Consumer Behaviour and Insight

This document provides an overview of consumer behaviour and the stages of the decision-making process. It explains the significance of mapping the path towards purchase and understanding consumer decision making for marketers. It also compares and contrasts the key differences in the decision-making process in the context of B2C and B2B, providing specific examples. Additionally, it evaluates different approaches to market research and methods used for understanding the decision-making process in both B2C and B2B contexts.

Consumer Behaviour
and Insight

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain and analyse the stages of the consumer decision making journey for a given
product/service.......................................................................................................................3
P2 Explain the significance in relevance to marketers to map the path towards purchase and
understand the consumers decision making...........................................................................5
TASK 2............................................................................................................................................7
P3 Compare and contrast the key differences of the decision-making process in the context of
B2C and B2B, providing specific examples...........................................................................7
P4 Evaluate the different approaches to market research and methods of research used for
understanding the decision-making process in both B2C and B2B contexts.........................9
P5 Evaluate how marketers can influence the different stages of the decision making process
..............................................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
The term consumer behaviour refers to the study how an individual, a group or an organisation
related to select, purchase and use products and services for satisfying their needs and wants. In
simple words it is a view point of end customers towards decision-making related to the purchase
of a particular product or service. It also includes an inquiry about the emotions, attitude and
preference of a customer that have an impact on buying behaviour of a customer (Szmigin and
Piacentini, 2018). This investigation is done on the basis of some personal traits like, lifestyle of
a person, income, brand loyalty, demographic factors, reference given by family members or
friends and other related factors. It is difficult to evaluate buying behaviour of consumer as every
individual have different preferences. It is a most important aspect that a marketer needs to
understand for developing a marketing strategy for the organisation. Also, marketers can assess
the liking and disliking of a customer and formulate marketing tools based of the findings made.
It helps in gaining knowledge about what can compel a customer to buy the products or services
offered by the company. This report is based on Amazon, it is a multi-national technological
organisation founded by Jeff Bezos in the year 1994. It has its headquarters in Seattle,
Washington and is engaged in providing an online market place to the customers to make
purchases.
TASK 1
P1 Explain and analyse the stages of the consumer decision making journey for a given
product/service.
Consumer decision making process is an action plan that makes the consumer in
identifying their need, gathering knowledge about the various available alternatives, evaluating
available choices, selecting the best option, making purchase and assessing the purchase made. It
is a complex process that begins with identification of problem and ends at rating the post
purchases made. A decision made by customer depends on variety of factors like environmental,
economic, psychological, social, cultural and other similar elements. Every individual has
different needs and wants that are satisfied in different manner (Park and Lee, 2017). The model
of consumer buying behaviour is a procedure that helps a marketer to identify and track decision
making system of its prospective buyers. There are five stages involved in the decision-making
process of a consumer. They are listed below as:

Need Recognition (Awareness)- It is the basic and most important step of a buying
decision process, as in this stage the customer needs are identified and make them aware about
the products and services offered by an organisation that can satisfy their needs and wants. The
need of purchases arises from two major reasons i.e.
 Internal Stimuli- These needs arise out of the emotional needs that includes hunger, hurt,
appreciated, jealous, sick, etc.
 External Stimuli- It comprises of attractiveness of an advertisement, smell of any yummy
or tasty food, etc.
A need for a product is dependent on any of the above stated stimuli and drives the
customer to make purchases (Khare and Varshneya, 2017). Amazon identified the needs of the
customers and made them aware about the services and products offered by it resulting in
earning higher profits.
Search for Information (Research)- At this stage the customer tends to collect the
information about the available products that can satisfy his needs or wants. This information is
collected through various sources like recommendations from relatives, through internet or any
other way. In this step customer considers the risk associate to the brand and the value derived
from it. Amazon identified this need of its customers and provided information about its brand
with the help of its website, and other platforms. Also, it takes reviews from the customers,
collect the information and solves issues faced by its customers.
Evaluation of available Alternatives (Consideration)- After the research step a detailed
analysis of all the available option is done. In this stage the main focus of customer is to identify
that option which can satisfy his needs of want in the best possible manner. This evaluation is
majorly done on the factors like price of product or service, quality offered or any other factor
that is important for a customer. Amazon focuses on providing such solution s that proves to be
the best in satisfying problems of customers and offer something unique which makes it different
form the competitors and helps in taking a competitive advantage over others.
Making Purchase Decision (Conversion)- The next step after evaluation stage is
purchase decision making. At this stage customer finally decides for making purchases after
evaluating all the available options (Hempel and Hamm, 2016). A logical conclusion is made
that depends on either the influence of marketing campaigns done by an organisation or by an
emotional connection or personal experience or by combining both. This is the most overlooked

