Consumer Decision Making Process

This assignment delves into the intricacies of consumer decision-making. It examines various stages involved in the process, from problem recognition to post-purchase evaluation. The assignment explores different models used to explain consumer behavior, such as the Nicosia model and the Howard-Sheth model. Furthermore, it analyzes the levels of consumer decision-making, including routine, limited, and extended decisions, based on the level of involvement and risk associated with the purchase. Finally, it discusses common decision rules employed by consumers, such as compensatory and non-compensatory rule, to arrive at a purchasing choice.

Consumer Behaviour and
Insight

Table of Contents
INTRODUCTION...........................................................................................................................1
SUBMISSION 1..............................................................................................................................1
LO 1.................................................................................................................................................1
Introduction to the report............................................................................................................1
Explain the consumer decision making.......................................................................................1
Models of consumer decision-making........................................................................................3
Mapping out the decision-making process for particular product .............................................3
Importance of mapping a path to purchase and understand consumer decision-making............5
Levels of consumer decision-making..........................................................................................6
Factors that influence decision-making......................................................................................6
Concluding statement..................................................................................................................7
SUBMISSION 2..............................................................................................................................7
LO 2 and LO 3.................................................................................................................................7
Introduction to report..................................................................................................................7
Compare and contrast key differences between B2C and B2B decision-making processes......7
How market research differ between B2B and B2C...................................................................8
How personality, self and motivation and customer perception influence on decision-making
process.........................................................................................................................................9
Behavioural and cognitive approaches to consumer learning.....................................................9
How culture and other relevant factors impact on consumer behaviour...................................10
How organisations use an understanding of buyer behaviour to influence decision-making
process within B2C and B2B context.......................................................................................10
Use of digital audience research development to understand and influence consumer
behaviour...................................................................................................................................11
Concluding statement................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Consumer behaviour is the study of different elements that considered important role to
satisfying their needs. There are different approaches of consumer behaviour and their preference
exists that assists to connect several people to fulfil their aims and objectives (So, Achar and
Maheswaran, 2015).
Present study based on Small White Elephant which is small sector cafe of London and
provide different types of products and services to attract customers. In this regard, different
types of operations successfully develop to gain profitability at workplace.
For gaining insight information of the present study, it covers consumer decision-making.
Furthermore, models of consumer decision-making also assists to develop significant advantages
at workplace. Moreover, importance of mapping path to purchase and understand consumer
decision-making successfully develop to gain desired level of results. At last, it discusses
different stages of decision-making process.
SUBMISSION 1
LO 1
Introduction to the report
Consumer behaviour is the study of individual person, groups and organisation that is
selected to use, dispose ideas, goods and services to satisfy needs and wants. This study also
beneficial for assessing processes of people for personal consumption. Furthermore, there are
several factors influence to consumer behaviour in context of design, price, promotion, etc.
(Plassmann, Venkatraman and Yoon, 2015). In Small White Elephant mapping out the decision-
making process for particular products. It is varies from consumer to consumer, region to region,
etc. As a result, it assists to determine level of consumer decision-making in successful manner
at workplace of the chosen business.
Explain the consumer decision making
Consumer decision-making is the process which is used by consumers regarding market
transactions before, during and after purchase of goods and services. In particular form of cost
and benefit analysis, there are several multiple alternatives exists that helps to take important
decisions in Small White Elephant. It considered different stages such as problem recognition,
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information search, evaluation of alternatives, purchase and post purchase satisfaction (Karimi,
Papamichail and Holland, 2015). There are different types of strategies implemented that helps
to attempt right mix of variables for their products and services. Need/Problem recognition: Purchase process starts with need, problem and motive in
consumer mind. Internal and external stimulus drive to look something new and solve
problem as well (McCabe, Li and Chen, 2016). Therefore, in Small White Elephant
consumers assess internal and external drivers to solve their issue and problem. Information search: When need/ problem receive heightened attention from consumer of
Small White Elephant, they are become more productive to solve problem and gathering
data. They are using personal sources such as friends, family and peers, etc. Along with
this, commercial sources are also applied such as radio, TV, newspapers, etc. to look for
relevant information (Shao, Taisch and Ortega-Mier, 2016). Evaluation of alternatives: After collection of information from different sources,
customers evaluates benefits and disadvantages from different alternatives (Asioli,
Aschemann-Witzel and Varela, 2017). As a result, it develops set of choice in Small
White Elephant regarding products attributes such as brand, store, etc. that suit to
customer needs, taste and preferences. Selection and trial: After considering choice of customer towards products and services,
it can be stated that different products in small quantities such as 1 cup, 1 glass, etc.
