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Consumer Behaviour and Insight

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Added on  2023/06/16

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This report covers the importance of understanding consumer behaviour for a business entity, with a focus on the example of Marks and Spencer. It includes an analysis of the stages of the consumer decision-making journey, how to understand customer needs, the black box model of decision-making, and the implications of marketing mix and model. The report also compares and contrasts the key differences of the decision-making process in the context of B2C and B2B, and evaluates different approaches to market research.

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Consumer behaviour
and insight

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EXECUTIVE SUMMARY
The consumer behaviour is considered as attitude of customers towards the business and
its different aspects. It is important for the business entity to focus on consumer behaviour in
order to lead the marketplace. In this project various dimensions of consumer behaviour are
taken into consideration to deeply analyse market trends. This report also includes application of
black box model for understanding consumer needs in a well defined manner.
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Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................5
Explain and analyse the stages of the consumer decision-making journey for a given
product/service............................................................................................................................5
How the Marks and Spencer company choose suitable factors for understanding needs of
customers(B2C)..........................................................................................................................6
Explain why it is important for marketers to map a path to purchase and understand consumer
decision-making..........................................................................................................................7
The application of decision-making process...............................................................................7
Black box model of decision-making:........................................................................................8
Why the model is known as black box model.............................................................................8
Implications of marketing mix and model to develop effective approach at the marketplace:. .9
Analysis of consumer decision-making journey and path mapping with assumptions and
suggestions................................................................................................................................10
Compare and contrast the key differences of the decision-making process in the context of
B2C and B2B, providing specific examples.............................................................................11
Evaluate the different approaches to market research and methods of research used for
understanding the decision-making processing both B2C and B2B contexts...........................12
Consumer persona.....................................................................................................................15
How marketing uses consumer behaviour to develop target market........................................15
Evaluate how marketers can influence the different stages of the decision-making process of
B2C and B2B, giving specific examples...................................................................................17
Explanation of Ego and superego along with marketing application of this theory ................18
Concept of development of self-image in order to create competitive advantage at the
marketplace...............................................................................................................................18
Motivation and its dimensions for the company along with maslow's theory and personality
theories for Marks and Spencer.................................................................................................19
CONCLUSION .............................................................................................................................22
REFERENCES..............................................................................................................................23
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INTRODUCTION
The consumer behaviour is related to the traits and characteristics of customers which
determine the purchasing attitude of the customers (Agu, 2021). It is important for a business to
focus on developing positive customer behaviour for the increase in sales and turnover. In the era
of stiff competition between different companies, it is important to maintain precise customer
behaviour in order to create customer satisfaction. In this report example of Marks and Spencer
is taken into consideration for better understanding consumer behaviour in a precise manner.
Marks and Spencer is an international business retail firm which is based in United Kingdom.
The company provides cloths and accessories to different customers and business organisations
with effective management operations. In this project the consumer decision-making process is
covered along with the difference in B2B and B2C decisions. This project also covers different
approaches to market research for identification of different target customers.

