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What are the key factors that influence consumer behavior in hospitality?

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Consumer behavior is the study of how people make decisions about what they buy, use, and dispose of products and services. In the hospitality industry, understanding consumer behavior is crucial for creating and delivering value to customers, as well as for gaining competitive advantage and achieving customer satisfaction and loyalty. In this article, we will explore some of the key factors that influence consumer behavior in hospitality, and how they can be applied to improve marketing research and strategies.

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Maryna Boyko

Business Development Lead | Sales & Distribution Manager | Market Expansion | Expert in Retail, HORECA, Distribution…
Lisa Gralnek

Values-led Brand Builder | Strategy & Impact Advisor | Host, Future of XYZ | MD, iF Design USA
Prof Ben Voyer

The Cartier Chaired Professor of Behavioural Science - Research Chair Turning Points by Cartier - ESCP - HEC Paris -…

1 Motivations and Needs

One of the main factors that affect consumer behavior in hospitality is the motivation and need that drives the purchase decision. Motivations and needs can be classified into two types: functional and emotional. Functional motivations and needs are related to the tangible benefits and features of the product or service, such as price, quality, convenience, safety, and performance. Emotional motivations and needs are related to the intangible benefits and feelings that the product or service evokes, such as pleasure, excitement, relaxation, status, and self-expression. Hospitality marketers should identify the primary and secondary motivations and needs of their target segments, and design their products and services to meet and exceed them.

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Maryna Boyko

Business Development Lead | Sales & Distribution Manager | Market Expansion | Expert in Retail, HORECA, Distribution Channels
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In my view, what makes people choose places in the hospitality industry boils down to a mix of factors like quality, price, location, and value. Marketing plays a pivotal role - cool ads, positive reviews, and social media buzz make a big difference.

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2 Perceptions and Attitudes

Another factor that influences consumer behavior in hospitality is the perception and attitude that the customer has towards the product or service, the brand, and the provider. Perception is the process of selecting, organizing, and interpreting information from the environment, while attitude is the evaluation of the product or service based on beliefs, feelings, and intentions. Perception and attitude can be influenced by various factors, such as personal characteristics, past experiences, word-of-mouth, social media, reviews, ratings, and advertising. Hospitality marketers should monitor and manage the perceptions and attitudes of their customers, and use positive and consistent communication to create and reinforce favorable impressions.

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Lisa Gralnek

Values-led Brand Builder | Strategy & Impact Advisor | Host, Future of XYZ | MD, iF Design USA
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I couldn't agree more about the mashup of functional and emotional benefits motivating consumer decisions in hospitality. On the functional end are things like location & price, but emotional benefits are far greater- feeling, sensibility, value, service. That loyalty is such an important revenue and retention driver in the industry should come as no surprise, since it sits perfectly at the fulcrum of function & emotion and can be well-tuned to serve both.

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3 Social and Cultural Factors

Consumer behavior in hospitality is also affected by the social and cultural factors that shape the values, norms, beliefs, and preferences of the customer. Social factors include the influence of family, friends, peers, groups, and communities on the purchase decision, while cultural factors include the influence of culture, subculture, and social class on the consumption patterns. Social and cultural factors can affect the customer's expectations, preferences, tastes, and behaviors in relation to hospitality products and services. Hospitality marketers should understand the social and cultural factors that affect their target segments, and adapt their products and services to match and respect them.

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Prof Ben Voyer

The Cartier Chaired Professor of Behavioural Science - Research Chair Turning Points by Cartier - ESCP - HEC Paris - FORBES Contributor
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It is especially important to take into consideration cultural differences in communication styles to best serve customers. Western customers will typically expect direct communication style - and will voice their concerns directly. Conversely, customers from collectivist cultures will favour indirect communication styles, and expect hospitality managers to be attuned to their needs and anticipate disappointment.

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4 Situational Factors

Another factor that impacts consumer behavior in hospitality is the situational factor that refers to the specific circumstances and conditions that surround the purchase decision. Situational factors include the physical environment, such as the location, layout, design, ambience, and atmosphere of the product or service; the temporal environment, such as the time of day, season, or occasion of the purchase; the social environment, such as the presence and role of other people in the purchase; and the psychological environment, such as the mood, emotion, and state of mind of the customer. Situational factors can affect the customer's needs, motivations, perceptions, attitudes, and behaviors in relation to hospitality products and services. Hospitality marketers should analyze the situational factors that influence their customers, and create and deliver products and services that suit and enhance them.

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5 Learning and Memory

The last factor that we will discuss in this article is the learning and memory factor that relates to the process of acquiring, storing, and retrieving information and knowledge about the product or service. Learning is the change in behavior or cognition that results from experience or interaction with the product or service, while memory is the retention and recall of the information and knowledge. Learning and memory can affect the customer's awareness, recognition, recall, preference, satisfaction, and loyalty towards the product or service. Hospitality marketers should facilitate and stimulate the learning and memory of their customers, and use repetition, reinforcement, association, and differentiation to build and maintain strong brand image and reputation.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are the key factors that influence consumer behavior in hospitality?

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1 Motivations and Needs

2 Perceptions and Attitudes

3 Social and Cultural Factors

4 Situational Factors

5 Learning and Memory

6 Here’s what else to consider

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