Consumer Behaviour and Insight

This document discusses the stages of consumer decision making journey, the importance of mapping a path to purchase, and the differences in decision-making process in B2C and B2B contexts. It also evaluates how marketers respond to the decision-making process and the different approaches to market research used in both contexts.

CONSUMER
BEHAVIOUR
AND INSIGHT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1 ............................................................................................................................................1
P1 Explain and analyse the stages of the consumer decision making journey for a given
product/service............................................................................................................................1
P2 Explain why it is important for marketers to map a path to purchase and understand
consumer decision-making..........................................................................................................2
M1 Evaluate how marketers are responding to the decision-making process, applying relevant
concepts and models...................................................................................................................3
TASK 2............................................................................................................................................4
P3 Compare and contrast the key differences of the decision-making process in the context of
B2C and B2B, providing specific examples...............................................................................4
P4 Evaluate the different approaches to market research and methods of research used for
understanding the decision-making process in both B2C and B2B contexts..............................5
M2 Provide a coherent and justified evaluation of how different factors influence decision-
making and buying behaviour, supported by specific examples.................................................6
TASK 3............................................................................................................................................7
P5 Evaluate how marketers can influence the different stages of the decision-making process
of B2C and B2B, giving specific examples................................................................................7
M3 Critically evaluate how marketers influence each stage of the decision making process
with reference to relevant methods and models applied.............................................................8
D1 Critically evaluate the application of appropriate theories, concepts and models that
influence and impact upon the decision making process, supported by specific examples and
contexts.......................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERNCES ................................................................................................................................10

INTRODUCTION
Consumer behaviour is a study of the determinants of an individuals and organizations to
choose, acquire as well as utilization of goods and services to satisfying their own needs and
wants. The survey of consumer behaviour is concerned with the aspects of buying behaviour of
buyers related to the evaluation of post purchase, pre purchase activities. This study is related to
determine and influences of how potential customers for a specific products or services. In this
report, Samsung is chosen as a B2B company and studied on the specific product of that
company which is Galaxy Note 10. At a time of launching new products or services, a company
needs to analyse the market conditions as well as the consumers expectations in order to satisfy
them and get success in future. This report covers the analysis of the several stages of decision
making and its significance for marketers to prepare a roadmap. Although, the procedure of
decision making with B2B and B2C context and approaches of methods market research. In
addition also, justify the factors and stages which influence the buying behaviour of consumers
by using the appropriate concepts, theories and models.
TASK1
P1 Explain and analyse the stages of the consumer decision making journey for a given
product/service.
Consumer is a person who purchase for consumption in return of paying some amount of
money and they are known as the market player. Whereas, decision making is a cognitive
approach that is used at a time of selecting a course of action among the various options
possibilities (Bereznoy, 2019). In other words, it is a process of identifying, analysing and
choosing the best alternatives which are based on the values, beliefs and preferences of the
decision maker. Within the context of Galaxy product Note 10, the marketers uses the various
stages of consumer decision making in order to take a smooth and effective decisions. These
steps are as follows:
Problem recognition: It is the first and most important step of consumer decision making
stages in which consumer analyse the needs and the problems of the decisions because without
the need recognition purchase cannot takes place. Smartphones become a necessity of modern
society and the several models are present in the marketplace, a user needs to identify the trouble
and dimensions. So, the marketer of Galaxy Note 10 needs to analyse the users requirements and
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their preferences as well as competitors strategy which helps in identifying the decisions
regarding consumers (Calder, 2016).
Search process: In this stage, before buying a product consumer searched and gathered
relevant informations regarding the products or services which are best. For purchasing Galaxy
Note 10 a consumer collects the relevant facts regarding the buying of product and their reviews
after that they can take a buying decisions. In this phase users research for products or services
that can satisfy their own needs and wants as well as make a effective buying decisions. This will
helps in identifying the both facts such as positive and negative, this will done through social
media and users reviews who have experience of Note 10 quality, features and services.