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MAIN BODY
Explain and analyse the stages of the consumer decision-making journey for a given
product/service
It is essential for Marks and Spencer company to develop and analyse the different stages
of consumer decision-making journey for better growth of business. In the functioning of Marks
and Spencer, the research and development should analyse, consumer decision-making journey
with the help of marketing management (Amin, 2017). The different stages of consumer
decision-making journey for Marks and Spencer are mentioned below:
Problem recognition- This is the first phase in the consumer decision-making which
includes identification of the problem associated with the product or service. In this stage
a customer identifies problems in a significant manner to find optimum solutions in a
short span of time. In this stage Marks and Spencer should provide solutions to the
problems of customers by understanding their problem in a deep manner. This is also key
role of a business to establish empathy with different customers in order to gain their
loyalty and trust.
Information search- The information search is a compulsory step in the consumer
decision making which facilitates the decision-making. In this approach, a customer
performs market survey for searching whole information related to a project. Marks and
Spencer should take help of information and technology to develop information search in
order to solve identified problem. In this approach Marks and Spencer should promote
product and services in front of the customers to ease their search.
Purchase decision- This is the most important stage in the consumer decision-making
process which includes formulation of purchase decision. The purchase decision
identifies which product or service a customer has to buy in order to satisfy needs.
Purchasing decisions related to clothing are made by different customers
Post purchase evaluation- The post purchase evaluation is done by a customer in order
to identify the relevance of product. In this approach, a customer evaluates product and
service along with its utility in the marketplace.
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How the Marks and Spencer company choose suitable factors for understanding needs of
customers(B2C)
The Marks and Spencer company analyse key factors that are related to understand need
and demand of different customers. It is major responsibility of a business to focus on key
factors which are mentioned below:
Buying trends- A business should understand the buying trends of different customers in
order to develop a major product selling strategy. Marks and Spencer company takes help
of marketing management and strategic management to focus on wants and demands of
different customers.
Market competitors- This is also an important for a company to focus on current aspects
of marketing in order to lead the marketplace. Marketplace competitors and strategies
used by them are helpful for a business to understand demand of different customers. In
the recent times, a business should also focus on analysing key market forces which are
impacted because of competitors.
Psychology of customers- The main factor which helps in understanding needs of
customers is related to their mindset. In order to change mindset of customers, it is
important for the company to deeply analyse psychology of customers. This helps in
development of sales revenue and turnover.
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Explain why it is important for marketers to map a path to purchase and understand consumer
decision-making
In the marketplace, it is very much important for a business entity to map a path to
purchase and understand whole decision making. The importance of mapping purchase path and
decision-making of customers for Marks and Spencer is mentioned below:
Increase sales volume- The business entity can easily increase in sales volume by
developing a precise approach in understanding decision making. The sales targets are
also achieved by a business in a short span of time by understanding whole consumer
behaviour. A company should also focus on understanding decision-making in order to
maximise the annual turnover of the company.
Increase customer satisfaction- The main priority of a business is to satisfy customers
by using different approaches (Çal, 2020). Marks and Spencer increases the satisfaction
of different customers by understanding needs and wants. Increasing the customer
satisfaction creates dynamic business which helps in fulfilment of desired wants and
needs of different customers.
Business development and revenue- Understanding the customer needs and wants leads
to business development which is topmost priority of a business (Johnstone, 2018). The
companies in international and national market takes support of professional strategic
management to develop major functions which are important in overall development of
the business.
The application of decision-making process
It is crucial for a business entity to focus on decision-making process in order to develop
effective advantage in maintaining customers. The application of consumer based decision
making is essential for development of a business in a set period of time. Most of the successful
national and international companies focus on development of significant approaches for
development of decision-making process. In order to develop effective decision-making, it is
necessary for a company to focus on different aspects of techniques and tools that supports
formulation of decisions. The decision making process of customers is mentioned below:
Plan- Planning is a major part of any function related to a company in order to formulate
major practices for purchasing a product. In the primary phase it is essential for entity to
plan for key development initiatives. All major companies in international marketplace

