Consumer Behaviour and Insight

This document discusses consumer behaviour and insight, including the stages of consumer decision making process, the significance for marketers to understand decision making, and the differences between B2B and B2C decision making. It also explores various approaches and methods of market research to understand decision making in the context of B2C and B2B.

CONSUMER BEHAVIOUR
AND INSIGHT

Table of Contents
INTRODUCTION...........................................................................................................................................3
LO1..............................................................................................................................................................3
Identify and evaluate the stages of consumer decision making process while purchasing a certain
product.....................................................................................................................................................3
Significance for marketers to map a path to buy and understand decision making of consumers............4
LO2..............................................................................................................................................................6
Contrast and comparison of the key differences of decision making process related to B2B and B2C....6
Various approaches and methods of market research in order to understand decision making process in
context of B2C and B2B..........................................................................................................................9
LO3............................................................................................................................................................10
Marketers are able to influence different stages of decision making process of B2B and B2C.............10
CONCLUSION.............................................................................................................................................12
REFERENCES..............................................................................................................................................13

INTRODUCTION
Consumer behavior refers to a study through which individual customers, organization
and groups select, dispose ideas and services in order to satisfy their wants and needs. It defined
as the actions of the customers which they take at marketplace or to purchase a particular product
or service. It includes consumer's emotional, behavior and mental response for a particular
activity, product or services. As per the scenario I am working in Wileyfox. The company deals
in Smartphone’s and its manufacturing. It is founded in the year 2015. The headquarters of the
firm are situated in London in United Kingdom.
The report will explain and analysis the stages for consumer decision making for a given
product. Further it will explain the significance of marketers to mapping a path to purchase and
for understanding consumer decision making. It will compare the differences of decision making
process in context of B2B and B2C. Moreover, it will evaluate various approaches to market
methods and research that can use for understanding decision making process. Lastly, it will
determine how marketers can impact the various stages of decision making process.
LO1
Identify and evaluate the stages of consumer decision making process while purchasing a certain
product.
The consumer before buying a certain product will evaluate all the reasons related to the
purchase. For example if a consumer wants to purchase a smart phone then the major thoughts
that may arise in the mind of consumer will be as follows:
 The reason for purchase of the product.
 The need for the product, i.e. it is essential for him or not.
 The post purchase analysis about the usefulness of the purchase.
The various steps that the consumer will follow before the purchase are as follows:
 Need - The consumer will first analyze the need for the product. The need is the most
important factor which leads to buying of certain products or services. In fact the need is

the key reason which stimulates a consumer to purchase certain commodity. The
consumer always believes in useful purchasing and will only purchase the product if the
consumer is in the need of the product purchase or not (De Mooij, 2019). Even after the
purchase the consumer analyses his purchase to evaluate the usefulness of the purchase
that has incurred.
 Information Gathering - When a consumer realizes his need for the certain product, the
consumer first enters in the market and starts gathering all the relevant information about
the product he wants to purchase. Gathering information helps the consumer to be safe
from frauds and cheating in the market and will also be able to identify all possible
alternatives that the consumer can choose before purchasing the product. The evaluation
of market helps the consumer to identify the cheapest alternatives to enter in the market
for purchase.
 Evaluation of alternatives - The consumer after analyzing the market properly will
evaluate various alternatives that are in the market (Zhang and Benyoucef, 2016). Then
the consumer will choose the best possible alternative by which the consumer will able to
buy that product at the lowest possible price and with standard quality. The evaluation of
alternatives will help the consumer to buy the desired product with lowest possible price
and with no compromise on quality.
 Purchase of Product - The consumer after completing all the above stages will finally
purchase the product from one of the best alternative that are analyzed before the
purchase. After doing the following steps the consumer will finally purchase the product
of his choice with low price and standard quality and will be doing a safe purchase.
 Post Purchase Evaluation - After the purchase of product the consumer will analyze his
purchase that if the purchase was useful to him or not (Murphy and Dweck, 2016). Post
purchase evaluation refers to a customer analysis whether the purchase of product was
useful to him or not. The post analysis will also help them to identify defects in the
product.
Significance for marketers to map a path to buy and understand decision making of consumers.
 Improvement in sales cycle - The consumer decision making must be mapped well
before by the firms that can help the firm to improve their sale cycle. A key reason which
makes customer journey mapping much important is the businessman must identify the

