Factors Affecting the Consumers Decision Process Essay Example

  • Category:
    Marketing
  • Document type:
    Assignment
  • Level:
    Masters
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    1746

9FACTORS AFFECTING THE CONSUMERS DECISION PROCESS

Factors Affecting the Consumers Decision Process

Factors Affecting the Consumers Decision Process

Executive summary

This report is prepared to analyze the influences of the internal and external factors on consumer decision process concerning the online shopping behavior at Hilton Hotel. Hilton Hotels & Resorts is a multinational chain of hotels and resorts that was first established in 1919 in Texas, US (Hilton Hotels & Resorts, 2014). According Hilton Hotels & Resorts’ website (2014) the hotel has since grown to 530 outlets operating worldwide. The Hilton Hotel brand name still remains one of the leading hotel brands globally. The business places marketing focus on both leisure travel and business travel positioning itself in key city centers, airports, convention centers, and various vacation resorts around the world. Since the company is a multinational company, it has highly adopted online technologies to target and market is products.

Table of Contents

2Factors Affecting the Consumers Decision Process

2Executive summary

41.0 Introduction

42.0 Consumer Decision Process

63.0 The factors influencing consumer decision process at Hilton Hotels & Resorts

63.1 Internal factors

73.2 External factors

83.3 Situational factors

84.0 Conclusion

85.0 References

1.0 Introduction

Globalization, information technology advances, growing pressure from both internal and external forces, has tremendously changed the business environment (Paasovaara et al. 2012, p.13). As such, the changes the companies are struggling to maintain pace with changes and different needs of the consumers. For the hospitality and tourism which Hilton Hotels & Resorts belongs to, it is worse, bearing in mind that the hotels’ customers are from different cultural background around the world. Blackwell et al. (2006) argues that though for a longer period of time, hoteliers have considered ‘customers’ as their king and changed every activity to satisfy them, this idea is gaining importance and momentum today. Therefore must create a platform where consumers can share their experience, and get involved in a discussion with others and the management on the dishes and other services they need. Dennis et al (2009, p.1123) contends that in the prevailing technology advancement, online platform forms the most effective tool for businesses. Based on the views, this report analyzes the influences of the internal and external factors on consumer decision process concerning the online shopping behavior at Hilton Hotel.

2.0 Consumer Decision Process

Online platforms have turned out to be an effective key part of interaction life, human communication and influence in numerous different means on consumer’s communication and behavior (Riegner, 2007, p.437). According to Riegner (2007, p.436), social media has become a relevant and credible source of information compared to direct information from hospitality industry, thus consumers search for products and service from companies with online companies and online presence. Just like many companies that market and conduct their sales online, Hilton Hotels & Resorts have carried out a broad study on consumer buying decision, and has created an online presence which can influence such decisions. The consumer buying decision process at Hilton Hotels & Resorts includes need recognition, information search, evaluation and selecting alternatives, outlet selection and product purchase and post-purchase assessment.

Each purchase decision entails a particular process which takes place in the customers’ mind (Blackwell et al. 2006). Here, the customers’ mind is aroused by the external or internal stimuli to recognize the need. In Hilton Hotels & Resorts perspective, the customer realizes he wants to go on holiday or business trip in another country yet he is not able to make sure of where he will reside while in that country. At that moment, he realizes that he can only book the hotel using the online platform for convenience. To do this, the consumer needs to search for the information online regarding Hilton Hotels & Resorts, their location and accommodation charges. Riegner (2007, p.439) posits that the customers normally conduct information through the website or the well known social media sites including facebook, twitter, and Flickr among others. Real time social media can be very effective in communication and getting information from the management itself (Riegner, 2007, p.439). During interaction with other people within the online platform, they are also evaluating the alternative hotels other than Hilton Hotels & Resorts that can meet their expectations.

After identifying the need, have the information and evaluated the alternatives, the consumer then decides to purchase or (book rooms online) based on the quality of service and charges (Paasovaara et al. 2012, p.15). The consumer then goes ahead to use the hotel room and other services to satisfy his needs as promised by the company. During his stay in the hotel, the consumer normally evaluates the services in what is referred to as Post Purchase assessment. This process is very important to management of Hilton Hotels & Resorts because it determines whether the consumer come back.

3.0 The factors influencing consumer decision process at Hilton Hotels & Resorts

3.1 Internal factors

On a daily basis people make decisions to reside in Hilton Hotels & Resorts during business trips, leisure and vacations. However, their decision to choose this hotel as their preference depends on various factors including internal, external and situational (Quester et al. 2014). Consumer normally has this intrinsic personality that drives him or her to choose Hilton Hotels & Resorts over others. They are called internal factors and they include needs, motives, emotions, perception, memory, personality, lifestyles and attitude. The consumer is normally driven by the internal stimuli to recognize a need. As such, a consumer feels the need to reside in a decent hotel while in trip or on holiday making him look for information online so as to book the hotel room (Riegner, 2007, p. 441).

