Consumer Behaviour and Insight

This document discusses consumer behaviour and insight, including the stages in the decision-making journey, the importance for marketers to understand the path of purchase, and the differences between B2B and B2C decision making. It also evaluates ways in which marketers can respond to the decision-making process.

CONSUMER BEHVAIOUR AND INSIGHT

Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
Various stages in decision-making journey of consumer.......................................................3
Importance for marketers to map the path of purchase and understanding decision making by
consumers...............................................................................................................................5
Evaluation of ways in which market to respond to decision making process, applying relevant
concept in model.....................................................................................................................6
Task 2...............................................................................................................................................7
Difference between decision making process in B2B and B2C.............................................7
Different market investigation approaches used to understand decision making process.....9
Justified evaluation on different factors influencing decision making and buying behaviour of
customer along with examples.............................................................................................13
Task 3.............................................................................................................................................13
Various behaviour impacting decision-making process.......................................................13
Evaluation of ways in which marketers influence each stage of decision-making process. 14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

Introduction
Consumer behaviour can be said to be the study and analysis of the ways in which
individuals, groups or organisations dispose various ideas of goods and services by satisfying
various needs and requirements of the customers (Ismagilova and et. al., 2020). Consumer
behaviour is an option through which the motive of buying products and services of a consumer
can be identified by the organisations. It is necessary for an organisation to make sure that they
are continuously analysing the consumer behaviour in order to satisfy them. In the following
report consumer behaviour of customers for H&M have been carried out. It is a company which
deals in April is based in United Kingdom. The following report consist of various decision-
making journey of customers along with how does the marketer uses this path to understand the
decision which customer is making. A comparison of various processes of difference decision
making processes a leader and a managerhave also been done in this report. Along with this the
report also consist of market research and decision-making process in both B2B as well as B2C
business types. There are a number of different stages through which a consumer is making
decision which is required to be analysed by organisation which is specified in the report with
the help of examples.
Task 1
Various stages in decision-making journey of consumer
The decision-making journey of consumer is a process through which the behaviour of an
individual while choosing between a number of products and services available to them is
studied. In this following process it is necessary that the customer is achieving maximum
satisfaction. It can be done in both the market type which is B2B and B2C. Below mentioned as
the process of consumer decision making journey and how does these consumers use the process
to choose a product or service.
Problem recognition: Problem recognition is the first step. In this step the needs and
requirements of consumer for a product or service is identified. There are a number of different
products and services product in the market which can fulfil these requirements of customers.
This will create an opportunity for the business to produce such goods and service. When taking
example of H&M it is the duty of organisation to understand water various designs of their

products which are apparels that will satisfy the needs of customers for them (Di Talia, Simeone
and Scarpato, 2019) .
Searching and gata leader and a managerhering information: This is the second stage of
decision making in which the customer starts searching for various options of products and
services which are available in the market which can satisfy all the needs and requirements. In
this stage they look for various people such as their family and friends who will help them with
their past experiences of the product. In this way they can decide on various options available to
them. This function is used by H&M as they use advertisement of the product in a number of
platforms such as advertising, online platforms and also online retailing stores so that customers
can come to know about the products and services they offer.
Evaluation of the alternatives: Evaluation of alternatives is a stage at which the customer list
down all the alternatives which are available to them. It is the duty of customer to make sure that
they are critically analysing all the available options and then coming to a conclusion on which
of these options will be highly satisfying all their needs. When taking H&M into consideration it
is necessary for company to make sure that they are studying consumer behaviour and also
producing goods and services which are better than that of their competitors.
Actual purchase of product or services: The last second stage of the consumer buying behaviour
is the products purchase or service made. It is the stage where customer actually goes to buy the
products and services which can fulfil all the requirements and also fit in the budget they have
for the product or services. It is necessary for H&M to make sure that they are making the
products and services available for the customers and also providing them good services in the
stores while they are making their purchase. It is necessary for H&M to make sure that they are
properly training their sales executives to provide good experience and ambience to the customer
who are visiting to purchase their products and services.
Post purchase evaluation: Post purchase evaluation is the last stage in which the customer is
actually using the product and analysing how much satisfaction is gained by them by the use of
their product. It is necessary for them to make sure that they are not cheated by any of the
unethical practices of the seller. It is necessary for them to evaluate the results of the product.
H&M uses salesperson and also takes feedback from their customers in order to make sure that
the post purchase journey of their consumer is smooth. There can be various other ways through