blocker's that are becoming a hurdle in increasing sale cycle of the company. The
unification of all the consumer needs well in advance will help the firm to evaluate the
reason of low sale cycle. By receiving the right information at right time the firm will be
able to boost the sale cycle of the company even in the times of recession period.
 Unified customer data and continued engagement - The business units which are
diversified all over the world are in a need to keep all the relevant data with them
separately. The advanced consumer path mapping will help the businessman to focus on
some specific areas rather than evaluating each diversified market segment (Hofacker,
Malthouse and Sultan, 2016). The unified customer data will help the company to handle
each customer will it greatest efficiency. The continued engagement of consumer path
will make the work of external assistance easier. The external assistance is for helping the
business unit to plot the change in consumer behaviour and to evaluate these changes
unified customer data will have helpful.
 Design relevant Marketing programmed - The consumer behavior allow a firm to
create the system of the organization accordingly and thus of the path of consumer is
properly mapped then the company can easily evaluate the key problem and can redirect
them properly. A study of consumer behavior enables the marketer to understand what
motives a consumer had made for his purchase. The price, quality and other trends that a
consumer wants in his product can easily be made if the proper mapping of consumer
path is done well in advance. The marketer's will be able to take decisions regarding the
brand logo, coupons, packing and gifts that are offered as promotion the sales on the
basis of consumer trends.
 Improvement in customer service - The after sale service needs to be changed or
improved if there are changes in the customer trends. The changes in the customer
services can only be done if there will be proper mapping of customer's purchasing path.
The understanding of different levels of customer service must do after considering
customer behavior. If the trends in the customer behavior will be different then the work
done for improving customer service will not be in right direction. The customer service
if not improved will cause customer dissatisfaction and hence will result in declining of
firms goodwill or public image.

 Predicting market trend - The customer trend never remains stable rather it keeps on
changing and can result in wrong interpretation (East, Singh and Vanhuele, 2016). The
changes cannot be predicted well in advance with full accuracy but can be predicted
approximately. The prediction must be right and this can only be done when the customer
trends are studied well or there is Proper consumer path mapping. The consumer path
mapping will result in predicting the customer behavior with maximum accuracy and this
may not be possible if the mapping is not done in a fluent and proper manner.
LO2
Contrast and comparison of the key differences of decision making process related to B2B and
B2C
The purpose of Wiley fox is to sale its products either to the consumers or to the
businesses. B2B refer as business to business. In this the company sales raw materials to the
other company so that the other company is able to manufacture the end product and can deliver
it to the customers (Hong, 2020). Second B2C which is business to customers in this the
company sales the end product directly to the customers and can able to make profit out of it.
The consumer behavior indicates both emotional and rational factors that can be brought during
purchases. Thus, the company tries to create processes which help to ensure that customer’s
decisions are rational.
Difference between B2B and B2C
Basis B2B B2C
Driving factors In this company is focused on
product features and also
wants to improve the brand
image in the market.
In this the company is more
focused on relationships with
the customers (Jiang, Jun and
Yang, 2016). They tend to
provide customer support for
resolving their queries and
problems.
Primary motivation The company tends to In business to business the

establish strategies and want
to generate values (Szmigin
and Piacentini, 2018). This is
the primary motivational
factor for making the
purchase of products in the
case of B2B.
primary motivation factor for
purchase is status, personal
gratification and attachment
in emotional level. It also
includes economic
considerations which are
focused on selling products
on affordable prices.
Product complexity and
pricing
Business to business is
relatively complex than
business to customers. This
also includes high cost.
Business to consumer is
easier and pricing of products
is done as per individual
capacity.
Branding methodologies B2B take help of website,
research, industry forums,
whitepaper and professional
networks.
For doing branding of
products B2C use broadcast
commercial and endorsement
of celebrities (Lilien, 2016).
Size of market B2B focused on niche and
small markets.
B2C is focused on large
markets. For example,
Wileyfox wants to expand
their business at international
level. The main focus of
Wileyfox is on expansion of
their business in B2C.
Sales team purpose The key purpose of sales
team is on building
relationships.
In B2C the purpose of sales
team is on maximizing the
transaction value.
Number of Stakeholders The number of stakeholders
is multiple in B2B.
The number of stakeholder is
one in case of B2C.

Decision making process B2B requires longer period
for decision making process
(Sethna and Blythe, 2016)
It takes short time period for
opting out the decision
making process.
Sales cycle B2B have longer cycle of
sales and even have more
stages as firstly the business
sales raw material to another
business than the other
business will start producing
the end product. Thus, it
requires lot of time and
stages.
It has fewer stages as the
company directly contacts to
the customers and sale the
end product. The
manufacturing of the products
are done in company itself,
there is no third party
involved like in B2B.
Marketing activities B2B is more focused to
create brand awareness. They
are tending to provide
customer education.
Purchase action is
merchandise (Trail, 2016).
The company does promotion
of their goods in order to
increase the sales.
Relationship In this the relationship with
the customers (B2B) are of
long term. For example, the
company maintains
relationship with the other
business in order to sale them
raw materials. Thus, the other
business will again recall the
company for supplying the
raw material if the
relationship is good.
In B2C the relationship is of
short term, it ends with the
sale of product

