Consumer Behaviour and Insight

This document discusses the concept of consumer decision making and behaviour in the context of purchasing goods and services. It explores different models of decision making, factors that influence decision making, and how marketers respond to the decision making process. The document also compares and contrasts the differences between B2B and B2C decision making procedures and discusses the market research differences between the two. Additionally, it examines how personality, consumer perception, and self-motivation influence decision making and discusses the cognitive and behavioral approaches to consumer learning. The document concludes by evaluating how companies utilize an understanding of consumer behavior to influence decision making in both B2C and B2B contexts.

Consumer Behaviour and
Insight
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Table of Contents
PROJECT 1......................................................................................................................................3
INTRODUCTION...........................................................................................................................3
Explanation of consumer decision making.............................................................................3
Models of consumer decision making....................................................................................3
Mapping out decision making process for a specific service or product...............................4
Importance of mapping a path to purchase and comprehend customer decision making......4
Level of customer’s decision making.....................................................................................5
Factors that influence decision making..................................................................................6
Evaluation of how marketers respond to decision making procedure....................................7
CONCLUSION................................................................................................................................7
PROJECT 2......................................................................................................................................7
INTRODUCTION...........................................................................................................................7
Compare and contrast key differences between B2B and B2C decision making procedures8
Market research differences between B2B and B2C..............................................................8
How personality, consumer’s perception and self and motivation influence decision making
procedure................................................................................................................................9
Cognitive and behavioural approaches to consumer learning................................................9
Culture and other factors impact on customer behaviour.....................................................10
Critically evaluate how companies utilize an comprehending of consumers behaviour to
influence decision making act within B2C and B2B............................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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PROJECT 1
INTRODUCTION
Customers are the main stakeholder for every business company around which every
ventures activities revolves. Therefore, recognising and understanding factors that influence
decision in context of purchasing an item or services. The current assignment will base on Booth,
which falls under smallest supermarket in United Kingdom. It will explain consumer decision
making concept, models of consumer judgement taking, and mapping of decision making act for
particular service or goods. Furthermore, this study will justify significance of mapping a path
for marketers to purchase and comprehend customer decision making. It will clarify stages of
consumer decision making and factors that influence it. At last this project will evaluate how
marketers respond to further procedure of people.
Explanation of consumer decision making
Customer decision making is a procedure through which buyers selects and chose the
best goods or services out of varied alternatives options for themselves as well as family
members. It consists of five different types of stages, which clearly describe overall process to
marketers, and then they can consider each step to retain people for longer period of time with
their company (Panwar and et.al., 2019). All steps can be a map or guide for them to
communicate and understand effectively with target market. It also includes customers to
determine their needs, collect information, examine alternatives and then make their purchasing
decision.
Models of consumer decision making
There are different types of consumer decision making models available in the world of
business and effectively and systematically define buying behaviour and decision making
procedure of clients in context of food products. Engel, Blackwell and Kollat (EBK) develop a
five phase model of customers buying decision procedure and that concept is very useful for
marketers of organization in recent time (Prakash and et.al., 2017). Along with this model,
economic view or model, passive, emotional and cognitive model are four different kinds of
concepts that efficiently define stages where people take decision regarding food products offer
by Booth supermarket in UK. Rational decision making model, bounded rationality decision
making, Vroom Yetton decision making and intuitive decision making model are also included
in list of consumer decision making models that plays vital role for marketers.
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Mapping out decision making process for a specific service or product
Consumers in recent time are like a fluid that can follow different phases to make a
buying decision and ventures must comprehend those critical paths taken by their clients.
Marketers create an effective map of decision making procedure which is quite beneficial and
important for them. It can be develop or map put by following 4 key stages. It includes problem
identification and alternative proposition enumeration, benefits and drawbacks analysis of each
recommended proposition, detailed argument, possible sub arguments extrapolated from every
proposition line, elimination of equal weight and decision finalization. This process is produced
and map out for particular food item offer by chosen company and that is bread. Mapping a
decision making process of consumers is one of the best techniques for laying down bare reality
pertaining to condition, along with advantages and disadvantages of taking alternative decision
which is driver towards issue resolution (Kumar and Dash, 2016).
Customers Decision making mapping is very helpful as it significantly enhancing
quantitative front on which appropriate judgment are made. It aid in achieving business aims and
objectives by refining thinking approach utilized in arriving at decisions.
