Comparison of B2B and B2C Decision Making Process

This article compares and contrasts the decision making process in B2B and B2C contexts. It explains the importance for marketers to understand and map the purchase path of consumers. It also discusses the stages involved in B2B decision making.

Consumer
Behaviour Insights

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Explanation and analysis of consumer decision making journey stages...............................1
P2. Explanation of the importance for marketers to map purchase path along with
understanding consumer decision making...................................................................................4
TASK 2............................................................................................................................................6
P3. Comparison and contrast of decision making process on context of B2B and B2C.............6
P4. Distinct market research approaches and methods................................................................7
TASK 3............................................................................................................................................9
P5. Evaluation of ways marketers influences distinct stages of decision making procedure......9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Consumer behaviour is a framework that illustrates the aspects concerned with the ways
customers or enterprises chooses, purchases, consumers and disposes thoughts, goods, views and
services for satisfying wants (Altinay and Taheri, 2019). It is said to action that consumers takes
in market along with underlying motives behind those actions. It is considered as continuous
process which involves aspects like measuring, obtaining, utilising addition to discarding
products or services. For gaining knowledge and skill set for consumer behaviour insights,
Jaguar Land Rover is chosen which is an automotive company having headquarters at Coventry,
UK. The entity performs primary activities of designing, developing, manufacturing, marketing
and selling vehicles. The report covers decision making process of consumers, importance for
marketers for mapping purchase path, forms of research, differentiation among decision making
procedure of B2B and B2C. It also includes some of the ways through which marketers
influences stages related to decision making procedure.
TASK 1
P1. Explanation and analysis of consumer decision making journey stages.
Consumer behaviour refers to observational activity that is conducted for analyse the
ways within which institutions or consumers enters in market and initiates purchase decisions till
the time they make final purchase. It is action together with decision processes of individual who
buys commodities and services to consume them personally. It engages people in evaluating,
obtaining, utilising and disposing of unique commodities to achieve highest satisfaction level
(Ashman, Solomon and Wolny, 2015). Within Jaguar Land Rover, human resources are
considered essential and crucial resources to compete the competition as managers empowers
manpower to carefully monitor existing and emerging market trends so that further operations
are set and performed. It benefits the management team to manufacture innovate car or vehicle
that have capability for fulfilling needs that customers have and providing them huge
satisfaction. Moreover, decision making process also plays essential function as it assist
individuals to analyse their desires and search out ways so to fulfil them effectively. Hence, it
has been apprehended that individual behaviour is connected with their decision making process
that creates huge impacts on organisational productivity, sales volume and profitability. For
developing customer experience addition to monitor their perceptions for brand, its commodities
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and price values, effective role is played by the customer journey map. It is a technique that
assist in understanding the aspects such as their needs, concerns and hesitations which motivates
customers to make decision for the organisational products. Jaguar Land Rover mainly deals in
cars and for attaining sustainable competence various efforts are made by the management team
for determining decision making process of their consumers while purchase car (Consumer
Decision Making Process, 2019). The journey map includes following stages:
Illustration 1: Consumer decision making process, 2019
(Source: Consumer decision making process, 2019)
Need recognition: The first stage that occurs at the time an individual determines their
needs. Various times consumers have feeling that something is missing and they addresses such
issue for filling the gap (Banerjee, 2017). Herein, customers searches their desires and recognises
their needs for any product. It begins with searching individual needs while purchasing specific
commodity or service in order to deliver satisfaction for the wants and desires. For instance,
when individual purchases car or other vehicle from Jaguar Land Rover, they searches
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requirements for purchase the car or not. When they recognises the need for purchasing the car
they begin to make further efforts.
Searching information: When consumers have made a thought to purchase the product,
they works towards next stage wherein they gather relevant data about particular commodity so
to alter their perception for the brand and its image. In this stage, consumers searches and obtains
diverse information about commodity that can satisfy the recognised need or desire. In context to
Jaguar land Rover, consumers makes attempts for collecting information for the particular
vehicle of car, its functions, features and many other things. For this, various sources such
promotional campaigns, magazines, social media platforms, organisational website and people
review for the product are used so to obtain positive addition to negative viewpoints are analysed
that render appropriate guidance in the whole procedure.
Alternative evaluation: It is the next stage that includes evaluation of diverse
alternatives that are within marketplace as well as product life cycle. When consumers have
determined the product that can satisfy their need, they seeks best option that are available to
them (Cockayne, 2016). In case of Jaguar Land Rover, consumers seeks to gain information