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majorly plan for a meeting expectations of customers. Planning includes analysis of
products and services of a company to develop a decision making based on pricing and
quality of product.
Discussion- In this phase customer discuss with other sources related to a product and
then finalise a product. This is also a major type of phase in organisation in order to
develop effective decisions.
Decisions- The decision-making is performed in this phase, when customers takes actual
decisions of the company. Main decisions are taken by consumers generally not change
due to decision making in the company. All decisions are taken on major basis by
customers for effectively dealing with major customers.
Implementation- Implementation is also a major approach, in customers finally buy the
product from marketplace. Also in this stage a business earns profit if its services are
based on optimum quality.
Black box model of decision-making:
The black box model of decision-making focuses on key approaches that are based on
understanding buying behaviour of customers. It is important for a business to understand black
box model for overall development of a business organisation. In the recent times, importance of
understanding consumer behaviour has increased with help of models and theories. In the era of
stiff competition between different global and domestic companies, it is most crucial for a
company to focus on buying behaviour of customers. In black box model, things and responses
which impact on consumer's buying behaviour are considered. This helps in establishing a major
approach for a business entity in order to develop focused goals and objectives. It is also major
responsibility of management to focus on black box model for understanding psychology of
customers.
Why the model is known as black box model
The model is known as black box because it clearly targets mindset of different
customers in order to develop effective approach. Black box model is considered as a major
approach which is helps a business to analyse stimuli related to inside thinking of customers.
This approach supports a business to serve customers in a different manner for long term growth
of company. The application of marketing mix is given below:
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Price- Price is considered as an important factor which is related to value of commodity
in the marketplace. Marks and Spencer company decides affordable pricing for its
products and services to attract large number of customers.
Place- The place is related to geographical location selected by a business in order to sell
produced goods at the marketplace. It is necessary for a business to focus on selecting a
good place for selling a product for development of more and more customers. Marks and
Spencer company selects good location in different countries to increase sale of different
products and services.
Product- Product is considered as the physical output that is developed by a company in
order to satisfy wants and needs of different customers. The product should be also based
on effective quality in order to increase its market value and strength of company. In the
current scenario, product is considered as major unit which is sold at the marketplace for
satisfaction of customers.
Promotion- Promotion of a product includes advertisement campaigns and publicity
which is performed by a business. This approach helps Marks and Spencer to circulate
crucial information related to products and services.
Implications of marketing mix and model to develop effective approach at the marketplace:
It helps in development of a company by expanding scope of a business at the
marketplace.
These techniques are helpful in increasing competitive strength of a company and
increase profitability.
It supports a company to analyse various marketing trends that are going on in
contemporary business marketplace.
The application of marketing mix also helps a company to briefly focus on promotion of
a product to increase consumer satisfaction.
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Analysis of consumer decision-making journey and path mapping with assumptions and
suggestions
It is essential and compulsory for a company to focus on whole consumer decision
making journey for long term growth of business. The consumer decision-making journey also
helps a business entity to deeply analyse different market forces. In the first stage it can be
assumed that it is important for a business to analyse key factors that are associated with
behaviour of customers. It is also one of the key role of Marks and Spencer company to promote
different practices that are based on understanding consumer behaviour. In the second stage,
consumer search information related to a product or service in a set period of time. For handling
this, a business should prefer to provide an in depth information about products and services.
Marks and Spencer should provide brochure to its target customers on the basis of products and
services. Third stage of consumer decision-making journey includes focus on implementation of
business plan to influence decision-making of customers. In order to promote clothing of Marks
and Spencer information and technology is taken into consideration for performing fast and
accurate functions. The business entity should also take feedback from different customers in
order to increase quality and modifications in different aspects.

