Task 1
Factors and trends that influence customer behaviour and attitude
The mind functioning of an individual customers has to understood efficiently by an organisation or a marketing personnel for mapping out their decision making process. By understanding mind functioning of a customer regarding a product or service purchase is termed as consumer behaviour which is influenced and shaped by some factors availing in surrounding (Decrop, 2011). However, the importance of consumer behaviour is also identified in the hospitality industry where the organisations need to identify and evaluate those influencing factors. The consumer behaviour is considered a crucial aspect of business marketing where this directs an individual in making a purchase decision in hospitality industry. There are several factors and trends that influence and affect the consumer behaviour in making purchase decision including social, cultural, psychological and personal along some trends in the market such as technology, knowledgeable customers etc. (Wilson et al., 2016).
Cultural Factor:
This is also found highly effective in the consumer behaviour of a customer in hospitality industry. In this factor, there are two other sub-factors including sub-culture and social class that also shape the decision making process of a customer. For example, a customer with high social class will prone to visit five stars hotel such as Accor whereas the customers from middle class society will visit budget hotel such as Travelodge (Fratu, 2011). The social belief, cultural norms, learned values, symbol of society etc. affect the consumer buying behaviour of a customer in hospitality industry (Tsiotsou and Goldsmith, 2012). For example, the individualistic, freedom and achievement based culture of US influence people to explore the world than the collectivism culture of Indian subcontinent. And thus, a large number of tourists are found from America and Europe countries comparing to others that create much impact on the hospitality industry.
Social Factors:
An individual consumer of hospitality industry experiences influence from references group, roles and status, family etc. in making purchase decision for hospitality service (Horner and Swarbrooke, 2016). The roles and social status create demand for high end services with high quality and price, for example, a businessman or a leader of a society with high social status prone to visit costly tourists spot and having luxurious services for an organisation (Jauhari, 2017). On the other hand, the group in low or middle income chooses for getting reasonable or budget places to visit and accommodation to live in. The family and reference group also have high influence in the decision making process where learning and beliefs of a family shapes behaviour, for example, a conservative family in Saudi Arabia doesn’t allow women alone to visit around (Horner and Swarbrooke, 2016). In selecting a food outlet, the consumers seek suggestion from their friends or family who perform as reference group, for example, a customer receiving quality experience from Holiday Inn will surely recommend others of his or her known to visit.
Psychological Factor:
Personal beliefs, learning, motivation, perception of this factor influence an individual in selecting a product or service option to own, for example, an introvert person tends to avoid outing or get to gather with friends in a restaurants (Dixit, 2017). On the other hand, the customer with high needs and drives of exploring world and experiencing new food item in restaurants followed by strong motivation tends to increase purchase in hospitality industry. The personal belief and attitudes create loyalty in customers and also get them restrained from going a place, for example, non-vegetarian customers won’t visit a vegetarian-restaurant (Cohen, Prayag and Moital, 2014).
Personal Factor:
An individual customer experiences influence from age, occupation, life style, economic condition, personality, self-concept etc. while making a purchase decision in hospitality industry (Fratu, 2011). For example, wealthy customers hold preferences for visiting places at leisure period and outing for food comparing to a customer with low economic condition. The life style and personality also influences the consumer behaviour, for example, millennial customers are found tech oriented and they have changing preferences over purchasing.
Along with these core factors that influence the consumer behaviour and attitude, there are found some trends performing same responsibility. The technology influences mostly, for example, a restaurant having technology inside its service is able to attract more customers (Benckendorff, Xiang and Sheldon, 2019). The online delivery system, customer engagement over online platform and usage of digital marketing also influence consumer behaviour. The climate change urges for having green business activities and this also make influence. The customers are found much informed and knowledgeable about product or services or business where they should be treated efficiently.
How the digital technology is changing consumer trends
The digital technology has been changing the business process and operation radically where it has created revolution in the hospitality industry. For example, digital technology has increased the efficiency of organisations in attracting and connecting with customers than before, KFC can reach a large number of customers with its offering through social media platform (Stokes, 2011). The customers make demand for the organisations which have available service facility from technology such as Wi-Fi, online group, e-payment etc. On the other hand, the trend of developing technologically sound organisations in hospitality industry receives thrust from the advancement of technology. For example, Accor can provide available information to its customers regarding the services, destinations, transportation, accommodation, catering etc. for influencing them in making purchase decision (McCabe, 2014). In addition, this also records a high volume of information about the customers who have visited earlier to make further connection and remind them at their revisit to make them valued. This digital technology has also make demand of intelligent restaurants or hospitality organisation among the customers where such organisation will facilitate all its services from check in to check out with the support for technology (Chaffey and Ellis-Chadwick, 2019). The customers have also been changing their preferences keeping adjustment with technology, for example, online delivery system is at high where the customers prefer the organisations most for having this facility (Cohen, Prayag and Moital, 2014). For example, Pizza Inn has received much acceptance and increase in sales after introducing the online delivery service. In another context, customers now make decision analysing information over online and social media platform, for example, reference of McDonald in a food group on Facebook will incur interest of customers to visit them (Cousins, Lillicrap and Weekes, 2014). they customers demand of checking up the services and the facilities of an organisation in hospitality industry visually through online platform, for example, Accor has uploaded its services, inside view of the restaurants, destination scenario, food, other facilities over its website to influence the consumer behaviour of customers in hospitality industry for making purchase decision.
Task 2
Introduction
Though there are some similarities in consumer behaviour between hospitality industry and other industry, some differences are identified in strategies and approaches to be adopted. This report focus on the decision making path journey of an individual customer, consumer behaviour, influencing factors, marketing elements, research approaches to identify proper strategies and decision making process in the hospitality industry in the light of Accor hotel, a leading hospitality multinational organisations serving with dignity, pride and strong service quality with high brand image.
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