Introduction of Consumer Behaviour at Premier Inn Coursework
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Customers’ evolving requirements and aspirations, as well as firms’ shifting customer motivation programmes, are causing a shift in the way we buy these days. The dramatic rise in congestion has forced businesses to look for new and better ways to keep their customers happy and keep them coming back for more. Schroeder (2014) claims that firms target consumers based on their living style, living behaviour, and social position as a primary motivator for purchasing their goods. The following report is focused on analysing the UK-based hotel chain business of Premier Inn from the aspect of repeat-purchase behaviour of its Generation Z consumers.
1.1 Organisational Background: Hilton Hotel
Premier Inn is the biggest hotel brand in the United Kingdom, and they’re here to help the country get some shut-eye. As they are more than 80,000 rooms in over 800 hotels throughout the United Kingdom, Ireland and Germany than any other UK hotel brand, one may work while on the road. All of the hotels in the network are owned and operated by the hotel chain, which means that they can concentrate on providing their guests with a consistent level of comfort and service. Premier Plus rooms, on the other hand, are available at a wide variety of hotels if visitors are seeking even greater comfort, convenience, and connection. In addition, there are Standard Extra rooms available at 10 of their hotels, which provide tourists with a few extras to make their stay even more enjoyable. This year marks the 10th consecutive year that Premier Inn has topped the YouGov Hotel Brand Index and been named the “Best Value Hotel”.
1.2 Generation Z as Consumers
After the Millennials, there comes a generation is known as Generation Z or Gen Z, which goes by a variety of different titles. The exact beginning point of Generation Z is unknown, although demographers and other scholars generally date it between the mid-1990s and the mid-2000s. When it comes to technology and social media, Generation Z is used to using them for various purposes – from entertainment to information gathering. Generation Z’s purchasing power and clout are growing by the day. People of Generation Z are known for their obstinacy, insistence on “going right-through”, and inability to compromise for the sake of protecting their interests at the expense of others.
2. Cultural Influence on Repeat-purchase among Generation Z Customers
The generations of boomers, Generation X, millennials and the burgeoning generation Z are all distinct from one another. Because of their beliefs and upbringing, many generations throughout the globe have varied views and purchasing habits when it comes to trends, which are influenced by their culture. Generation Z is the most likely to use the internet to purchase goods and services. It indicates that even if Generation Z will come after the century, it won’t follow them in choice according to many pieces of research given by Wilson (2017). Generation Z is today’s most digitally and socially active generation, and retailers that want to acquire their wallets must grasp this.
Generation Z people hold the view that no specific expertise is required to get by in life. A big portion of this generation is also susceptible to manipulative influence since they have become “slaves of public opinion” as a result of their dependence on the Internet. They get their examples and guidelines on how to dress, act, and live properly from the internet (Seemiller & Grace, 2019). “Right”, on the other hand, implies conformity to the norms of society. When it comes to cultural values, this generation is more likely than previous generations to adhere to the Western lifestyle. Life principles and landmarks are being eroded by Generation Z because of the unrestrained complexities of social practices (life morals rapidly become outdated); the ideological difference with parents (life philosophies of elders for younger generations are not pertinent), and the knowledge reliability of the technological world (Seemiller & Grace, 2019). In Generation Z, the idealistic founders are trapped in their minds. In spite of this, great artists, poets, and musicians will emerge from them (White, 2017). The Z generation spends a lot of time reading and playing board games. Despite their idealistic and romantic tendencies, they have a realistic approach to leisure time (White, 2017). To engage the next generation of cultural patrons, professionals in the social and cultural sectors will need to learn how to combine Booking Internet idealism with practicality in their creative endeavours.
In order to better understand the effect of service on visitors from Generation Z along with other generation groups, Premier Inn created predictive models to examine the impact of service on customers. Around 30,000 hotel teams were informed of the results after they were distributed to 1,000 hotel managers. A “service-first” culture has been established, according to the brand, from the shop floor to executive suites. Incentives based on customer service rankings have been implemented across the board, with specific goals established for each hotel based on present levels and the company’s ability to expand. Brand strategists at Premier Inn are leveraging this information to create personalised messages that emphasise the hotel’s commitment to service. A lot of effort has been put in by Premier Inn to make sure that procedures are centred on the guest’s experience. Being centred on their own opinions from emotional and mental aspects, Generation Z prefers it when they receive such a stay that is focused on the individual requirement rather than an overall similar service. It is now possible to book and check-in utilising an electronic kiosk without the need for any assistance from the employees. The checkout procedure, on the other hand, is really quick.
3. Attitude Influence on Repeat-purchase among Generation Z Customers
The attitude of consumers is the most significant component that drives repeat purchases and customer loyalty for a company. Customers’ attitudes regarding their purchasing choices play a significant role in the functional theory of Zhang, Kim & Goodsir (2019). A utilitarian and socially adaptive function, consumers’ views affect a variety of psychological processes, according to this hypothesis. There are no other elements that impact cognition or decision-making behaviour because of this. To establish an effective and emotionally charged connection between their offerings and their target consumers, marketers, producers, and service providers focus on changing client attitudes (Zhang, Kim & Goodsir, 2019). Customers’ attitudes regarding a product’s features and performance may be predicted more accurately using this idea.
