introduction

In the realm of hospitality management, understanding customer behaviors and decision-making processes is
paramount for creating tailored customer experiences. This introduction sets the stage for exploring the intricacies of
customer behavior, decision-making, and journey mapping within the context of the Lao Cai Star Hotel. By delving
into these concepts, we aim to dissect the nuances of customer preferences, motivations, and interactions, ultimately
crafting strategic insights to enhance customer satisfaction and drive marketing success for the hotel. Through an
academic lens, we embark on a journey to unravel the complexities of consumer psychology and its implications for
hospitality businesses.

II. Understanding customer behaviours, customer decision making process and customer journey
mapping
2.1. The concept of customer behavior and influences on customer behavior.

Customer behavior refers to the actions and decision-making processes of individuals or groups when purchasing,
using, and potentially evaluating products, services, ideas, and experiences. Understanding customer behavior is
crucial for businesses because comprehending customer behavior allows them to understand their target audience
better, aiding in predicting and meeting the needs and desires of these target groups. There are several factors
influencing customer decisions, such as psychological, social, and personal factors. Understanding customer behavior
also enables businesses to adjust their marketing campaigns to provide customers with experiences and products that
effectively meet their requirements (Bell and Mgbemena, 2018).

Influences on customer behavior:

Customer behavior is influenced by various factors, and each factor yields different outcomes, including
psychological, social, individual, and situational factors.

Psychologycal influences on Customer behavior.

The first factor within Psychology influencing customer behavior is Perception, which pertains to how customers
perceive products, brands, and the advertising and marketing campaigns of businesses (Krishna, 2012). Secondly,
Motivation drives customer behavior by satisfying their needs and goals, with customers being motivated by various
factors as outlined in Maslow's research. Marketers appeal to these motivations by positioning their products and
services as solutions that customers perceive as aligning with their desires and needs. The third factor within
Psychology influencing customer behavior is Beliefs and Attitudes, where attitudes represent individuals' evaluations
and opinions on phenomena, and customer attitudes are shaped by beliefs, experiences, social influences, with
positive attitudes leading to smoother and quicker purchasing processes. Belief involves individuals' acceptance of
something, and beliefs are highly linked to customer perception, attitude, and purchasing decisions. Marketers seek
ways to influence beliefs and employ various strategies to shape customer attitudes, encouraging positive interactions
and purchasing behaviors. Lastly, Learning encompasses the process of acquiring knowledge, behaviors, or attitudes
through experiences, observation, and instruction. Marketers use learning principles to create positive associations in
customers' minds regarding products, services, and brands, thereby encouraging customer engagement and purchase
(Krishna, 2012).

Overall, understanding the psychological influences on customer behavior enables marketers to develop more
effective strategies, thereby attracting and retaining customers.

Situation factor influences on Customer behavior.

Considered as internal circumstances that influence the decision-making process and behavior of customers, factors
such as timing, location, specific purposes of buyers, or the environment and atmosphere surrounding customers
impact their behavior and decision-making processes (Chou et al., 2020).

Culture influences on Customer behavior.

Cultural factors play a significant role in the decision-making process and behavior of customers, encompassing
various values, beliefs, customs, and standards from different generations within society. These cultural factors and
values can assist businesses in establishing strong relationships with customers and succeeding in diverse markets
(Furnham and Milner, 2013).

Personal influences on Customer behavior.

Aspects characterized by individual factors shape the behavior of customers and their decision-making processes.
This includes attributes and demographics, behaviors, and psychological factors. Personalization strategies aid
businesses in establishing stronger relationships and connections with customers, fostering interaction, loyalty, and
customer satisfaction (Šostar and Ristanović, 2023).

