Understanding Consumer Behavior and Decision Making

The assignment involves analyzing a report on consumer behavior, which provides insights into the factors influencing consumers' decision-making processes. It suggests various techniques for marketers to develop an understanding of consumer decision-making procedures. The report also explores different strategies for responding to changes in factors that influence consumers' buying decisions. The assignment requires referencing books and journals related to consumer behavior and marketing.

Consumer Behaviour and
Insight

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analysing the stages of consumer decision making journey for products or services offered
by Porche.....................................................................................................................................1
P2 Importance of developing understanding about consumer Decision-making process by
marketers ....................................................................................................................................2
M1 Evaluating the way marketers are responding to the decision-making process, applying
relevant factors............................................................................................................................4
TASK 2............................................................................................................................................5
P4. Approaches To Market Research..........................................................................................6
M.2. Justifieed Evaluation of Different Factors Influemncing the Decision Making ................7
TASK 3 ...........................................................................................................................................7
P 5. Evaluating the way marketer can influence the different stages of decision making
procedure of B2B and B2C ........................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Consumer behaviour can be defined as a study which helps in developing the
understanding about the way individual customers, companies makes decisions related to buying
of products or services. It is very much crucial for business entities to gain knowledge about the
way decision is made by consumer related to buying of goods or services, as this tactic will assist
enterprise in making suitable marketing plans. Consumer or companies undergoes lengthy
procedure before making the decision related to purchase of goods or services.
The report have focus on analysing the procedure which consumer undergo before
making decision related to purchase of goods or services. It also has emphasizes on analysing the
way marketers are responding to decision making procedure in context of Porche. Business
entity produces cars for small segment of auto mobile buyers.
TASK 1
P1 Analysing the stages of consumer decision making journey for products or services offered by
Porche.
The manager in Porche organisation need to develop the understanding about the decision
making procedure of consumer, as this will assist them in making an appropriate plan. The five
stages which consumer goes through before making decision related to buying of specific
products or services includes:
Traditional model of decision making
Need or problem recognition : It is considered to be initial phase of decision making procedure,
where an individual recognise the need of specific product or services. The feeling of
requirement to purchase specific good or services can be triggered by external or internal stimuli.
Internal stimuli can be considered to be as an individual perception about product or services. It
can be highly influenced by various factors such as experience gained through use of specific
good (Parsons, Maclaran and Chatzidakis, 2017).
Pre purchase :
Information search : The next stage is information search. At this phase, the consumers search
for information about the companies as well as products. Information search helps consumers in
identifying the alternative options for fulfilling the needs. It is required by manager in Porche
organisation to address that lack of sufficient information about an organisation as well as
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product can have negative effect on consumer choice related to buying of specific product.
Porche organisation can develop its own website in order to provide customer an ease access to
information about goods or services. In addition to this, direct marketing strategy can be adopted
by Porche organisation, as this strategy will enable enterprise to communicate information
directly to consumers. It will also support business entity in influencing people to buy product or
services.
Evaluation of alternatives: At this stage, consumer evaluates all the alternatives products
available with same features. It is very much important for marketing manager in Porche
organisation to analyse the need as well as expectation of customers related to the products
offered by an organisation. Business entity should understand the benefits which consumers are
seeking. Marketing manager in Porche organisation should understand that at this stage, the
decision making procedure of consumer can be highly influenced by their attitude. At this phase,
comparison between the different brands as well as products are made by consumers (Szmigin,
and Piacentini,2018).
Purchase : This is the stage, when consumer actually purchases the goods or services offered by
company. At this phase, there are basically two factors which can influence the decision making
procedure by consumers these are change in situation as well as negative behaviour from others.
In addition to this, the buying decision of customer can also be effected by atmosphere in the
stores , shopping experience etc.
Post purchase behaviour : It is considered to be as a final stage of decision making procedure
by consumers. At this stage, consumer access that whether they are satisfied or disafied with
product.
Satisfaction gained by an individual have direct as well as significant influence on an
individual decision related to buying of specific products or services from the same organisation
in the future. Many companies such as Porche organisation prefer to engage their clients with
post-purchase communications in an effort to influence their feelings about their purchase and
future purchases (Solomon, White and Polegato, 2017.).
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P2 Importance of developing understanding about consumer Decision-making process by
marketers
Marketing manager in Porche organisation should develop the understanding about the
decision making procedure, as this will assist manager in addressing those factors which can
influence the consumer buying decisions. Developing understanding about consumer buying
behaviour will assist management in developing an effective marketing plan or strategies. It will
support business entity in determining the target customer group or market segment. Gaining
knowledge about the consumer decision making by marketer is important in order to bring
improvement in marketing strategies. It also has supported Porche organisation in achieving
success. Knowledge about the decision making by consumer will support marketer in
identifying the need of bringing improvement in existing goods or services. It also enables
business entity to deliver high level of satisfaction to customers and allow firm to deliver high
value proposition to customers (Díaz, Gómez and Molina, 2017). Developing understanding
about the decision making procedure by customers will assist an enterprise in gaining
competitive advantage and it also increases the value of an organisation. It also has supported
marketing manager in identifying the unique way of attracting customers.