Opinion develop an attitude towards the products in Small White Elephant. Purchase decision: When customers of Small White Elephant believes that purchase any
product and service, to make actual purchase. This includes making product choice,
select brand, dealer and decide amount and time of purchase (So, Achar and
Maheswaran, 2015).
 Post purchase dissonance/behaviour: Person also seeks to reassurance after making
purchase. Therefore, it is generally includes three outcomes such as actual performance is
equal to expected performance, actual performance is less than expected performance and
actual performance is more than expected performance (McCabe, Li and Chen, 2016).
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Models of consumer decision-making
Consumer decision-making is a process through which customer select appropriate
product from several alternatives. It consists following models that can be successfully applied in
Small White Elephant. They are as follows: Economic view or model: This model assumes that consumer is rational person and takes
different decisions in Small White Elephant. They compare different products with
evaluating advantages and disadvantages. As a result, purchase decision made on the
basis of information that collected in business. However, in this model unrealistic things
includes that are limited by skills, existing values, etc. (Consumer decision making -
Process, Models, Levels, Decision Rules, 2018). Passive view or model: This model assume that consumers to take decisions as per
promotional efforts towards marketers and respond directly to sales. Advertisement
appeals in Small White Elephant so that people evaluate products that depends on
promotion and positioning in the market. On the other hand, this model also unrealistic as
consumer is capable to collect information with product alternatives to make purchase
(Karimi, Papamichail and Holland, 2015).
 Cognitive view or model: This model is the best among four because it states that
customers make decisions on the basis of their interest and understanding. Hence, as per
rational needs or promotional efforts of marketers, shortcut decisions rules develop
successfully with instant purchase (Karimi, Papamichail and Holland, 2015).
Mapping out the decision-making process for particular product
In order to mapping out decision-making process for coffee product, it can be stated that
Empathy Maps shows interaction of stimuli, characteristics of consumers, process of decision
and their responses. In order to establish common ground among several team members, it is
essential to understand and priorities user needs (Frederiks, Stenner and Hobman, 2015). It can
be successfully determined in following consideration:
Says
 Customer expecting something different in coffee product.
 One glass with 1/2 litter of coffee cup is the best size. Customers says quality products with using quality material in it.
Thinks
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 Customers thinks that maintain quality and standard is hard.
 Maintain quality can be take more time which create issue in the business. Implementing attractive presentation is mission in Small White Elephant.
Feels
 Customers are more exited to see attractive packaging style of the company.
 Customers feels more trust with maintaining quality of products and services. Anxious is also high which impact positive on the business.
Does
 Check the websites.
 Customers do small kinds of decisions.
 They compare products with other organisation
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Illustration 1: Empathy map

Importance of mapping a path to purchase and understand consumer decision-making
In order to consider mapping a path to purchase and understand consumer decision-
making in Small White Elephant, following are certain importance considered in it: Quicker sales cycles: With the help of mapping of customer decision-making, sales cycle
can be successfully improved. Therefore, it ensures seamless experience across different
channels in Small White Elephant. Towards coffee of the organisation, customers getting
right information at right time so that it helps to make decisions on time (Asioli,
Aschemann-Witzel and Varela, 2017). Unified customer data and continued engagement: In many businesses, unified
customer data ascertained with continue engagement. Therefore, it leads with
inconsistency where data management is concerned. In Small White Elephant, it is
essential to collect customer information to take informed judgements to build holistic
view towards customer interaction (Frederiks, Stenner and Hobman, 2015).
 Increase ROI through better targetting: In order to ascertained desired results at
workplace of Small White Elephant, it can be stated that customer journey map assists to
increase better understanding in customer context. Hence, channel is also based on real
and quality data to target and refined people to increase interaction and deliver
personalised messaging (Kumar and Dash, 2016).
Levels of consumer decision-making
Consumer decision-making defined in following manner: Extensive problem solving: Consumers are highly involved in products of Small White
Elephant, to critically evaluate products on the basis of established criteria to fulfil their
needs and requirements. Limited problem solving: Consumers are also focused on conduct general research
towards product that helps to satisfy basic product criteria from selected group of brand
in Small White Elephant.
 Routine response behaviour: In this level, consumers has low involvement in products
and select any of them to fulfil basic needs in the business.