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Compare and contrast the key differences of the decision-making process in the context of B2C
and B2B, providing specific examples
The decision-making process of a business is most important in a business as it includes
synchronisation of different functions for development of the business firm (Khan, 2020). The
decision-making process differentiation is mentioned below:
Business to Business- The business to business decisions are important for the whole
business entity as they are major decisions. The decision-making process in business to
business approach are professional in nature. In most of the cases business to business
decisions are formulated by top level and strategic management (Mandić, 2020). The
business to business decisions also needs approval from board of directors in the
business. These are professional decisions which require consent of different levels of
management. For example, in Marks and Spencer company decisions like providing
outsourcing of business operations are counted in business to business decisions.
Business to consumer decisions- These decisions are important for Marks and Spencer
in order to attract large number of customers for the business. The business to consumer
decisions are not professional but simple in nature as they include less efforts and hard
work. These decisions are taken by a company to attract target and general customers. In
a business, the business to consumer decisions do not require any approval from board of
directors. In a business entity, these decisions are also related to develop a normal
strategy in order to sale products or service to major customers (Mendon, 2020). For
example, the product and pricing policy are some business to consumer decisions which
are taken by business organisations.
Comparison of different B2B and B2C stages with differences like time, number of people
involved, importance of rules and procedures in B2B and B2C along with black box model
In the functioning of a business it is essential to focus on both the aspects of business to
business and business to consumer approaches. The time consumed in business to business
approach is more as there is an involvement of major transactions and operations. On the other
hand, in business to consumer approach time involved is less as there is quick purchase by
customers. The number of people who are involved in business to business technique are
relatively low as compared to business to customer approach. In both the cases it is important to
focus on various rules and procedures which are to be followed by a business. Marks and
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Spencer follow various policies and rules to serve different types of customers and perform
business transactions. It is important for the company to follow set of rules and procedures for
conducting legal and ethical business at the marketplace.
In the working of a business, there is very less involvement of black box in business to
business approach. In the business to customer approach, black box is used in an advanced
manner to deeply analyse various aspects of decision-making. The mindset and psychology of
different customers are identified easily with the application of black box model. In the different
stages of consumer journey, five stages are most important which are to be considered by Marks
and Spencer in a set period of time.
Evaluate the different approaches to market research and methods of research used for
understanding the decision-making processing both B2C and B2B contexts
The different approaches to market research which are major in understanding the
decision making process in B2C and B2B:
Market survey- This is the most appropriate manner or technique to develop research
about target market using different tools and techniques. In this approach marketing
management of Marks and Spencer performs a market survey of whole market in order to
develop different objectives and sales target (Mou, 2018). Market survey helps the
business to define sales target and achieve them with appropriate marketing strategy.
Customer feedback- In the market research, there is a major role played by customer
feedback as it includes the suggestions from customers. The Marks and Spencer takes
into account regular feedbacks from different customers in order to prepare marketing
plan. Customer feedback is important for a business to develop a perfect strategy which is
helpful in increasing the satisfaction of customers.
Employee feedback- In most of the successful companies in international marketplace,
employee feedback is also important for development of market research. The companies
in international market also takes into consideration advice of different employees to
formulate desired strategy. Employee feedback is important in order to develop major
elements related to market research (Mydock III, 2017). This approach helps a business
entity like Marks and Spencer to take into consideration advice of employees which
indirectly helps the company to develop professional planning.
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The different methods of research used in understanding the decision-making process in
B2C and B2B are mentioned below:
Primary research- In this method of research, a person conducts effective research on
fresh information related to the subject matter. In this type of market research, a
researcher collects fresh information related to a subject matter which play a important
role in business development. The company should focus on developing primary research
related to market in order to identify fresh information for selling different products.
When a company develops primary research it is able to identify new information
associated with the launch of new products. In the international marketplace, primary
research is hard to conduct (Rai, 2019). In the business to business decision making
primary research plays a key role which develops a perfect strategy to develop stable
market for new product. It helps the business entity to gather fresh information related to
an innovative product which is introduced in target market. In business to customer
decision making, the primary research plays a key role which helps the business firm to
develop marketing operations in a short period of time. Main advantage of primary
research is to provide fresh solutions based on new data collected which helps in
decision-making. The major disadvantage of primary research is it is very much time
consuming and information is collected in a delayed manner. It is also major role of a
company to focus on analysing various goals and objectives of a business and achieve
them with primary research. Business to business development are based on primary
research in order to formulate fresh transactions.
Secondary research- In the functioning of a business at the marketplace, the secondary
research plays a key role. The secondary research collects information from already
collected piece of information. Secondary research helps a business firm to develop
secondary objectives that are effective in developing different parameters of the business.
The information collected in secondary research is relevant and useful for business
organisation in order to formulate different business targets. The secondary research in
business to business approach relates with decision making in a quick and relevant
manner. In a business to customer decision making the secondary research saves the cost
related to research and helps in formulation of experienced decisions. Many business
organisations in global market, prefer secondary research in order to develop effective

