Consumer Behaviour: Stages and Factors

This document explores the stages of consumer decision making process and the factors influencing it. It discusses the black box model and its influence on consumer decision making. It also covers the similarities and differences in decision making process of B2C and B2B. The document further explains various market research methods applied for B2C and B2B and how market research influences the stages of decision making process. It concludes with an evaluation of the factors influencing decision making process.

CONSUMER OF BEHAVIOUR
INSIGHT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Evaluating five different stages of consumer decision making process and the factors
influencing the process. ..............................................................................................................1
Evaluation of black box model and how it influences consumer decision making ....................3
Consumer decision making process for one product or service..................................................3
SECTION 2......................................................................................................................................4
Similarities and differences in decision- making process of B2C and B2B................................4
Various market research methods applied for B2C and B2B......................................................5
Justification that market research influence stages of decision- making process........................5
SECTION 3......................................................................................................................................6
Evaluation of factors influencing decision making process........................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Consumer behaviour refers to the study about the individual consumers, groups or the
organisation how they choose, buy, use & dispose the ideas, goods or services for satisfying their
needs and wants. Its is concerned with actions of consumers in market and the motive behind
those actions. It is essential for the organisations to understand the needs and wants of the
consumers for being successful in the market. Companies are require to study the behaviour
about what can drive the actions of consumers towards the particular product or service. This is
done by market research and experiments in the market.
For being successful UNILEVER has to either satisfy the needs and demands of
customers in the best possible ways or to provide something entirely new or unique that adds
value their personality (Piscicelli, Cooper and Fisher, 2015). The present report will cover the
stages of consumer decision making process of and the factors the influencing these decision. It
will be covering the black box model of consumer behaviour and it influence over the marketing
decisions. Study will also be providing the understanding similarities and differences in the
decision making process and marketing research methods that could be applied over business to
consumer concepts and for business to business concept. It will reveal about the consumers
behaviour and its importance for the business.
TASK 1
Evaluating five different stages of consumer decision making process and the factors influencing
the process.
Goal of every marketer is of getting inside head of consumers. Unilever for figuring out
how consumers will be making decisions and it could make decisions for purchasing the
products or services. There are five steps in consumer decision making process recognizing
needs, search process, comparison, products or services selection and evaluating decisions.
Problem Recognition
Decision starts with some kind of problems consumers develops needs or wants which
they require to be satisfied. When consumers find something to be missing out and requires that
to be satisfied for getting back to normal. Unilever determines when these needs are developed
by the target consumers as that is ideal time for advertising about the relevant product. It may
face difficulty in recognising the actual problems that may affect their product solutions (Lim,
Soutar and Lee, 2016).
1

Search Process
Unilever makes market research for identifying the product or service that could
effectively satisfy needs and wants of customers. Company uses market research through various
sources like consumer trends in market, interactions with human beings that give the company
actual requirements of the people. Previous experiences are also considered by the company for
knowing the responses in past experiments (Witt, 2016).
Evaluating Alternatives
When the consumers become aware about what is required for satisfying their needs and
wants they begin to search for the best alternative that is available with the best deal. Most
influencing factor driving the decision of consumers is price and nowadays reviews are also
influencing the decisions of consumers. Customers choose alternatives that best satisfy their
needs at reasonable prices.
Selection Stage
After carrying out all the procedures for decision making customers actually decide about
what they will be purchasing and from where. Consumers take the risk of choosing the products
and become definite about the product they will be purchasing. This is influenced by the
previous experiences of the product. Advertising the product effectively may influence the
buying decision of consumers giving a try to new product.
Evaluation Stage
After the purchase Unilever also gets the reviews and feedback of customers regarding
the product. It identifies whether the need of consumers is satisfied or not and whether product is
up-to the required expectations of the consumers or not. It helps the company in modifying the
product or services it is delivering to the customers.
Factor influencing consumer decision making
Psychological factor: In this consumers are motivated by company through various
advertisement and brand promotion, so that they can increase the sales of their products and
services. Also in this consumers buy the goods and services as they are based on their belief,
values and thoughts. This also increase liking of the products in mind of customers (Claiborne
and Sirgy, 2015).
Social factor: In this the purchase decision making of consumer also depends on the income
2