stage for the businesses like that of Amazon and requires building of some additional strategy
that force the customer for making purchases.
Post Purchase Evaluation (Re-Purchases)- This is the final step of the customer buying
decision process, and deals with the analysis of usefulness of a product or service purchased in
comparison with the amount paid of buying it. If product fulfils the expectation of customer, he
will act as a brand ambassador and will influence more potential buyers for making purchases of
the organisation’s product, resulting in increased customer base and higher returns. And vice
versa in case of a negative experience faced by a customer (Groß, 2016). Having regular buyers
is an essential component for an organisation for being successful. So, Amazon provides an
efficient after sales services to its customers and maximize their satisfaction level. It helps the
company in building a strong and loyal relationship with the prospective buyers.
P2 Explain the significance in relevance to marketers to map the path towards purchase and
understand the consumers decision making.
It is important for every organisation to monitor and value the journey of its customers. It
can be done with the help of mapping tools and techniques that assists a company in achieving
its goals and to gain competitive advantage over others. It also maximizes customer’s satisfaction
that derives high returns to the organisation and ensures making huge profits by increasing sales.
This can be done by understanding customer’s preferences, trends and those factors which
majorly influence the buying behaviour of customer. Thus, it is crucial for an organisation to
develop a map that provides directions for making an appropriate decision keeping in mind the
buying decision making process of a consumer. In the care of Amazon, it maps the tour of a
customer due to the following listed reasons below:
 Extensive Problem Solving- It is beneficial for the company when there is a launch of
new product or service in the market. In this situation customer takes more time in
decision making process as compared to the expectations.
 Limited Problem Solving- At this stage, customers are aware about the products and
services offered by company along with the available alternatives in market place. It is a
less time-consuming process as it totally depends on customer’s perception with respect
to a particular product or service (Islam, Rahman and Hollebeek, 2018).
 Routine Problem Solving- In such type of problem, customer have an experience about
the quality of product or service offered by an organisation. It consumes the least time a

customer is already aware about the quality of service or product provided by the
company.
 Quick Sales Cycle- It most important benefit of mapping customer’s journey is the
increased cycle of sales by evaluating its product and services with the use of variety of
channels. By mapping customer’s taste and preferences, the organisation is able to
engage its customers in the most efficient and effective manner, that results in boosting
sales of the company. In context of Amazon, it assists the company in assessing maps
that facilitates in operating sales cycle on a rapid basis also effectively.
 Unified Customer Data and Engagement- When an organisation use mapping tool, it is
able to collect information about the customer and the way to engage them with the
company. It gives an opportunity in development of an innovative service that ensures
customers communication and meeting their expectations in the most efficient manner
(Javornik, 2016). It facilitates in providing a comprehensive picture and develops an
engagement plan throughout various channels.
With the help of all the important factors driving decision making process of a customer’s
buying behaviour for purchase of goods and services, all these activities are required to be
followed.
TASK 2
P3 Compare and contrast the key differences of the decision-making process in the context of
B2C and B2B, providing specific examples
Business to consumer refers to process of selling respective goods and services of
workforce directly between business to ultimate consumers of the product. In this process
companies respective brands are been sold directly to the ultimate consumers of that respective
product or service, which helps the firm to eliminate cost of middle man (Swani and et. al., 2017)
. It helps a business firm to offer companies products or services at much lesser rates then other
companies not following B2C. It ensures better building up of long term brand image of
companies products with services and also helps in establishment of strong goodwill of the
workforce. This approach became very famous in 90's in retail online selling industries.

(Source: Most Common Difference between B2B and B2C Digital Marketing, 2019)
In respect to chosen firm i.e. Amazon, it is an American multinational company, which is
founded by Jeff Bezos and is headquartered in Washington US. The company focuses on AI,
digital streaming, e-commerce and cloud computing. It is top five online selling retail company
in US. The logo of Amazon suggest availability of all products including services from A to Z.
The B2B side of Amazon has a wide scope. All the strategies with plans and policies are been
shaped towards cost cutting for the firm, delivering best quality products to their valuable
customers at reasonable rates by eliminating middle man. On the other hand, Business to
business refers to the process of transfer of various products and services between various
business firms. It includes conduction of business activities between two companies without
involvement of individual ultimate customers(Teze and et. al., 2020). With relation to chosen
organisation, It provides a well established platform to respective sellers. It includes displaying
of products and services offered by respective seller around the nation on Amazon online site. It
helps respective seller to add special spices with providing quality services with their concerned
products and ultimately contributes towards boosting up of their sales activities.
The differences between decision making processes with context to B2B and B2Cl,
Amazon being both B2B and B2C online industry have to follow appropriate approaches
with respect to B2B and B2C. As there is huge difference in behaviours of them, it becomes
important for management of a business firm to take both process separately in order to achieve
Business to business VS Business to Consumers

respective goals and objectives of a business firm effectively avoiding any sort of wastage of raw
materials been used in transit.
Basis B2B B2C
Difference in buying process As it is a part of commercial
operations. Various decisions
related to decision making to
buy product or service, hence
respective sales activity will
take longer and rational
analysis with longer
consideration time and regular
assistance of seller. In this
both seller and buyer have to
maintain direct and close
relationships with each other.
In this decision making related
to buying of raw materials and
selling them to ultimate
consumers is a difficult task as
when compared to B2B. It
includes larger investments to
analyse demands of various
customers and regular
scanning up of market trends
for better company presence in
the marketplace.
Difference in Marketing
strategy
In this approach of buying and
selling products as well as
services commercially i.e.
business to business includes
less stress for marketing
department of the firm. With
context to chosen organisation,
the firm takes commission
from respective sellers for
displaying their products on
site.
It includes promotion of
respective products and
services of the business firm
with a motive to boost firm's
sales activities. The main
motto for marketing here is
providing information about
any new product or service
being launched in the market
or to boost up sales of existing
companies product.

