Consumer Behaviour and Insight

This report discusses the stages of consumer journey, influences of decision-making process in B2B and B2C, difference in market research between B2B and B2C, and how marketers can influence the different stages of decision-making process of B2B and B2C. It includes rational decision-making model, heuristics, elements of marketing mix, electronic retailing, and factors affecting decision-making process. The report also highlights the importance of decision-making process for marketers and how they can influence the different stages of decision-making process.

Consumer Behaviour and
Insight

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Explaining and Analysing Stages of Consumer Journey.............................................................3
Influences Of Decision-making Process in the Context of B2B and B2C..................................5
Difference in Market Research between B2B and B2C..............................................................8
Evaluating how the marketers can influence the different stages of decision-making process of
B2b and B2C................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Consumer behaviour is the study of consumers who are individuals, in group or
organization and all their behavioural activities related with purchase, use and disposal of
products and services. It consists of attitude, emotions and preferences that affect their buying
behaviour. Through this study marketers can identify likes and dislikes of potential market and
determine arising demand. They can also determine manufacturing policies, pricing policies,
decision regarding distribution channels and sales promotions, new technological products and
many more.
In the following report, the consumer journey would be analysed, influenced to consumer
decision-making process would be identified and evaluation of marketing mix influence would
be discussed in the context of restaurant Core by Clare Smyth.
MAIN BODY
Explaining and Analysing Stages of Consumer Journey
The consumer goes through various steps before making a buying decisions. To
understand various steps, rational decision-making model would be discussed below:
Consumer decision-making process supported by rational decision-making model :
 Need Recognition: The first step to the decision-making process is to identify the
problem or need. Consumers identify what they need to fill their identified problem. For a
restaurant the consumer might have need or desire to eat.
 Search for Information: According to rational decision-making model the consumers
determine what is relevant to fill their need, they include values, interests and preferences
of the decision maker, or stakeholder into the process (Houdek, and et.al., 2018). The
consumers will set criteria according to where their preference is to eat that will give
them best value. After that, they will search for the available information about the goods
or service they want. For example, potential customer has shown the desire to eat, they
will then search for information about the places they could eat, like restaurants, cafes
etc. and they will list the potential options they have in the market that best fits their
criteria and needs. They will decide the possible alternatives on the basis of availability
of alternate restaurants, fine-dines or cafes.

 Evaluation of Alternatives: After listing all the possible options in the market they
evaluate each alternative. As rational decision-making suggests, they will evaluate the
alternatives and will check if those fit their set criteria, and select some final options.
 Purchase Decision: Lastly, after carefully evaluating each alternative they have to
choose for the best fitting option (Garção, 2020). In the last stage they will decide if they
want to take the option of Core by Clare Smyth.
 Post-Purchase Evaluation: After opting for the product or service, they will evaluate
how was their experience with it. At this point consumer loyalty will also be ensured, and
they might leave feedback on different sites on internet (Hernandez-Ortega, 2019).
Pros of Rational Decision-making Model:
The rational decision-making model works on the basis of scientifically obtained data. It
allows reduction in the chances of errors, guesswork, subjectivity, assumptions and causes of
poor judgements and allows informed decision-making. It includes discipline, logic and
consistency.
Cons of Rational Decision-making Model:
Illustration 1:
Consumer Decision-Making Process
(Source: The Consumer Decision-Making Process,
2021)

The major con of this methodology is that the process requires data that are time-
consuming to collect, which makes it unsuitable for quick decision-making. This model can be
used effectively only for long term policy decisions rather than short term.
Importance of Decision-making Process for Marketers:
 Consumer Profiling: Through mapping out the consumer decision-making process they
could gather the information about consumer behaviour and set strategies accordingly.
 Higher Sales: By studying the market they will be able to offer services that will be
giving competitive advantage and increasing sales.
 Customer Loyalty: If the decision-making process of both consumer and company
aligns, the organization will be able to give the best customer experience which will also
ensure customer loyalty.
Influences Of Decision-making Process in the Context of B2B and B2C
Different factors that influences decision-making stages of consumers in B2C:
 Heuristics: Humans use efficient mental process to help than solve problems and learn
concepts with a shortcut. This is inherited from the evolution and employs practical
method which do not guarantee to be optimal, ration or perfect, but efficient in reaching
short-tern and immediate goals. This factor attribute substitution, simpler related
questions are substituted in the place of more difficult and complex questions. People
often use it to reduce effort that is required to make any choices or decisions and also
increases the pace which often are correct (Jain, 2019). Although this factor might not
work in the context of business to business as both organization will be using their
strategies and planning process to make a decision and do not simply rely on mental
shortcuts.
 Elements of Marketing Mix: Marketing mix is used by organizations to make
promotional strategies. They influence and generate the demand of products or services
in the market and influence the consumers to opt for their offered services which can
make their decision-making process rather direct then going through every stage.
 Electronic Retailing: E-tailing is the sales of goods or service on the internet (Popovic,
and et.al, 2019). As the digitalization has grown, it has become easier to purchase goods,
get all the alternative information and reviews which can further influence better