which company can provide good after sales experience to the customers which is necessary to
make sure that customer a loyal towards the brand (Wahn and et. al., 2019)
(Racat and Capelli, 2020).
Importance for marketers to map the path of purchase and understanding decision making
by consumers
In the following years it has been analysed that in order to make a successful marketing it
is necessary for the companies to understand various range and products of services which rely
upon how does they fulfil various needs and demands of the customers in the market. In order to
impact the choice of buying of the customers in the market it is necessary to understand the
purchasing conduct. The conduct of purchasers are the information that can be delivered the
required satisfaction to them. Is also necessary by the marketers to make sure that they are
continuously marketing their products and advertising them and communicating the products and
services to the clients so that they are in knowledge about the products.
With the help of a mad map the business procedure, information, flowcharts and reports
can be clearly customise for advertising the product or service. The purchasing choice of a
customer portrays how does the use different types of sale representatives along with various
marketing techniques to influence their purchasing behaviour. It is necessary for marketers to
make sure that they are critically examine how does the customer comes to buy their products or
service. It is necessary to influence their choice so that they can effectively by the products and

services which is marketed by the marketer and bring in revenues and profits for the marketer
(Baumert, Obesso and Valbuena, 2020).
Extensive solving: This is when the consumers do not have any criteria to evaluate the strategy
to be used in the product. H&M can use good word of mouth in order to make sure that the
customers who have not yet clarified and specified various brands in order to make the decision
may include H&M in it.
Limited problem-solving: Limited problem-solving is when consumers are already known about
various basic criteria is for evaluation of product. They only need to set their preferences for a
certain brand. H&M needs to make sure that they have competitive advantage with their
competitors in order to be the choice of consumer.
Routine response behaviour: This is the routine behaviour where consumer have already
experience the product and services and they are evaluating the situation with some additional
information. HNI make sure that they provide consumers with good marketing and shopping
experiences in order to make sure that they are selected by them in the next purchase.
Cultural: this impact directly on organisation where firm has to identify the function
which are helpful in developing the decision making ability of organisation. In relation to H&M,
manager in firm firm on development of function which is helpful to identify firms function.
Social: there are various social factors which impact on organization and its performance
in relation to decision making ability. This is because organisation is using function which is
surrounded by social elements. These are helpful to firm in managing operation and using them
in appropriate time frame.
Personal: customer behaviour can also impact on personal basis in organisation which
can impact on performance of organisation in business market. Under this organisation has to
identify the function of individual customer by using personal base and data of customers.

Evaluation of ways in which market to respond to decision making process, applying
relevant concept in model
There is a predetermined model through which customers make their decision making. Below
mentioned are ways through which a marketer can respond to this process:
Need recognition: It is necessary for marketers to understand what are the reason for which their
products and services will effectively fulfil a need or requirement of customer. It is necessary for
them to bring satisfaction to the consumer to their product in order to affect their buying
behaviour.
Searching and gathering information: When a customer is looking for information it becomes a
duty for the companies to make sure that their products and information about the products are
available to them. In order to do this they need to promote their products and services with a
number of tools and techniques.
Evaluating alternatives: It is required by companies to prove that their products and services are
better than that of their competitors. They need to develop a core competency so that the

customer will choose their product while making a buying behaviour decision before any other
competitor of theirs (Srivastava and Wagh, 2020).
Purchase of products: Purchase of product is the time when the customer is purchasing the
product. It is necessary for the organisations to make sure that they are providing good ambience
and environment to the customer while they are making purchase. The salesperson also play an
important role in that this part.
Post purchase evaluation: in order to enhance the post purchase evaluation of the customer it is
necessary that companies are selling them good quality of products and goods in order to get
positive feedback from their customers which will help in buying behaviour of customer.
Task 2
Difference between decision making process in B2B and B2C
Let’s recap the five stages of a B2B marketing strategy and what each includes:
 Target: Create a buyer persona.
 Attract: Develop a content strategy that brings quality leads to your website.
 Engage: Encourage your audience to connect.
 Nurture: Provide decision-making information.
 Convert: Create a strong relationship with the customer to continuously provide new
information and product recommendations.
Let’s recap the five stages of a B2B marketing strategy and what each includes:
 Stage 1: identification of needs.
 Stage 2: Informational research.
 Stage 3: Evaluation of alternatives.
 Stage 4: Purchasing decision.
 Stage 5: The post-purchase evaluation:
Basis B2B B2C
Focus The major concentration of
such businesses directly
delivering the required
products and services to the
business.
The aim of delivering
products and services along
with which building strong
consumer base and
relationship with customers.
Relation Professional relation or only It is often seen that in B2C

