About the Company

Deyor Rooms is a budget hotel chain, ensuring customer satisfaction by providing consistent
high quality hotel experience throughout the customers stay. For Deyor, the experience of a
hotel stay starts right from the search for a hotel to painless check-ins, a pleasant stay
experience and finally to a happy We shall definitely come back check-out. Spread across
22 cities pan India, Deyor rooms provides a globally benchmarked quality of rooms to all its
guests thus ensuring a safe and happy experience.

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Executive Summary
The findings of the disguised market research yielded some actionable insights which in
combination

with

the

competitive

benchmarking

laid

the

basis

for

formulating

recommendations at the later stage of this report. Some of the key insights were:

Key Actionable Insights

Maximum respondents (31%) listed Room Dcor as their Primary motivation factor
while selecting a room for stay

Tariff turned out to be the most important Secondary motivation factor with about
45% of the respondents selecting it

A significant correlation between Room Dcor and Amenities was observed as many
participants displayed them as complimentary primary motivation factors. Tariff and
Location show a complementary relationship as primary and secondary motivation

factors.
Although both genders display similar trends while choosing among alternatives it
was found that males focussed on Room Dcor and Location where as females were
more interested in Amenities and Room Dcor. Females also happened to be more

tariff sensitive than males

There was a gradual decline in the importance of Tariff and Location as a motivation
factor with increasing age. Amenities and Room Dcor become governing factors for
choosing a hotel for higher age groups.

On the basis of the research findings, the consumer can be divided into 2 segments based on
their behaviour:
1. Quality oriented customers:
These are those customers who focus on quality of the Hotel while choosing a place of
accommodation. They are ready to pay a premium and traverse greater distance from city
centres to get the best of amenities, room service and dcor. These customers generally stay
for shorter durations and consume up their resources during this period. About 48% of the
participants in the survey showed this type of behaviour. Another important observation

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would be that this type of consumer behaviour was primarily displayed by older age
groupings.
2. Quantity oriented customers:
These are those customers who are price sensitive and prioritize convenience of location.
Their major goal is to economize the entire trip cost (i.e. total accommodation cost as well as
travelling costs). About 42% of the participants displayed this type of behaviour. About 40%
(an overall 17%) of these customers can be deemed to be extremely price sensitive in nature.
A significant section of these customers display a greater affinity to multiple visits in regular
intervals. This behaviour was generally found amongst the younger age groupings.

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Table of Contents
Executive Summary...................................................................................................................ii
Key Actionable Insights.........................................................................................................ii
Table of Figures..........................................................................................................................v
Research Objective.....................................................................................................................1
Research Methodology...............................................................................................................2
GAME SETUP.......................................................................................................................2
GAME PLAY.........................................................................................................................2
Participant Profile.......................................................................................................................4
Analysis......................................................................................................................................5
OVERALL RESPONSE.........................................................................................................5
PRIMARY MOTIVATION FACTORS..................................................................................6
SECONDARY MOTIVATION FACTORS............................................................................6
BREAK-UP OF PRIMARY AND SECONDARY FACTORS IN OVERALL RESPONSE 7
OVERLAP BETWEEN MOTIVATION FACTORS.............................................................8
Segmentation..............................................................................................................................8
DEMOGRAPHIC SEGMENTATION...................................................................................8
GENDER TRENDS...............................................................................................................8
AGE GROUP RELATED TRENDS......................................................................................9
BEHAVIOURAL SEGMENTATION..................................................................................10
Recommendations....................................................................................................................11
Annexure..................................................................................................................................12

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Table of Figures
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure
Figure

1 Table Layout..............................................................................................2
2 Sample form for data collection...............................................................3
3 Age wise break-up.....................................................................................4
4 Gender wise break up...............................................................................4
5 Gender Division in various age groupings (all data in percentages)......5
6 Overall Response for the Market Research.............................................5
7 Primary Motivation Factors......................................................................6
8 Secondary Motivation Factors..................................................................7
9 Break-up of Motivation Factors................................................................7
10 Overlap between motivation factors......................................................8
11 Motivation Factors for Males.................................................................9
12 Motivation Factors for Females..............................................................9
13 Motivation factors: Age Group wise.......................................................9

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Research Objective
Any person travelling either for pleasure or business or even on a just-for-the-weekend trip
looks first and foremost for a place to stay. But, while deciding, there are many criteria that
could be looked upon. While a business traveller could be looking for a hotel with convenient
location, a family on vacation would want good amenities and proximity to tourist spots
whereas on the other hand a group of college students on a weekend trip would look at the
tariff before booking. With this thought in mind, Deyor puts forth the objective of this market
research as:
What is the prevalent factor while selecting a hotel?

Tariff
Location (Proximity to tourist and shopping spots, airport, railway station, etc.)
Amenities
Room dcor

The team was required to target different segments of the society, age groups and various
working classes for the market research to identify the room selection behaviour of an
individual and provide a statistical interpretation of the data.