purchasing for consumers. They are opting for this alternative to make buying decisions
and has left traditional ways. Even in B2B they have opted for this alternative, yet they
can not rely on this way only and in person purchasing remains more effective as they
could have in-person conversations and deals.
It is important for marketers to have knowledge about various factors that influence
consumer's decision-making, as it could affect their sales and customer experience. By knowing
about all the factors they could ensure the quality and price of product and service which could
enhance customer experience and satisfaction.
Different factors that influences decision-making stages of B2B:
To understand various factors that influences the business to business purchasing
decision-making process, the various stages of the process has to be discussed first. The
decision-making process in business to business is quite similar to the consumers', although this
process is more thoughtful and strategical than the B2C. B2B buying decision-making process
mainly includes three stages; Awareness, Discovery and Validation, which then categorized
into these stages:
 Need Recognition: Similar to B2C, the first stage of business to business decision-
making is to recognize the need. The company first recognize if there is a need of certain
product or service that is not availed in the organization itself. This stage drives further
stages in the process.
 Defining Characteristics and Quantity and Development of Specification: After
recognition of need, the people in the firm are brought together to make the buying
decision. They sit together and strategies what they really need and how much they need
it. They decide parameters to characterized and quantified those products or services and
from where it should be bought.
 Search for Qualification of Suppliers: At this point, the company seeks out the
information about product or service they need and the vendor who can supply it them.
They look for every available alternative vendors, through different means, such as,
online platforms, trade shows, trade magazines and many other mediums. And with the
set parameters they evaluate they best fitting vendor to carry out further stages.
 Proposal: The company send the request for proposal (RFP), to each qualified and
shortlisted vendors, which invites them to supply those goods or services (Hosseini, and

Smadi, 2021). The RFP outlines all the terms of the product or service like, quality,
financing, prices, delivery and after sales service, the terms of whether it could be
customized or can be returned, product's disposal and many other important information
regarding the deal.
 Evaluation of Proposal: The members of the team then decide and evaluate if the
proposal is accurate and best fitting to their need of product or service and could be sent
to the vendor.
 Order Routine Selection: At this stage vendor has already agreed to the proposal and
actual order is put together. The order agreed upon includes the price quantity and time of
delivery and any other terms that comes under negotiation.
 Performance Evaluation: Similar to how consumers go through evaluation ad feedback
period post-purchase, the business also evaluate the purchased goods or services'
performance.
These stages are influenced by many factors in the environment which includes their
political and legal factors. Any changes in laws or government policies can influence the
decision made by company, they would need to change their policies and activities accordingly.
They are also affected by change in technological or social trends as it can influence their needs
of products or services (Bratianu, and et.al., 2020). Main factors that influence decision-making
in B2B are discussed below:
 Heuristics: In B2B rational information is given to people emotionally in order to retain
that information. Unlike from B2C, business to business does not generate mental
availability and find short cuts but the emotions are used to retain and give out rational
information which can affect their decision-making.
 Elements of Marketing Mix: Marketing mix are divided into four Ps, product, price,
place and promotions which help a business to draw out strategies. In B2B, the product or
service provided by the businesses are thoughtfully decided not solely relying on profit
making but more on maintaining business relationship.
 Electronic Retailing: Through e-tailing businesses can buy and sell product to each
other too, it is not limited to consumers only. Yet the traditional way is preferred by most
businesses. The decision-making is affected by the choice of electronic retailing as it
could affect the decisions related to price, place and vendors.

Difference in Market Research between B2B and B2C
Market research is a process of studying and gathering information about viability of new
product or service directly from consumers. In both B2B and B2C their main goal is to increase
demand of product or service they provide to their customers. They use market research in order
to understand the industry and its current condition better and make suitable strategies for it. But
the market of both approaches are different in many terms, hence the market research method
used by them are also different.
In business to consumer approach of business, the market research method used by them
are qualitative study of customers needs. The market of B2C are larger than the B2B hence they
need tools that can cover that sample of market (Waldman, 2019). Another method they use is
online survey to verify their hypothesis and analyse the legal aspects or even all the environment
through SWOT and PESTLE analysis tools. Business to consumer includes, restaurants like,
Core by Clare Smyth and retail stores, etc.
Business to business approach of an organization has smaller client base than the B2C,
and offers their product or services to other firms. Through market research they identify their
customers and get clear understanding of what they want in the offered commodity or service. In
B2B settings the method they use for market research are, competition analysis, qualitative
interviews of experts and the customers of competitor company. Lastly B2B also uses SWOT
and PESTLE analysis to understand factors affecting the business activities.
Factors Impact
Political Political stability and government policies ensure fluctuation in
company policy.
Economical This ensures the price, inflation and consumer expenditure
power.
Social Social trends and culture draws the demand.
Technological Technological advancement and changes impacts advancement
in product or service.
Legal Laws and Legislation regulates the policies of firms.

