(PDF) Consumer Behaviour and Insight Assignment

Consumer Behaviour
and Insight

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Stages of consumer decision making for a product and services...........................................1
P2 Importance for marketer in order to map a path to purchase and understand consumer
decision making...........................................................................................................................3
Task 2...............................................................................................................................................5
P3 Decision making process in context to B2B and B2C............................................................5
P4 Evaluation of different approaches to market research and method of research used for
decision making process..............................................................................................................6
Task 3...............................................................................................................................................8
P5 Marketer can influence the different stages of decision making process of B2B and B2c ...8
CONCLUSION................................................................................................................................8
REFERENCE.................................................................................................................................10

INTRODUCTION
Consumer Behaviour and Insight is related term which is used by human behaviour in
order to increase effectiveness of a product and services. It helps to increase the sale of business
organization by setting the goals and objectives. The sale or profitability of organization is
depend of customer insights who make buying decisions by analysing the products as well as
services. So it is important for organization to manufacture product according to customer
expectation and then use promotional activities for the purpose of development (Carlucci and
et.al., 2015).
To understand the consumer's decision making processes BMW has been chosen that is
auto mobile industry manufacture different models of cars. Different topics are discusses in this
report that are stages of consumer decision making for a product that is BMW Z4, importance for
marketer to map a path in order to purchase and understand consumer decision making and
decision making process in reference to B2B and B2C. In addition, different approaches to
market research and method for B2B and B2C are covered in this report. This report will be
helpful to understand how to make decisions by analysing all informations and data.
Task 1
P1 Stages of consumer decision making for a product and services
Consumer decision making is a process which is used by consumers to identify their own
needs, gather information evaluate the alternatives and make purchase decisions. It can be
determine by psychological and economical factors that influence customers and emphasis to
buy particular products and services. In other words, it is a complex procedure that involves all
activities starting from problem recognition to post purchase. Company understand the needs of
people and manufacture that kind of products and services which attracts them and make buying
decisions.
BMW is a multinational auto mobile industry deals in different models of cars and launch
new products in order to sell by attracting people (About BMW, 2019). The company has decided
to introduce new model of car that is BMW ZX4 which will attracts customers and make buying
decisions. It helps to increase the market share as well as profit share by launching new product.
If target customer supports BMW ZX4 then it can be successful in competitive market
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(Carlucci and et.al., 2015). This product have very good quality and capacity that influence
customers to make buying decisions. There are different element which can be involves to make
customer buying decisions that are as discussed:
Pre purchase: This is a first step of making buying decision in which needs and
problems are identified by customers then research the market and collect information about
different types of products which are available in market. After searching the market customers
evaluates the alternatives in order to select best one with suitable prices and new features. To
know about new product customers get information by visiting BMW's sites that helps to gather
many information about features, colour, size, facilities, offers, new model and design of cars.
This information attracts customers and they think about purchasing such product. For instance,
the marketer has analysed customers wants to a new products with new design and features in
BMW then organization has launch such products and updated people by using promotional
activities which helps to inform and select the products as they wants. Therefore, this is
influencing process which attracts customers towards new products and services and they thinks
about purchasing the product (Piscicelli, Cooper and Fisher, 2015).
Purchase: This is the step where consumer make buying decision after recognising
needs, information research, collection of alternatives and evaluating best option to opt the
product or services. In addition, consumer decide to purchase product after analysing all
information and selecting best one which gives maximum satisfaction. Such as targeted
customers of BMW who wants luxury cars make decision to taken such product after getting all
information like colour, price, new features, technology and maximum satisfaction level. As
consumer set the budget to purchase the products and they finalize the products in order to buy
BMW ZX4 which is new with suitable price. This is useful step which sets the people's mind to
purchase product.
Receive: After purchasing customers receives the buying products which gives maximum
satisfaction to them. Moreover, delivery of buying product after making payment consider as
receive step which make happy customers. For instance, the target customer of BMW who are
interested to get BMW ZX4 receive their product by evaluating all options and features which
helps to get maximum satisfaction.