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Research Methodology
The method chosen for the market research was a modified version of the game of hoopla.
The research was done in a disguised mode (i.e. participants were unaware of the parameters)
and various parameters for evaluation were assigned to different positions on the board.

GAME SETUP
There were 4 kinds of options given to a customer while choosing a product. It included a
combination of 1 and 2 chocolates with or without wrapping. Thus total of 4 combinations
were generated:
1)
2)
3)
4)

Single product without wrapping

Double product without wrapping
Single Product with wrapping
Double product with wrapping

Two rows were setup to place the products. Each product was places in a front and a back
row. Appropriate costs were given to each product in a fashion stated in figure 1.
The location signifies convenience of reaching a product, points represents the tariff a
customer is ready to pay, and wrapping signifies dcor i.e. if a customer goes with a simple
product or if he/she prefers to go for a nicely presented product.

GAME PLAY
1) Each player was given maximum of 10 points to use during the game in which he/she had
to throw the ring in his/her preferred choice
2) Each choice had a different cost and location. For every choice stated points were
deducted from his account and rest of the points could be used to play for next choice.
3) For subsequent turn player was asked to choose a different preference.

Figure 1 Table Layout

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Legend:
s: Single product without wrapping
sw: Single Product with wrapping
d: Double product without wrapping
dw: Double product with wrapping

Sample form for data collection

Figure 2 Sample form for data collection

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Participant Profile
To ensure success of the research it was ensured that diversity among the participants was
taken. An age cut-off of 14 years was maintained while conducting the research. Observations
which were below this limit were discarded for all calculations and analysis. The maximum
age of a participant was 63 years. Participants would be categorized into various age
grouping in order to act as segments relevant to industry. The age groupings and gender
division of participants are shown in Figures 3 & 4.
Participant Profile:
Age Groups
40+; 6%
14-17; 19%
32-40; 25%

18-24; 26%
25-31; 25%

Figure 3 Age wise break-up

Participant Profile: Gender

Female; 35%

Male; 65%

Figure 4 Gender wise break up

While it was possible to get data for a wide range of age groups during the market research,
the gender division was only 13:7 in favour of males. None the less a substantial mixture
4

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relevant to the current market could be generated. The gender division in each age group is
given in Figure 5. It can be seen that the gender division is consistent throughout all age
groups.
72

68

62
38

32

67

60
40
28

14-17

18-24

25-31

32-40

33

Male
Female

40+

Figure 5 Gender Division in various age groupings (all data in percentages)

Analysis
OVERALL RESPONSE
From the data collected it could be observed that maximum participants displayed Location
(about 32%) as their motivational factor while choosing an option. This was followed by
Tariff (25%) and Amenities (24%). Figure 6 gives a break-up of the overall response
collected during the research.

35
30
25

Percentage

20
15
10
5
0

Tarif

Location

Amenities

Room Dcor

Figure 6 Overall Response for the Market Research

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During the research almost all of the participants showed a propensity for using multiple
motivation factors to evaluate choices. Some of these factors had a major influence on
decision making whereas other had limited bearing on choices. Hence, the motivation factors
were categorized into two types:
1. Primary Motivation Factors
2. Secondary Motivation Factors
Details of these factors are given in subsequent sections.

PRIMARY MOTIVATION FACTORS

Primary motivation factors are defined by the research team as those motivation factors
which are used by customers to choose suitable offerings from a set of disparate ones. It is
primarily used to narrow down the list of possible alternatives to ones which satisfy similar
needs. For example, if Tariff is the Primary Motivation Factor for a certain consumer then all
hotels which are outside his/her specified budget range are automatically eliminated. From
the research conducted the break-up of Primary Motivation Factors are given in Figure 7.

Primary Motivation Factors

12%

31%

Tarif
29%

29%

Location
Amenities
Room Dcor

Figure 7 Primary Motivation Factors

It can be observed that Room Dcor which happened to have the least number of overall
responses (about 20%) was found out to be the Primary Motivation Factor for the majority of
the participants (31%). In contrast Tariff happens to be the lowest on the list which indicates
that consumer tend to look quality and value for money while making choices.

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SECONDARY MOTIVATION FACTORS

Secondary motivation factors are those motivational factors which influence consumers while
choosing between similar offerings. These come into play after a consumer has used the
Primary Motivation Factor to eliminate undesirable alternatives. For example, once a Tariff
sensitive customer has identified low priced stay options, he may use location as a factor to
zero in on a preferred choice. Therefore, Location acts as the secondary motivation factor.
The break-up for these factors displayed during the research is given in Figure 8.

Secondary Motivation Factors

16%

5%

Tarif
46%

34%

Location
Amenities
Room Dcor

Figure 8 Secondary Motivation Factors

Tariff (45%) and Location (34%) were the major secondary factors displayed by people. This
indicates that consumers are either price sensitive or location sensitive at a sub-conscious
level.