Developing understanding about consumer Decision-making process by marketers have
great importance, as it supports management in addressing the new channel which can be utilised
for promoting goods or services. It also supports firm, in catering to the needs as well as help in
meeting the expectation of customers which is very much crucial for maintaining suitability as
well as leading position in the market. This strategy also aid management in identifying the
different factors influencing the decision of consumers at each and every phase. Manager after
addressing the various constituent effecting the decision making process can make plan to reduce
the impact of same. In context of Porche organisation, business entity need to concentrate on
improving its brand image and have focus on provide detailed information about the products, as
these two tactics will help business entity in influencing the decision making procedure of
consumers. In addition to this, an enterprise can provide after sales services, as this will help firm
in enhancing brand image. Market campaign can be organised for informing people about the
features of products (Nguyen, de Leeuw and Dullaert, 2018). Social media can be utilised by the
marketing manager in an enterprise for analysing the decision making procedure by consumers.
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By developing the understanding about the consumer behaviour marketer can easily
influence people to buy goods or services offered by company. It is very much crucial for
marketing manager in Porche organisation to understand the way consumers gather information
about different alternatives and use this information to select among competing brands. This
strategy will support management in making appropriate marketing decisions. It will also help
Porche organisation ion aligning their sales strategy with both marketing as well as business
objectives. Developing the understanding about consumer decision making procedure will
support business entity in developing strong relationship with client which is very much crucial
for growth of business. It will provide management an ease in determining the reason for the
purchase of specific product by an individual. Knowledge about the consumer behaviour also
supports marketer in determining the right mix of variables for their products and services which
is very much crucial in order to achieve desired marketing objectives.
M1 Evaluating the way marketers are responding to the decision-making process, applying
relevant factors
Utility theory of consumer decision making model, this hypothesis states that the decision
is made by people or shopper on the basis of expected results. It considers consumer as rational
actors who were able to estimate the probabilistic outcomes of uncertain decisions and select the
situation which maximized their well-being. Utility theory is also based on assumption that
consumers does not make rationale decision related to buying the products or services. It is very
much important for marketing manager in Porche organisation to develop the understanding
about customer expectation from company (Adnan, Nordin and Rahman, 2017). Business entity
need to concentrate on delivering high value proposition, as this strategy will assist enterprise in
retaining customers for long time.
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TASK 2
P3. Key Differences Of Decision - Making Process
Decision making help the managers and the top most leaders of the organisation to make
the right decision at the workplace keeping in mind the objectives of the organisation. In Porche,
the managers are taking very crucial decisions in respect of maintaing the brand position and for
launching of new products in the market (Bamossy and Solomon, 2016). Some of the key
deifferences in the decision making process are as follows:-
 Identify The Decision:- Here, the decision is required to be identified in respect of which
type of product the organisation is required to launche. Its very important that the correct
decision should be identified. Until and unless the correct descision will not be taken the
organisatin will not be able to take growth and set a benchmartk in the competitive
business world in respect of the new and updated products (Uddin and Khan, 2016).
 Gathering The Relevant Information:- After, identifying the decision which is required to
be taken by the management in respect of varried products and services offered by the
organisation only then, the information is gathered with the motive of taking the right
decision (Raj and Aithal, 2018). This part is completely differeent from the first step of
taking the decision by the score of, it focus on the srutinize the information, which is
gathered from various sources for taking the accurate decision. It is based obn the various
facts an data.
 Identify The Alternatives:- Here, in this case the alternatives are identified by the
managers of the top level management (Tse and et.al., 2016). After, identifying the type
of decision, and scrutinizing the information which is collected from the various sources.
The alternatives are identified, that shows the number of options that are available to the
managers. After having a crystal clear understanding of the issue that is arising because
of various reasons in the organisation. Its the time that the managers identifyb the
possible options/ outcomes thaty are available for that specific problem in the
organisation (Bamossy and Solomon, 2016).
 Choose from Among The Alternatives:- When the number of possible outcomes /options
are prsent in front of the management then, from the various options availble, the
managers should select the best possible option which is fit for the particular problem
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from each perspective. At time of choosing the desired outcome , management should
fous on the risk which s involved in choosing that particular option (Uddin and Khan,
2016).
 Take Action:- It refers to the taking of suitable action for the best possible outcome
which is selected by the managers. It is the last and final step which is involved in the
decision making process. It always comes in the last, when the managers are reqired to
take any suitable action in respect of the products of organisation (Raj and Aithal, 2018).