status, they will buy what will fit in their income.
Evaluation of black box model and how it influences consumer decision making
Black box model consists of various characteristics or factors on which purchase of
consumers are based on. These factors can include, belief, values, thoughts and attitude of people
(Dholakia, Dholakia and Chattopadhyay, 2018). Company needs to make sure that all goods and
services which are being delivered by them are according to customer needs and demands, so
that this lays positive impact on mind of consumers and helps firm in growing.
Consumer decision making process for one product or service.
Consumer decision-making process for soap of Unilever.
Problem recognition: Company for influencing the decision-making process of company uses
advertisement strategy. It had identified the issues that consumers were facing with the bathing
soaps.
Information Search : Company had identified the responsiveness of soaps in the market. It has
also identified the demand of customers in particular product soap. They identified the needs of
consumers in a soap that will satisfy their requirement.
Evaluation of alternatives : Unilever has identified the competitors who are providing the soaps
to the consumer and the extent to which they are satisfying the needs of consumers. It added
extra ingredients that were beneficial for the skin of consumers.
Purchase : Company developed the value for customers by adding special ingredients in its
soap. For attracting the consumers for the purchase it is incurring heavy expenditures over the
promotion of the product so that when the consumers think of purchasing soap than soap of
Unilever should be the first to click in their mind (Feng, Govindan and 2017).
Post purchases : In this Unilever must also involve in providing extra benefits to consumer after
they have done with their sales service. In this consumer will analyze whether they liked product
3

or service. Unilever also have the feedback process for responding to the consumers of product
so that possible improvements could be made in the product.
SECTION 2
Similarities and differences in decision- making process of B2C and B2B
Both the B2C and B2B are a different type of business but then also there are some similarities
and differences among them (Marriott, Williams and Dwivedi, 2017). These similarities and
differences among the decision-making process under B2B and B2C are as follows-
Similarities- The similarities between both the business that is B2B and B2C is that both work in
order to fulfil the needs of the consumers. The decision-making process of both the system starts
with the recognition of the need only. Another similarity is that both the consumer of these two
different methods is that they have many alternatives to chose from.
Differences
B2B B2C
The decision- making process for buying a
product is impacted because in B2B the
consumer is different that is here the other
similar business organization are the
consumers.
In this type of system, the consumers are the
end user which consumes the goods and
services. Thus, here there is difference between
the decision-making process. It is because if
these consumers are offered the good of B2B
consumer then this will not satisfy their needs.
Also, the major difference here will be of the
marketing strategy being used. It is so due to
the fact that here Unilever will not do mass
marketing as here the consumers are very
less (Piscicelli, Cooper and Fisher, 2015).
The marketing strategy being adopted by the
B2C channel of Unilever will be mass
marketing in this business type. Thus, this will
differently impact the decision-making process
of consumer as compared to the fact that if the
marketing strategy other than mass marketing
is selected than the consumer decision-making
process will be influenced. It is pertaining to
the fact that this will negatively impact the
consumer as they will not like the marketing
4

strategy of Unilever.
Various market research methods applied for B2C and B2B
For doing any type of business the market research is very necessary. This is majorly
because of the reason that in the business environment there are many of the changes taking
place (Bergman, Schwanen and Sovacool, 2017). Thus, for this it is very necessary for Unilever
to conduct the market research in good and correct manner.
Market researches for B2C- there are many different types of market research which are
being used in order to conduct a B2C business. These are discussed in the following points
discussed below- Customer feedback- this is a method used by Unilever in order to know the trends and
preferences of the consumers. This is essential because of the fact that this will help
Unilever in getting the feedback relating to the use and drawbacks of the product being
used by consumers. Personal interview- under this method the manager or employees of Unilever goes and
ask the consumer about their experience with the consumer for using the goods. If the
consumers do not like anything about the product then they can share it (Xiang, Magnini
and Fesenmaier, 2015).
Market research for B2B- this is a system wherein the trade takes place in between the
two different business. Thus, it is very necessary for the company to conduct proper market
research before trading. For this Unilever can use following methods- Observation- this is a method of researching wherein Unilever by way of just observing
the trends within the market analyses what is going in the market. This helps the
company as without asking any person Unilever can observe that what the other business
is doing in the market.
 Analysing past data- this is another method of analysing the past data of the other
business. This will help Unilever in analysing the fact that what are the past sales and
income of the company and how well it performs in the market.
Justification that market research influence stages of decision- making process
It is very necessary for the consumer to employ decision- making process at time of
making any decision to buy or not to buy the product. Thus, for this the market research method
5

are used, and they influence the decision-making process of the consumers (Lim, Soutar and Lee,
2016). This is pertaining to the fact that market research helps the consumer in analysing the fact
that whether the product to be purchased will fulfil their requirement or not and if not then what
are the alternatives. The market research is a method through which the information is gained
relating to any of the topic or any product (Stancu, Haugaard and Lähteenmäki, 2016). This
influences the decision- making process in the following ways connected below-
This market research influences the decision- making process to a great extent because if
at stage of need recognition, the consumer finds that the product for which the need is generated
is not in trend then the consumer will rethink that they should go for the product or not.
Also, in the stage of information search if the consumer with help of personal interaction
with the other consumers of the product will find that the product is not as per the specification
then also the consumer will not buy the product. And if the existing consumers states that the
goods and services are good of Unilever then they will buy the product and services of the
company.
Also, if the consumer is at the stage of purchase decision then also it is impacted by the
market research methods. This is majorly because of the reason that if by observation if the
consumer comes to know that the liking of the other consumers for the product of Unilever is not
good. Then this will negatively impact the consumer, and they will not buy the product. For
instance, the consumer by analysing the past sales of product of Unilever finds that it is
constantly decreasing then the goods and services will not be bought by the consumers.
SECTION 3
Evaluation of factors influencing decision making process
For a consumer the decision- making process is very necessary as it is a process through
which the consumer decides which product to buy or not to buy. Thus, this decision is affected
by many of the different factors. These factors are discussed in the following points-
Cultures and sub- cultures- this is a major factor which influences the decision- making
because if the product of Unilever is not in accordance with the culture prevailing in the market.
Then the products and services will not be liked by the consumers. For instance, if Unilever is
dealing in food products which are healthy and organic and if the area in which they are going to
market the product are not in favour of healthy food then this product will not succeed in the
market. It is due to the fact that if the goods and services will not be liked by the person and the
6

