Understanding Consumer Behavior: Hilton Case Study Sample

Introduction Of Understanding Consumer Behavior: Hilton Hotel

Consumer behaviour is referred to as the study of people and how they take their purchase decisions for satisfying their own needs and wants. For the companies to be successful they must understand the behaviour of consumers in a better and more effective manner. This is necessary because when consumer behaviour is understood by the company then the product and services of the company will not be satisfying the consumer (Chopra, Avhad and Jaju, 2021). The current study is based on Curio Collection by Hilton, a brand founded in 2014 and headquartered in McLean US. The present report will outline the brand's characteristics and identify the market segment. In the end, the use of technology for communicating with consumer groups will be discussed.

Characteristics of the chosen brand

Background of hotel

The current brand is Curio Collection by Hilton founded in the year 2014 and belongs to upscale hotels of Hilton. This is Hilton's first collection of brands and this complies with around 30 hotels and resorts spread over 7 countries. This group undertake the use of the reservation system of Hilton and is a part of Hilton Honours which is a guest loyalty program of the company. This collection of the group is unique and upscale and is built by the taste of local people and have some specific feature and characteristic (ALL ABOUT CURIO COLLECTION BY HILTON WORLDWIDE – A COLLECTION OF LUXURY HOTELS, 2023). This is a collection of unique hotels and is a masterpiece collection of Hilton and has around more than 90 hotels all over the world. The working, Curio collection is very good and is more popular in Dubai having the feature of artificial beaches and tropical rainforest. This attracts the majority of the people and the working of the hotel is being improved by the company (Hoekstra and Leeflang, 2020). When the hotel is working in a good way then this will attract more people. There are booking facilities and also rave reviews are being provided as a testimony to success. This chain is being prepared by the hotel to amaze the tourist and attract a large number of consumers.

Brand identity Of Hilton Hotel

The brand identity is defined as the visible element of the brand which makes it different from the other companies and competitors. It can also be stated as the collection of different elements which the company uses to create an image among consumers. For companies, an effective brand identity must be created so that it attracts a large number of consumers and business increases. This is the most common thing which the consumer first sees before using or buying any of the products (Lim, W. M. and et.al., 2023). Thus, it is very necessary for companies they effectively manage and maintain a good brand identity. This is crucial for companies as it will be attracting a large number of consumers and will assist the company in increasing their sales and promoting the brand at a high level. For companies to face the competition it is very necessary that brand identity is kept distinct so that it attracts a large number of consumers towards the company. The brand identity includes different elements like its colour, logo, design and many other different aspects relating to the logo. The brand identity is generally the visible element of the brand which the consumer witnesses.

Brand identity is a concept which is used by the company to attract a large number of consumers so that the products and services of the company are liked. With regards to Hilton, the hotel is undertaking the use of brand identity to attract a large number of consumers and to increase the sales and business of the hotel (Sanny and et.al., 2020). With regards to changes taking place in the external environment, Hilton has made changes in their logo and made it stylish and this represents the global portfolio of 70 resorts and having more than 32600 rooms. The name and core mark of the company are strongly recognizable by the consumers as it is very attractive and better. This change of logo is continued as it includes modifying the changes according to the changes taking place in the external environment. For attracting the attention of the consumer and to improve its brand identity earlier Hilton introduced “Stay Hilton, Go Everywhere” (Refreshed Hilton Hotels & Resorts Brand Identity Emphasizes Leisure Portfolio, 2022). This branding was good, as it provided the message to the consumer that they will have a great stay in Hilton and can roam to other places but need to stay in Hilton only. The major characteristic of the logo of Hilton includes the use of “Hotels and Resorts” which makes a clear distinction between the Hilton worldwide and other hotels. The logo includes a soothing blue colour which is good for viewing the logo. The contemporary font of the name ‘Hilton' is very soothing and it attracts a large number of consumers.

Identifying the market segment Of Hilton Hotel

For the company to be successful in its operations, the most important aspect is to understand the consumer well. This is very necessary for the company as in case they will not be understanding the consumer then they will not analyse what is the requirement of consumers (Rondoni, Asioli and Millan, 2020). Thus, for this, it is very necessary for Curio Collection by Hilton that they effectively understand what consumers are requiring. This is about the fact that when the company will know then they will be in a position to provide the requirement to them. Thus, for this, it is essential for Curio Collection by Hilton that they decide on the target market effectively. The external market is very wide and the hotel doesn't need to be in a position to cover the whole market. Thus, for this, the hotel selects some of the targets which will be majorly focused on while operating. The target market is being selected by the company by keeping in mind the latest trends prevailing in the external environment and trying to include them in the working. The major target market for Hilton and Curio Collection by Hilton is based on demographic segments. Within the demographic segment, income is focused that is high-income group focused. In addition, to this another target market for Curio Collection by Hilton is based on a behavioural segment which is people having a luxury lifestyle and people who like to have premium quality services (Rather and et.a., 2021).

The major characteristic of the current target market is that people belonging to high-income groups will be focused. This is particularly because of the reason that the services provided by the hotel are premium and this will be afforded by high-income group people only. Thus, for this, the promotional activities will be including a focus on high-end groups so that they are attracted towards the company and its services (Dixit, Lee and Loo, 2021). Moreover, the promotional activities will also include attracting majorly young people. This is very necessary because young people are the ones who like to live a leisurely life and will be loving to go to such places. Hence, the promotional activities of Curio Collection by Hilton will be focusing on attracting young people so that the sales of the hotel will tend to increase.