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goals and achieve them in a specified time frame. The major advantage of secondary data
is it is less time consuming for the business in order to formulate different data based
practices. All major companies in international marketplace focus on secondary research
to quickly collect a data. In the business to business transactions this approach provides
accurate data. On the other hand, secondary research based data is sometimes, not viable
for the company and becomes rigid.
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Consumer persona
The consumer persona is considered as a main document which includes personal and
buying based details. This document is used by Marks and Spencer company to understand
different parameters of consumer purchasing behaviour. It is essential for a business entity to
focus on key aspects of consumer persona for focusing on key objectives and goals of an
organisation. This document easily helps customers to develop focus on key approaches of
consumer behaviour in order to analyse all parameters of customer perspectives. This technique
is widely used in many organizations by their marketing department to calculate customer related
data.
How marketing uses consumer behaviour to develop target market
The consumer behaviour is considered as major approach that is essential for overall
development of a business entity. This is also a key responsibility of a business to understand
different perceptions of customers for effective development of a strategy. In the recent times, it
is also major role of strategic management of Marks and Spencer to focus on deeply analysing
customer behaviour. The business should also include application of consumer persona for
management of different policies and plans. Consumer behaviour is one of the key development
aspect of consumer behaviour which helps a business to develop marketing strategies. The uses
of consumer behaviour by marketing department of Marks and Spencer are mentioned below:
The consumer behaviours states a business to develop focused goals and approaches
according to demand of customers.
Illustration 1: Example of consumer persona, 2022
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Business analyse past buying behaviour of customers to include and develop different
commercial practices.
Business organisation uses consumer behaviour to formulate different advertising and
promotional practices.
A company uses consumer behaviour to launch a new product in marketplace with new
hope.
Illustration 2: Marks and Spencer store, 2022

