Consumer Behaviour and Insight Report

This report examines consumer behaviour and decision-making processes in both B2C and B2B contexts. It analyzes the stages of consumer decision-making, the importance of understanding these processes for marketers, and the key differences between B2B and B2C decision-making. The report also explores various market research approaches and methods used to understand consumer behaviour, as well as the influence of marketers at each stage of the decision-making process.

CONSUMER BEHAVIOUR AND
INSIGHT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 The stages of consumer decision-making.............................................................................1
P2 Importance of understanding consumer decision-making for marketers in mapping a path
to purchase-.................................................................................................................................3
LO 2.................................................................................................................................................5
P3 differences of decision making process in the context of B2B and B2C...............................5
P4 Different approaches to market research and methods of research used for understanding
the decision-making process in both B2C and B2B contexts.....................................................7
LO 3.................................................................................................................................................8
P5 Influence of marketers at each stage of decision making......................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Consumer behaviour is the reaction of the consumer in regards to the product offered to
them by the manufacturer or the seller. Consumer behaviour mainly depends on the consumers
taste and preferences, the price of product and the quality of the product. This report will study
the consumer decision making and the various steps in the evaluation of a product of the
company Williams Performance Tenders which deals in the manufacturing of boats. The factors
effecting the decision making process of the product. It will also show there effect on the
manufacture in the development of the product and services.
There after report will study the forms of research to understand the influences on the decision-
making process in B2C and B2B company. Also how marketers influence the different stages of
the decision-making process. Here the B2C company is the Amazon company who buys the
products from a company and sells the that products to the customers.
LO 1
P1 The stages of consumer decision-making
The consumers are the ultimate persons consuming the product manufactured by the
manufacturers in the market. As there are many substitute available in the market for the specific
product. The consumers have the right and option to evaluate and check the product and buy the
product according to their needs. They evaluates the product on the basis of past experiences and
the advertisement of the product. The customers trust the company for the product to be
purchased by them. The consumers in the company Williams Performance Tenders uses various
steps in the decision making of purchasing a product(Martindale and McKinney, 2017). The
steps are as follows-
Problem recognition-
The decision making process by the consumer starts from the arrival of problem. the
consumer feels the need of the product and wants to satisfy the need. The problem is usually
arise when the consumers want to fulfil the need regarding any product. In the company William
Performance Tenders the consumers desires for the boat.
Search process-
In this process the consumer searches the products and the various substitutes available to
them to satisfy the need of the customer(Shim, Shin and Kwak, 2018). The consumer uses the
search engines, past experience of the previous customers, the study of the product and the
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specifications of the product. The consumers of the company William Performance Tenders
evaluates and checks the boats available by the other companies in the market(Rezaei, 2015).
Evaluating alternatives-
After searching for the product the consumers evaluate and examines the product
qualities and there relevance to their needs. The evaluation can be based on the factors like price,
quality and the services available to them. The customers compare the prices of the similar type
of product. As there are many types of boats available in the market the consumers evaluate the
various type of boats and there qualities(Huang and Benyoucef, 2017).
Selection stage-
After searching and evaluating of the product the customer selects the product to be
purchase. The consumers are now ready to take the risk in purchasing the specified product. The
selection can be done on past experience , or they can rely upon the advertisement of that
company or they can give it a try.
Evaluation of decision-
This step starts after the purchase of the product which involves the satisfaction of the
customers. As the company Williams Performance Tenders is not focused on only one customer
so they provide for after sales services to there customer and creates a customer base. One bad
experience of the customer can effect many future customers of the company as the brand image
of the company will be effected(Bhimasta and Suprapto, 2017). Thus this step is also very
important to evaluate the product and the ability of the product to satisfy the consumers need.
These are the steps which are used by the customers in the decision making of purchasing
the product. This decision making process helps the customer in purchasing the right thing. Also
the decision making process of the customers helps the company Williams Performance Tenders
in understanding the consumer behaviour. In the recent years there is use of new technologies in
the consumer decision making(Boakye, Chiang and Tang, 2018). Through the use of internet all
the information about the product is easily available. Also with the upcoming of the home
delivery services people tends to buy those products which could be easily delivered to there
homes.
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Consumer behaviour is the reaction of the consumer in regards to the product offered to
them by the manufacturer or the seller. Consumer behaviour mainly depends on the consumers
taste and preferences, the price of product and the quality of the product. This report will study
the consumer decision making and the various steps in the evaluation of a product of the
company Williams Performance Tenders which deals in the manufacturing of boats. The factors
effecting the decision making process of the product. It will also show there effect on the
manufacture in the development of the product and services.