BREAK-UP OF PRIMARY AND SECONDARY FACTORS IN

OVERALL RESPONSE
Figure 9 shows the break-up of Primary and Secondary motivation factors. It indicates the
propensity of participants to display a certain factor as a primary or secondary factor. Tariff
was found to be primarily used as a Secondary Motivation Factor whereas Amenities and
Room Dcor were found to be Primary Motivation Factors. Location was displayed as both.

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90
73

72
44

56

28

27
10

Tarif

Location

Amenities

Room Dcor

All figures in Percentages

Secondary

Primary

Figure 9 Break-up of Motivation Factors

Reading Figure 9: 72% of the respondents who displayed tariff as a motivation factor during
the research displayed it as a secondary motivation factor.

OVERLAP BETWEEN MOTIVATION FACTORS

Motivation Factors cannot be analysed in isolation. This is primarily because they tend to
overlap with each other. Almost all of the participants displayed the use of a secondary
motivation factor while a substantial chunk (48.5%) displayed the use of multiple primary
motivation factors. This trend was consistent in both genders (50% of males and 46% for
females) as well as all major age groupings. Figure 10 shows the overlap between various
factors.

Figure 10 Overlap between motivation factors

It was observed that there was a great correlation between Room Dcor and Amenities as
many participants displayed them as complimentary primary motivation factors. Tariff and
Location show a complementary relationship as primary and secondary motivation factors.

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Segmentation
Most of the participants in the research were residents of urban areas, mostly in and around
Gurgaon. Only those participants who were above the age of 14 were considered as a part of
the research. Both Demographic and Behavioural segmentation of the participants was done.

DEMOGRAPHIC SEGMENTATION
The two key demographic segmentation parameters, as mentioned previously, were gender
and age. The variation in motivation factors for choosing a room is as mentioned below:

GENDER TRENDS
Although both genders display similar trends while choosing among alternatives it was found
that males focussed on Room Dcor and Location where as females were more interested in
Amenities and Room Dcor. Females also happened to be more tariff sensitive than males.

11%

27%

31%

Am en ities
Location

30%

Room Dcor
Tar if

Figure 11 Motivation Factors for Males

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14%

31%

Am en ities

29%

Location

25%

Room Dcor
Tar if

Figure 12 Motivation Factors for Females

AGE GROUP RELATED TRENDS

Figure 13 shows the motivation factors for various age groups. It can be observed from the
graph that the needs of different age groups vary significantly from each other.
Motivation Factors: Age Groups
50
Amenities

40

Location

30
In Perceentage Points

Room Dcor

20

Tarif

10
0
14-17

18-24

25-31

32-40

40+

Figure 13 Motivation factors: Age Group wise

The 14-17 age grouping considers Location (about 42%) the most important factor while
booking a room for stay. Other groups like those between 18-24 and 25-31 display a bit more
complex behaviour while making a decision. They use various combinations to cater to their
requirements. The 40+ age groupings focus is solely on Amenities and Room Dcor (a
combines 91%). One important observation is that gradual decline of Tariff and Location as a
motivation factor with increasing age. Similarly Amenities and Room Dcor become
governing factors for choosing a hotel as age increases.

10

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BEHAVIOURAL SEGMENTATION
While analysing the collected data set, it was found that majority of the participants could be
categorized into 2 distinct segments: Quality oriented and Quantity oriented customers.
1. Quality oriented customers:

These are those customers who focus on quality of the Hotel while choosing a place of
accommodation. They are ready to pay a premium and traverse greater distance from city
centres to get the best of amenities, room service and dcor. These customers generally stay
for shorter durations and consume up their resources during this period. About 48% of the
participants in the survey showed this type of behaviour. Another important observation
would be that this type of consumer behaviour was primarily displayed by older age
groupings.
2. Quantity oriented customers:

These are those customers who are price sensitive and prioritize convenience of location.
Their major goal is to economize the entire trip cost (i.e. total accommodation cost as well as
travelling costs). About 42% of the participants displayed this type of behaviour. About 40%
(an overall 17%) of these customers can be deemed to extremely price sensitive in nature. A
significant section of these customers display a greater affinity to multiple visits in regular
intervals. This behaviour was generally found amongst the younger age groupings.

11

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Recommendations
On the basis of the above mentioned insights the following recommendations were made:

Separate branding of facilities can be done to differentiate between products for both sets
of identified customers or at least separate category of offerings must be created under a
single brand umbrella.

Secondary motivation factors and their respective synergies with primary ones should be
studied further. Improving on these factors will help in differentiating the Deyors
offerings from a competitor with similar offerings.

A customer specific incentive program must be started. Repeat purchases ought to be

rewarded with extra bonus offer like price discounts for Quantity oriented customers and
amenity bonuses for Quality oriented customers

Advertisements and promotions can be made age specific to attract the target customers
in an efficient way. For example, facilities with better dcor and amenities ought to be
made to attract the relatively older segment of audience.

The frequency of customer visits and duration of stay are important parameters which can
be used to predict consumer behaviour in a more accurate manner.

12

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Annexure

13

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