Consumer Behavior and Insight

This document provides an analysis of the stages of consumer decision making journey and the importance of understanding consumer decision making. It also explores the decision making process in the context of B2B and B2C, different approaches of market research, and the influence on decision making stages. The document focuses on the subject of consumer behavior and insight.

Consumer Behavior and
Insight
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Contents
INTRODUCTION.......................................................................................................................................4
LO 1............................................................................................................................................................4
Analysis of stages of consumer decision making journey........................................................................4
Importance for market gap to purchase and understand consumer decision making................................6
LO 2............................................................................................................................................................8
Decision making process in context to B2B and B2C.............................................................................8
Different approaches of market research as well as methods...................................................................9
LO 3..........................................................................................................................................................10
Influence on the various stages of the decision making process of B2B and B2C.................................10
CONCLUSION.............................................................................................................................................11
REFERENCES..............................................................................................................................................12
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INTRODUCTION
Consumer behavior and insight term which is utilized by the human nature due to
enhance effectiveness f particular products as well as services. It helps improve company
organization’s revenue by establishing targets and strategies. Organizational revenue or
productivity depends on consumer perceptions that allow purchasing decisions by evaluating
goods and services. It is necessary for organizations to produce products as per the customer
expectations and then to use marketing campaigns for development purposes. To better
understand of this report selected organization is Airdri limited, which is situated in UK. The
company had been dealing into hand dryer and incorporated on 10 January 1974. In this report
consist of different stages of consumer decision making procedure in regard of particular product
(Saggi and Jain, 2018). Along with identify importance of the marketers to measure path to
understand purchase as well as decision making and compare different decision making
procedure in context of B2B and B2C. Additionally, identify various approaches of market
research and strategy to understand procedure of B2B and B2C. Moreover, the marketers impact
on the various stages with particular examples of B2B and B2C.
LO 1
Analysis of stages of consumer decision making journey
Consumer decision taking is a mechanism that buyers are using to determine their
individual interests, collect details to analyze the options and make buying decisions. This can be
calculated by emotional and economic problems affecting clients and promoting the purchasing
of specific goods and services. In other sentences, it is a complicated process involving all
operations, going to start from identification of problems to post transaction. An organization
recognize needs of the population and create exactly the sort services and products the impress
them and allow investment decisions. While using external comparison to environmental factors,
advertisers can quickly classify fascinating consumption patterns. Customer map is defined as a
travel map showing phases when buyers communicate with the company, from buying products
digitally to making customer care accessible. If uses the new item as fullest potential customers
so it will get hard for Asda to achieve success. After evaluating many factors involving quality
products, deals, capabilities and costs, consumers create purchasing decisions (Arango, Huynh
and Sabetti., 2015).
Airdri limited is a medium sized organisation that designing and manufacturing of warm
air hand dryers, deducted energy consumption, reliability as well as sound levels. It is mainly
electrical based manufacturing industry where are working about 51 to 200 staff members. The
product range of product has been awarded the UK noise abatement society. The company has
been decided to new product of Airdri which is based on advance features and supported in low
light range. It supports to business to enhance their market share as well as profitability through
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introduce new product. When target customer helps to Hand dryer FX then it can be successful
in competitive market. There are different elements which can be involves making customer
buying decisions that are as discussed:
Identify of requirement: Now the users identify their existing product demands and also start
searching for options. There is no buying choice through understanding requirements. Explicit or
implicit triggers usually activate the desires.
Information search: Once the concerns have been identified, consumers continue to look for
commodity accessibility details but also to seek guidance to their wishes. They undertake
comprehensive material analysis and its specifications. Airdri's purchaser makes numerous
attempts to classify and analyze types of knowledge relevant to key purchase decision (Wansink,
2015)..
Alternative solution: Persons usually analyze distinctive commodities as per the substitute
product characteristics present on the marketplace at this point. Airdri's consumers, for example,
when talking about purchasing creative hand dryers that have other features, equate the item to
other labels. Airdri's launched costs for its new dryer hand washers are usually reasonable which
makes consumers know about how they might buy the commodity then go with some company.
Pre purchase: It is a first step towards taking purchasing decisions in which consumers
recognize concerns and issues and then investigate the market and obtain knowledge on
numerous kinds of goods commercially available. Upon checking the business buyers compare
the solutions to take the best one with the correct values and extra features. To know about the
new product in detail manner collect information from store and know about the features and
quality of Hand dryer FX. On the basis of this information they are taking decision of buy
particular products & services. Such as, the advertiser examined consumers who would like new
items with different features and functionality in Airdri limited, so the company released these
goods and modified customers utilizing marketing practices to educate and pick the goods most
desire. It also affects the mechanism that draws consumers to innovative goods and services and
talks regarding acquiring the commodity.