Factors that influence decision-making
In consumer decision-making, there are several factors influence that are considered
under here:
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 Past experience: Past experience is one of the important consideration which create
impact on future decision-making. In this regard, it can be stated that past decisions
influence each person to ascertained desired results. It is the significant to extent future
decisions that are made on past experience (Hofacker, Malthouse and Sultan, 2016). Cognitive biases: Cognitive biases are thinking pattern that based on observation and
generalisation that lead to errors, inaccurate judgements and faulty logic. It includes
certain elements that are limited to belief bias, over dependence, etc. that based on prior
knowledge in decision-making.
 Individual differences: Furthermore, individual difference also influence decision-
making of customer. Research indicates that age, socio economic status, other abilities
influence decision-making (Kumar and Dash, 2016). In respect to age, there is evidence
to support appropriate decision in Small White Elephant.
Concluding statement
From the above analysis, it can be stated that consumer behaviour consider important role
in business to assess desired level of results. In this consideration, consumer decision-making
process summarised which assists to understand problem of consumer at workplace.
Furthermore, it includes level of consumer decision-making which can be taken in systematic
manner at workplace (Shao, Taisch and Ortega-Mier, 2016). At last, factors determines that
influence to support appropriate decision at workplace.
SUBMISSION 2
LO 2 and LO 3
Introduction to report
Decision-making is related with several functions of a manager that assists to deal with
desired level of objectives. It is very important to accomplish organisational goals in particular
time and budget (Ashman, Solomon and Wolny, 2015). In order to gain organisational success, it
can be stated that in Small White Elephant B2B and B2C decision-making processes
successfully established that influence to business in wider consideration. Furthermore, it also
includes certain factors that influence decision-making process of the organisation. Moreover, it
considered influence of different factors on consumer behaviour.
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Compare and contrast key differences between B2C and B2B decision-making processes
Comparison and contrasting between B2B and B2C
Basis B2B B2C
Comparison
Meaning In respect to consider decision-making
process in B2B, it can be stated that
Small White Elephant determines their
work with selling of goods and
services between two business
enterprise.
As compare to this, in this aspect
decision-making process
determined to sell goods and
services to customers directly
(Plassmann, Venkatraman and
Yoon, 2015).
Customer Company is customer in B2B aspect. However, end user are customers
in this aspect.
Focus on Maintain relationships Selling products directly to
customers.
Contrasting
Message In B2B, decision-making process
successfully develop to consider
marketing of products and services.
As contrasting, marketing
successfully develop to deal with
end users customers (Hofacker,
Malthouse and Sultan, 2016).
Know about
customers
In this context, Small White Elephant
need to know their customer
requirements and segment in
meaningful consideration (Asioli,
Aschemann-Witzel and Varela, 2017).
On the other hand, market
segment considered to target
meaningful audience groups with
informational and promotional
message.
Nurture brand With this regard, the chosen business
need to nurture their brand
successfully.
In this aspect, Small White
Elephant need to nurture their
brand with desired products and
services.
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How market research differ between B2B and B2C
In following aspects, market research different between B2B and B2C:
B2B B2C
In this consideration, marketers market to
particular person as business decision maker
and influencer (Basri, Ahmad and Ismail,
2016).
In B2C, marketers market person as
consumers.
Purchase decision in B2B is very complex. However, purchase decision in this aspect is
less complex.
How personality, self and motivation and customer perception influence on decision-making
process
In decision-making process, different elements consist impact in following manner: Personality: Personality highly influence to decision-making process of the organisation.
In this regard, own value of person, desire and lifestyle is different from other person.
Right alternative has been chosen which radically affect to the company (Shao, Taisch
and Ortega-Mier, 2016). Act of decision-making in Small White Elephant can be defined
as choosing alternative option which implies process in multiple ways. Self and motivation: Self and motivation is learning process which concerned with
activation of learning behaviour. It is proposed towards decision-making that offer how
learning behaviour become activated. Aim of this aspect is to describe and analysis
common aspects in all methods (Plassmann, Venkatraman and Yoon, 2015). As a result,
it can be stated that motivation is the term that used to describe active and direct
behaviour with contribution of different people. Set alternatives resultant accomplishment
of goals and objectives with summation of approach.
 Customer perception: Perception is the process which organise by an individual and
interpret sensory impression to provide proper meaning in the business environment.
There are several factors influence perception in order to make decisions and target to
particular situation (So, Achar and Maheswaran, 2015). Hence, in Small White Elephant
it influences decision-making to take appropriate decisions.
