Influence of Consumer Behaviour on Marketing Decisions

This report explores the stages of consumer decision making and the factors that influence it. It also discusses the black box model of consumer behaviour and its impact on marketing decisions. The report compares the decision making process in B2C and B2B contexts and evaluates market research methods for both. It also highlights how market research can influence the stages of customer decision making process. Finally, the report evaluates the factors that influence the decision making process.

Business Report

Table of Contents
INTRODUCTION ..........................................................................................................................3
SECTION 1 .....................................................................................................................................3
Evaluate five different stages of the consumer's decision making and analyse the factors that
influence that process .................................................................................................................3
Evaluate the black box model of consumer behaviour. Explain how it influences marketing
decisions .....................................................................................................................................4
SECTION 2 .....................................................................................................................................5
Compare the similarities and differences of the decision making process of B2C and B2B
with reference to the organisation...............................................................................................5
Evaluate the different market research methods that could be applied to a B2C and a B2B
context. Use examples relevant to the organisation ...................................................................6
Justify how market research can influence the stages of customer decision making process....8
SECTION 3 .....................................................................................................................................8
Evaluate the minimum of two factors that influence the decision making process....................8
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Consumer behaviour is defined as the study of how individual customers, organisations
and groups select, buy, use and dispose goods, products and ideas for satisfying the needs and
wants. This is defined as actions of consumers n the marketplace and underlying motives for
these actions. Marketers think that understanding the causes of consumers for buying particular
services and goods. They will be able to determine by which products and required in the
marketplace and way of presenting these products and goods to the consumers. The study of
consumer behaviour assumes that consumers are actors of marketplace. The B2C company used
in the following report is Oriflame. It is established in Sweden in the year 1967 by Jonas af
Jochnick, Robert af Jochnick, Bengt Hellsten. This was founded in the year 2000 in London. It is
operating at multi level marketing cosmetics company which sells number of products. The
following report has three sections – the first section includes mapping of consumer behaviour in
B2C organisations. The next section includes similarities and differences of the decision making
process of B2C and B2B organisations. The third part includes factors that influence the decision
making process.
SECTION 1
Evaluate five different stages of the consumer's decision making and analyse the factors that
influence that process
The main objective of every marketer is to attract consumers. There are different ways
used for figuring out the needs and wants of consumers. The five stages of consumer decision
making are discussed below - Problem recognition – the decision making starts with kind of problem. Consumer
develops and creates need or a want that has to be satisfied. In this, consumer feels that
something is not right and this demand needs to be addressed (Aschemann‐Witzel and
Zielke, 2017). When individuals are able to determine the target demographic develops
the needs and wants. This is an ideal time for adverting them. In case of ASsOS
organisation, it has to effectively market the products so that customer satisfaction is
achieved. Search Process – This is the second step of consumer behaviour. In this, information is
gathered related to possible solutions. The process is longer if purchase decision is larger.

Consumers of Oriflame do thorough research before searching and seeking information
related to pricing, features, ease of use, etc. Evaluating alternatives – This is defined as third step of decision making process.
Different customers have a list of criteria by which solution must meet. The buyer of
Oriflame product builds buyer personas for ensuring that marketing is relevant. Selection stage - This step includes selection of product or service offered by the
company (Moser, 2015). When consumer makes up the mind for buying the product.
Oriflame organisation ensures that it is producing attractive cosmetics for young adults.
 Evaluation of decision – In this step, the decision of product selling is evaluated whether
it is right to innovate this product or sell this in the same manner. This is based on the
likings and demands of consumers using Oriflame cosmetics.
Evaluate the black box model of consumer behaviour. Explain how it influences marketing
decisions
The black box model of consumer behaviour identifies that stimuli responsible for buyer
behaviour (Richard and Habibi, 2016). The advertisement and different forms of promotion
about the product is the stimuli and this is presented in front of customers by the organisation.
The black box of consumer includes two components such as buyer decision making process and
buyer characteristics. The characteristics of buyer can be personal, cultural, social and
psychological. These are internal for buyer and marketer and the main objective is to innovate
the existing product. The buyer 's decision making is described above in the five steps of
consumer behaviour (Claiborne and Sirgy, 2015). The steps for consumer behaviour in black
box are discussed below -
Problem recognition: The consumer identifies the need for a product. In context of
Oriflame, the requirements of beauty creams for women and girls is identified and then product
is sold.
Information search: Once the need has been recognised, the consumer will find
information that is related to the needs and wants of customers. It is important for the
organisation like Oriflame to evaluate the needs and demands of the women and girls who are
looking for beauty creams. This can be explained with an example that if product is innovative
and can meet the demands and needs of customers. There are various companies that sells