Purchase: This is the phase in which consumers create purchase decisions after
identifying requirements, researching knowledge, collecting substitutes and determining the best
choice to select for the goods or facilities. Furthermore, since evaluating all the knowledge and
picking the best one, consumers plan to buy a commodity that offers optimum gratification. Such
as targeting Airdri buyers that just want advanced dryer decide to take such a product after
obtaining all the details, such as color, size, new features, technology and ultimate level of
comfort. As customers allocate funds to produce the goods and formalize the goods to acquire
Hand dryer FX which is fresh at the correct price. It is valuable move that positions the minds of
the people to buy the drug (Taufique and Vaithianathan, 2018).
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Receive: In the wake of buying clients gets the purchasing items which give most
extreme fulfillment to them. Also, conveyance of purchasing item in the wake of causing
installment to consider as get step which satisfy clients. For example, the objective client of
AIRDRI who are intrigued to get Hand dryer FX get their item by assessing all alternatives and
highlights which assists with getting greatest fulfillment.
Post buy: This is the last phase of purchasing choice which is utilized by clients to
examine the experience and fulfillment in the wake of purchasing item or administrations. It
additionally supportive for organization as when client give their great criticism the piece of the
overall industry of organization expands which prompts boost of benefits. This means assists
with knowing the truth that clients likes such items or what improvement they needs. For
example, Airdri clients who have gotten Hand dryer FX give their great input about propelled
item which assists with expanding piece of the pie and productivity (Valdez, Novak and Veinot,
2015). As client utilized new model and get more administrations on such item which assists
with keeping up the more elevated level of fulfillment and standard.
In this way, it is client purchasing choice is viable procedure which draws in clients to
buy item by distinguishing needs, exploring, gathering data and assessing choice to buy item.
Besides, customer of Hand dryer FX gives their criticism in the wake of getting experience about
new items.
Some associated factors are used by consumers to make decision level that are as explained:
Extensive problem solving: Each circumstance indicates that after evaluating the model,
customers do not realize the commodity type, big retailers and company features. For Instance
Such as it is a big issue for citizens to make a decision to buy due to the increased level of
engagement, increased cost of Airdi FX, lengthy time making decisions, comparison of certain
retailers, etc.
Limited Problem Solving: In this scenario, a consumer is familiar with product brand,
class and cost of product which helps to purchase product. This is mainly used in daily used
product like clothing, cosmetics etc. which helps to make buying decision. Customer purchase
goods in short period as it involves moderate involvement, class, brand and alternatives of
products.
Routine response behavior: This is viewed as a condition that the customer uses as a
standard answer action to buy a commodity at a lower cost on a daily basis. Customer can make
a fast choice here because it requires minimal intervention, hasty decision, cheaper price and
well-known commodity such as sunscreen, store, oil etc (Dolan, Fahy and Goodman, 2016).
Importance for market gap to purchase and understand consumer decision making
Path mapping is a travel map that shoppers are using to create buying decisions. This
graph considers different phases of attracting customers and having certain stuff. The trip starts
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from testing process and finishes after the product has been bought. It is essential for advertisers
to include product and service details that can assist in making purchasing decisions. The
salesperson will evaluate consumer knowledge and consumer curiosity in learning regarding
sales revenue. There are certain considerations that require to be recognized to make business
choices, as it allows identifying the buyer's expectations and how it should be fulfilled by
implementing services and products.
Airdri's potential buyers, for example, want to acquire Hand dryer FX to improve both
living standard and level of happiness. In order to do so, it is crucial for the advertiser to provide
all required product details such as quality, type, innovation, specifications, services, compact
ability and others which can help to create the purchasing decision (Plassmann, Huettel and
Yoon, 2015).. There are various factors that impact on the consumer decision which are
explained in detailed manner:
Economical factor: It is key to shaping consumer decision to buy. This argument means
people just can't do what they can't manage. For advertisers, therefore, it is essential to set the
value of the commodity as acceptable to consumers, which supports to create purchasing
decisions. Airdri's advertiser analyzes the demand and sets Hand dryer FX's competitive cost that
can draw buyers to buy stuff.
Personal factor: This consideration includes gender, level of wealth, health, profession
and family's needs of a specific individual that influences the decision taking. This aspect can
also affect customer preferences when buying goods.