Alternatives evaluation: Once a consumer has find out what will fulfil their requirements
they will begin to look for the high-grade deal of products or services. This based on the
attributes of goods such as features, quality, price, reviews, services, design etc. To buy a Note
10 product customers use search informations for comparing and evaluating the all options that
are available in the market and choose best alternative among them which are most suitable
according to their expectations.
Selection of best alternative: It is the last step of consumer decision making process
because after analysing all above stages, in this a user finally decide and make actual purchase of
product which can satisfy the needs and expectations of them (De Mooij, 2019). The purchasing
decision of Note 10 will take place when consumers analyse all the stages and make a desired
purchase decision.
Decision evaluation: It is the feedback approach of the customers towards their buying
decisions that have been purchased by them is up to mark or not according to their expectations.
This is related to the post-purchase behaviour of the customers and helps in distribute the
negative and positive feedback about the product or Note 10.
P2 Explain why it is important for marketers to map a path to purchase and understand consumer
decision-making.
Consumers are the centre of marketing activities, for studying the market environment it
needs to understand and recognise the factors which influence the effective users and their
decision making procedures that they use. Marketers of Note 10 considers the whole buying
process rather then only purchase decision to make a path to purchase and understand consumer
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decision making (Gargiulo, 2015). To map a path of purchase and understanding the consumer
decision making process, a marketer requires to consider some points that are discussed below:
Market research: It is needed on the continuous basis to keep in touch with the latest
market trends and gain a competitive advantages in business. Market research is most significant
for the Galaxy Note 10 marketer in order to identify and understand the consumers needs and
wants. This helps in answering the several questions such as:
 what is the consumer behaviour while purchasing product.
 What substitutes are available in the market which effect their brand.
In order to research about the users behaviour a company i.e. Samsung needs to understand the
all aspects that influence the behaviour and buying decisions of consumers.
Offerings attractive prices: Consumer's are attract more for buying a low price products
because strategic prices helps in increasing the customer base as well as retain and develop loyal
users. Attractive discounts and offers affects the purchasing decisions of buyers to purchase a
product it includes the coupons, vouchers, sales promotion etc. are used by the marketer to
identifying the customer behaviour (Gensler, 2015).
Understanding consumer decision making:
It is defined as a process of identifying the needs and requirements, collect information,
examine alternatives and after that they can make a purchase decisions. The behaviour of
consumers may be defined by their economic as well as psychological factors that are mainly
influenced by environmental aspects such as social as well as cultural values.
M1 Evaluate how marketers are responding to the decision-making process, applying relevant
concepts and models.
To understand the consumer buying behaviour, Nicosia model is used. This model is
used by the marketers because it focuses on the relationship between the company and its
potential customers. It defines that how an advertisement of new products influence the
consumers. It can be divided into four stages which are described as: The firm's and
consumer's attributes divided into two subfields, first one deals with the marketing situation
which effects the competitive environment, consumers attitudes and the nature of target market.
Whereas, second one deals with the users personality, features, experiences etc. towards the
Galaxy Note 10. Search and evaluation in this step consumers will start searching for substitute
product of Galaxy Note 10 and comparison with alternate brands. Marketers need to launch that
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product which is best meet the users requirements. The company needs to motivate and
encourage their buying behaviour of customers to purchase a specific product (Hofacker, 2016).
Act of buy motivation results in convincing users to purchase a specific product of Samsung
brand such as Galaxy Note 10. Feedback at last the founder analyse that this is necessary for
both firms and users to satisfy them. Company will be able to know their drawbacks where
customers use the shared experience of others. This model is considered as a structural model of
buying decision making procedure of an individual as it shows the interactive relationship
between the company or marketers and customers.
TASK 2
P3 Compare and contrast the key differences of the decision-making process in the context of
B2C and B2B, providing specific examples.
B2B and B2C are the main two concepts which are used by the businesses in order to sell
their commodities. B2B is that kind of business form where the selling of goods and services is
done with other firms or organizations (Difference Between B2B and B2C, 2019). Whereas,
B2C means the trade takes place with the selling of commodities to their potential customers.