There after report will study the forms of research to understand the influences on the decision-
making process in B2C and B2B company. Also how marketers influence the different stages of
the decision-making process. Here the B2C company is the Amazon company who buys the
products from a company and sells the that products to the customers.
P2 Importance of understanding consumer decision-making for marketers in mapping a path to
purchase-
The decision making process used by the consumer is important for the manufactures too. The
manufactures uses this information in the selection of the product to be manufactured by the
company . The company looks after the preferences of the customer and there requirements in
the product thereby manufacturing the product which is customer oriented and fulfil the need of
the customer. The company Williams Performance Tenders uses the customer reviews in
manufacturing and improving the boats prepared by the company(Baba, Kallas and Realini,
2017). The customers review and analyse can also be based on the competitors product and
services. Therefore the customer need to be very careful in designing the product so that they can
manufacture the effective product according to the consumers need. There are three views of
consumer decision-making: economic, passive and emotional which a manufacturer can involve
in the product making decisions. These factors widely effects the customers behaviour in buying
of the product. The economic factors involves the various factors relating to the economy like tax
rate, excise duty and any other export and import duties. The passive decision making is
assuming that the product so manufactured will continue for a longer period. And emotional
factors relates to the customers attachment with the product(Ramsey and et.al., 2017).
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Consumer behaviour is a complex phenomenon and varies from person to
person ,consumer to consumer and from country to country. A consumer decision making can be
influenced by various factors such as cultural, social, psychological and personal factors.
William performance tenders evaluated the various stages by which consumers went through
when they involve in decision making process. The buying decision process is the way that
consumers follow while moving towards business with the company.
Mapping a path to understand consumer decision making can help William performance
tenders to influence the consumers to make purchase (Martindale and McKinney, 2017).
It is important for the marketers of William performance tenders to understand and recognise
the influences effecting the consumers and decision making process.
It can help the company to identify the information sources through which the consumers get
influenced, it can be a major challenge for the marketing team to find out the influencer in
their target market.
Understanding consumer decision making process also helps marketers to understand the cultural
factors which significantly impact on consumer behaviour.
Cultural factors can affect the purchasing decision as it is the most basic cause of a consumers
need and behaviour. In order to increase the demand, Marketing department always try to
spot a light on the “cultural shifts” which may be an introduction to a new product.
Understanding the cultural factors supports marketers to make effective strategies in order to
increase its sales (Shim, Shin and Kwak, 2018).
Social factors can also influence the purchasing decision of a consumer, such as reference group,
status, relative, Role of the society, immediate family members, peer preferences, lifestyle
etc. If marketers of William performance tender emphases on these elements, then it can
aids the firm or marketers in influencing the customer and increase the demand.
 Learning the consumer buying pattern can help the company know what triggers a
consumer towards a purchase activity. The company needs to know that the consumer's
decision often depends upon a general evaluation like, knowledge gained from last
experience, intuitions, impression of the brand thus it helps William performance tenders
to make marketing strategies which can support these factors (Ramsey and et.al., 2017).
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LO 2
P3 differences of decision making process in the context of B2B and B2C
B2B are sales for the businesses while B2C are the sales to the consumer .Therefore
buying decision making process in B2B and B2C also differs from each other .there are
following key differences between both-
1. Identifying need-Both business and consumers start its buying process with
identification of need . Generally consumer identify practical needs , they get
influenced by TV advertisements and online advertisement and businesses or
companies like Williams Performance Tenders company identify their need
proactively as per their businesses strategy . For example in order to improve
stock ordering process Williams Performance Tenders needs to buy matetial in
advance to manufacture boats (Stubseid and Arandjelovic, 2018)
2. Product specifications- Williams Performance Tenders have purchasing
processes to meet a particular product specification. the company will identify
the cost of new purchase and the benefit it will bring to the company . it is a
formal process carried out by purchasing manager or senior manager as per the
budget , their purchases will be assessed on how well it matches the product
specifications. On the other hand Consumer are much more flexible for potential
purchases and they will ignore initial specification if they find something
better .Consumer have clear idea about product specifications of what they want
but very rarely do they draw up product specifications in the manner of a
business.
3. Evaluating suppliers-consumer evaluate supplier on the basis of on the basis of
brand reputation and comparing past purchases with present one.. they will check
out alternative products online (Hutchinson, Lu and Weingarten, 2016). If
product is very expensive then consumer will check its ratings and reviews .Apart
from that even services are packaged On the other hand Williams Performance
Tenders will evaluate suppliers on the basis of obtaining feedback and reviews of
at least three or four other supplier before making any purchase , along with this
businesses also assess reputation and brand image of the supplier.