cosmetic products but Oriflame has to make sure that it is making consumer satisfactory products
so that product maximisation is achieved.
Evaluation of alternatives: Different beauty products and creams are compared before
making cream of Oriflame. The different ways of comparing beauty creams are SPF, long
lasting formula, colour, whiteness, glow, etc Yadav, and Pathak, 2016).
Purchase decision: On the basis of above criteria, it is seen that all beauty creams of
Oriflame are compared and given ranks. The consumer buys that cream which meets all criteria
required by the consumer.
Post purchase behaviour: The user might want to revise his views on the product or
criteria of selection based on the product’s performance. This step comes when the consumer has
used the product. These are feedbacks of that beauty cream which will be sold to consumers.
The black box model considers the buyer's response as a result of a conscious and well-
informed decision making process in which he is not impulsive (Moser, 2015). The Black Box
model of marketing is helpful in analysing the needs and demands that are needed by consumers
to make sure that beauty cream of Oriflame are effective.
SECTION 2
Compare the similarities and differences of the decision making process of B2C and B2B with
reference to the organisation
B2C and B2B are different forms of electronic commerce. B2C e-commerce is defined
as the process of selling products directly to consumers from a website. People browse product
information pages on website of the company (Feng, Govindan and Li, 2017)(Haugtvedt, Herr
and Kardes, 2018). Products are selected from online method and payment is done after the
delivering of products.
The basic B2C business system is relatively simple. There is need of method for
displaying products and prices on the website. This is a mechanism for recording customer
details, and a checkout to accept payment. The decision making of consumers about B2B is
different and for B2C is also different. The B2B means exporting of products at a large scale.

Thus in this, the needs of consumers are different. B2B business of Oriflame products includes
different products of same category are purchased in bulk. On the other hand, in B2C, the
products are sold directly to the customers and they buy products on the basis of personal needs.
Evaluate the different market research methods that could be applied to a B2C and a B2B
context. Use examples relevant to the organisation
Market research is done within organisations in order to analyse the needs and wants of
the customers. All marketing researches are applied for knowing the exact needs of the company.
The market research methods of B2B and B2C companies are mentioned below -
Method B2C market research B2B market research
Method 1 In case of B2C market research,
attention is paid to new market
study and new product development.
There Is significant consequence of
legal risks in the business. The
market research includes analysing
the applicable regulations,
standards and laws carefully. The
Commercial Advisors of economic
development agencies are
concerned. The legal advisors of the
structures supports entrepreneurship
within the operating country.
In a B2B context, it is important as it
has to compete with big organisations.
The commercial resources will make it
possible for covering wide territories. A
grid is used for establishing benchmark
and identifying the strengths and
weaknesses of competitors of the
company. The evaluation of Porters 5
Forces framework is used for creating
systematic assessment of the competitive
forces at work within the market. This
kind of analysis helps in giving
information on the difficulties to
anticipate in entering a particular
market. It is also used for meeting the
specific market where potential
resistance is expected from organisation's
competitors.
Method 2 The purchase decision in B2C is
done by a single individual (the
Qualitative research techniques are used
for analysing market as it occurs while

final consumer). This is very
important to understand the
demands and needs of consumers in
order to win their trust.
Organisations must know about
frustrations with different
competing products or services. The
companies must be able to adapt in
an effective manner and reach
expectations of the customers in an
effective manner. The different
ways for analysing the needs of
customers are Face-to-face
interviews. These help marketers to
get to the bottom of things. These
are suitable for prospective market
research.
Focus groups are done by the
marketers when company is already
having a product. or a precise
description of services for
stimulating discussion among
various participants. When the
organisation has to launch a new
product or service within the market,
it is necessary to not recommend
focus groups. This is not appropriate
for generating new and innovative
ideas.
taking individual interviews for
collecting information about the new
product or service. There are samples
which are interviewed. It is necessary to
be relatively small. This has an objective
for identifying the competitors,
understanding market dynamics &
understanding the decision-making
processes within companies. In context
of B2B, the purchasing decision is made
by various shareholders. Due to this,
organisations follow specific demands
and needs of consumers and they adopts
marketing strategy appropriately.
Some entrepreneurs think that they are
well known with the market and there is
no need of expert advice or contacts
with the customers of their future
competitors. This includes
underestimating effect of knowledge.
This is a syndrome that affects those
individuals those have worked for a
longer period in a given sector and which
provides them with a distorted view of
the market.
Method 3 Quantitative research is the way by
which effective market researches
In this method, exogenous factors of
market are analysed. The main focus of