2.2. The customer decision making process

Customer decision-making in purchasing is a process where individuals or groups of customers make choices
regarding the purchase of a particular product or service. This process typically encompasses five stages: Problem
Recognition, Information Search, Evaluation of Alternatives, Purchase Decision, and Post-Purchase Evaluation. The
first stage of this process is Problem Recognition, where customer decision-making begins as they recognize needs
and issues that require solutions. These needs may stem from various factors but generally derive from customer
needs and issues, such as dissatisfaction with current products or services or word-of-mouth recommendations from
peers. The second stage is Information Search. Once customers have identified their problems and usage needs for
their products, they will seek relevant information and solutions for their individual needs and issues. This search
involves information from sources such as memory, past experiences, or external sources, including reviews,
recommendations, and advertisements. The next stage is Evaluation of Alternatives. After gathering information,
customers evaluate alternative options that could replace their current products or address their needs and issues or
meet their preferences and tastes. This evaluation involves various criteria such as price, quality, features, or even
the reputation of the product or brand. Following evaluation, customers proceed to the Purchase Decision stage,
where they make purchasing decisions. Consumers decide to purchase products or services they believe offer the best
value and meet their needs. This decision-making process is influenced by factors such as price, promotions, or
preferences. (Stankevich, 2017). The final stage in the customer purchasing process is Post-Purchase Evaluation.
After making a purchase, customers provide feedback and assess their satisfaction with the products and services
they have chosen. These evaluations significantly influence future purchasing behavior and decision-making
processes. In summary, understanding the customer purchasing decision-making process helps businesses adjust their
marketing processes effectively and set clearer goals for their strategies. This understanding enhances customer
satisfaction and loyalty, driving both customers and businesses to greater success in commerce (Rane, Achari and
Choudhary, 2023).

2.3. The importance of mapping a path to purchase and understand consumer decision making.

Mapping out the purchasing journey and understanding the consumer decision-making process are indeed crucial
aspects. Understanding the customer's decision-making process aids in executing business campaigns more
effectively, optimizing the customer experience, and conducting research to identify weaknesses and areas for
improvement within the company. By delineating the purchasing journey and comprehending the customer's
decision-making process, businesses can identify market gaps, recognize opportunities, and innovate products and
services. Consequently, this positions them competitively advantageously compared to rival companies in the market.
By anticipating customer needs and preferences, businesses can outmaneuver their competitors, effectively attract
and retain customers. Overall, outlining the purchasing journey and understanding the customer's purchasing decision
process are extremely vital and necessary for businesses aiming to optimize their marketing campaigns and achieve
competitive advantages in dynamic markets (Santos and Gonçalves, 2021)

III. Analysis about the Lao Cai Star Hotel

3.1 Introduction about the Lao Cai Star Hotel

Lao Cai Star Hotel is the first 4-star hotel in Lao Cai, offering 141 well-equipped rooms providing a modern living
space. All hotel rooms feature large windows overlooking the surrounding area, allowing guests to relax and enjoy
panoramic views of the vibrant cityscape, especially at night when the streets light up (Lao Cai Star Hotel, 2024).
During their stay, guests can experience a range of services provided by the hotel, including restaurants, a gym,
banquet halls, a saltwater swimming pool, and the Orchid Sauna Massage Spa system. The hotel ensures that guests
have a maximum relaxation experience. Dining options for guests include a diverse selection of regional cuisine for
breakfast (Lao Cai Star Hotel, 2024).

3.2 Explaining the characteristics of customers and define the customer insights
Characteristic of Lao Cai Star Hotel Customer

Tourists exploring culture: Central location, Lao Cai city is known for its cultural diversity of ethnic groups,
featuring many famous sites with distinct characteristics of each ethnic group. Sapa town, at an altitude of 1600 meters
above sea level, is a quiet city yet harbors many interesting aspects of natural landscapes combined with human
creativity, creating harmonious layouts. In contrast to the altitude and hustle and bustle of Sapa, Bat Xat district is a
tourist destination imbued with conquest and exploration spirit, with attractions such as Mount Lao Than, Lung Po
flagpole, along with destinations in Lao Cai city like Thượng Temple, or exploring famous craft villages throughout
the city. The characteristic of Lao Cai Star Hotel lies in its central location, making it more convenient to travel
between tourist destinations, providing tourists with a comfortable and truly relaxing experience while staying at Lao
Cai Star Hotel.

Luxury customers: The sophistication in room design and high-end amenities of Lao Cai Star Hotel, it is an attractive
suggestion for customers who prefer luxurious tranquility, providing truly luxurious and comfortable private spaces
for relaxation.

Health-conscious customers: Lao Cai Star Hotel is equipped with a 4-star hotel standard spa and modern gym,
attracting tourists who are concerned about health care and relaxation during their trips.

Food enthusiasts: Lao Cai Star Hotel is equipped with a standard hotel restaurant, with the highlight being dishes
that combine the cultural diversity of the city with the sophistication and characteristics of many culinary cultures
worldwide. This helps the hotel maximize customer satisfaction regarding cuisine, making the trip uniquely
memorable in terms of culinary experiences.Segmentation of Lao Cai Star Hotel

Segmentation 1: Customer Type

Resort customers: This customer segment is attracted by the amenities that provide them with relaxation, luxury,
and attention to their experiences at the hotel.