culture then it will be a loss for the company (Parsons, Maclaran and Chatzidakis, 2017).
Personality- this is another factor which influence the decision-making process of
consumers. This is referred to as the perception of the person relating to the product of the
company. There are many different ways of marketing the product but for the company it is
essential for the company to market the products in accordance with the perception and
personality of the consumers. This also influence the decision-making process of consumer. As if
the advertisement by the company is not made keeping in mind the personality of the consumer
then they will not buy the product of the company.
Motivation- if the products and services of Unilever do not motivate the behaviour of the
consumers then this will not be liked by the consumers. This will result in the consumer not
purchasing the product of Unilever (Bruwer, Chrysochou and Lesschaeve, 2017). For instance, in
summers if Unilever is promoting the Knorr soup then this will not motivate the consumers to
buy the product as in summer hot soup is not liked by the consumers. Thus, they will not like the
product and will not buy it.
CONCLUSION
From the above report it is concluded that the analysis of the consumer behaviour is very
necessary. It is so because of the fact that if company does not about the needs of the consumers
then it the company will not succeed. Thus, for this the present report started by the evaluating
the different stages of consumer decision- making process like needs identification, analysis of
alternative, purchase decision and many others. Further, this evaluated the black box model of
consumer behaviour along with mapping the decision- making process for one product.
Next the similarities and differences of decision-making process of B2B and B2C was
highlighted. Furthermore, the market research methods and their influence over the consumer
decision- making process was made. The market research method identified were personal
interview, feedback, observation and many others. In the end the different factors influencing the
decision- making process were outlined such as personality, culture and many others.
7

REFERENCES
Books and Journals
Bergman, N., Schwanen, T. and Sovacool, B.K., 2017. Imagined people, behaviour and future
mobility: Insights from visions of electric vehicles and car clubs in the United
Kingdom. Transport Policy. 59. pp.165-173.
Bruwer, J., Chrysochou, P. and Lesschaeve, I., 2017. Consumer involvement and knowledge
influence on wine choice cue utilisation. British Food Journal. 119(4). pp.830-844.
Claiborne, C.B. and Sirgy, M.J., 2015. Self-image congruence as a model of consumer attitude
formation and behavior: A conceptual review and guide for future research.
In Proceedings of the 1990 academy of marketing science (AMS) annual conference (pp.
1-7). Springer, Cham.
Dholakia, R.R., Dholakia, N. and Chattopadhyay, A., 2018. Indigenous marketing practices and
theories in emerging economies: Consumer behavior and retail transformations in
India. Journal of Business Research. 86. pp.406-415.
Feng, L., Govindan, K. and Li, C., 2017. Strategic planning: Design and coordination for dual-
recycling channel reverse supply chain considering consumer behavior. European Journal
of Operational Research. 260(2). pp.601-612.
Lim, K.L., Soutar, G.N. and Lee, J.A., 2016. Factors affecting investment intentions: A
consumer behaviour perspective. In Financial Literacy and the Limits of Financial
Decision-Making (pp. 201-223). Palgrave Macmillan, Cham.
Marriott, H.R., Williams, M.D. and Dwivedi, Y.K., 2017. What do we know about consumer m-
shopping behaviour?. International Journal of Retail & Distribution Management. 45(6).
pp.568-586.
Parsons, E., Maclaran, P. and Chatzidakis, A., 2017. Contemporary issues in marketing and
consumer behaviour. Routledge.
Piscicelli, L., Cooper, T. and Fisher, T., 2015. The role of values in collaborative consumption:
insights from a product-service system for lending and borrowing in the UK. Journal of
Cleaner Production. 97. pp.21-29.
Stancu, V., Haugaard, P. and Lähteenmäki, L., 2016. Determinants of consumer food waste
behaviour: Two routes to food waste. Appetite. 96. pp.7-17.
Witt, U., 2016. The dynamics of consumer behavior and the transition to sustainable
consumption patterns. In Rethinking Economic Evolution. Edward Elgar Publishing.
Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal
of Retailing and Consumer Services. 22. pp.244-249.
8

9

10