are accomplished. Online surveys
are done as a part of B2C market
research. They are generally well
suited for online panels. Online
surveys helps in minimising the bias
that can happen while filling the
questionnaire. Website are the best
effective way for online surveys and
formulating questions effectively.
these is legal, social, technological
factors that affects market dynamics.
Such factors affects dynamics of the
market. These exogenous factors which
influence the market are helpful in
differentiating and gaining market share.
The PESTEL analysis is used for market
analysis and this is a framework offering
a way to organisations for studying
forces that cannot be controlled by the
organisations.
Justify how market research can influence the stages of customer decision making process
The market researches directly affects the decision-making of consumers. In context of
Oriflame, it is analysed that when this organisation conducts effective market research, it is easy
for it to know demands and needs of the consumers. In this way, effective products are produced
for consumers (Johnstone and Tan,, 2015). The different stages of consumer decision making are
linked with strong market research. The market research will provide knowledge about actual
needs of the person. Oriflame can provide good and quality products to people when it conducts
effective market research.
SECTION 3
Evaluate the minimum of two factors that influence the decision making process
There are various factors that affect decision making of the consumer. Some of these are
motivation, perception, learning, personality and culture and sub culture Joshi and Rahman, ,
2016). The affect of these factors on decision-making of the consumer is very high. It can change
the perspective of the consumer in buying any product.
Motivation is defined as something that starts within the person himself and what are the
needs and demands of him. Every person has different biological, physiological, social needs.
Out of these needs, there are some needs that are important (Lehner, Mont and Heiskanen,
2016). When need of the person is urgent, the level of motivation is also increased for meeting

it. While buying any cosmetic product, girls and women are concerned about their skin and glow.
They need that beauty cream must be affordable and includes natural ingredients that will make
the skin glow.
Other factor which is Perception and this is defined as acoustic, visual, tactile, olfactory
and gustative way for perceiving the environment. This can happen for having various opinions
regarding a product. This means there must be some unique feature of the product that can be
identified by the consumers blindfolded.
CONCLUSION
From the above discussion, it is concluded that consumer behaviour is an essential factor
that directly affects the sales of any product. There are various ways by which consumer buying
behaviour can be analysed. The consumer buying behaviour includes five steps that are
necessary for estimating that product is liked by customers. The various stages of the consumer
decision-making process includes Problem recognition,Search Process, Evaluating
alternatives,Selection stage and Evaluation of decision. It is necessary for organisations to
develop strategies in order to know the needs and demands of customers. Also it is essential to
analyse new trends of products and services that will help in maximising profits and money
earned by the company.

REFERENCES
Books and Journals
Aschemann‐Witzel, J. and Zielke, S., 2017. Can't buy me green? A review of consumer
perceptions of and behavior toward the price of organic food. Journal of Consumer
Affairs, 51(1), pp.211-251.
Claiborne, C.B. and Sirgy, M.J., 2015. Self-image congruence as a model of consumer attitude
formation and behavior: A conceptual review and guide for future research.
In Proceedings of the 1990 academy of marketing science (AMS) annual
conference (pp. 1-7). Springer, Cham.
Feng, L., Govindan, K. and Li, C., 2017. Strategic planning: Design and coordination for dual-
recycling channel reverse supply chain considering consumer behavior. European
Journal of Operational Research, 260(2), pp.601-612.
Haugtvedt, C.P., Herr, P.M. and Kardes, F.R. eds., 2018. Handbook of consumer psychology.
Routledge.
Johnstone, M.L. and Tan, L.P., 2015. Exploring the gap between consumers’ green rhetoric and
purchasing behaviour. Journal of Business Ethics, 132(2), pp.311-328.
Joshi, Y. and Rahman, Z., 2015. Factors affecting green purchase behaviour and future research
directions. International Strategic management review, 3(1-2), pp.128-143.
Lehner, M., Mont, O. and Heiskanen, E., 2016. Nudging–A promising tool for sustainable
consumption behaviour?. Journal of Cleaner Production, 134, pp.166-177.
Moser, A.K., 2015. Thinking green, buying green? Drivers of pro-environmental purchasing
behavior. Journal of Consumer Marketing, 32(3), pp.167-175.
Moser, A.K., 2015. Thinking green, buying green? Drivers of pro-environmental purchasing
behavior. Journal of Consumer Marketing, 32(3), pp.167-175.
Richard, M.O. and Habibi, M.R., 2016. Advanced modeling of online consumer behavior: The
moderating roles of hedonism and culture. Journal of Business Research, 69(3),
pp.1103-1119.
Yadav, R. and Pathak, G.S., 2016. Young consumers' intention towards buying green products in
a developing nation: Extending the theory of planned behavior. Journal of Cleaner
Production, 135, pp.732-739.