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4. Purchase decision- businesses often need more time in making decision , for
example if Williams Performance Tenders wants to purchase wooden material for
manufacturing boats then it has to take decision about the type and brand of the
wood , also it has to make arrangements of various logistics like supply chain ,
transportation system etc. On the other hand consumer take less time as it has to
make decision for one or few products , for that they will consult their
colleagues , friends , family (Lu, Chang and Chang, 2015). For ex. If a person
wants to buy a scooter then he will make an enquiry through his friends or family
and on the basis of reviews he can take decision of purchasing a scooter.
5. Post purchase- After sale services plays an important role in buying decision
process of both customers and businesses.. Businesses customers are usually long
term buyers that purchases complex machineries and large equipment , needs
more after sale service to maintain those equipments and machineries . If there are
problems business have to work with suppliers to resolve the problem (Nojavan
and allah Aalami, 2015).Because of that customer care offered by a supplier is
the major part of the decision making. On the other hand customer care services
are needed less by individual customer . If customer have any problem regarding
product then it can make reviews on social media or on phone call.
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P4 Different approaches to market research and methods of research used for understanding the
decision-making process in both B2C and B2B contexts.
Types of Market Research:
There are basically 2 types of market research:
Primary Market Research:
It is the process of collecting new or raw data that has been collected for the first time. It
is collected directly from potential customers. Primary data can be collected through various
following sources:-
- Observation Method
- Interviews
- Surveys
Secondary Market Research:
It is the process of gathering already complied and analysed data from published sources.
It is the synthesis of existing data (Shiu and Tzeng, 2018). Secondary data can be collected
through various following sources:
- News Articles
- Statistical Reports
- Government Journals
- Historical Records, etc
Evaluation of Decision Making process in B2C and B2B :
Basis B2C B2B
1. Meaning It involves selling products & services
directly to end users.
It involves selling products &
services to other businesses.
2. Example Amazon Alibaba
3. Market Research B2C uses mixed methodologies for
market research such as surveys,
focussed interviews, personal
interviews, questionnaire
methodologies, etc.
B2B do not use mixed
methodologies. They use sources
such as company's financial
statements, published reports, news
articles, statistical databases, etc. for
market research.
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4. Sample Size B2C market research uses large pool of
participants as sample size because of
favourable access towards consumers.
B2B market research uses lower
pool of participants than B2C
because of businesses ethics.
5. Involvement of
Individuals / Units
B2C market research involves
individuals or groups for its data
collection (Hsia and et.al., 2018).
B2B market research involves units
such as sales units, ratios
calculation, etc for data collection.
6. Decision Making
Process
B2C customers intend to involve in
speedy & easy process before
purchasing.
B2B customers indulge in longer
tenure of research before
purchasing.
7. The underlying
motivation
The desire to facilitate & improve
lifestyle is the motivation behind B2C
customers.
The goal to improve business is the
motivation behind B2B customers.
8. Relationship The relationship is very personal
between businesses and consumers.
The relationship between business
and its clients is less personal and
more value driven.
Higher sample size in B2C market research delays decision making due to a large pool of
participants. It is more time consuming and cost effective for the businesses. Higher pool of data
may scatter the range of information and lead to more critical decision making. B2C and B2B
businesses has to consider correct research methodology and have to involve correct participants
in order to know their needs and wants so that marketers can offer them products and services
accordingly (Boakye, Chiang and Tang, 2018). This will retain customers & clients, and increase
the goodwill of the business.
LO 3
P5 Influence of marketers at each stage of decision making
Approaches to consumer learning-Behavioural theory- this theory is based on stimulus
and response , in which stimulus is defined as an object that aims to receive a behavioural
response of the individual. The theory generates the relationship across the situation having
similar response. On the other hand cognitive theory occurs through mental process in which
people come together with the ideas to solve the problem (Stubseid and Arandjelovic, 2018).
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Roles of opinion leaders in influencing purchase decision-Opinion leaders are the person
who have ability to influence others .It generally includes people who have deep knowledge in
certain area. For example opinion leader in the beauty industry is Zoella. She is famous
personality who is known for make-up tutorials , beauty product recommendation and fashion
influencer.
marketers influence at every stage of decision making process of B2B as well as B2C
which is explainer step by step with examples-
Need recognition - .At this stage marketer will try to offer those products which is
actually needed by the customer. For ex. Amazon deals with B2C, which will lay emphasis on
offering winter collection like sweaters, jackets in winter season and B2B companies like
Williams Performance Tenders will sell boats according to the need of the business .For that it
will design boats as per the requirement of business customer (Lu, Chang and Chang, 2015).
