Consumer Behaviour and Insight: A Comprehensive Analysis of Tesco's Customer Journey

This report delves into the intricate world of consumer behaviour, focusing on Tesco, a leading grocery retailer. It examines the stages of the consumer decision-making journey, highlighting the importance of mapping the path to purchase. The report critically evaluates how marketers can influence the decision-making process in both B2C and B2B contexts, exploring relevant theories, concepts, and models. Specific examples and contexts are provided to illustrate the practical application of these principles.

Assesment draft
Consumer Behaviour and Insight

Introduction
Due to the high rate of competition it becomes hard to retain the new as well as the old
customers and their loyalty. The main purpose of the module is to highlight the actions of the
markets with compromising the profit that will turn into the long term customer’s loyalty and
provide long term benefit. The report focuses on understanding the concept of consumer
behaviours and its insights which is important for the businesses.

Overview of Tesco Company
Tesco is the leading grocery company and having the general merchandise retailer that is having
it’s headquarter in United Kingdom. It is listed in top three retailer company that provide variety
of products and services. It is listed in second largest company that is measured by profit. It
deliver its product and services almost in 14 countries that includes Europe, north America,
Malaysia, Thailand, republic of Ireland and Asia and becomes the grocery market leader in UK
in which it share almost 30% of share. Originally it is having specialised in drinks and food that
is having diversified in Pet insurance, dental, healthcare, CDs, renting and retailing DVDs,
internet services, music downloads and software and so on.

P1 Explain and analyse the stages of the consumer decision-making journey for a given
product/service.
Customers obtain maximum number of information regarding to the particular products and
services from experienced users needs to making buying decisions on the basis of own
preferences and choices. Due to social factors of references groups, leader’s opinion and
customers surrounding is having direct impact on buying behaviour. However, customers have to
buy mechanically as per the strong perception of products. The self concept factors and
personality factors provide direction to organization to inspect consumer buying behaviour.
Tesco Company is the leading retailer company in all over the world that provide various
product and service s but having specialization in foods and drinks. The company analyse the
market and mapping the path of journey of consumers to understand the behaviour of consumers
and develop effective strategies to accomplish its vision and motto.
(Aitchison, 2018)

The above picture is showing about the purchase funnel that is adopted by the customers to
buying the product. It is a one directional consumer journey in which media advising is main
focus of marketers. Rise and increase in all digital presents the journey of purchasing and buying
become more complex. It is important for Tesco Company to face such complicities while
researching the markets thoroughly with the brand image in market and engaging with the
different -different buyers. The practice of journey of consumer will help the Tesco company to
follow step to step advice to conduct new things and avoid the common pitfalls of traditional
market research on which consumer is totally depends. The company will able to predict the
future behaviour of consumer with related to brand of the company based on post rationalised
responses.
Problem need recognition: In the journey of mapping the path of purchasing the recognition of
problem needs plays an essential role. It is quite necessary to understand the needs and demand
of products. When the individual have needs of products it search for products through online or
offline criteria.

The consumer decision making process begins with eth problem that is not recognised. The
consumer behaviour problem is unplanned so the Tesco Company needs to analyse the problem
related to the customers.
Information search:
The information search is related to the product and services, place and price. In the process of
decision making process the customer is involved in external as well as internal information
search. The internal information is related to identifying alternatives of buyer from its past
experience.
Evaluation of alternatives:
Purchase decision:
Post purchase behavior:

P2 Explain why it is important for marketers to map a path to purchase and understand consumer
decision-making.
With the change in pace of time the business environment also changes quickly as it reflects the
global trend of economic liberalization. The business management practices are having only
much few factors that affects it. The factors may include new political geography, gradual
removal of international trade barriers; rapidly change in advancement of technology and so on.
The factor that is having great impact on doing business has been addressed as high competition.
These changes influenced the marketers and consumer behaviour. Consumer behaviour is the
element that which is the sum up of sociology, psychology, socio Psychology, and economics
and so on. According to the concept of marketing, management is the process that analyses and
identifies the requirements of customers, anticipates effectively efficiently and profitability, in
which the customer behaviour is the core element of success of company.
In the present time the consumer behaviour journey is the common marketing concept in which it
analyse, analyse and mapping the sales avenue, the Psychology is important for mapping the
customers decision journey in order to know the current demand and trend of the product in the
market. There are various methods that include surveys, focus groups, interviews, pictures, filed
experiments and so on. Other methods to find out the consumers behaviour may include in-house
marketing research departments, external marketing research, retailers, and advertising agencies
and so on. There are two main approaches to customer’s research in marketing that are as
follows:
 Primary research methods are the research design that is conducted for the first time. It
may include focus groups, personal interviews, projective techniques, observation, online
research methods, surveys and so on.
 Secondary research methods involve the using information of first hand data that is
already put together.
The benefits that are derived by mapping a path to purchase and understand consumer decision-
making are as follows:

 It helps in creating the tailored experiences:
 Placing the focus to build up empathy:
 It guides consumers towards purchase:
 It helps identify the buying stages that need more attention:
 It guides business objectives in the right direction:

P5 Evaluate how marketers can influence the different stages of the decision-making
process of B2C and B2B, giving specific examples.
The main purpose of the businessorganisation is to satisfy needs and wants of customers
effectively for achieving high profitability and a growth in the large competitive marketplace.
Tesco provides a wide range of product and services to its foreign as well as domestic customers.
To fulfill the current requirement of the market either organisation sells goods and services to
direct customers and to other business. There are so many factors which are considered by the
company for enhancing sales and profit margin like quality, packaging, pricing, value, features
etc which will attract a large number of customers from all over the world. Both are completely
different things business to consumer and business to business (Mittica, 2012).
Influence of sub-culture and culture on the decision-making process of B2B and B2C
Tesco faces tough competition by ASDA, Sainsbury's etc for which marketing department of
company develops unique ideas of marketing for influencing customer’s decision process. The
companysellstheir goods and services to other business for enhancing sales and profit level and
also sell directly to customers. B2C improve the relationship with customers because
organisations sell their goods and services directly to customers in which they can easily
communicate the problem which is faced by the people. B2B assist to build a good relationship
with other business but there is a negative point of B2B Sometimes customers issues are not
identified by the organisation due to lack of communication. Tesco can influence positively in
the decision-making process of customers by giving attention to culture and subculture factors. It
is highly important for the organisation to add customs, beliefs, and value which serve to
customers (McCarthy, 2016).
Patterns of buyer behavior
For satisfying customers demand and wants it is very much important for the organisation to
develop well goods and services by understanding customer’s different pattern of behavior.
Every customer has different needs, requirement, and thoughts and wants which is understood by
the organisation through B2B and B2C. There are various steps followed by the organisation
while developing marketing for products and services which can influence the decision-making

process of customers. Buyer behavior is that concept through which consumer take a final
decision for buying goods and services. There are several steps have to be followed by the
organisation for influencing decision process of B2B and B2C. Marketing strategies play a very
important role for influence any one’s mind and thoughts towards the particular goods and
services and help to shift needs of customers. Marketers of the organisation provide all required
information related to customer’s current needs and requirement which is used while developing
marketing plan and strategies (Hussain, 2017).
Role of opinion leaders in influencing purchasing decisions
It is highly important for the leaders to spread right information and knowledge among
customers related to B2B and B2Cso that they can take right purchasing decision. Leaders play
an important role in influencing decision process of business to business and business to
consumer. By developing great idea and strategies they can impact positively in the mind of
people. Tesco offers high quality of goods and services to customers. The company spends a
huge amount on the marketing of its products and services for attracting a large number of
people towards its good. The companyfaces huge tough competition in the global market due to
which it becomes highly important to produce goods and services according to the needs and
demands of customers (Gómez-Díaz, 2016).

M3 Critically evaluates how marketers influence each stage of the decision-making process
with reference to relevant methods and models applied.
Need recognition: It is the first stage in which customers identify problem or need. This need
can be fulfilled by internal and external stimuli which assist customers to identify which product
will buy according to the reliability and quantity. In this customer analysis their need and select
product accordingly.
For example: For example,if the customerfeels hungry then she/he will look for the easting
products of Tesco like corn flakes, biscuits etc rather than any shampoo or any other grocery
item. The marketing team of Tesco is great in identifying current requirement of customers. This
will add value to marketing activities of the organisationand provide an effectivesolution to any
problem (Xuand Chen, 2017).
Information Search: It is the second process of consumer decision making in which they
identify information and details to satisfy their needs. There are so multiple sources which are
used by customers for collecting information. For example, social media, Friends, neighbours,
magazines family, TV, radio etc. In this commercial source of organisation play very important
role because Tesco can present its goods and services inan effectiveway through advertising,
packaging, and displays which attract a large number of customers.