A product’s acceptance or rejection is influenced by a person’s mindset, according to Hartmann & Apaolaza-Ibáez (2012). Experience, opinion, and the viewpoints of others all affect one’s attitude. It is possible that, for example, consumers may choose to acquire a product that will encourage repeat purchases and customer loyalty if they have had a favourable experience with it. Negative feelings might prevent consumers from making purchases in the future, resulting in a lack of repeat business. According to a recent Accenture survey, sophisticated digital goods like the Internet that purchases things via video social networks like Instagram, Facebook, YouTube, and Snapchat, are the best approach to reaching generation Z (Wilson, 2017). According to Kim, Duncan & Chung (2011), consumers’ readiness to make repeat purchases may be gauged by their opinion about the products they get. This is because client loyalty and attitude are inextricably linked. Customer loyalty will be bolstered as a result of consumers’ good attitude about recurring purchases. With the support of consumers, Kardes, Cronley, and Cline (2014) describe the role of attitude on customer loyalty. They claim that consumer motivation aids in the acquisition of a product since it is generated from the customer mindset, which is affected by marketers via marketing and promotions.
Because 69% of millennials want to make purchases through social media, social media will likely become a primary means of doing business for this generation. While 44% describe social media as an originating point of inspiration to purchase a product or service, 37% increased the number of social media views they used to make purchasing choices last year, similarly (Wilson, 2017). As Generation Z shoppers are real digital natives, social media has proven to be a great tool for marketing to them. Businesses must grasp the expectations of Generation Z, their social circles, and their behaviour to thrive in this increasingly digital environment. Instagram is used twice as frequently by Gen Z consumers as it is by millennials, with 66% of Gen Z shoppers routinely using the app. Gen Z members have been said to often allude to their “influence circles.” This is noteworthy (Wilson, 2017). As a consequence of seeing a video on YouTube or following social media comments, Z generation consumers are more inclined to purchase products on the advice of family and friends (Ramgade & Kumar, 2021).
In a study of hotel chains, Premier Inn ranked first in cleanliness, comfort, and hygiene of the bedroom as well as a bathroom. The hotel chain was praised for its “first-class experience” and “extremely reasonable costs” (Stagg, 2016). For example, Premier Inn has a “dad of the year” competition as well as uses social media to promote vacation spots and new hotels to appeal to families. Additionally, Premier Inn has a strong online presence, as well as a well-designed email newsletter and a user-friendly website that is regularly updated. The business expects a “substantial rebound in leisure demand” following COVID-19 as the vaccination campaign advances and travel restrictions relax in the United Kingdom from mid-May. Consequently, the company plans to spend £20 million on marketing in the following fiscal year. These activities work effectively aligning with the mindset of the Gen Z customers of the hotel.
Rest Easy, Premier Inn’s first major brand development initiative in three years, was published earlier in 2021 after being postponed by COVID. It is at the core of their investment (Jefferson, 2021). An array of media outlets, including television and outdoor advertising, radio spots, print ads and internet and social media posts were all part of the multi-channel campaign. Gen Z comprises the group of people who are using mostly online platforms as media outlets, as well as offline ones. One of Premier Inn’s most valuable assets is its multi-channel marketing approach. Consistent experiences of booking can be had no matter which method customers use: telephone, website, or mobile app. The app, in particular, helps customers locate their local Premier Inn – 50% of same-day reservations are made on the app (Turton, 2014). It makes sense to go after clients who use many channels since data shows that they spend an average of 80% more than those who just use one.
4. Personality Influence on Repeat-purchase among Generation Z Customers
As per Fournier, Fournier, Breazeale & Fetscherin (2012), the idea of consumer-brand personality outlines an archetype that plays an essential part in consumer choices and, because of its unconsciously familiar character, maybe identified quickly. Product advantages, product offerings, communication strategy, brand image, and consumer experience are some of the components that contribute to a product brand’s archetypal features in this context. Other theories like the customer personality theory described by Kardes, Cronley & Cline (2014) highlight how the “Brand Asset Valuator” assists organisations to address brand attributes and processes that make it easier to recognise products in the future. Customers’ loyalty and repeat purchases are influenced by the brand’s personality. Branded with the slogan “good night’s sleep”, the hotels live up to their slogan (Turton, 2014). Each and every Premier Inn has been meticulously designed to seem like a home-away-from-home, with a uniform colour palette and layout. To ensure a pleasant night’s sleep in the hotel’s well-appointed and large rooms, the hotel uses blackout curtains, additional pillows, and a high-quality mattress.
