Difference Between B2C and B2B Decision Making Processes

This assignment compares and contrasts the decision making process in Business-to-Consumer (B2C) and Business-to-Business (B2B) markets. It highlights the complexities of B2B decision making, which involves gathering information about competitors, company decision making processes, and other factors. In contrast, B2C market research focuses on consumer behavior, buying patterns, and other factors related to individual customers. The assignment also references various studies and articles that explore these differences in more detail.

Consumer Behaviour and
Insight

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Compare and contrast the key differences between B2C and B2B decision making process ...1
Evaluate difference in market research between B2B and B2C.................................................2
Personality, Self and motivation and consumer perception influence on the decision making
processes.....................................................................................................................................3
Evaluate behavioural and cognitive approaches to consumer learning.......................................4
Culture and other relevant factors impact on consumer behaviour............................................4
Illustrate how organisations use an understanding of buyer behaviour to influence the
decision-making process within both a B2C and B2B context...................................................5
Use of digital audience research developments to understand and influence consumer
behaviour ....................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Customers are the key to success either it is small company or multinational organisation.
Everything company do is to make the customers satisfied. In this present report will discuss
some wider issues of decision making in context to B2B and B2C decision making process.
Compare and contrast the key differences between B2C and B2B decision making process
BASIS B2B B2C
Meaning Business to Business or B2B
is selling of products and
services between two business
firms.
Business to Customers or B2C
is transaction between
customers and firm.
Customer In Business to Business the
customers are the company or
firm whom one firm purchase
products and services from
another such as raw material,
labour etc. that influenced the
decisions making.
In Business to Customers, end
users are main consumers of
the firm that influenced the
decisions making.
Emphasize On In Business to Business, the
main emphasise is making a
good relationship between
firms in taking any decisions
or anything
(Oberguggenberger and et.al.,
2018).
In Business to Customers,
emphasise of company is on
customers as they are the one
who influences the decision
making.
Relationship The relationship between firms
is long termed.
The relationship between
customers is short term.
Buying Decision The buying decision is based
logical and planned as well as
The buying decision is based
on emotions, exception and
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based on needs. desire.
Awareness In taking any decisions related
to buying or anything,
awareness level is medium
(Ferguson and Mohan, 2019).
In taking any decision related
to buying, awareness level is
very high because it is
important to make the
customer satisfied.
Contrast
The contrast among Business to Business and Business to Customers decision making
process is that both influence the operations and function of company. So in order to overcome
or aobat the impact, ARKET firm have to influence
Evaluate difference in market research between B2B and B2C
Market research is the action for collecting information about the needs as well as
preferences of customers. It is very important for ARKET clothing store to conduct market
research for both firms and for customers. Market research differs in Business to Business and
Business to Customers.
Market Research Business to Business (B2B) Business to Customers (B2C)
Necessity The market research in
Business to Business is very
essential but it is not
mandatory especially for small
firms.
The market research in
Business to Customers is very
essential as it is directly
connected with the customers.
Customers are the key to
success (Szmigin and
Piacentini, 2018).
Environmental Study In Business to Business, there In Business to Customers, it is
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is no need of environmental
study like Pestle, Porter's,
Ansoff etc.
very essential to conduct
environmental study like
Pestle, Porter's, Ansoff and all
other tools are used.
Return On Investment Expected but moderately. Highly Expected from
customers.
Trends Do not need to be consider. It is very important in Business
to Customers to focus on
current trends because
customers are highly aware of
current trends.
Personality, Self and motivation and consumer perception influence on the decision making
processes
It is true that personality, self and motivation and consumer perception influences in
decision making processes. Here is the detailed description of these factors described below-
Personality: It is the mixture of characteristics or qualities which makes the personal a
distinct characteristic. Personality is denoted by many things such as-
Living Style: Consumer used to western clothes will buy traditional outwear and if any
person used to wear western clothes they will buy western clothes. So these things influence the
buying decision process (Graham and Mudambi, 2016). ARKET clothing stores needs to focus
on the living style of people living in the locality.
Self and Motivation: Self and motivation is another factor which influenced the buying
decision. Motivation includes needs which inspire actions in order to execute goals for satisfying
the needs or reducing a drive. For example, customers who are driven by status and esteem
motive might use self-image as key choice in buying product like branded clothes, car etc.
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Consumer Perception: The procedure for which a person choose, organise as well as
interprets sensory stimulation in order to constitute a meaningful image in the society. For
example, habits, attitudes, belief etc. are included in customer perception which influenced the
buying decision.
Evaluate behavioural and cognitive approaches to consumer learning
The process by which a person acquires or obtain the purchase as well as consume the
experience and knowledge which apply to future related behaviour is called as consumer
learning. There are two fundamental approaches which is used in consumer learning are
Cognitive and Behavioural.
Cognitive Approach: It is the modern approach which emphasize on how customer think
for the particular product. The scientific study of intellectual process like attention, problem
solving, memory, thinking, creativity and language use. These are very important element that