Importance of mapping a path to purchase and comprehend customer decision making
Marketers are experienced who are accountable for developing an involvement and
relationship between consumers and services or products offered by organization. It can be said
that to retain consumers for long and gain attention of new ones, they have to map a path which
makes them able to purchase and understand decision making process of consumers (Berman,
2020). It allow them to optimize clients on boarding procedure and make able to comprehend
differences in customers personas as they move from prospect to conversion via buying funnel.
By mapping out decision making procedure for food products such as breads, marketer’s triggers
customers towards buying with help of awareness campaign. In addition to this, mapping can aid
to totally understand each phase of decision making of people, thereby making them able to
attract new buyers towards purchasing goods from Booth. It assists marketers in determination of
gap in business objectives and actual performance.
It creates a right framework for workers to work together in order to improves overall
performance of organization. Mapping path is good way which permits marketers to put more
focus on all phases. Quality of effective journey map is that it aid in identification of those touch
points that can guide in achieving buyers centric aims.
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Level of customer’s decision making
According to EBK model, consumer decision making journey has five different stages
that relate to food products offer by Booth as chosen organization.
Problem recognition-
The overall process of customer buying decision making begin with a need, a motive or
an issue within consumer’s mind. They recognize problems which need to be solved and need
which wants to be satisfied. For example, when people hear about some quality products offer by
well reputed company in affordable prices, they recognize its needs and at that movement
decision making journey is begin in his or her mind.
Figure 1Stages of Consumer Decision Making
(Source: Consumer Decision Making Process, 2018)
Information search-
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After hearing about offers and food products provided by Booth supermarket, buyers who
are interested within it start gathering information via using internet and communicate with other
how already take its benefits. In addition to this, customers start to give attention and more focus
to that product and consider its benefits, which is really very important for them to know.
Alternative evaluation-
After passing above two different stages of consumer’s decision making, it’s time to
switch to another one. Buyers at this phase starts to ask questions to seek some alternatives of
chosen item. It can be done by comparing prices of other goods and reading review and then
people finally chose specific product that suit them the most.
Purchase-
Clients make up her or his full and final decision regarding purchasing Break and other
food items from Booth supermarket that they are interested in. Last judgement is based on
assessment of experience, advertisement, emotions and marketing.
Post purchase-
Review phase is most important step of consumer decision making process as it can cater
data or info about satisfaction degree of buyers. Feedback both negative and positive is changes
and studied based on analysis are made.
Factors that influence decision making
There are varied types of factors available in market that influencing purchasing
behaviour and decision making process of consumers in regard to Break and other food item
provided by Booth. Social, psychological, personal preferences and new technologies such as
online purchasing are different external factors that effectively influence consumer decision
making. For example, social element comprises status, family and reference team. Decision of
buyers here is influenced highly by opinion of other and changing lifestyles (Babakayev and
et.al., 2018). People buy any product or service according to lifestyles and suggestions provided
by other. These elements reflect changing shape of current market. Booth management and its
workers are attempting to match up with developing and changing lifestyles of consumers and is
now providing items accordingly which is quite beneficial for them in term of gaining attention
of new buyers and increasing profitability rather than before. Apart from this, customers
perception, attitude, age etc. shape business image Booth has successfully and effectively match
their marketing tactic in accordant with afore mentioned components.
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Furthermore along with above factors, the pricing structure of products are also
considered as external factor that influence decision making at negatively when price of item is
high and quality is good, but when quality and price is affordable as compare to other goods it
impact on positive manner.
Evaluation of how marketers respond to decision making procedure
It can be said that marketers of Booth Company can respond to consumer decision
making process effectively in systematic manner. They can identify needs and preferences of
buyers and then make changes within existing services or products accordingly which is the best
respond towards overall process (Stankevich, 2017). Different concepts and models are being
utilized by marketers to evaluate, comprehend and analyse above procedure such as Simon
model, EBK, Mintzberg model, Nicosia and other. They consider each and every stage of this
process and determine gaps which marketers can fill to build strong connection between
management and target segment as well as new buyers. It analysed that marketers can use five
stages of consumer decision making which make them able to respond to each activity by
personally analysing it. They can do the best and suitable to respond to above act which allow
them to retain potential consumers for long and gain attention of new customers as well.
Marketers are totally responsible for providing appropriate satisfaction to their buyers.