Both strategies are used by the marketers to attain a high market position. There are some
difference between the B2B and B2C decision making process which are as follows:
Basis B2B B2C
Meaning It stands for business to business. Sell
products and services directly to the
decision makers of other firms for the
purpose of marketing.
It stands for business to consumers.
Sell products and services to their
potential customers for personal
use.
Consumer buying
decision
In B2B, a company attempt to trade
their products to other organizations
and go for the total income of seller.
Businesses are little then the
consumers so, business to business is
low development directed platform.
In B2C, customers are attempts to
reach out to buy a goods from a
particular firm and communicate
with businesses through the
advertising, social media etc. Here
a company has their potential and
loyal users for selling their
products irrespective of whatever is
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pricing.
Marketing
strategies decisions
This kind of enterprises require
seminars, trade and business fairs etc.
to create a long term contacts and
relationships with other firms to sell
their products and services. Here,
tools and techniques of marketing are
not used for selling their products.
For promoting the company's
products to the customers, firms
focused on the marketing tools and
techniques such as advertisements,
social media etc. to attract users
and served them effectively. It
requires personal contacts with
potential customers for selling.
Payment and
pricing differences
B2B products prices are different for
all firms because it depends upon the
bulky orders or on the negotiation
terms. It requires complex system of
payment, company's do not pay at a
time of sales but after receiving
invoices which they settle within
agreed payment terms.
In B2C, consumers purchase
product and pay same prices as
other buyers pay. In this payment
takes place at a time of sales by
using payment mechanism such as
debit card, credit card, check or
cash.
P4 Evaluate the different approaches to market research and methods of research used for
understanding the decision-making process in both B2C and B2B contexts.
Market research is a organized efforts which are used for collecting the information about
their customers or target market. It is a very important aspects of an organization of business
strategies to understand the needs and expectations, competition as well as market size
(Japee2015). This will helps in maintaining competitiveness over competitors and determine the
products validity with their potential customers. Market research assist in providing the
satisfaction to the consumers by fulfilling the needs and wants. B2B and B2C both businesses
focus on the market research in order to trade in the market which are as follows:
Market research approaches in B2B: It is a process of uncovering insights into
marketplace by studying a sample of its participants. This includes their existing, former, lost
and prospective customers. In this businesses will focus on adoption of secondary source of data
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collection and focus on the utilization of this approach as this includes less cost and time (Zhang,
2016). For market research businesses can use different sources that are as follows:
Literature reviews This is not related to only the summary of everything which are available.
It is a critical analysis of existing research to collect the relevant
informations and identifies the gap in the research area. A literature
review is the description of the written material on the relevant topic.
public records It means gathering and analysis of existing facts and figures, findings,
published data etc. This emphasis on the process of trade decision which is
done with the other businesses by collecting the past records of public
related to the firms.
Market research approaches in B2C: This kind of research is used for selling products
directly to their potential customers. To collect the actual informations and facts about the
customers primary source is more suitable (Mangiaracina, 2015). Samsung is required to carry
out this research in collecting the data which are associated with the needs and wants of the users
against their Galaxy Note 10 product in order to sell their potential buyers. For market research
in B2C businesses can use several sources which are as follows:
Personal interviews This will facilitates the interaction with their customers and find out that
where a firm is lacking and how to correct them. Moreover, it helps in
gathering the relevant and accurate informations so the businesses can
deal with their users in effective manner.
Questionnaire It includes the series of questions regarding the needs, wants, desires of
the customers is frame and asked for filling this within the time frames.
This will enables businesses in estimating about the customers taste and
preferences as well as it helps in producing products on the behalf of their
results of questions.
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M2 Provide a coherent and justified evaluation of how different factors influence decision-
making and buying behaviour, supported by specific examples
There are various factors that are responsible to influence the buying behaviour and
consumer decision process with respect of Galaxy Note 10. These determinants are cultural,
social and economical which can be described below:
Economical factor: It includes the monetary terms of a specific products such as cost and
price policies. It stated that Galaxy Note 10 charges high prices with respect of any doubt
customers are still ready to pay the premium offerings.