For example, consumers who are interested in having a rich lifestyle, then they will be attracted towards the hotel as they are providing premium and high-quality services. This focus on good quality will attract consumers who are focused on using good-quality services (Babin and Harris, 2023). Another example is that when a good discount will be provided to loyal consumers then this will increase the number of consumers coming to the place. When price discounts are provided to the consumers then this attracts them largely and will be helping the company to improve its sales and profits being earned will be increased.

Use of technology for communicating with the target group

Communication is very important for the company as it will provide a clear base for the company for deciding on the services and products of the company. With the help of effective communication, the company will come to know the requirements of the consumer and accordingly will provide the services to them (Cherubino and et.al., 2019). Hence, for this effective communication need to be done to understand the need of consumers and provide the same to them. In the current competitive environment, the use of technology is increasing and for effective communication, it must be used. Thus, the brand undertakes the use of social media technology to communicate effectively with consumers and other parties. This is very essential for Curio Collection by Hilton they must undertake the use of social media to effectively communicate with external parties.

The use of social media is very helpful to communicate with consumers and other external parties. This is particularly because of the reason that in the current modern world, people are using social media to a great extent. And when the companies also communicate with them using social media then this attracts a slash number of customers towards the company (Ong and et.al., 2021). This is a good technique to attract the customer towards the company and to help them communicate effectively. This social media is helpful for Curio Collection by Hilton as it will help the company in understanding the requirement of consumers and try to communicate with them effectively. Also, this clear communication will help the company in monitoring the performance and understanding the competition as well.

Benefits and drawbacks of social media

Benefits

• The most common benefit of using social media as a means of communication is that it helps to reach a large audience (Chu and Chen, 2019). Social media is a very why the ranger of communication methods and it helps Hilton in gathering a large audience with a single message.
• Along with this another benefit which Hilton enjoys by using social media for communication is building the brand effectively. Social media is such a white range of communicators that it helps to build the brand strongly and assist in interacting with others effectively (Mehta, Saxena and Purohit, 2020). People can share information and views relating to the company over their website and it can be used by the company as a suggestion for improving their performance.
• Further another major benefit of using social media as a communicator is that it helps the company in staying up to date with all the latest changes being taking place within the external environment (Loxton and et.al., 2020). There are many different changes taking place present external environment and with the help of social media, these changes can be tracked by the company. And it is a major benefit to the company as they can evaluate the latest changes and try to implement them within the company.

Limitations

• Along with these benefits, there are some limitations of using social media as a medium of communication that is it increases the cost of the company (De Mooij, 2019). Using social media is a little costly and it increases the expense of the company.
• In addition to this, another drawback of using social media for communication is that it reduces communication skills. This is particularly because of the reason that social media includes majorly communication through messages (Dash, Kiefer and Paul, 2021). Hence as a result of this, the verbal communication skills of the person reduces and this affects the ability to communicate with others face to face.
• Another crucial drawback which a company faces while communicating with the help of social media is that there are chances of cyber-attacks and digital fraud. With the help of the use of social media, fraud has increased to a great extent and there are chances atom broad with customers may take place (Rahmanov, Mursalov and Rosokhata, 2021). Thus, it is very necessary for the company and consumer to effectively communicate with help of the social media.

This chosen technology that is social media is linked with the target market as the behaviour of consumers in the current world is of using social media. Hence, the use of social media by the Curio Collection by Hilton will be assisting in attracting consumers at large (Sama, 2019). For example, the characteristic of the consumer group is to use leisure products then including the premium services of the hotel in social media advertisements will help in attracting consumers at large.

Conclusion

In the end, it is concluded that analysing consumer behaviour is very important for the company as it provides knowledge to them to advertise the products well. The above discussion highlighted that brand identity is important for attracting a large number of consumers. Also, it was seen that the target market of the company is high-income people and young millennials. At last, it was seen that social media marketing is the technology which is used by the company to communicate with the target market.

References

Books and Journals

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• Rondoni, A., Asioli, D., & Millan, E. (2020). Consumer behaviour, perceptions, and preferences towards eggs: A review of the literature and discussion of industry implications.Trends in Food Science & Technology.106. 391-401.
• Sama, R. (2019). Impact of media advertisements on consumer behaviour.Journal of Creative Communications.14(1). 54-68.
• Sanny, L., Arina, A., Maulidya, R., & Pertiwi, R. (2020). Purchase intention on Indonesia male's skin care by social media marketing effect towards brand image and brand trust.Management Science Letters.10(10). 2139-2146.

Online

• ALL ABOUT CURIO COLLECTION BY HILTON WORLDWIDE – A COLLECTION OF LUXURY HOTELS. 2023. [Online]. Available through: < https://www.soegjobs.com/curio-collection-hilton-luxury-hotels/>
• Refreshed Hilton Hotels & Resorts Brand Identity Emphasizes Leisure Portfolio. 2022. [Online]. Available through: <https://www.hospitalitynet.org/news/4047927.html>