Personality also plays an important role in the decision making of a consumer regarding Hilton hotel. Personality develops as one interacts with others. Most Hilton hotel consumers can be claimed to have extraversion form of personality. In this personality, the consumer is outgoing; like to explore places to learn. In that manner, he or she will look for big hotel to spend his time. Lifestyle is also a key determinant for a consumer to settle on Hilton hotels. The lifestyle is determined by income, occupation, values and interests (Dennis et al 2009, p.1127). For instance, consumers in the upper social class will book surf for best and most expensive rooms in the hotel while the middle class will go for average.

Perception strongly justifies a consumer’s behavior, enabling them to validate one’s choice on the basis of the perceived results (Blackwell et al. 2006). For the customer booking online, the perception will be created from the online advertisement and information they are given. Riegner (2007, p.438) claims that usually, companies create adverts that attract attention, motivate and create a perception of high value satisfaction.

3.2 External factors

Social norms considered to be external factors equally influence on consumer decision process at Hilton Hotels & Resorts. The dominance of brand-name like Hilton Hotels & Resorts and their products for instance, influences what an individual consumer choses for themselves. Quester et al (2014) state that, some external factors which drives consumer decision making includes culture, values, demographic, income, social class, reference group, household and marketing activities. Cultural values are a growingly tapped element in influencing consumers (Paasovaara et al 2012, p.17). Hilton Hotel cannot serve meat in India just the way they do in the US due to vegetarian culture of the Indians. If they do, they are likely to lose profits. The hotel is also established in one place with a high population of middle class and upper because the Hilton Hotel understands that demographic factors determine their sales.

Just like lifestyle, the social class and income determines their product choice (Blackwell et al, 2006). As mentioned before, Hilton Hotel is developed for innovator customers who have higher income and want best things in life. These customers can access technology, hence are informed of Hilton Hotels & Resorts services. Marketing activities like adverts plays a part in helping customers make purchase decisions (Blackwell et al. 2006). For that matter, Hilton Hotels & Resorts tries much as possible to attract their customers through persuasive and convincing ads as the best hotels to take rest after a long stay at work. Some of the attractive ads appearing on Hilton Hotels & Resorts website include “save big in big easy with Hilton” and Book a resort stay and get A $ 50 daily on-property credit (Hilton Hotels & Resorts, 2014).

3.3 Situational factors

Situational factors influence on customer buying behavior are in fact impermanent circumstances which influence how they act (Quester et al, 2014). According to Paasovaara et al (2012, p.13), these factors considerably differ from individual to product factors, and they comprise of physical surroundings, social surroundings, time, task and antecedent. Physical surroundings are factors that entail the building, its furnishing and location. Hilton Hotels & Resorts are having a beautiful building located in some of the most strategic cities, airports and convention in the world (Hilton Hotels & Resorts, 2014).. As such, it has been able to attract consumers who are on leisure in these towns. The website is integrated with Google maps to show the hotel locations. Riegner (2007, p.442) claims that the purchase decisions have also been influenced by time constraints. In most cases, consumers are in time and have no time like at home to make their own foods, hence prefer Hilton Hotels & Resorts to satisfy their hunger.

4.0 Conclusion

From this report, it is concluded that in order for organizations to be successful in their development and implementation of market strategy, they must engage in a comprehensive research on consumer behavior. This manager must ensure that their marketing strategies are tailored in within the factors that influence consumer’s behavior including external and internal influences, situational influence and decision-process influences.

5.0 References

Blackwell et al. (2006).Consumer Behavior, an Asia Pacific Approach, Cengage Learning,

Australia.

Dennis et al (2009). E-consumer behaviour. European Journal of Marketing, 43, 1121 – 1139

Hilton Hotels & Resorts. (2014). Hilton Hotels & Resorts Official Website. Retrieved from

http://www3.hilton.com/en/about/index.html

Paasovaara et al. (2012).Understanding consumers’ brand-induced food taste perception: A

comparison of ‘brand familiarity’ – and ‘consumer value – brand symbolism (in) congruity’ –

accounts. Journal of Consumer Behaviour , 11, 11–20.

Quester, P, Pettigrew, S, Kopanidis, F, Hill, S & Hawkins, D. (2014). Consumer Behavior 7th ed.

McGraw-Hill Australia.

Riegner, C. (2007). Word of mouth on the web: The impact of web 2.0 on consumer purchase

decisions, Journal of advertising research, 47, 436-447.