Social factor: This reflects the behaviour of a person or the living standards of people
who purchase the Galaxy Note 10. the high range of products are used as a status symbol of an
individual and it compared with the other people and their standards.
Cultural factor: These refers to the shared values, beliefs and behaviour of the people. It
is very crucial part of society and significant course of person's needs and wants. The company
needs to understand and take into account that cultural factors are inherent to each market
situations in order to adopt products and its marketing strategies (Shankar, 2016).
TASK 3
P5 Evaluate how marketers can influence the different stages of the decision-making process of
B2C and B2B, giving specific examples.
Both B2B and B2C works on the buying behaviour that influences the decision making
process of both business to business and business to consumers. Marketers needs to focus on the
price, quality, features, design, services etc. to influence the customers for purchase the products
of a company (Xiang, 2015). These determinants influenced the businesses as well as customers.
For example: a firm is dealing with businesses to sell their products then they provide an
evidence in the form of sample or trial products which they are trading with samples so other
firms can purchase those product without any doubts. This will helps marketers to influence the
decisions which has been facilitates by the firm to use and experience the product. Whereas, a
firm is dealing with the customers to sell their products can influence the decision making
process of consumers by providing the relevant and actual informations along with their benefits
and safety measures which the products will provide to them. To retain towards their brand
marketers needs to facilitates some free gifts.
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The marketers must focus on different promotional and advertisement tools as provides
to their customers due to which users get more attraction towards buying those products and
decision making process (Shih, 2014). Thus, marketer plays a crucial role in influencing decision
making and buying behaviour of consumers in business to business (B2B) and business to
consumers (B2C) approaches of businesses.
Behavioural approach: All marketing decisions are based on the knowledge and
assumptions of consumer behaviour and it reflects the decision making of buyers also. This
approach is based on the external events results which effect consumer, it focused on the input
and output behaviour of an individual. This approach contains the two types of theories that are
as follows:
Classical conditioning: This theory is concerned with the learning process of the persons that
are undertaken by way of different results generated by the correlating between the two diverse
stimuli of the market or marketplace.
Instrumental conditioning: This illustrate the relationship between the stimulus and responses.
Marketers focused on the trial and error process for generating the final result (Siamagka, 2015).
M3 Critically evaluate how marketers influence each stage of the decision making process with
reference to relevant methods and models applied.
For evaluating the stages of decision making process which influenced the marketers for
trading with the businesses of firms and consumers, cognitive approach is used. This indicates
that customer learning is a complex process, and comprises of exposing consumers to latest
information about a new product or services. This model is based on the analytical and
prescriptive behaviour, analytical model deals with the consumers buyers and decision behaviour
(VanDuin, 2016). Whereas, prescriptive based on the theory of planned behaviour and their
actions. Both are impacts on marketers at a time of market their products and by applying this
model a marketer have benefits of consumer attractions and loyalty and able to change their
buying behaviour and decision making to buy their own products.
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D1 Critically evaluate the application of appropriate theories, concepts and models that influence
and impact upon the decision making process, supported by specific examples and
contexts.
In this report mainly three theories, approaches or models are used for influencing the
decision making by a marketer to market their products and services to satisfying the needs and
wants of the consumers in the market. This will helps in better understanding about the market
environment as well as their competitors and makes a competitive strategy to take a competitive
advantages. Along with this, this theory is time consuming and costly to adopt because
businesses are small but customers range are large so to reach their potential consumers and
deals with them is a complex process.
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CONCLUSION
It is summarised after analysing above report that decision making of consumer is a
crucial approach for an organization which helps in deciding about to purchase goods or should
wait which are sold by the companies. Along with anticipated with the individuals needs and
demands of the customers is essential for company to responds on the behaviour and decisions of
people. In addition, has been observed that the approaches of businesses i.e. B2B and B2C to sell
their products and services. As well as both approaches has different process of consumer
decision so, they need to do different market research for the both.
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REFERNCES
Books & Journals
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