The research and development personnels of the PORSCHE, a multi national company in
the automobile segments are putting their efforts in the respect of business to business and
business to customer decision making process. The experts are optimizing their full potential
with the motive of analysing and knowing the mindset of the customers and other brands
available in the market (Tse and et.al., 2016).
P4. Approaches To Market Research
There are different approaches to market research namely:- Primary Research method;
Secobndary Research Methods. Primarty research method includes the following:-
 Surveys:- These are the most widely used and utilized method in respect of research. It
dosen't matter whether the research and development personnals are focusing on the
customers or on the needs of business with the motive of satisfying their needs.
PORSCHE is a multi national automobile company, that, manufactures cars by keeping
in mind the elite customers (Uddin and Khan, 2016). It cvomes in a wide variety of
shapes and sizes from the little feedback card known as the Questionnaire. It is used very
effectively with a motive of gaining satisfaction; measuring the attitude of customers and
doing research in respect of pricing.
 Focus Groups:- It involves getting a group of people together in a room. These people firt
atarget demographic that depwendsc upon the number of products or services in the
question asked from the customer or the business person that comes in the target group. It
is such a group, where thec participants are almost always comnpensated either in the
form of money or coupons or free products etc. that are offered by an organisation to
them. These type of groups are perfect in case of, exploratory qualitative research. These
types of tools prov eto be of a great use prior to the survey by the score of it will inform
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the questions of surveyv in more specific and targeted manner. It can also be beneficial
after a survey as a way to dive very deep into the topic that is being answered in the
survey (Tse and et.al., 2016). A follow up focus group with limited number of employees
allows the employer to undeerstand the issues that are arrising in a more better way.
 Interviews:- Just like the focus groups, the individual interviews are a type of qualitative
market research methods (Raj and Aithal, 2018). There are a wide formats of interview
present in the market and it all depends on the goal and objective of interview which is
being taken by the moderator. Like the focus group, these are also usefguil for the
purpose of exploratory research.
 Experiments And Field Trials:- It involves scientific testing, where specific variables and
scientific testing can be tested.
Porsche is such a organisation which is focusing on these methods and techniques of the
market research in Business to Business and in Busines to Consumer context. The organisation,
is practicing such methods in business to business sector by visiting the clients or the consumers
on a daily basis. Taking feedback from them in different ways and in case of Businesses by
visiting the potential business partners or organising meeting with them (Raj and Aithal, 2018).
M.2. Justifieed Evaluation of Different Factors Influemncing the Decision Making
The different factors that influence the decision making process and buying behaviour
can be evaluated in different ways. Each factor is having a different influence and having
different importance in the perspective of Porsche.
TASK 3
P 5. Evaluating the way marketer can influence the different stages of decision making
procedure of B2B and B2C
B2B and B2c are considered to be as two types of commercial transactions. Before
making plan to influencing the customers, it is very much important for marketing manager in
Porche to select the best marketing approach. B2b describes commerce transactions between
businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a
retailer. B2b stands for or business-to-business, is a process for selling products or services to
other businesses. It is a process of selling products or services directly to other businesses. For
instance, advertising agencies, web hosting and graphic design services, office furniture
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manufacturers and landlords who lease office and retail space. Business markets are also
recognised as organisational markets – buyers in this market include commercial enterprises,
non-profit making organisations, re-sellers and the government.
Companies make decision to buy specific products or services in order to gain
competitive advantage. In context of business, purchase of bulk material typically require input
from various functional units of an enterprise like finance, accounting, purchasing, information,
technical and senior management (Mugge,2018). It is very much important for marketing
manager in Porche organisation to identifying the role of initiators in decision making
procedure, as this will support them in identifying an appropriate strategy for influencing the
procedure. Initiators are those people who suggest companies to buy products, raw material or
services from other organisations. It is quite difficult for Porche or other organisations to
influence the decision making procedure of B2B consumers.
Stages involved in business buying decision involves :
Recognising the problem :This phase includes the identification of the problem and recognising
the need of buying new product or repairing existing one. In context of machine malfunction ,
many of business entities prefer to buy new good with advance features. Marketing manager in
Porche can influence other company decision of buying their goods by demonstrating the benefit
of their products.
Development of product specification :Buying center participants assess problem and then they
determine the alternative solution for solving the specific problem. It is very much important for
marketing manager in Porche to develop strong relationship with initiators, as this strategy will
assist them in influencing their buying decision.
Searching for products as well as evaluation of suppliers : At this stage, purchase manager in
enterprise contact suppliers for information, solicit proposals from vendors Manager in
organisation also search for information on websites, catalogues, and trade publications. It is
important for marketing manager in Porche to develop company websites and they need to
ensure that all the required information are provided on websites, this is considered to be as an
effective strategy for influencing business entities buying decision.