maintained with the parties
dealing in tha leader and a
manageris business format.a
leader and a manager. In this
manager in H&M focus on
development of septate
function which enable
effective relations in
employees.
companies develop personal
relations as well as
professional relation with the
consumers according to their
loyalty. In this channel
manager in firm focusses in
building good relation by
engaging personal relations.
Motive The major motive for these
organisations is to make sure
that they are contracting
with a number of other
businesses in order to
increase their profits and
revenues.
H&M is a B2C firm and the
major aim for the
organisation is to fulfil the
needs and requirements of
customers along with
increasing their revenues and
profits.
Time variant The process of buying
decision in these
organisations are conducted
monthly, weekly or on the
yearly basis dependent on
the terms and conditions
which are mentioned in the
contract (Haque, Yamoah
and Sroka, 2020) .
In the following case the
operations usually have been
daily basis so the company
have to arrange for logistics
as in. They need to make
sure that they provide
customer with goods
whenever they require.
Decision making In the following context the
process of decision-making
is performed by
consideration of various
mutual agreements and
contracts. It is seen that the
In the following condition
the decision making is
usually based on the current
context of the market
regarding the trends and
changing needs and

errors in decision making
are needed to be reduced to
minimal.
requirements of customers.
It is necessary to stay in link
with the customers to serve
them.
With the help of the above-mentioned differentiation it can be categorised how decision-making
in B2B and B2C organisations can be different. It is necessary to understand that they are
specifically deriving this process according to their needs and comforts. In B2B there is a risk
attached to decision-making whereas when considering for B2C decision-making risk however is
low. This happens because the company conducts their operations in weeks, months or yearly
basis. It can also be seen that decision-making in B2C industry often happens at regular time
interval and the dynamic changes in the business environment such as trends can affect them
heavily. However these risk in B2B organisation or less also if any error in B2B decision-making
is caused they can be higher risk for the organisation as compare to B2C (Rahman and et. al.,
2019).
Different market investigation approaches used to understand decision making process
In order to make sure that the understanding of relationship between decision-making in
B2C and B2B organisation it is required to understand both the firms and consider various
different markets investigation approaches to do so. Market investigation or research can be
basically defined as an organised optimized utility of different resource of information which is
available regarding the market or industry and the ways in which customers and take decision in
such market. In the following context H&M is performing proper investigation in order to
understand what are the decision making factors for their consumers. What’s your name deals in
both B2B and B2C organisations due to which there are different approaches adopted of market
research by the company which are mentioned below:
Market investigation approach in B2B: in business to business market the decision making is
much more complex as there are a number of suppliers and also the quantity which is carried on
in such business is very high which might be risky. In the context of H&M below mentioned is
the market research which is used by the company for understanding the decision-making
process:
Qualitative interview:

Company specifically uses advices from a number of research and experts in order to understand
the right amount of information which can be accumulated before mentioning about any order.
They require proper information before taking any decision in the given timeframe so as to gain
a number of different competitive advantages above their competitors. When considering the
present scenario of H&M it is using an organised team of expert to understand the data which is
qualitative in nature required to take a decision in the organisation (Baker and Azzari, 2020).
Market research investigation in B2C: When talking about business to consumer investigation
the major focus is on the consumer whose needs and requirements keep on changing according
to the market trends. In the present scenario of H&M it is important for the company to
understand the trends going on in the market and the trends which are followed by the
consumers. Below mentioned is the market investigation used by the company:
Online survey:
It is a great way to understand the trends going on the market. Mass population is included in
such surveys which consist of various different elements such as designs, trends, preference,
colours and so on for H&M. H&M have an online survey which can be filled by its clients which
is available on a number of platforms. Company uses this survey in order to make sure that their
products are fulfilling all the needs and requirements of customer and the process of decision
making of customer can be influenced by these.
Market research:
Examination of how does marketers will look for a number of different aspects of the products
and service so that they can effectively sell it to their customers can be analysed here. It is
necessary that marketers or H&M are well known about the taste and behaviour of their clients.
They need to make sure that they are using different surveys to bring in enthusiast products for
their clients. It is also necessary for them to dispatch their products and services so that they can
showcase how they have an upper hand over their competitors. Importance of market
investigation are mentioned below:
 How buyers will carry on the purchase of product?
 How will the substitute of the product affect the favourite brands for consumer?
 How will the promotion tool be used for promoting the products grab customers
attention?