CONCLUSION
From above analysis it has been concluded that by mapping out a path marketers of
Booth Company effectively understand buying behaviour and decision making process of
consumers. By using appropriate methods and understanding overall procedure handle the
impact of factors, they provides effective response by making further changes according to
gather data. It has been determined that different types of factors such as culture, social
perspectives and other influencing decision making as well as buying behaviour of buyers.
PROJECT 2
INTRODUCTION
The current study will base on Booth supermarket, which is currently operating and
managing its business functions within UK retain market in effective manner. This report will
describe differences between business to business & business to consumer decision making
process, market research difference between B2C and B2B and also explain consumer
perception, self motivation and personality influence in overall concept. Furthermore, it will
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clarify cognitive and behavioural approaches to customers learning; culture & other elements
impact on behaviour of buyers and also clarify how companies can understand buyer behaviour
to influence decision making procedure. Moreover, it also critically examine utilize of digital
people research development.
Compare and contrast key differences between B2B and B2C decision making procedures
Business to business and business to customers are two major marketing methods utilized
for selling food products of Booth, they are not similar. B2B is a variety of business transaction
in which purchasing and selling of items are done between two companies. While B2C is kind of
transaction where organizations sell their goods and services directly to target market. However,
one must not consider buyers as end user as it is quite helpful for company because for Business
to consumers to occur, different business to business transactions take place in earlier (Nath,
Saha and Salehi-Sangari, 2019).
It can be said that B2B selling concentrate on logical procedure driven buying decision,
while B2C marketing focuses on emotion driven purchasing judgement. In context of business to
business, decision to purchase a item or service has commercial purposes, so sale demands a
rational analysis, a wide consideration period, and ongoing assistance by marketers. On the other
hand, in regard to business to customers, sale is generally less rational and much based on
impulse. Decision making process of this concept is shorter in time and individual in judgment
making.
Market research differences between B2B and B2C
There are different types of market research methods available in market that marketers
can use in context of B2B and business to customers concepts, but in different manner. In regard
to b2b, mixed investigation approaches are pretty common, it can be quantitative or qualitative or
ethnographic depend on kind of outcomes marketers seeks. Business to business marketing
research is quite complex and difficult to do, therefore multiple methods are applied. Tele-depth
method is one of the best approaches in qualitative, B2B as ventures in this selling make their
most of data sharing by smart phones. This type of interview is often preferred as it caters better
top notch quality information than face to face conversation.
In context to business to consumers, sample size is wide than above concept, thereby
conducting research is less skewed and more dependable. B2C investigation is buyers oriented
more than business oriented in order to comprehend consumer’s perspective while buying
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services or products. B2C research concentrates on developing relationship with target segment
and building loyal buyer’s base. therefore in this concept methods incentives are given to
customers in form of reward points, gift card, cash and coupons, which make people able to
revise purchasing from Booth.
How personality, consumer’s perception and self and motivation influence decision making
procedure
It can be said that inner psychological traits are specific qualities, mannerism, attitudes
that differentiated one buyer from another. Behaviour of consumers gets affected by many
elements such as external and internal. Personality is inner element that affects an individual’s
service or item choice as well as brand. Because of this, that one of a type youness informs every
decision buyer make.
Motivation is another element which influence decision making of customers, it is
considered as driving force behind buying decision as users are actively seek to satisfy their
requirement and needs. It motivates impulse purchase, ongoing communication with Booth and
makes them more likely to want to know more about themselves.
It analysed that perception of buyers towards specific thing or service affect on decision
making process. When people have good perception towards Booth products they drive towards
purchasing it again and again.
Cognitive and behavioural approaches to consumer learning
Cognitive learning occurs mostly when a buyer is unfamiliar or included with item or
service. It includes learning and understanding of concepts, reasoning abilities, concepts and
ideas. This approach permits customers to use stored memory for building new understanding
used for current nature or it stores it in mind as additional data for further use. In simple words,
they must remember good experience with specific product, which they can use in the future
purchase. While behavioural learning happen primarily when a person is familiar or uninvolved
with goods. That means a buyer who known every think about item but never purchase it earlier
and now after reading positive review about it they drive towards purchase. It is concerned less
with visible nature and more with thought procedure behind it. It only focuses itself with specific
behaviour that can be observed.