Selecting good as well as supplier : At this stage, it is important for marketing manager of
Porche to facilitate continuously communicated with the purchase department of an enterprise to
whom they want to sell the products or services.
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Evaluating the product : This is the last stage where company evaluate the product as well as
supplier performance. The satisfaction gained at this phase has direct influence in business entity
decision to buy the product or services from same supplier or not. It is required by marketing
manager in Porche to obtain feedback from B2b customer, as this strategy will assist an
enterprise in identifying the area of improvement (Ekström, Ottosson and Parment, 2017).
B2C it includes selling products or services to customers. It is very much easy to
influence the decision making procedure of consumers. There are various techniques such as
advertisement, direct sales, discounts can be offer to positively influencing people to buy
products or services offered by company. In context of Porsche, organisation, marketing
manager in an enterprise is required to identifying suitable channels for getting itself engaged
with wide number of customers. Examples of B2C are E bay and Amazon
The marketers can influence the decision making process of buyers in the following
way:-
 Reciprocity:- It refers to a situation, which is also known as social etiquette. It also
means, I owe you a favour. It is the situation in which, a favour from the side of marketer
is made to the potential buyer in respect of product or service.
 Scarcity:- It refers to the situation in which the marketer is unable to fulfil the needs of
the buyer. So, here a risk arises for the organisation regarding the shortage of the
products or the services in the market.
 Authority:- This term itself is having different meanings in itself. If the marketer or the
organisation is going good or has made a place in the heart of its' customers then, the
consumers give that organisation a title in respect of credibility through expertise and
trustworthiness.
 Consistency:- A type of situation, where, the company, trusts its people and its
consumers. Porsche is having a firm belief on its employees in respect of products that
they are making and also in respect of work that they are doing with the motive of
attaining the organisational goal at the best.
CONCLUSION
It has been concluded from the assignment that the consumer undergoes various phases
or stages before making the decision related to buying of specific goods or services. Study has
also concluded that there are various such as internals as well as external factors can influence
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buying choice of person. It has been concluded from the report that knowledge about consumer
behaviour can be helpful in bringing the improvement in marketing plan. Report has concluded
that company by developing an effective marketing strategy as well as by offering discounts can
easily influence the buying decision of consumers.
Different strategies have been suggested in the report which can be utilised by marketing
manager for responding to the changes in factors which influence decision making procedure of
consumers. There are various techniques have been recommended which can be utilised by
marketer in an organisation for developing understanding about consumer decision making
procedure.
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REFERENCES
Books and Journals
Solomon, M.R., White, K., Dahl, D.W., Zaichkowsky, J.L. and Polegato, R., 2017. Consumer
behavior: Buying, having, and being. Boston, MA, USA:: Pearson.
Parsons, E., Maclaran, P. and Chatzidakis, A., 2017. Contemporary issues in marketing and
consumer behaviour. Routledge.
Szmigin, I. and Piacentini, M., 2018. Consumer behaviour. Oxford University Press.
Díaz, A., Gómez, M. and Molina, A., 2017. A comparison of online and offline consumer
behaviour: An empirical study on a cinema shopping context. Journal of Retailing and
Consumer Services, 38, pp.44-50.
Nguyen, D.H., de Leeuw, S. and Dullaert, W.E., 2018. Consumer behaviour and order fulfilment
in online retailing: a systematic review. International Journal of Management Reviews,
20(2), pp.255-276.
Adnan, N., Nordin, S.M. and Rahman, I., 2017. Adoption of PHEV/EV in Malaysia: a critical
review on predicting consumer behaviour. Renewable and Sustainable Energy Reviews, 72,
pp.849-862.
Mugge, R., 2018. Product Design and Consumer Behaviour in a Circular Economy.
Ekström, K.M., Ottosson, M. and Parment, A., 2017. Consumer behaviour: Classical and
contemporary perspectives.
Bamossy, G. J. and Solomon, M. R., 2016. Consumer behaviour: A European perspective.
Pearson Education.
Uddin, S. F. and Khan, M. N., 2016. Exploring green purchasing behaviour of young urban
consumers: empirical evidences from India. South Asian Journal of Global Business
Research.5(1).pp.85-103.
Raj, K. and Aithal, P. S., 2018. Literature Review of Impact of Branding on Base of the Pyramid
Markets with Special Reference to India.
Tse, Y. K. and et.al., 2016. Insight from the horsemeat scandal: Exploring the consumers’
opinion of tweets toward Tesco. Industrial Management & Data
Systems. 116(6).pp.1178-1200.
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ONLINE
Shane.J, The Six Stages of the Consumer Buying Process and How to Market to Them.2014.
[Online]. Available through :<https://www.business2community.com/consumer-
marketing/six-stages-consumer-buying-process-market-0811565>.
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