Unit 2: Understanding the Behavior of Hospitality Consumers

Fifth Semester Hospitality marketing and sales Notes
Introduction:

Answer:-Hospitality consumer behavior refers to the actions and decisions of individuals who purchase and use hospitality products and services. Understanding consumer behavior is critical for hospitality businesses as it helps them to design and deliver products and services that meet the needs and expectations of their target market.

Factors that influence hospitality consumer behavior include:

  1. Personal factors: Personal factors such as age, income, education, and lifestyle can impact consumer behavior. For example, older customers may have different preferences and requirements compared to younger customers.

  2. Psychological factors: Psychological factors, such as attitudes, motivations, and beliefs, can also influence consumer behavior. For example, a customer’s motivation to travel for leisure or business may impact their decision-making process.

  3. Social factors: Social factors, such as family, friends, and social networks, can impact consumer behavior. For example, recommendations from friends and family can influence a customer’s decision to stay at a specific hotel.

  4. Cultural factors: Cultural factors, such as cultural norms, beliefs, and values, can also impact consumer behavior. For example, cultural attitudes towards luxury and hospitality can influence a customer’s preferences and spending patterns.

  5. Marketing factors: Marketing factors, such as advertising, promotions, and pricing, can impact consumer behavior. For example, a well-designed advertising campaign can influence a customer’s decision to book a specific hotel.

Hospitality businesses can use consumer behavior insights to better understand the needs and expectations of their target market, and design and deliver products and services that meet these needs. By doing so, they can increase customer satisfaction, build customer loyalty, and ultimately drive long-term success.

Consumer decision Making Model

The consumer decision-making model is a framework used to understand how consumers make purchasing decisions. The model typically consists of five stages:

  1. Problem recognition: In this stage, the consumer recognizes a need or problem that they want to solve. For example, they may need a place to stay for a business trip or a romantic getaway.

  2. Information search: In this stage, the consumer searches for information to help them solve their problem. This may involve researching different hotels, reading customer reviews, and comparing prices and services.

  3. Evaluation of alternatives: In this stage, the consumer evaluates the different options available to them and compares the benefits and drawbacks of each. For example, they may compare different hotels based on price, location, and amenities.

  4. Purchase decision: In this stage, the consumer makes a final decision on which product or service to purchase. This may involve booking a specific hotel or resort.

  5. Post-purchase evaluation: In this stage, the consumer evaluates the product or service they purchased and decides whether they are satisfied with their decision. This may involve writing a review or recommending the hotel to friends and family.

It is important to note that the consumer decision-making process can be complex and influenced by various factors, such as personal and psychological factors, social influences, and marketing messages. Understanding the consumer decision-making model can help hospitality businesses better understand the needs and preferences of their target market and design and deliver products and services that meet these needs.

Consumer problem Solving Processes

The consumer problem-solving process typically consists of the following steps:

  1. Problem recognition: The consumer recognizes a need or problem that they want to solve. This could be a need for accommodation, food, or entertainment.

  2. Information search: The consumer searches for information to help them solve their problem. This may involve conducting online research, reading customer reviews, or asking for recommendations from friends and family.

  3. Evaluation of alternatives: The consumer evaluates the different options available to them and compares the benefits and drawbacks of each. This may involve comparing different hotels, restaurants, or attractions based on factors such as price, location, and quality.

  4. Purchase decision: The consumer makes a final decision on which product or service to purchase. This may involve booking a specific hotel or buying a ticket to a theme park.

  5. Post-purchase evaluation: The consumer evaluates the product or service they purchased and decides whether they are satisfied with their decision. This may involve writing a review or sharing their experience with others.

Consumer Problem Solving technique

Consumer problem solving techniques are methods that consumers use to identify, evaluate, and solve problems they face in the marketplace. These techniques can vary depending on the complexity of the problem and the individual’s personal and psychological factors. However, some common consumer problem solving techniques include:

  1. Bounded rationality: This technique involves making decisions based on limited information and time, and making a choice that satisfies, but does not necessarily maximize, their needs and preferences.

  2. Routine problem solving: This technique is used for familiar and simple problems, such as buying groceries or booking a hotel room. Consumers use past experiences and established habits to make decisions quickly and efficiently.

  3. Extended problem solving: This technique is used for complex and unfamiliar problems, such as choosing a vacation destination or purchasing a new home. Consumers spend more time gathering information and evaluating alternatives to make a well-informed decision.