Business travelers: This customer segment is interested in the hotel's location, a place where they can find comfort,
tranquility, and convenience for travel, especially near commercial centers.

Exploratory travelers: Customers are drawn to the tourist destinations and cultural experiences in Lao Cai city. This
customer segment is attracted to the hotel's location, which is convenient for travel between destinations, and the hotel
itself offers facilities for guests to explore on foot.

Segmentation 2: Age

Millennials (Ages 25-40): This generation uses technology and the internet to search for travel destinations, dining
options, and hotel restaurants. Their travel decisions revolve around technology-related issues, and they evaluate
destinations through reviews and interactions with travel or local communities. Promotions and discounts are key
attractions for this customer segment.

Generation X (Ages 41-56): They typically seek family travel experiences, choosing destinations suitable for various
age groups, and look for hotels that offer relaxation after stressful periods. They prioritize convenience and amenities
such as spas and gyms to recharge. This generation cares about the quality and service of products and services.

Baby Boomers (Ages 57-75): This customer group seeks relaxation experiences and values personalized services.
They are also attracted to tourist destinations connected with etiquette and historical significance.

Segmentation 3: Travel Frequency

First-time travelers: This customer group seeks exciting and memorable experiences at the hotel. They are interested
in the hotel's services and how they are welcomed and served. They expect integrated hotel services such as
restaurants, spas, gyms, and other entertainment activities.

Infrequent travelers: Due to their infrequent travel, this customer segment is attracted to new discoveries and
experiences at the hotel. They are interested in the hotel's reception and customer care. They often experience hotel
services on special occasions, so they are interested in convenience, novelty, and uniqueness, such as bar counters
and new hotel signature dishes.
Frequent travelers: This customer segment has had genuinely positive experiences and trusts the services provided
by the hotel. They have knowledge about the hotel's services and are attracted to and interested in loyalty programs
or benefits for loyal customers.

Figure 1: Customer Persona (Canva,2024)

Customer insight

The customer insight of Lao Cai Star Hotel encompasses deep understanding of the needs, desires, preferences, and
behaviors of customers for tourism activities in the specific local area of Lao Cai city and the services provided by
Lao Cai Star Hotel. Based on these factors, it can be observed that the customer base of Lao Cai Star Hotel is highly
diverse, including foreign tourists, individuals, and families who favor and are interested in luxurious and fully-
equipped services.

3.3 Mapping customer journey and important touch-points

Figure 2: The Customer Journey Map

The importance touch point.

The touchpoints provide numerous opportunities for businesses to interact with customers at various stages of
business development. Identifying and optimizing these touchpoints allows businesses to identify areas for customer
improvement, develop strengths, and address weaknesses, thereby enhancing customer satisfaction and delivering
better business outcomes (Nicolas Maechler, Kevin Neher, and Robert Park, 2016).

The customer journey of Lao Cai Star Hotel encompasses various touchpoints, including awareness, consideration,
decision, service, and loyalty. Firstly, in terms of awareness, it involves making customers more familiar with the
business, such as Lao Cai Star Hotel, through advertisements on websites, social media, and third-party reviews.
Secondly, consideration involves attracting customers through the hotel's website, social media, or previous customer
reviews, helping current customers consider choosing Lao Cai Star Hotel. During the decision-making process, Lao
Cai Star Hotel provides fast and efficient payment and booking processes, as well as customer care services, helping
customers finalize their decisions. Next, regarding service, Lao Cai Star Hotel offers touchpoints such as check-in
procedures, accompanying services, restaurants, and other hotel services, providing customers with memorable
experiences and ensuring high-quality service to satisfy customers during their stay. Lastly, loyalty initiatives such as
promotional programs, customer loyalty programs, or establishing relationships between the hotel and customers
through email, SMS marketing, and special offers foster customer loyalty

In conclusion, by creating customer journey maps and identifying touchpoints, Lao Cai Star Hotel can optimize
custo.mer experiences consistently and enhance customer relationships.