There are a number of different elements which are leading to statistical surveys and also
fundamentals in exam I name how does marketers can understand your decision making of a
consumer (Mogaji, Balakrishnan and Kieu, 2020).
In order to explore about the buying behaviour of consumer it is important for H&M to learn
about different components which can impact the buying behaviour which are mentioned below:
Psychological: Is the psychological nature of a consumer which will impact their buying
behaviour. It includes various character, disposition, inspiration, values and beliefs of a customer
which can be different for each customer related to the product and service.
Personal: The personal factor in buying behaviour of a customer refers to their own choices
which may include their sexual orientation, age, education, earning and so on. It depends on all
these factors on the fact that which product and service is been chosen by the customer.
Offering special prices: this is also seen that there are some exceptional cost which are offered
for the consumers by a number of companies so that they can increase their market share and
also build a reliable consumer base in the market for the product. The special prizes influence the
number of buyers. It is also seen that it is an important factor in the buying behaviour of a
customer because the income of the consumer is a huge factor affecting their buying behaviour.
There can be a number of ways to use special prizes such as vouchers, coupons, deals
advancement and so on. It is necessary for consumers to use such options as this will bring them
profit. Also, marketers use this to increase their customer base. It will help the marketers to make
sure that they are spreading communication about their products through the special price
offering. This will also spread good word of mouth about the marketer. It will highly affect the
decision making of a customer. Deals promotion also have a high impact on the conduct of
customer, the brand which they buy along with the quality and amount they are purchasing at
once.
On the other hand it can also be seen that it is necessary to analyse overall consumer
behaviour so that a number of models are been taken into consideration for this. In the following
context the model that has been utilized is Nicosia model and below mentioned is the detailed
analysis:
Nicosia model
Francisco M Nicosia was developer of this following model in the year 1966. In the
following model breaking down of customers behaviour and decisions in three patterns was done

(Chaturvedi and Shaha, 2020). The following model emphasises on various influence on the
connection between the organisation and the potential consumer for the organisation. It helps in
outlining who are the buyers and what will be their reaction to the introduction of various new
products and services in the market. It helps to understand various viewpoints of the shoppers
and also impact both the organisations as well as their personal interest which will help in
building the brand image of the company. Below presented are the three sections in which the
following model is divided:
Dimensions of companies and the consumer:In this following face of this model there can be
two different section 1st of which refers to arrangements with the organisations through using a
number of different techniques and tools of promotion which are used so that the potential
customers and buyers of the product and services can be attracted towards the organisation. In
the second part it is incorporated about the measurement which includes various characters and
understanding of the characters providing a special thought towards the products and services.
Both of these are an important part for the marketers to understand in order to make sure that the
purchasing behaviour of customer is drawn towards them. H&M focuses on demands of
customers which were not identified earlier. They have started online selling as well as working
on their stores to influence customers.
Search and evaluation: It are another important phase in which the customer starts for looking
at various substitutes which are available to fulfil their needs and requirements. It is the need to
advertise the product by the company so that the consumers buying behaviour towards the
company can be supported. It is also needed to make sure that various taste and preferences of
customers are typically mentioned in the advertisement (Jain and Chheda, 2020). This is a factor
which helps in understanding the necessity of the products and services for the client. The
potential study of customers helps H&M to specifically fulfil their need with the designs of their
clothing. They launch new collection every year in order to do so.
Feedback: This is the part in which the model talks about importance of feedback for both the
seller as well as purchaser. It will help in determining the satisfaction level which is gained by
using the products or service. It is necessary that the organisation will attend various advantages
if there is mutual experience of influence of their positive feedback from the customers for their
products and services. H&M looks for customer feedback while drawing bills at stores as well as
on online shopping help the managers of company to help the customers and fulfil their need.