influence the decision making process (Pandey and Mookerjee, 2018). For example, ARKET
clothing store could gain the attention of customers by presenting stylish dresses according to
trends. Further, by organising sales and discount, the attention of customer can be gain.
Behavioural Approach: This is also one of the approach where the buying behaviour of
consumers is influenced. Behaviour includes perception of group, experience, living style,
culture etc. It is assumed that a person behaves just like the society or surrounding. For example,
the culture of society is western, than major population will prefer western clothes.
Culture and other relevant factors impact on consumer behaviour
Factors which have their influence on consumer behaviour consists of set of values as
well as ideologies of specific product or group of people are consists of cultural factors. Culture
includes three factors which are Culture, Sub-Culture and Social Class that influenced the
consumer behaviour.
Culture: Belief, customs, practices and rituals are included in culture and it is followed
by the group of people. Take an example of a child, he/she impacts the buying and decision
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making patterns through his/her surroundings. The variation of culture is region to regions. So,
ARKET firm could provide products and service that suits on culture. The impact of culture on
consumer behaviour because if the consumer belongs to upper class it would prefer to buy the
luxury products.
Social Class: This is the factors which also influenced the purchase decision. It is fact
that, consumer belonging to same class will share similar values, behaviour and interest (Mohan
and et.al., 2018). Basically, there are three classes upper, middle and lower. Thus, in order to
fulfils the needs of social class, firm could provide products and serves for all range of classes.
Illustrate how organisations use an understanding of buyer behaviour to influence the decision-
making process within both a B2C and B2B context.
The buying behaviour plays an essential role in the organisation because the life of
business depends on customers and others. In understanding the buying behaviour in B2B means
business to business, it is somewhat very typical and complex because customers decisions
influences many factors like perception, attitudes, belief, living standards, culture, economic
conditions, income etc. Moreover, high level of market research is required in understanding the
consumer behaviour in B2B (Scheffler, Schiele and Horn, 2016). Thus, in order to understand
the buying behaviour in B2B, ARKET clothing store uses various models and process which are
Nicosia and Black Box Consumer behaviour models. It provides great connection as well as raise
the emotional intelligence of company. It helps to identify the needs and expectation of
customers from company and it allows firm to experiment with the visual creativity. On the other
hand, in B2C, organisation does not need to do many efforts like in B2B.
Use of digital audience research developments to understand and influence consumer behaviour
Digital audience research development includes the use of digital technology for
influencing the consumer behaviour. The digital audience refers to the customers which are in
close relation with the company through use of various digital media which consist of Facebook,
Instagram, twitter etc (Necula and Mann, 2018). The Company uses different methods to
understand the consumer behaviour through use of this social media tools. ARKET clothing store
can use the social media sites for understanding the taste and preference of customers in order to
offer the products and services as per the demands of customers ion order to retain the consumer
for a long run in business (Banerji and Farooqi, 2016).
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Companies through use of digital audience research developments can gather the
information regarding the interest, attitudes and behaviour of their consumers which assist the
company in designing the products and services according to their requirement. This type of
research through use of social media reduces the cost of the organisation and provide accurate
information which is required. But on the contrary, digital audience research developments may
provide incorrect information due to which the company gathers the wrong information about
consumer behaviour.
CONCLUSION
From the above assignment it has concluded by difference between B2C and B2B
decision making process which has provided understanding that in B2C the decision is regarding
the consumer behaviour whereas in B2B the decision making process is complex. Moreover, this
study has provided understanding about difference in market research of B2b and B2C as it
contains that in B2B market research the researcher gather information about competitor,
information regarding decision making of company etc. Whereas in B2C market research the
researcher gathers information regarding consumer behaviour, buying patterns etc.
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REFERENCES
Books and Journals
Ferguson, J.L. and Mohan, M., 2019. Use of celebrity and non-celebrity persons in B2B
Graham, J.L. and Mudambi, S.M., 2016. Looking at the future of B2B branding. The Routledge
companion to contemporary brand management, p.271À279.
Howie, K.M. And et.al., 2018. Consumer participation in cause-related marketing: An
examination of effort demands and defensive denial. Journal of Business Ethics. 147(3).
pp.679-692.
Kamal Basha, N., Sweeney, J. C. and Soutar, G., 2015. Effects of country and delivery mode on
perceived risk in international higher education. Journal of Marketing for Higher
Education. 25(2). pp.171-203.
Mohan, M., Brown, B. P., Sichtmann, C. and Schoefer, K., 2018. Perceived globalness and
localness in B2B brands: A co-branding perspective. Industrial Marketing Management.
72. pp.59-70.
Necula, R. A. and Mann, S., 2018. Democratisation or individualisation? On the distribution of
food consumption. British Food Journal. 120(5). pp.942-951.
Oberguggenberger, A. and et.al., 2018. Health Behavior and Quality of Life Outcome in Breast
Cancer Survivors: Prevalence Rates and Predictors. Clinical breast cancer. 18(1). pp.38-
44.
Pandey, S.K. and Mookerjee, A., 2018. Assessing the role of emotions in B2B decision making:
an exploratory study. Journal of Indian Business Research, 10(2), pp.170-192.
Scheffler, P., Schiele, H. and Horn, P., 2016. How to measure competition? The role of price
dispersion in B2B supply markets. International Journal of Procurement
Management, 9(5), pp.568-586.
Szmigin, I. and Piacentini, M., 2018. Consumer behaviour. Oxford University Press.
Online
Black Box Model of Consumer Behaviour. 2017. [Online]. Assessed through:
<http://cbim21.blogspot.com/2015/08/black-box-model_10.html/>.
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