Similarly to touch points, identifying Pain Points for a business is crucial, as it provides the business with a realistic
insight into the challenges and difficulties customers face when experiencing the products and services offered. By
identifying and specifying these Pain Points, a business can address issues and understand the needs and preferences
of the target audience it caters to. Often, the Pain Points encountered by businesses in the industry remain unresolved
or inadequately addressed. When a business identifies its own Pain Points and those of the market in general, it can
propose solutions that not only enhance customer satisfaction and loyalty but also differentiate it from competitors,
attracting more customers (Sprinkles, 2023).

Evaluating the Pain Points of Lao Cai Star Hotel includes: Awareness, Consideration, Decision, Service, and Loyalty.
The Awareness issue of Lao Cai Star Hotel involves an overload of information and choices for customers or
inadequate information about the hotel's services and amenities. This necessitates Lao Cai Star Hotel to enhance
marketing strategies and advertising or collaborate with third-party providers to enhance customer recognition and
awareness of Lao Cai Star Hotel online and offline. Secondly, the Consideration issue of Lao Cai Star Hotel involves
inconsistencies in the information provided by the hotel on its website, social media, and third-party booking
platforms. This requires Lao Cai Star Hotel to readjust or utilize web design services and a cohesive team to work
with third parties on the information provided. Next, during the decision-making process, customers of Lao Cai Star
Hotel encounter issues related to additional fees and room selection mismatches. To address this, Lao Cai Star Hotel's
customer service department should email, SMS, or call customers to provide them with basic information about the
services and fees they are paying for and commit to transparent and agreed-upon fees. Furthermore, Lao Cai Star
Hotel customers face service-related issues such as check-in and check-out times. To address this, Lao Cai Star Hotel
should use Mailchimp for automated, accurate, and convenient email and SMS reminders to customers about check-
in or check-out times. Lastly, the Loyalty issue relates to customers' dissatisfaction with rewards or benefits. This
requires Lao Cai Star Hotel to directly explain to customers the timing and applicable terms and guide them on how
to achieve those benefits comfortably, using Getfly to store basic customer information, holiday preferences, and
interests to make customers feel more connected and cared for on subsequent stays.

Overall, evaluating and understanding the factors in a business's Pain Points and the improvement measures that can
be established can positively impact the customer experience, thereby enhancing satisfaction and loyalty (source).
 3.4 Customer experience strategy.

Customers of Lao Cai Star Hotel encounter various issues throughout their service experience. Initially, prior to
booking, customers face challenges due to the abundance of sometimes inaccurate information, or the overwhelming
number of choices, as well as concerns about the reliability of booking platforms. During the booking decision-making
process, issues arise related to discrepancies between website navigation and actual pricing. These issues contribute
to customer apprehension regarding potential costs, policies, and security concerns during their stay. Minor issues
related to staff interactions also affect customer comfort levels. Upon departure, inadequate farewell gestures,
communication issues, and benefits for loyal customers further impact the overall experience. Lao Cai Star Hotel
utilizes technology and techniques to enhance customer experience, addressing these challenges and catering to
marketing demands. Prior to booking, customers can utilize AR and VR technology for a 3D perspective, providing
a more visual understanding of the accommodations and alleviating concerns about the actual room and detailed
imagery (Treedis, 2023). This facilitates easier and more convenient booking decisions, enhancing customer
experience and setting Lao Cai Star Hotel apart from competitors amidst vast information and varied options.
Following booking, confirming service details via customer contact ensures better preparation for the trip, including
reminders about check-in and check-out dates to prevent oversight. This can be done through phone calls, emails, or
text messages. After utilizing hotel services, sending thank-you emails with incentives for future visits enhances
customer retention.

Overall, integrating technology into operations not only enhances customer experience and attracts potential clients
but also streamlines the hotel's operations, making Lao Cai Star Hotel more competitive. Effectively managing both
internal and external factors provides a significant advantage over competitors.

IV. Conclusion

In conclusion, comprehending customer behaviors and decision-making processes is pivotal for the success of
hospitality establishments like the Lao Cai Star Hotel. Through the exploration of these concepts, we have uncovered
valuable insights into the intricacies of consumer preferences and motivations. By mapping customer journeys and
identifying important touchpoints, the hotel can tailor its services to meet and exceed customer expectations.
Additionally, designing a customer experience strategy will enable the hotel to enhance guest satisfaction and
loyalty, ultimately driving business growth and competitiveness in the dynamic hospitality industry. Embracing these
principles fosters a culture of customer-centricity, ensuring the Lao Cai Star Hotel remains a preferred choice for
discerning travelers.
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