Social factor: This variable is linked to the comparison community, friends and social
status which is necessary for promoters to understand all the social status details. As Airdri
targeted high level of consumers who would like to retain existing high level after shopping
Hand dryer FX which affects person who buys behavior.
Some other important factors which influences decision making:
Heuristics factors: They are the most essential aspects caused by mental shorter cut to
make choices. This concentrates primarily on the mental and emotional state wherein consumers
make choices. For example, people who have met their essential necessities still want luxury
items which can inspire and sustain a good reputation standard. To make the correct consumer
choices, it is crucial for the advertisers to understand the social as well as emotional
requirements. It aspect also affects judgment taking when buying Hand dryer FX according to
consumer understanding, encouragement and behaviors (Pantano and Viassone, 2015).
Technology: It's a very dangerous or enticing aspect that causes consumers to buy
commodities. It is essential for marketers that provide product knowledge and truth, and how it
operates and resources, utilizing technologies that make consumers make decisions. Such as,
Airdri's advertiser uses multiple tools to provide details and capture com-tailing, online transfer,
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and e-bay payments that lets consumers buy goods in a short time by accessing portals and
obtaining information. This also enhances the C2C transaction as consumers can share regarding
goods on social networking sites and much more details that other people are going to buy. Such
innovations allow advertisers to submit data to broad markets of any price adjustments by
sending email messages and reacting directly to customer questions that affect their decision to
leave one.
Marketing mix: This variable entails 4 elements such as commodity, quality, location,
advertisement and place that are critical for marketers to impress people by providing
specifications that affects judgments. AIRDRI's salesperson provides detailed information of
commodity, size, location that helps to maintain goods and consumers can take decisions
appropriately. Buyers consider many aspects including customer satisfaction, marketing
materials, product name, fair pricing, exact situation or market place, retail environment,
advertising strategies like incentives, and provide rewards before forming purchasing decisions
(Van Doorn and Verhoef, 2015). It is necessary for Airdri's retailers to capture market trends
knowledge in terms of expenditure, quality of service, pricing techniques and thus positioning
business models that can affect retail policy-making that will help retailers to boost sales in order
to maintain prospective customers.
LO 2
Decision making process in context to B2B and B2C
Commercial companies, in contrast to many enterprises, market goods to consumers in
order to gain immense profits. A corporation uses ads to offer its services and products in a
corporate atmosphere. Advertiser plays a major role throughout the company, which analyzes
desires of people and creates goods which can fulfill them. There are 2 forms of sales processes
in the corporate world that are utilized by companies to achieve higher money by selling the
goods or services. Throughout B2B revenues, products are available to some other company
without any consumer intervention that raises profits where as B2C profits are connected to
consumers where goods are provided to retail customers. Airdri is a medium size company that
deals in electrical industry by manufacturing hand dryer which attracts people to purchase such
products ( González Felix, Carrete, Centeno and Castaño, 2015). It makes decision in B2C
process in order to sale its dryers directly to customers. If Aidri follows the B2B model, it will
have to work with other companies to market its designer labels, which may boost the selling of
their goods. For example, by 2020, Airdri wants to raise its revenue by 10% by marketing its
hand dryers. It will easily connect with other wireless electronic industry to market its goods that
will help fulfill expectations. Both database schemas are thus beneficial for charity that helps
make the right decisions and make higher profits. Contrast between process B2B and B2C is
given as:
Basis B2B B2C
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Meaning Selling out of commodities and
services in between two business
and business that called the B2B
procedure.
Selling of products and services
by business to consumers is
known as B2C process.
Customer Company or other business Customer or end user
Focus It is mainly concentrated on
business entities.
It mainly focus on selling of
products to customers.
Relationship Supplier – Manufacturer
Manufacturer – Wholesaler
Wholesaler – retailer
Retailer – Consumer
Creation of Brand
value
To set up effective brand value
requires trust and mutual
understanding.
In this section to develop brand
value require to advertising and
promotion of products & services.