Customer loyalty has become more important in today’s corporate environment. If the product/service does not meet the needs of the customers, they will stop paying for it and go directly to the competition, as per Shahrivar (2012). As a result, if hotels do not meet their duties to the customers, they will look elsewhere. An important and beneficial influence on an individual’s decision-making is the fulfilment of his or her expectations, according to Oliver (1997). It’s safe to say that most members of Generation Z were raised in a stable atmosphere, and their parents, on the whole, are well-educated and well-paid. People that have a laid-back outlook on money, enjoy life, and know-how to unwind are the most successful. Open-minded, curious and free-spirited are the characteristics of these individuals (Fromm & Read, 2018). Travelling with their parents as children have exposed them to a wide variety of cultures, making them more accepting of others. When it comes to new things, they are more willing to try them out. On the other hand, having so many Booking Internet options makes Z generation members more capricious and lazy, robbing them of the Booking Internet’s ability to put forth the effort and solve difficulties.
Premier Inn places a high value on maintaining a strong presence on new and upcoming digital platforms. Hotel Ads, according to the firm, make it simple for customers to find what they are looking for (thinkwithgoogle.com, 2015). More pertinent, location-specific, and accurate data points are included in these reports. Premier Inn has the same goal as Google, which is to make their customers’ lives simpler, and Hotel Ads help them achieve that goal. With Google Hotel Ads, Premier Inn was able to attract new consumers, capture high-quality traffic, and increase direct reservations on its website. When users search for hotels, hotel ads show up on the desktop, tablet and mobile browsers. It is easy to customise vacation dates, and evaluate and compare hotel photographs and costs in a search. To make a reservation, people may go straight to the advertiser’s website. Premier Inn’s aim of creating and sustaining direct connections with guests of Gen Z is being supported by Hotel Ads. As a result of Premier Inn’s direct access to customers, the company has been able to effectively communicate its brand values and better understand its specific requirements. These are the specific reasons that the company has been able to retain the loyalty of its customers from the concern generation group.
5. Perception Influence on Repeat-purchase among Generation Z Customers
This kind of consumer purchase intention places a lot of emphasis on the perception of a person towards the goods in question while making purchasing choices. Consumers’ purchasing power will be constrained by their perceptions of the product, which may either enhance the likelihood of first-time purchase and repeat buy, or decrease the likelihood of first-time and repeat purchase. According to Jenyo Gabriel & Soyoye Kolapo (2015), people believe that a high price tag equates to great quality and appealing features of a product. Because of this, people tend to stick with expensive brands. By charging a budget price for its service, Premier Inn seeks out customers that have this mindset. According to the customer perception theory, the high demand for items, the luxury term associated with the product brand, and the unique qualities of the products all contribute to a favourable consumer perception, which in turn leads to increased customer loyalty and repeat purchases. The significance consumers place on a variety of hotel characteristics that meet their desires and requirements is measured by how customers perceive their hotel’s qualities (Wuest, Tas & Emenheiser, 1996).
Gen Z customers are more likely to be satisfied with the hotel they plan to stay at if they have access to Booking Internet, a strong hotel brand image, targeted content on the official website, quick customer service responses, assistance from digital natives, the holiday being a great deal, and the ability to use Booking Internet have all been cited as ways to make the hotel more appealing to Gen Z customers (Wiastuti et al., 2020). Representatives of Generation Z are only happy when the individual hotel meets all of their needs, which they establish before booking. It will be up to them to decide whether or not to return to the country after their vacation if some of their aspirations are not satisfied.
In order to boost the number of repeat guests, Premier Inn has implemented a research study that has altered the way the company approaches and performs customer support services. The way the company aims, motivates, educates, and rewards employees have also changed internally, and the insight or research and development (R&D) team has earned its power to participate in making a rational decision. With the support of social insights firm “Listen + Learn Research”, the insight team of Premier Inn intended to address several critical questions to help offer more objective and concrete feedback regarding its service (Centaur Media plc, 2018). Guests from Gen Z are prone to enjoy quality service in budget pricing and like to observe their accommodating organisation putting efforts into doing so. When it came to gauging the quality of its customer service, Premier Inn used a mix of quantitative modelling schemes, social intelligence, and hotel-specific predictive modelling to get the job done. That service was in reality a strategic driver that gave some headline results and made it easier for Premier Inn to talk to other departments. If service were to deteriorate, the firm might run “what if” scenarios to see what might happen to satisfaction, repeat visits, and income.
The entire report has focused on the evaluation of the behaviour of Generation Z as consumers of Premier Inn who decided to make repeat-purchase of their services. The company is a well-known and well-organised hotel chain business that is focused on customer-centric culture, high-end personality and strong brand image. Alongside, the customer attitude towards the company is stimulated by its budget pricing strategy alongside all hygiene, good food and other high-quality facilities for travellers. The success of Premier Inn is due to having a large part to its dominance in all facets of organisational culture, brand personality and perception as well as consumer attitudes. There is much to learn from Premier Inn’s flawless consistency across all channels and brand foundation. That they have a keen understanding of the industry and that their brand will continue to expand and serve customers with outstanding value is a testament to their abilities.
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