Maslow’s need hierarchy theory: It is basically motivation theory which includes basic human
needs which satisfy customer’s needs. It assists in satisfying both internal as well as external
needs of people. It includes safety needs, social needs, esteem need and self-actualisation needs.
This theory includes five-stage models which are categories of growth needs and deficiency
needs. Maslow’s need theory is organised in a hierarchy according to which basic needs of
customers must be fulfilled first before the second needs. Only one need can be fulfilledat one
time and only after second need will be satisfied(Cherry, 2014).
There are so many ads of Tesco which advertise its product and services on a global scale which
is motivation for the consumers. The major objectives of the ads of Tesco are self-actualisation
and self-esteem. There are so many ads of Tesco which advertise its merchandise and grocery
item in all over the world. Lots of people find happiness after purchasing goods and services of
the company which satisfies their needs.
Ansoff's matrix: It is effective marketing strategies which are used by Tesco marketers for
influencing decision making process of the consumer. Ansoff's matrix suggests an organisation
to attempts all aspects of Market penetration, market development, product development, and
diversification. With the help of this marketing tool, marketers can easily influence the decision
making of people in a positive way. Market penetration and market development assist in
attracting a huge number of people towards the goods and services of Tesco (Gross, 2014)
Product life cycle: A Product lifecycle play very important role for marketer’s designers and
Management. Product and services go through various stages for fulfilling customers need and
want effectively. It is highly important for the organisation to give high focus on product
lifecycle. It includes several stages such as introduction growth maturity and decline. The
requirement of Human Resource advertisement financing operations manufacturing etc depends
on the current market current position of the productlifecycle.
Organisations have to spend lots of capital in introduction stage for introducing product and
services in the global market. In introduction stage companies unable to earn high profit and
sales because in this state sales are low and profit is low because this product is new tothe
public. Every product and services have limited life so it is the responsibility of Management
to follow product life-cycle process just after introducing a new product and services in the

marketplace. By making effective changes in existing and new product and services Tesco can
influence consumer behavior and make them ready to purchase the goods but if the organisation
does not introduce any new features any product then it impacts negatively on the decision-
making process of the consumer.
Rational Choice Theory: This theory is used by the organisation to understand national
decision choice of the consumer. Marketers can easily analysis the economic and social
behavior. Decision making is by the available data in the marketplace and less available time to
take a decision. It influences both ways negative as well as negative on the decision-making
process of the consumer.

D1 Critically evaluates the application of appropriate theories, concepts, and models that
influence and impact upon the decision-making process, supported by specific examples
and contexts.
Every consumer has different needs and different perceptive of the decision-making process
which is analysed by the organisation through effective marketing research. It is highly important
for the Tesco to analysis the basic of consumer decision making that can influence profitability
and productivity of the organisation. The consumer is considering as rational decision makers
because they take decision according to their self-interest. Consumer behavior plays an essential
role in the success and growth of the Tesco in the large competitive business environment. To
examine consumer behavior it is necessary for the organisation to analyse their need recognition,
information search, and evaluation of alternatives, the intentionof buying goods and final
consumption of the product. This will assist to identify current requirement of customers through
which marketers develop great strategies and plan to shift customer’s needs. There are various
concepts, theories, and models that impact negatively and positively on the decision making the
processof the consumer. There isvarious theories and approaches such as Behaviourist Approach,
consumer behavior theory, theoretical approach, Psychodynamic Approach and Cognitive
Approach which impact on the decision-making process of the consumer (Wood and Hayes,
2012).
The consumer takes the decision to purchase a particular product and services according to their
behavior. People’s mind and thinking set by external events, philosophies of family, feeling, and
thoughts of friends which influence their decision-making process to buy product and services.
Researcher cans analysis the concept of consumer towards the goods of the organisation through
effective marketing research. Behavioralapproach is considered by the organisation while
developing any plan and strategies for goods and services to attract a large number of customers.
The cognitive approach includes action, observation, the behavior of others through which
people change their perception. The consumergets information related to the goods of the Tesco
through friends, family, and neighbours according to which they take final decision of
purchasing goods. It impacts positively as well as negatively on the mind of customers. For
example, if any person hasa negative review for Tesco goods and services than he will tell all

negative points which change customers mind but if any person has good experience with Tesco
than he will tell about quality, products, and effectiveness of goods and service which influence
positively. The consumer gets influenced by internal factors and changes their purchasing
decision-making process (Viksne, et. al., 2016).