P4 Evaluate the different approaches to market research and methods of research used for
understanding the decision-making process in both B2C and B2B contexts
(Source: How to do market research in 4 steps: a lean approach to marketing research,2019)
Various organisation uses several techniques to analyse it's business environment in order
avoid wastage of valuable resources of the given firm. It helps in better understanding of ongoing
marketing trends and consumer behaviours (Mingione and Leoni, 2020). In light to the fact that
every business conducts this research in order to use their resources effectively and establish
better building companies brand in minds of respective companies customers. The decision
making in a firm depends on information that has been extracted from conducting research of
business market.
Research methods used for B2C clients
Interviews: As in B2C model, the most important activity that has to be conducted by it's
management is to develop good interactions with companies customers. They conducts regular
research programs in order to analyse correct demand of their customers and to know about
current marketing trends (Bohanec and et. al., 2017). With context to Amazon, it higher
authorities conducts telephonic or in face to face interviews asking about quality of products with
services being delivered to companies customers.
Surveys: It is the another method used by various corporates firms for providing with
proper directions to production activities of the business firm and also helps in effective
utilisation of valuable business resources (Pandey and Mookerjee, 2018). With regards to
respective firm, it's management conducts various surveys asking about quality of product or
service being delivered to their customers and also seeks for any scope of improvement. It is
Market Research

very cost effective techniques in order to analyse marketing demand that helps company for
smooth running of their operational activities.
Research method used for B2B clients
Government authorities: In this research method, management of the business firm
establishes close relations with government bodies and keep regular check on their key policies
also sometimes forecast it. With regards to Amazon, it's management creates sound relations
with government bodies which also helps the company for maintaining better relations with their
corporate clients. It evaluates decision making process of the work structure and by analysing
good reputation of the respective companies in eyes of government bodies various clients are
been attracted towards the industry.
Libraries and publications: While taking consideration of B2B process that includes
dealing with business to business without interference of customers. Publications are great
source for collecting of data in corporate world. Investigators in B2B economy lays more
emphasis on reading articles in newspapers and books in order to get correct image of corporate
body.
P5 Evaluate how marketers can influence the different stages of the decision making process
The consumer decision making plays a vital role in proper functioning of a business firm.
It helps in development of positive relations between consumers and business. It develops better
understanding and enables firm to use proper resources avoiding wastage of valuable resources
of an organisation (Iglesias and et. al., 2020). Respective management of companies uses various
sales promotional and displays attractive advertisement of the companies product with a motive
to increase sales of current product or services delivered by the company or at time of
introduction of new company brand. For instance marketing departments of Amazon adopts
respective marketing techniques in order to promote their products and services with motive to
boost up companies sales.
With respect to B2B process of transaction of products and services marketers of the firm
have their greater importance in decision making of the firm. As in B2B, it includes transaction
of goods and services between business to business enterprise. In this there is a greater need for
building up of relations with respective clients of the business as any breach in relation between
them may lead to loss in demand of companies products. Marketers of business firm helps in

better analysation of marketing trends and customers demands and needs. They analysis current
marketing trends and use this important information for proper planning structure of workforce
avoiding any sort of wastage.
In context to B2C process, marketers of the firm have to promote companies products
and services keeping in mind delivering best quality of their products at reasonable rates. They
play an important role in deciding up of key plans and policies in decision making process of the
company (Pansari and Kumar, 2017). However in this there are no such direct dealing with client
i.e. customers of companies products, but marketers of firm established indirect relations with
their customers. They respond customers voice by replying to their feedbacks for the product or
service and respond to their respective desires about any changes or modification in any product
or service.
CONCLUSION
From the above report it can be concluded that, understanding the customer behaviour is
a vital part for being a successful organisation. There are many factors that influences the buying
behaviour of an individual, and the marketer is required to study all such factors and then frame
strategies in accordance with it to ensure maximum level of customer engagement and build a
strong and loyal relationship with the customers that helps it in making higher profits.

REFERENCES
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Iglesias and et. al., 2020. Corporate brand identity co-creation in business-to-business
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Mingione, M. and Leoni, L., 2020. Blurring B2C and B2B boundaries: corporate brand value co-
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Pandey, S. K. and Mookerjee, A., 2018. Assessing the role of emotions in B2B decision making:
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Park, S. and Lee, D., 2017. An empirical study on consumer online shopping channel choice
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Online
Most Common Difference between B2B and B2C Digital Marketing, 2019, [online], available
through<https://www.egnoto.com/blog/most-common-differences-between-b2b-and-
b2c-digital-marketing/>
How to do market research in 4 steps: a lean approach to marketing research,2019, [online],
available thorough<https://www.hotjar.com/blog/market-research/>