Post purchase: This is the final stage of buying decision which is used by customers to
analyse the experience and satisfaction after buying product or services. It also helpful for
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company as when customer give their good feedback the market share of company increases
which leads to maximization of profits. This steps helps to know the reality that customers likes
such products or what improvement they wants. For instance, customers who have received
BMW ZX4 give their good feedback about launched product which helps to increase market
share and profitability. As customer used new model and get more services on such product
which helps to maintain the higher level of satisfaction and standard (Bian and et.al., 2016).
Therefore, it is customer buying decision is effective process which attracts customers to
purchase product by identifying needs, researching, gathering information and evaluating option
to purchase product. Moreover, consumer of BMW ZX4 gives their feed back after getting
experience about new products.
Some associated factors are used by consumers to make decision level that are as explained:
Extensive problem solving: This scenario states, as consumer don't know the product
class, major brands and attributes of products after analysing the product. Such as it is extensive
problem for customers to make a buying decision due to having high level of involvement, high
cost of BMW ZX4, long time to decide, evaluation of many brands etc. that creates a problem to
purchase a product (Factors of consumer decision making level, 2019).
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 (Venkatraman and et.al., 2015).
Routine response behaviour: This is consider as situation which is used by consumer to
purchase product at lower price on regular basis is known as routine response behaviour. Herein,
customer can make fast decision as it involves little involvement, quick decision, lower price and
well know product like shampoo, shop, oil etc.
P2 Importance for marketer in order to map a path to purchase and understand consumer
decision making
Path mapping is a journey map which is used by consumers to make purchase decisions.
This map consider various stages to attract customers and get such product. This path journey
starts from research process and ends after buying the product. It is important for marketers to
provide information about products and services which can helps to make purchase decisions.
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The marketer should analysis the information about customers and their interest that helps to
know about sale of products. There are some factors which needs to understand to make decision
by consumer because it helps to know the requirement of customers and how it can be satisfied
by introducing product and services (Liobikienė, Mandravickaitė and Bernatonienė, 2016).
For instance, target customers of BMW wants to purchase BMW ZX4 in order to
increase their living standard and satisfaction level. For this, it is important for marketer to
provide all necessary information about product like price, colour, technology, features,
facilities, cubic capacity and others that can helps to make buying decision (Influencing factors
that affects decision making, 2019). There are some factors which influences consumer decision
that are as explained:
Economical factor: This is main foundation of influencing customer purchase decision.
This factor states that people cannot buy what they cannot afford. So it is important for marketer
to set the price of product as affordable for customers that helps to make buying decisions. The
marketer of BMW analysis the market and set the affordable cost of BMW ZX4 which can
attracts customer to purchase product.
Personal factor: This factor involves age, income level, lifestyle, occupation and
personal needs of particular product that emphasis to make decisions. Therefore, this factor may
influence the consumer decisions while purchasing products.
Social factor: This factor is related with reference group, family and social status that is
important for marketers to know all information about social status. As BMW targets high
standard of people who wants to maintain their high standard after purchasing BMW ZX4 that
influences buying behaviour of customers.
Some other important factors which influences decision making:
Heuristics factors: This is most important factors which is related to mental shortcut in
order to make decisions. It mainly focus on psychological and emotional status in which
customer make decisions. For instance, person who have completed their basic needs now they
wants luxury products that can motivate and maintain a good level of status. It is important for
marketers to understand the psychological and emotional needs in order to make right customer
decisions. Therefore, this factor influence to make decision while purchasing BMW ZX4 as per
customer perception, motivation and attitudes.
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Technology: This is very risky or attractive factor which attracts people to buy product
and services. It is important for marketer to provide information and reality about product and
how it works and facilities by using technology which helps customers to take decisions. Such as
the marketer of BMW uses different technology for providing information and collecting
payment that is e-tailing, online transaction and e-bay which helps customers to purchase product
in short period by visiting web sites and collecting information. This also helps to increase the
C2C purchasing as customers can post on social media about products and more information
which can be purchased by another customers (Ghose and Todri, 2015).