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Culture and other factors impact on customer behaviour
Values and beliefs are guides for buyer behaviour; customs are accepted and unusual
ways of behaving. Affect of culture is so common and ingrained that it impact on behaviour is
rarely noted. Yet, this factor offer direction, order and guidance to member of society in all
stages of decision making. For example, vegetarian consumers prefer to visit place where non-
veg has not been cooked or offered to customers, because it is against to their culture. It always
guide and direct them what is good or not for customers. It can be said that this statement clearly
state that how culture impact on above process.
Not only culture, there are many factors accessible that also influence same thing.
Personal elements also affect buying behaviour of buyers.
Critically evaluate how companies utilize an comprehending of consumers behaviour to
influence decision making act within B2C and B2B
In today’s digital age, numerous business organisations including Booth are spending
their vital organisational resources on the researching their digital audience with specific
emphasis placed on researching their preferences, demands, needs and requirements in order to
assess which wants and desires of a business’s customers remain unsatisfied within the consumer
markets. Using such digital audience research developments, business organisations including
Booth can easily come to understand and influence the behaviours of their customers towards
making the overall operations of the business organisation much more profitable and productive
(Schrøder, 2019). Meanwhile understanding and influencing the behaviour of a business
organisation’s customers through such use of digital audience research developments can have
both positive and negative effects on both business organisation and consumers.
The main advantages of using digital audience research developments towards
understanding and influencing customer behaviour relates to this process decreasing and
mitigating the inherent risks that business organisations often have to take as part of their daily
operations and increasing the number of total sales conducted by the business enhancing its
overall profitability (De Ridder,Vesnić-Alujevićand Romic, 2016). This is because using digital
audience research developments, businesses including Booth are able to effectively analyse and
understand which customer needs, requirements, demands and preferences remain unsatisfied in
the consumer markets, the changing customer trends etc., which enables business such as Booth
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to address such issues and provide influence their customers towards the success of the business
organisation.
On the other hand businesses such as Booth using digital audience research developments to
influence and understand customer behavirour also has some negative aspects related. The main
negative aspect relates to such digital audience research always being quite expensive and highly
time consuming for the business organisation. Another major disadvantage of using digital
audience research developments for understanding and influencing customer behaviour relates to
such research only being applicable towards a small customer segment of a business
organisation.
CONCLUSION
Through the findings gained through the project 2 part of the report, it can effectively be
concluded that the operations and functions of a B2B business organisation are vastly different
and differentiated when compared to the functions and operations of a B2C business
organisation. The project 2 part of this report compares and contrasts between the decision
making operations of B2B and B2C business organisations. The report also analyses how the
market research conduct in B2B business organisations differs from B2C businesses. The report
evaluates how customer perception, self and motivation and personality come to influence the
decision making process. Further the report also assesses cognitive and behavioural approaches
to consumer learning and assesses how consumer behaviour is impacted by culture and other
factors. The report also analyses how B2B and B2C business organisations both make use of an
understanding of customer behaviour towards influencing the decision making process. Finally
the report critically evaluates the use of digital audience research developments to influence and
analyse the customer behaviour.
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REFERENCES
Book and Journals
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Mapping. Rutgers Business Review. 5(1). pp.84-100.
De Ridder, S., Vesnić-Alujević, L. and Romic, B., 2016. Challenges when researching digital
audiences: Mapping audience research of software designs, interfaces and platforms.
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Kumar, A. and Dash, M.K., 2016. Using DEMATEL to construct influential network relation
map of consumer decision-making in e-marketplace. International Journal of Business
Information Systems. 21(1). pp.48-72.
Nath, A., Saha, P. and Salehi-Sangari, E., 2019. Blurring the borders between B2B and B2C: a
model of antecedents behind usage of social media for travel planning. Journal of
Business & Industrial Marketing.
Panwar, D and et.al., 2019. Consumer decision making process models and their applications to
market strategy. International Management Review. 15(1). pp.36-44.
Prakash, G and et.al., 2017. Gender effects on impulse buying behavior. Emerald Emerging
Markets Case Studies.
Schrøder, K.C., 2019. Audience reception research in a post-broadcasting digital age. Television
& New Media.20(2). pp.155-169.
Stankevich, A., 2017. Explaining the consumer decision-making process: Critical literature
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Online
Consumer Decision Making Process. 2018. [Online]. Available through: <
https://www.marketingtutor.net/consumer-decision-making-process-stages/>
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