Different approaches of market research as well as methods
For trade associations, research and analysis is important in helping to recognize human
needs & desires, and then to make some effort to deliver goods according to desire. This can be
defined as coordinated attempts to obtain knowledge about target market and clients. B2B
analysis is about analyzing business requirements which helps to gather information and to
implement products. Whereas B2C marketing requires consumer needs information and
expectations that can be met by supplying the contextual goods. Such as Airdri selects B2B and
B2C study to market its goods and services (Pai and Tsai, 2016).. B2B and B2C analysis
includes the relevant methods utilized mostly by Airdri in choice-making:
Qualitative methods: this is an inquiry tool that seeks to understand individual and
social activities in order to make good decisions. For B2B consumer research this method is used
by gathering specific knowledge and evidence that allows making the best decisions. Qualitative
methodology includes the interpretation, assessment, and analysis of samples to collect data. In
connection with Airdri, managers have adopted a Qualitative strategy wherein they perform
interviews and questionnaire surveys to collect industry-to-business knowledge. To use this
strategy, Airdri would be able to collect knowledge about either the recently introduced Hand
dryer FX. This work would also help remove the danger that can inhibit organization progress.
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Quantitative approach: This technique has been used by calculating the data and
evidence to collect data in quantitative format. It was utilized by Airdri in B2C market research,
which helps to gather data through participant sample, evaluations and assessment to make the
right choices. For example, AIRDRI advertiser decides to always get details for Hand dryer FX
from potential buyers then marketing expert could use this method to get the details. Through
this strategy the advertiser gets data about the willing to participate clients which leads to the
profitable introduction of new products. Company conducting study method B2B and B2C
follows the Pareto principle which aims to establish a foolproof method for launching new item.
Airdri thus uses the Pareto principle to recognize the efficiency of the Hand dryer FX which
encompasses some notion:
 Sample size: For B2B analysis the example group is smaller because it needs a wide
amount of study to collect the information. Consequently, the standard deviation for B2B
study in Airdri is not successful, due to the launch of new brand, which may face
difficulties. (Groening, Sarkis and Zhu, 2018).
 Skill set: It is required to have some abilities to undertake B2B and B2C analysis which
motivates to gather data. In Airdri, teamwork and interaction skills are important to help
identify shoppers challenge Hand dryer FX and solve problems appropriately.
 Research Methodology: Airdri uses participant questionnaire and checklist approach to
collect data regarding the current Hand dryer FX which manages to launch new product.
 Tele depth interview: This is critical for studies involving B2B and B2C that seeks to
address interactions in details. It could be expensive for Airdri to obtain the details and
use a mobile device that is far from face-to-face conversation. Therefore, Airdri may be
challenged to use tele-depth question to always get details regarding new features.
Furthermore, B2B and B2C study has been assessed to become more successful for
AIRDRI, and will continue to obtain consumer knowledge instead of utilising interviews,
questionnaires and observations. These institution's promoters need to connect with several other
company and consumers to learn the specific item's request, and instead make the right choice to
release goods.
LO 3
Influence on the various stages of the decision making process of B2B and B2C
In the corporate world, advertisers enter the marketplace for the purpose of assessing
consumer desires and communicating with companies and consumers selling goods. In Airdri
business person informed judgement call-making processes of B2B and B2C by implementing
the theory of cognitive and behavioral processing that is presented below:
Behavioral learning: This concept centers on actions that are statistically measurable, excluding
all other practices. To make those decisions it specifies traditional situation and behavioral
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status. Receive encouragement in the classic condition business person (Chen, Kim and Lin,
2015). In context of Airdri is an electrical manufacturer that supplies a consumer with clear hints
that might not be able to buy relaxing since it's not bound to any design. If Airdri advertiser can
create a favorable impression of goods or service that is Hand dryer FX in the view of the buyer
then the buyer will be willing to purchase that item. Hence, in the sense of B2B and B2C,
advertiser can impact judgment taking.
Cognitive learning: This theory describes method of training through the acquisition of
awareness and understanding method. It supports B2B by coding, processing and distributing
training with the minds of business which leads to good management decisions. In addition, B2C
often collects knowledge by evaluating consumer preferences and introducing such a type of
product that contributes to proper decision taking. This is focused on sensory input, which
includes the sorts of training features of humans to find solutions. This theory thus allows Airdri
to introduce a new item by addressing the market and consumer issues and making purchasing
decisions (Köster, and Mojet., 2015).
CONCLUSION
As per the study it can be inferred that by evaluating all details buyers are choice for
organizations that make purchase decisions. A company will draw buyers by placing on the
marketplace innovative goods and services. Person makes decisions by recognizing
requirements, research and analysis, data collection and commodity try to buy. They also get
after-shopping service by making suggestions on consumer knowledge and gratification.
Theoretical model, innovation, and advertising mix are the key things that can help advertisers
make customer choices. After evaluating all variables, company uses B2B and B2C decision
taking mechanism. Customer awareness is relevant as it assists in selecting the buying alternative
and making the right decisions.
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