Information search- At this stage marketer try to attract potential customer by providing
low cost product with high quality. For example marketers of Amazon will design its online
advertisement which contain proper product description so that whenever consumer will go
through the ad. they are able to solve each of the query related to the product. On the other hand
Williams Performance Tenders can do blog post and upload videos related to designs of boats to
attract the business consumer (Nojavan and allah Aalami, 2015).
Evaluation Alternatives-at this stage marketers will lay emphasis on contradicting the
competitors product , and will make full efforts to show positivity of the product. For example
for offering cloths marketers of amazon may show one extra quality of its product so that
consumer may be attracted towards the value addition to the product and that influence customer
to select that particular product among all the other alternatives. Similary marketers Williams
Performance Tenders can highlight the advances features of the boats that are different from its
competitors.
Purchase decision and after sale services- At this stage marketers will try to put all the
efforts so that customer can not face any difficult in searching path and main motive of the of
marketing is to achieve customer satisfaction . For that amazon make layout of the product so
that consumer will choose its product as compare to its competitors and it provides cashback
services , gift wrapping services, return services etc. (Hutchinson, Lu and Weingarten, 2016).On
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the other hand Williams Performance Tender can draw such policy ,so that it can attract its
consumer at the time of purchase decision.
CONCLUSION
The report concludes that the consumer is the important factor in the manufacture of the
product. The company Williams Performance Tenders which is a boat manufacturing company
uses the consumer decision-making process in there manufacturing and the marketing of the
product. Report studies the decision-making process adopted by the consumer. The importance
of decision making for the marketers.
Further more reports includes differences of the decision making process in B2C and B2B
structures. The methods used by the company to understand the decision making process in B2C
and B2B contexts. The report also studies the role of marketers in influencing the decision
making process of the consumers. Along with this reports states the various techniques used by
the company Williams Performance Tenders to study the consumer behaviour in the decision
making process of buying a product.
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REFERENCES
Books and Journals
Baba, Y., Kallas, Z. and Realini, C., 2017. Application of the analytical hierarchy process to
evaluate consumer acceptance and preferences for omega-3 enriched eggs. British Food
Journal. 119(7). pp.1459-1472.
Bhimasta, A. and Suprapto, B., 2017. Exploring Consumer Decision-making Processes
Regarding the Adoption of Mobile Payments: A Qualitative Study.
Boakye, K. G., Chiang, C. Y. and Tang, X., 2018. Toward an integrated decision-making model
for consumer electronic. Journal of Computer Information Systems. 58(3). pp.264-273.
Hsia, T. L. and et.al., 2018. Consumer Experience Creation in a U-Commerce Environment: An
Activity Theory Perspective.
Huang, Z. and Benyoucef, M., 2017. The effects of social commerce design on consumer
purchase decision-making: an empirical study. Electronic Commerce Research and
Applications. 25. pp.40-58.
Hutchinson, J. W., Lu, J. and Weingarten, E., 2016. Visual attention in consumer
settings. Routledge International Handbook of Consumer Psychology. pp.61.
Lu, L.C., Chang, H. H. and Chang, A., 2015. Consumer personality and green buying intention:
The mediate role of consumer ethical beliefs. Journal of Business Ethics. 127(1). pp.205-
219.
Martindale, A. and McKinney, E., 2017. Make or Buy? The development of a Consumer Decision
Process Model for home sewers.
Nojavan, S. and allah Aalami, H., 2015. Stochastic energy procurement of large electricity
consumer considering photovoltaic, wind-turbine, micro-turbines, energy storage system in
the presence of demand response program. Energy Conversion and Management, 103,
pp.1008-1018.
Ramsey, I. and et.al., 2017. A rapid review of consumer health information needs and
preferences. Patient education and counseling. 100(9). pp.1634-1642.
Rezaei, S., 2015. Segmenting consumer decision-making styles (CDMS) toward marketing
practice: A partial least squares (PLS) path modeling approach. Journal of Retailing and
Consumer Services. 22. pp.1-15.
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Shim, D., Shin, J. and Kwak, S.Y., 2018. Modelling the consumer decision‐making process to
identify key drivers and bottlenecks in the adoption of environmentally friendly
products. Business Strategy and the Environment. 27(8). pp.1409-1421.
Shiu, J. Y. and Tzeng, S. Y., 2018. Consumer confusion moderates the inertia–purchase intention
relationship. Social Behavior and Personality: an international journal, 46(3), pp.387-394.
Stubseid, S. and Arandjelovic, O., 2018, June. Machine learning based prediction of consumer
purchasing decisions: the evidence and its significance. In Workshops at the Thirty-Second
AAAI Conference on Artificial Intelligence.
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