Factors Impact
Environment Environmental degradation impacts company's working.
Sustainable growth ensures retention.
Evaluating how the marketers can influence the different stages of decision-making process of
B2b and B2C
 Need recognition: The marketer must identify the problems and need related to their
business and with their customers. As in B2B customers makes the bigger investments
when it comes to their choice of purchasing (Liu and et.al., 2018). The organization can
provide their customers by giving them discounts on the festive seasons in order to
increase the profitability. As in B2C it will business will identify the problem by taking
feedbacks from the guests. For example, in the organization the manager of the company
can take review of the food from the customers.
 Search for information: The marketer must have the search criteria in order to make the
business profitable. In B2B it takes the long time in order to take the decision as compare
to the B2C. Business to business are product driven and the business to consumer are
relationship driven so the market has to take decision according to this. For example, The
organization must search by focusing from the customer point of view in order to have
good profitability.
 Generate Alternatives: The marketer will generate the different alternatives from the
point of view of business to business and business to consumer. As both have different
alternatives in order to satisfy their needs and wants (Wright and et.al., 2019). As in B2B
the marketer looks for the products and best return on the investment. But in B2c the
customers looks for the quality and the benefits of the product. For example, if the
organization must generate the different alternatives for their customers as customers are
more focused on the quality of services provided to them by the restaurants.
 Evaluate Alternatives: The alternatives identified by the marketer must be properly
evaluated. As in B2B they want the detailed content of every alternative in order to do the
investment in the company. This makes them to have the good decision-making and
make their organization more profitable. On the other hand the marketer must also focus
on the B2C marketing and by evaluating they came to know about the new alternatives

available in the market for their customers. As customers always want something new as
they have their chosen the organization to visit. For example, the marketer must evaluate
the alternatives by dividing the alternatives of B2B and B2C which makes them to have
proper flow of the work.
 Select The Best Alternative: In this last decision-making process, the marketer select
the best options for their customers in the market. In the B2B the market size is small so
the marketer must take and select the alternatives according to them (Willis, 2018). In
B2C the marketers will select the alternatives by focusing on the needs and wants of the
customers. As the customers are the main source of the organization, so they must fulfil
the needs and provide them the quality of services. For example, the marketers of the
organization has the best and quality of products and services for their customers which
attract them to visit their restaurants.
CONCLUSION
In conclusion of this report, from the context of Core by Clare Smyth stages of consumer
journey was discussed with Rational decision-making model which suggested six steps consumer
goes through before making any purchase decision in B2C product or service industry.
Identification of factors that influences stages of consumer decision-making and the comparison
and contrasts between B2B and B2C was also done, the three factors affecting both were,
heuristics, elements of marketing mix and electronic retailing. Both B2B and B2C has their
differences and similarities in their stages, such as, both starts with need recognition and ends
with feedback but the business to business decision-making process is more rigid than the
consumers. The difference in market research for both was also analysed. Lastly, evaluation of
influence of marketing mix elements on decision-making process was done.

REFERENCES
Books and Journals
Bratianu, C., and et.al., 2020. Untangling knowledge fields and knowledge dynamics within the
decision-making process. Management Decision.
Garção, A. C. M., 2020. The effect of accountability type on the consumer decision-making
process (Doctoral dissertation).
Hernandez-Ortega, B., 2019. Not so positive, please! Effects of online consumer reviews on
evaluations during the decision-making process. Internet Research.
Hosseini, S. A. and Smadi, O., 2021. How prediction accuracy can affect the decision-making
process in pavement management system. Infrastructures. 6(2). p.28.
Houdek, P., and et.al., 2018. Consumer decision making in the information age. Society. 55(5).
pp.422-429.
Jain, M., 2019. A study on consumer behavior-decision making under high and low involvement
situations. IJRAR-International Journal of Research and Analytical Reviews. 6(1).
Liu, Y. and et.al., 2018. Strategic management of product and brand extensions: Extending
corporate brands in B2B vs. B2C markets. Industrial Marketing Management. 71.
pp.147-159.
Popovic, G., and et.al, 2019. A multiple-criteria decision-making model for the selection of a
hotel location. Land use policy. 84. pp.49-58.
Waldman, A. E., 2019. Power, process, and automated decision-making. Fordham L. Rev. 88.
p.613.
Willis, P., 2018. B2B Versus B2C Communication. The International Encyclopedia of Strategic
Communication. pp.1-10.
Wright, L. T. and et.al., 2019. Adoption of Big Data technology for innovation in B2B
marketing. Journal of Business-to-Business Marketing. 26(3-4). pp.281-293.
Online
The Consumer Decision-Making Process. 2021. [Online]. Available Through:
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making-process/>