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Evaluate how marketers can influence the different stages of the decision-making process of
B2C and B2B, giving specific examples
The marketers should influence different stages of decision-making process of B2B and
B2C decisions for long term growth of business. In the functioning of Marks and Spencer
company, following are the ways which can be used by a business to influence different stages of
decision making:
Offer superior quality products- A business organisation should offer good quality
products and services to customers in order to seek their attention. The company should
also provide distinct products and services which are good for every segment of
customers of the business (Rumpold, 2019). In order to maintain quality in products and
services, the company should take support of information and technology related tools
and techniques. The customers generally prefer to buy good quality products and services
also they want distinct features in products and services.
Professional after sales service support- This is the major approach used by a business
entity that leads to increase customer satisfaction. The business entity should include
effective customer relationship management in order to develop effective approach at the
marketplace. In a business entity, professional after sales service support helps it to
deliver global standard customer services. The company should take help of professional
and skilled employees who are effective in providing effective services in a set period of
time.
Promotion- The promotion of a product is important for the company as it helps to
develop professional strategy related to a product and its selling. The company should do
advertisement and publicity with the help of modern tools and techniques in order to
develop positive consumer behaviour accordingly. In the recent times, companies can
also take into account promotion policy which is designed by strategic and top level
management in order to gain competency edge. The promotion can be done using internet
and social media in order to reach customers all across the globe in a short span of time.
Optimum utilisation of resources- In a business organisation, the optimum utilisation of
resources helps in development. The optimum utilisation of resources is necessary for the
business in order to circulate effective and precise products in the economy. There are
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many different business companies which develops a perfect plan in order to utilise all
the given raw materials in a flexible and good manner. This step taken by Marks and
Spencer helps it to develop optimum utilisation of resources for gaining competency
edge.
Marketing plan- In order to gain desired success in the marketplace, it is very much
important for the company to develop a professional marketing plan. The marketing plan
helps the company to satisfy needs and wants of different customers and also helps the
company to develop business revenue (Tandon, 2021). The business or marketing plan
should be developed by a business, by taking into account needs and wants of different
customers to develop major goals and objectives. The marketing plan of a business entity
should be prepared for a specific time frame in order to achieve desired objectives and
influence consumer decision-making process.
Explanation of Ego and superego along with marketing application of this theory
The practices related to ego and superego by employer can create a negative impact on
employees. It can also impact largely on internal environment of the company, this can also
create major disturbance for the employees. In marketing based practices of a business these two
factors play an important role. It is ethical responsibility of top level and strategic management
of a company to focus on development of effective strategy to deal with ego and superego
practices. This is also one of the major role of employees of a business to focus on dealing with
ego and superego practices for development of company. The marketers are trying to address
different issues which are related to stopping these practices for marketing development.
Concept of development of self-image in order to create competitive advantage at the
marketplace
The development of self image by employees is compulsory for the Marks and Spencer
company in order to briefly ensure appropriate functioning of company. In order to increase self-
image of employees there are different practices which are to be practised in a precise manner.
Assessment of self is also a major factor which is to be considered by an employee in order to
analyse self strength. Many companies in the domestic and international marketplace focus on
development of employees by providing them training and development. All major companies
should focus on different aspects of decision-making in order to deeply analyse goals and
objectives at the marketplace.
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Motivation and its dimensions for the company along with maslow's theory and personality
theories for Marks and Spencer
In the recent times, motivation is considered as the major factor which brings mental
development in employees. Also with the help of motivation, an organisation can also develop
emotional intelligence in the employees. There are several types of motivation which helps a
company to develop different capabilities in the employees. This helps in increasing productivity
of employees and also lead to develop focus on employee working. The major types of
motivations are mentioned below:
Extrinsic motivation- This type of motivation comes in employees from an outside source
or third party. This helps in development of an individual in a systematic manner and
increases the chances of employee success. It is one of the crucial responsibility of a
business to focus on extrinsic motivation in order to lead the marketplace.
Intrinsic motivation- Intrinsic motivation includes the motivation which is developed by
self. It is an important technique which helps in self motivation in an employee to
develop more focused approach. Management of Marks and Spencer is motivated in an
intrinsic manner in order to develop and achieve group goals and individual goals.
Maslow theory
The maslow theory of motivation is an important aspect of motivation which is used by
Marks and Spencer company to regularly motivate different employees. The maslow theory of
motivation includes some major needs of employees in order to satisfy them. It is important to
focus on each and every need of employees for overall development of the company. Love and
feelings of employees should be understand by the employees of a company in a systematic
manner to gain their emotions.

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In the Maslow's theory another major element which is self actualisation in order to
achieve full potential of employees. The business should also focus on safety needs of employees
in order to create a healthy and effective workplace. Marks and Spencer company follows all
employment legislations developed by government in order to perform legal and ethical
business. The esteem needs are also considered as one of the major needs of employees in which
prestige and feeling of accomplishment is developed. Physiological needs of employees are
helpful in increasing basic needs of the employees in a set period of time. For example, Marks
Illustration 3: Maslow motivation pyramid, 2022
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and Spencer company can motivate its employees in a systematic manner by taking into
consideration their livelihood needs.
Illustration 4: Marks and Spencer Store outlet, 2021
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CONCLUSION
From the above stated report it can be concluded that it is important for a business entity
to identify behaviour of target customers in order to gain desired success at the marketplace. The
above discussion concludes that top level and strategic management of a business play a key role
in developing a good approach for understanding consumer behaviour. This project concludes
that it is crucial for a company to understand the decision making process while considering
consumer behaviour for desired success achievement. This report also concludes that in the
corporate world, it is major responsibility of a business to develop effective decision-making on
the basis of different precise parameters. The above report concludes the importance of market
research in increasing the scope of business as well as customer satisfaction.

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REFERENCES
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