Consumer Behaviour and Insight

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