Marketing Mix: This factor involves 4 components like product, price, place, promotion
and place which is important for marketer to attracts customers by giving such information that
influences decisions (Rana and Paul, 2017). The marketer of BMW give details of product, price,
place that helps to promote products and customer can make decisions accordingly.
Task 2
P3 Decision making process in context to B2B and B2C
A business organization uses marketing in order to sell its product and services in
business environment. Marketer plays an important role within organization who analysis the
needs of people and introduce from products that can provide satisfaction. In business
environment, there are two types of business process which are used by organization to earn
higher profits by selling the products and services. In B2B sales, products are offered to another
business without any customer interference that increases sales, where as B2C sales are related
with customers where products are offered to directly customers. BMW is a multinational
company that deals in auto mobile industry by manufacturing sports and luxury cars which
attracts people to purchase such products. It make decision in B2C process in order to sale its
cars directly to customers (Zeugner-Roth Žabkar and Diamantopoulos, 2015). If BMW uses B2B
process then it has to deal with other business in order to sale its branded products that could
increase sale of its products. For instance, BMW wants to increase its sale 10% by 2020 through
selling its sports and luxury cars. It can directly communicate with other auto mobile industry to
sale its products that will help to complete targets. Therefore, both business process are useful
for organization that helps to make correct decisions and make higher profits. The comparison
between B2B and B2C process are given as:
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Basis B2B B2C
Meaning Selling of products and services
between two business entities is
known as B2B process.
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 focus on relationship between two
businesses.
It mainly focus on selling of
products to customers.
Relationship Supplier – Manufacturer
Manufacturer – Wholesaler
Wholesaler – retailer
Retailer – Consumer
Creation of Brand
value
Trust and mutual relationship helps
to create a brand value.
Advertisement and promotion
helps to create brand value.
P4 Evaluation of different approaches to market research and method of research used for
decision making process
Market research is important for business organization as it helps to know the needs and
wants of people and then make efforts to introduce products as per needs. It can be consider as
organized efforts in order to gather information about target market and customers. B2B research
stands for analysing the needs of businesses that helps to collect data and introduce products.
Where as B2C research involves research about customer needs and wants that can be satisfy by
selling the qualitative products. Such as BMW adopts B2B and B2C research in order to sale its
products and services (Shavitt and Cho 2016). B2B and B2C research involves following
approach that are used by BMW in decision making process:
Qualitative approach: This is a method of inquiry which helps to understand human and
social behaviour in order to make decisions. This approach is used in B2B market research by
collecting relevant information and data that helps to make right decisions. Qualitative approach
involves sample representation, observation and survey to gather information. In context to
BMW, manager has adopt Qualitative approach in which they conducts interview and sample
survey to gather the information by business to business. By using this approach BMW can get
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information about BMW ZX4 which is new launched product. This research will also help to
eliminate the threat that can hinder success of company.
Quantitative approach: This approach is used to gather data in numerical form by
measuring the information and data. It used by BMW in B2C market research that helps to
collect data by sample survey, questionnaires and observation in order to make right decisions.
For instance, marketer of BMW wants to get data of interested customers for BMW ZX4 then
marketer will use this approach to get the information. By using this approach marketer get a
numerical data about interested customers that leads to launch new products successfully.
To conduct B2B and B2C research approach organization uses Pareto principle that
helps to make a perfect method to launch new product. Therefore, BMW is using Pareto
principle to know the effectiveness of BMW ZX4 that covers some concept:
Skill set: To conduct B2B and B2C research there is need to have some skills that helps
to collect information (Daugherty Hoffman and Kennedy, 2016). In BMW, there is need to have
coordination and communication skills which helps to put question about BMW ZX4 from target
customers and make decisions accordingly (About Pareto Principle, 2019).
Research methodology: BMW is using sample survey and questionnaire method to
collect the information about BMW ZX4 which helps to launch product successfully.
Sample size: Sample size are smaller for B2B research as it need a big level of research
to gather the information. Therefore, sample size for B2B research in BMW is not effective that
can face challenges due to launching new product.