With the help of the above mentioned model it can be clearly said what are the different
approaches which will help the marketers to make sure how can they influence the buying
behaviour and decision of a customer and also what are the advantages which will be developed
by company while offering these products and services in the market.
Justified evaluation on different factors influencing decision making and buying behaviour
of customer along with examples
There are a number of factors which can be used by company in order to make sure that they
are influencing the buying behaviour of the customers.
Social Factors- These includes considering changing perceptions and trends in society. For
example, the new collection of H&M for summer 2020 can be taken into consideration. The
company make sure that they come up with a new collection for every year and every season
which consist of the latest colours, designs according to the preference of customers.
Psychological-Along with this company a number of platforms for promotion of its products and
services. They do it in order to psychologically attract customer attention. This is also a great
way used by H&M to make sure that the information of the products and services are reaching to
the customers and the buying behaviour of customers can be influenced by the promotional tools
of company.
Personal- The company H&M also looks for customers personal interest by engaging them with
efficient sales person in stores who can efficiently serve them.
Task 3
Various behaviour impacting decision-making process
Decision-making process have a number of different stages and there are a number of
different buyers behaviour which can be influenced mena leader and a managertioned below:
Problem recognition: This is the most initiation stage where the marketers of H&M specifically
recognises what are the major issues which are forced upon the consumer and they need to work
upon it in order to provide the products and services which can fulfil those needs of customers.
They need to study trends in market for this. In order to design such products.
Search process: In order to influence this approach of customer decision-making H&M performs
secondary as well as primary approach of market research in order to understand various needs
of the customers and how to influence those needs (Shatskaya, 2019).

Evaluating alternatives: In the following stage different options available to the customers are to
be recognized by the marketers. H&M takes care of the factors such as price, quality and so on of
their competitors and make their products better than those so that the customer chooses their
product.
Selection stage: In selection stage it is the deciding period where the customer chooses the
product they need. H&M chooses various channels through which they can reach their customers
which include physical stores as well as online sites through which they sell their products to
their customers. They make sure that the sales staff of such physical store is equipped with
various skills to handle customer queries in order to provide them good experience.
Evaluation of decision: this is the last stage in which the customer will evaluate the decision of
buying and the utility from the product or services they have purchased. H&M needs to make
sure that the quality of goods and products they are providing to the customers are meeting all
the requirements of customer. In order to do so they also take feedback from the customer and
reach them from time to time informing them about their offers in order to make them loyal
towards them.
Evaluation of ways in which marketers influence each stage of decision-making process
It is necessary for a marketer to make sure that they are evaluating the decision making process
and also influencing the consumer at each stage. There are five different stages and a number of
ways are used by marketers to influence all of these stages.
They understand the needs of customers which were identified and develop products
according to it. They make sure that their products are reaching the customers through the days
of different promotional tools and the customer is aware about the products and services which
are sold by the company.
The marketers make sure that their products and services are better than their competitors
in order to ensure that customer chooses their product while evaluating between different
alternatives (Joy and Pius, 2020).They also provide good services to the consumer while buying
such as good ambience at the physical stores and skilled sales personnel so that the buying
experience of customers can be good.
They make sure that even after purchase they provide various services to the consumers
such as taking feedback from them and offering them various discounts in order to make them
loyal towards the brand. Digital media is a great way to influence customers which is effectively

used by H&M as they have online shopping sites and are also linked with a number of different
online stores who help them sell their product. Marketing with the help of online platforms is
also efficiently used by H&M. Purchasing decision is also often affected by leaders in the
market. The fashion media influencers as well as the celebrities who advertise for company are
used in order to influence the buying pattern of consumers.
Conclusion
With the help of the above report it can be concluded that there are a number of different
ways in which marketers influence the buying behaviour of consumer. It is important for them to
understand the buying behaviour on consumer and influence each stage of their buying
behaviour in order to make them loyal towards the company. There are also decision-making
processes for B2B and B2C businesses which differ from each other. It is recommended for
H&M to take measures to effectively influence consumer buying behaviour in order to make sure
that from the very beginning of decision-making process they are affecting customer mindset. In
order to do so they need to improve their communication strategy to effectively communicate
their goods and services. Along with this they also need to build competitive advantage to stay in
the market for a longer period of time.

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