  4. Habitual decision making: This technique involves making decisions based on habit and without much conscious thought. For example, a consumer may choose to stay at the same hotel every time they travel to a particular city.

  5. Impulse buying: This technique involves making a spontaneous and unplanned purchase without much consideration of the consequences. For example, a consumer may impulsively buy a bottle of wine while dining at a restaurant.

It is important to note that consumers often use a combination of these techniques in the problem solving process, and the specific technique used can vary based on the situation and individual characteristics. Understanding consumer problem solving techniques can help hospitality businesses better understand how consumers make decisions and design products and services that meet their needs.

 
 
 

What is Organizational Buying Behavior?

Organizational buying behavior also called business buying behavior or organizational buying decision is the behavior of organizations while buying products or services that may buy such things for resale, reproduction, or to conduct an organization’s operations.

Organizational buying behavior is the decision-making process through which an organization establishes the need for products or services and identifies, evaluates, and chooses among alternative brands, and suppliers –

The basic features of organizational buying are listed as follows:

  • The organizational market has few buyers who buy their required products in a large quantity.
  • Organizations maintain very close relationships with their suppliers and customers.
  • Organizations often adapt their products, services, and other elements of the marketing mix to meet the requirement of buyers.
  • Organizations buy goods and services by complying with the government and organization’s laws, rules, and regulations.
  • The organizational buying is mostly technical and based mostly on some logical reasons.
  • Organizational buying involves infrequent purchases i.e. organizations do not tend to buy goods frequently as an individual buyer usually does.

Organizational Buying Process

Like a consumer buying behavior process, the organization also follows a series of steps in buying its requirements. The organizational buying process may differ from organization to organization depending upon the nature of the organization, the volume of purchase, the money involved in the purchase, etc.

. Recognizing a Need or a Problem

Recognizing the need or requirement of the organization; such as stationeries, furniture, flooring and furnishing, raw materials, parts, computers, etc. is the first step of an organizational buying process.

2. Determining the Product & Buying Specification

It is the second step of the organizational buying process. This step involves determining the product and buying specifications such as product quality, quantity price, mode of payment, delivery date, place, design of the product, etc.

3. Listing and Identifying the Suppliers

In this third step, the organization identifies the potential suppliers that can supply goods and services according to the accepted product specifications and mutually agreed on terms and conditions.

 

4. Evaluation and Selecting Most Reliable and Competent Supplier

Here the organization evaluates and chooses the most reliable supplier who can supply products to the organization according to its requirements. While evaluating the supplier various criteria may be concerned such as past performance of the supplier, regularity, punctuality, product price, quality, delivery time, firm’s relations with supplier, reliability, etc.

5. Purchase Decision

At this stage of organization buying, the organization makes an actual purchase of required goods or services.

6. Evaluation of Performace of Supplier

This is the post-purchase step of the organizational buying process. It involves evaluating the supplier’s sales performance. The evaluation may be done based on the quality of the supplier’s service, business efficiency, punctuality, etc. If the organization is satisfied with the past purchase behavior, the decision may be done to make a repurchase from the same supplier or a similar product from any supplier. If not, maybe the organization again repeat all the steps.

Factors Influencing Organizational Buying Behavior

Environmental Factors

Environmental factors of organization buying generally involve the factors that are external to the organization and the manager has the least control over it. A thorough study of those factors can help the manager to understand their effects on the service of its customers. Such environmental factors include the level of demand, economic outlook, changes in technology, legal & political change, competitive environment, availability of natural resources, etc.

Organizational Factors

Organizational matters also influence buying behavior. It includes organizational policy, objectives, purchasing policy, buying procedure, organizational structure, production system, etc. It may determine the way of buying one industrial buyer differ from another and how a purchase decision is likely to make.

Interpersonal Factors

Within the organization different levels of employees, managers, and other authorities have different viewpoints on the purchase, use, and taste of products, which also affect the purchasing decision. Such factors may include interest & income of the buyer, education status, job position, authority to buy and make other decisions, etc.

Individual Factors

In any organization, there is also a single individual who is involved in the activities of purchasing goods and services for the organization. Such individuals also affect the buying decision of the organization. Such individual factors may include the age of the buyer, income, education status, job position, personality, culture, risk attitude, etc.

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