Tele- depth interview: This is important for B2B and B2C research that helps to face
depth interviews (Lantos, 2015). This may be costly for BMW to collect the information by
using telephone tool which is far from face to face interview. Therefore, it can be challenge for
BMW to use tele depths interview in order to get information about new products.
Therefore, it has been evaluated that B2B and B2C research are more effective for BMW
that will helps to collect information from customer by using interviews, questionnaire and
observing. The marketers of such organization need to communicate with other business and
customer to know the demand of particular product and then make right decision to launch
products.
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Task 3
P5 Marketer can influence the different stages of decision making process of B2B and B2c
In business environment, marketer visits the market in order to analysis the needs of
customers and deals with businesses and customers for selling products. In BMW marketer
influenced decision making process of B2B and B2C by applying behavioural and cognitive
learning theory which are given below:
Behavioural learning: This theory focuses on objectively observable behaviours and any
other activities. It states classic condition and behavioural condition to make the decisions. In
classic condition marketer get responds stimulus (Kowal and Roztocki, 2015). For example,
BMW is auto mobile manufacturer that provides consistent clue to a customer that may not be
succeed in purchasing stimulating because it is not tied to one to one fashion. If marketer of
BMW able to form a favourable image of particular product that is BMW ZX4 in customer's
mind then consumer get ready to buy such product. Therefore, marketer can influence decision
making in context to B2B and B2C.
Cognitive learning: This theory explains learning process by acquiring knowledge and
process of information (Drever and et.al., 2015). It helps B2B by encoding, storing and transfer
learning with business's mind that leads to make right business decisions. Moreover, B2C also
collect information by analysing needs of customers and launch such kind of product which leads
to make right decisions. This is based on mental activity that holds the kinds of learning
characteristics of human being in order to solve problems. Therefore, this theory helps BMW to
launch new product by solving the problems of businesses and customers and make buying
decisions.
CONCLUSION
From the above report it can be concluded that consumers are preference for organization
who make buying decision by analysing all information. An organization can attracts customers
by launching new products and services in market. Customer make decision by identifying
needs, research market, collecting information and purchase product. They also get post purchase
service by giving their feedback about product experience and satisfaction. Heuristic, technology
and marketing mix are the important factors for marketers that helps to make consumer
decisions. Organization uses B2B and B2C decision making process after analysing all factors.
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Consumer learning is important as it helps to select the purchase option and make correct
decisions.
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REFERENCE
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Daugherty, T., Hoffman, E. and Kennedy, K., 2016. Research in reverse: Ad testing using an
inductive consumer neuroscience approach. Journal of Business Research. 69(8).
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Lantos, G. P., 2015. Consumer behavior in action: Real-life applications for marketing managers.
Routledge.
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Visegrád Group countries? Insights from Poland. Journal of Global Information
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Drever, A. I., and et.al., 2015. Foundations of financial well‐being: Insights into the role of
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Online
About BMW. 2019. [Online]. Available through:
<https://www.bmwartcarcollection.com/about-bmw/>
Factors of consumer decision making level. 2019. [Online]. Available through:
<https://www.slideshare.net/AJITGAUTAM5/levels-of-consumer-decision-making>
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Influencing factors that affects decision making. 2019. [Online]. Available through:
<https://www.linkedin.com/pulse/7-important-factors-influence-buying-decision-
pallabi-chakraborty>
About Pareto Principle. 2019. [Online]. Available through:
<https://www.b2binternational.com/publications/b2b-research-versus-b2c-research/>
(Carlucci and et.al., 2015)(Piscicelli, Cooper and Fisher, 2015)(Bian and et.al., 2016)
(Venkatraman and et.al., 2015)(Liobikienė, Mandravickaitė and Bernatonienė, 2016)
(Ghose and Todri, 2015)(Rana and Paul, 2017)(Zeugner-Roth Žabkar and
Diamantopoulos, 2015)(Shavitt and Cho 2016)(Daugherty Hoffman and Kennedy,
2016)(Lantos, 2015)(Kowal and Roztocki, 2015)(Drever and et.al., 2015).
About Pareto Principle. 2019.Influencing factors that affects decision making. 2019Factors of
consumer decision making level. 2019.About BMW. 2019.
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