For example, Wileyfox manufacture the smart phones and sale directly to the customers.
Hence, it is an example of business to customers. If the consumer want to purchase Smartphone
from Wileyfox, then firstly he or she will evaluate the price of product, the features of the
Smartphone, its battery, screen size, memory etc. By evaluating these features then he or she will
decide for a purchase of Smartphone.
For example, Wileyfox supply the raw materials and equipments which are used to make
a Smartphone to another company then it can be said as business to business. The other company
will purchase the equipments which are used to make Smartphone from Wileyfox then; they will
do manufacturing of products and sale it to the customers and make profit out of it.
Various approaches and methods of market research in order to understand decision making
process in context of B2C and B2B.
Survey for Market research - B2B research is more cost effective and practical than B2C in
this information can be gathering through web, email surveys and telephone. For doing survey in
B2C the company provide incentives to the customers. If the incentives are not provided such as
cash, gift card or voucher than customers will not feel interested to participate in surveys. In B2B
the incentives are not necessary to be provided as they find the matter is potentially sensitive and
helpful in proprietary they tend to participate in such surveys for free (Essential Market
Research Methods, 2019).
Personal interview - This is type of research method in which questions are asked to the
customers about the company's product in face to face conversation. It is very less chance to
conduct interview in B2B because it is not possible for the businessman to schedule an interview
they already are very busy plus it is also costly to do an interview with other business party
(Reisch. and Zhao, 2017).
Focus groups - In this committee of people sit in a room and discussed about what they want in
the product. They bring ideas to do improvements in the existing products. Focus group research
is very rarely possible in B2B. It is challenging to being the professionals all together in same
time as they are already busy with their meetings and workload. In B2C it is possible as the
customers and client have time to give their ideas and reviews about the product quality or
features.

Questionnaires - A list of questions related to the product and customer satisfaction are printed
on a paper and give to the customers. The customers can easily tick on the options given in each
question and can tell easily what they want in a specific product from the seller company. B2B
questionnaires should contain proper attributes in order capture the performance of product,
customer service, performance indicators and technical supports. The communication of
marketing and other decisions are also taken more in personal in case of B2B. On the other hand
in case of B2C the customer’s feels easy to fill the questionnaires are able to give answer about
their choices, preferences and other improvements in product quality.
Observation - This is the technique generally used in B2C. In this the company observes the
consumers actions (Willems, De Ridder and Roosen, 2019). It includes video playing in the
stores, at work etc. Even the seller can observe the customer while they are making the purchase
in both B2C and B2B. This research method includes buying behavior, customer shopping
patterns and habits. By reading these the company is able to make further improvements in their
products.
LO3
Marketers are able to influence the various stages under the decision making process of B2B and
B2C.
The marketers assume an essential role to impact the various phases of decision making
procedure under both the B2C and B2B circumstances. This process of making decisions of
customers initiates with problem enlistment and identification of need point (Doe and Kutu-Adu,
2017). For example, if a customer feel that he is in requirement of purchasing a new computer
either for his or her personal use or for the business purpose wants to purchase a computer for
increasing the effectiveness and competence in the organization. The marketers can affect the
customers by making a clean image of company in mind of consumers through sales promotion
and advertising. Second stage of the process is the evaluation in which the customers and
business buyers research for important information in respect to the product they are in need to
purchase.

Marketers requires to represent the data in regard to their brands in a way that the clients
can find the necessary information about the brands easily. Many companies provide information
to their clients through various ways like billboards, pamphlets and promotional calls are all
attractive way to provide info. Third stage is the assessment of data where the client thinks about
item includes, particulars, costs and accessibility of results everything being equal. Advertisers
can utilize marketing mix components to be on the top in client preference level. Advertisers
should offer superior quality items with the competitive price and must insure accessibility of the
items and information about advancement technique.
Forth stage is making buy and the job of advertisers is making this purchasing procedure
simple for the clients. Installment procedure ought to be simple and adaptable and the product
ought to be conveyed at home and workplaces with free of cost (Harris, Roby and Dibb, 2016).
Finally, the post purchase behavior comes and it makes prospect for the advertisers to reinforce
their relationship with the clients where the advertisers should deal with all the objections and
take care of those issues. Standard support ought to be finished by the company to make the
customers fulfilled. By tackling the issues of dissatisfy consumers the corporation can make its
customers and can create public image of the organization.
B2B clients recognize their requirements on a rational level. The need to buy an item is
for the most part identified with a general objective which builds profitability to accomplish
business goals quicker, offering better help, and client assistance. B2C clients, on the other side,
often work on an impulse (Smith, 2019). Their purchasing procedure effortlessly impacted by
promoting and showcasing. B2B clients experience a long procedure before they select the items
for procurement. Additionally, there are not really large group of individuals involved that must
assess all the potential in the item. B2C clients are significantly more adaptable. Hardly just a
single individual makes the choice for himself and very less time is a predetermined arrangement
is being followed. Likewise, the purchaser is probably going to look after certain product
specifications to make the product better.
CONCLUSION
It has been summarized that consumer behavior is a study for identifying the consumer
shopping patters, habits and buying behavior. It is essential for the company to study consumer

behavior for satisfying the customer’s needs and wants. It is overall assessment and observation
of customer’s actions in the marketplace. It has been concluded from the above report that the
evaluation of alternatives will also help the consumer to stay away from duplicate product in the
market. It has been determined that mixed methodologies are used in B2C market research. B2B
markets are complex than B2C. Hence, large investment is required for collecting statistics data
of the companies.

REFERENCES
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Online
Essential Market Research Methods, 2019. [Online]. Available through :<
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