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Behavioural and cognitive approaches to consumer learning
In the study of learning, it can be stated that there are two major perspective that assists to
explain components of learning. These two aspects are behavioural and cognitive. Behavioural
approach view learning as a behaviour and behaviour is observable that can be successfully
measured. In consumer learning towards cognitive approach explain acquisition of knowledge
and processing of information. Behavioural theory encourage with great deal and stimulus
response (Biswas and Roy, 2015). As a result, it sees that learning as an experience in term of
reinforcement. In Small White Elephant, behavioural theory ascertained with observable
behaviour which include several elements such as emotions and moods that is subjective to give
credence in psychology.
On the other hand, cognitive approach to consumer learning refers as mental activity
which include focus on understanding of information and concepts. When awareness is
successfully develops, logical connection helps to understand which increases desired level of
results (Asioli, Aschemann-Witzel and Varela, 2017). Thought processes also studied with new
concept so that perception of learning stimulus.
How culture and other relevant factors impact on consumer behaviour
Cultural and other relevant factors are some strongest which influence buyer behaviour of
Small White Elephant. It consists set of basic values, perception, wants, etc. that ascertained with
learned behaviour that are important for social institutions. It comprises set of values and
ideologies in particular community and group of individual (McCabe, Li and Chen, 2016). This
is because, in simpler term values of an individual relatively impact on conditioned to stay with
desired level of outcomes. Cultural factors are also consisted significant impact on buying
decisions which helps to set habits, beliefs and principles that develop family status and
background.
Along with this, there are several other elements create impact on consumer behaviour in
term of religion, status, gender, etc. In this regard, Christianity, Hindu, Muslim, etc. are religion
that create impact on consumer behaviour. For instance, Indian widows are expected to wear
whites (Kumar and Dash, 2016). This is because, when these types of women are wearing bright
colours treated with suspicion.
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How organisations use an understanding of buyer behaviour to influence decision-making
process within B2C and B2B context
In Small White Elephant, the company is dealing with consumer and business to purchase
products and services in two different context. In order to operate successfully in the market, the
chosen business need to understand differences between consumer and business buying
processes (Hofacker, Malthouse and Sultan, 2016). It includes, following elements that shows
understanding of buyer behaviour that influence decision-making process of B2B and B2C: Planning: In order to considered planning, it can be stated that most of the purchase
made in advance for B2C (Ashman, Solomon and Wolny, 2015). Consumer decision-
making successfully development to accommodate both business and consumer purchase.
For B2B, businesses plan of Small White Elephant successfully develop to allow
purchase that offers impulse option to consumers. Decision-making: In many cases, consumer-decision maker is the person that ultimately
buy products. In this consideration, for B2C plan successfully develop to offer different
consideration (Zhang and Benyoucef, 2016). However, in B2B business purchasing
process starts to implement successful idea which goes to formal approval process.
 Support: Many businesses requires support contract when purchasing certain types of
items in the business for consumers (Fang, Wen and Prybutok, 2016). In this regard, B2B
support undertaking with effective advertisement.
Use of digital audience research development to understand and influence consumer behaviour
In order to accomplish desired results, it can be stated that with the help of digital
audience research development organisation successfully develop media that assists to conduct
appropriate research regarding listening and gained importance as well. With respect to conduct
digital audience research development, functions successfully develop with good practice
(Karimi, Papamichail and Holland, 2015). As a result, exploring potential target groups
monitoring project that positively influence consumer behaviour in Small White Elephant.
Concluding statement
From the present analysis, it can be stated that consumer behaviour consist important role
in the business. With this regard, comparison and contrasting between B2B and B2C has been
ascertained that assists to focus on effective results. Furthermore, it summarised about influence
of different elements on decision-making process of the organisation such as personality, self
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motivation, etc. (Frederiks, Stenner and Hobman, 2015). Moreover, it considered culture that
impact on positive effectiveness at workplace of Small White Elephant.
CONCLUSION
From the above report, it can be concluded that consumer behaviour is important
consideration that assists to develop creative work performances at workplace. In this regard, it
includes different models of consumer-decision making that influence positively in Small White
Elephant. Furthermore, it summarised about factors that influence decision-making process in
systematic manner. Moreover, buyer behaviour also ascertained that create impact on decision-
making process. In addition to this, it considered influence of culture and other relevant factors
that ascertained to assess impact on consumer behaviour. At last, digital audience research
development to understand that influence consumer decision-making process.
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Online
Consumer decision making - Process, Models, Levels, Decision Rules. 2018. [Online] Available
through: <https://bbamantra.com/consumer-decision-making-process-models/>.
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