about pricing strategy of car, its quality, features, designs and makes comparison about prices
along with read reviews so to choose the car that have maximum potential to satisfy the
parameters or needs the most.
Decision of purchase: After passing the mentioned stages, customers finally decides for
purchasing decision. Herein, customers have already evaluated facts and arrived to a logical
conclusion that is either based on emotional connection, influence from promotional campaigns
or personal experiences. In context to Jaguar land Rover, customers executes logical action to
purchase a car after recognising desires or needs, collecting relevant information and alternative
evaluation so to accomplish the interest in economical addition to effectual manner.
Post purchase behaviour: product purchase is also followed through post purchase
evaluation that helps in analysing that the product was useful in satisfying the needs or not. In
Jaguar Land Rover scenario, customers who purchased the car comes across with diverse
reviews as well as feedbacks that brings huge ambiguities in their mindset for the worthiness of
the decision. On such basis, future decisions of customers are made accordingly that may
influence proficiency and productivity of Jaguar Land Rover.
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Stages within customer journey results in supporting management of Jaguar Land Rover
for examining the perceptions or attitudes of targetted customer base for the brand so that they
can improve entire performances by delivering innovative models of car. In addition, it also
benefits in gaining competing advantages as well as obtaining ratio of sustainable proficiency
and profitability in adequate ways.
Levels of consumer decision making:
Following are some of the level under which consumers of Jaguar Land Rover makes
decision:
Extensive problem solving: In this decision making level, purchaser has no experience
or information about commodities that company provides. For example, Jaguar Land Rover time
to time launches new models which customers are least aware. To make decisions, they perform
extensive research about the product and they makes suitable decision.
Limited problem solving: Within such decision-making level, buyer acquires
information for some unfamiliar brand in category of familiar product. For example, buyers of
respected entity uses this decision making when they buys cars or other vehicle services
occasionally.
Routinised problem solving: In existing scenario, the decision making level includes
determinations for frequently purchased items. Customers who have some experience for
vehicles of Jaguar land Rover and have established criteria to evaluate the vehicles only makes
decisions with this category.
P2. Explanation of the importance for marketers to map purchase path along with understanding
consumer decision making.
In real market world, intense competition exists among entities that is majorly influenced
through decisions of consumers for the brand. Consumer behaviour is generally unpremeditated
that changes according to pertaining and emerging trend, fashion or changing customer
preferences (De Mooij, 2019). For an entity, it is essential for have potentiality for coping to the
complexities and should have ability for gaining control on attention of mass customer base with
the brand. As Jaguar land Rover operates in automotive industry which is highly competing and
challenges the entity to gain impressive margins of profits and customer base. For this, the
authorities of Jaguar Land Rover took an initiative for examining market situations for
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overcoming the challenges that hinders the practices for acquiring best position in the automotive
market. Moreover, mapping purchase path is important for marketers of Jaguar Land Rover as it
allows in concentrating towards efforts together with expenditures in order to maximise
effectiveness and focusing on customer needs which occurs in distinct stages of purchasing
products. Few factors that have effective role for influencing decision-making are the following:
Influence of heuristic: Heuristic is termed to mental shortcut allowing people to take
decisions in quick and efficient manner. It plays critical function within decisions or preferences
which are implemented as the effects are highly influenced by current emotions of a person
(Erevelles, Fukawa and Swayne, 2016). The advertisements addition to promotional techniques
of Jaguar Land Rover impacts more on decision making of targetted customers. In addition, it
also helps an individual to gather in-depth information of cars and services of company which
results in unfavourable circumstances for growth of selected institution. To improve it, marketers
of Jaguar Land Rover adopts effective and impressive advertisement techniques through which
they are able to transmit relevant information and enhance awareness of targetted consumer and
attaining intense development and growth level.
Influence of elements of marketing mix: The another factor which assist all business
enterprises for acquiring top position in the sector they are residing as it is associates with
placing appropriate commodity in front of accurate consumers. In context to Jaguar Land Rover,
when marketing team fails in monitoring elements of marketing mix that are product, promotion,
price, physical evidence, place, people and process then situations of unfavourable outcomes
may arises that may impact on productivity in negative ways. Hence, it is important for
marketers to analyse existing trends addition to demand of audiences in context to price, location
and other elements so that the brand image is improved and profits are maximised despite of any
hindrances (Hofacker, Malthouse and Sultan, 2016).
Thus, above mentioned factors helps Jaguar Land Rover marketers to take corrective
action so to take lead in gaining best position in the industry and successfully mapping purchase
path for consumers. In addition, it is also very important to understand consumer decisions so
that that the marketers can put effective product that can satisfy needs of audiences and gaining
huge returns on investments. Following are some concepts through which marketers can gain
direction for achieving objectives in innovative manner:
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Economic view model: The model is generally connected with cost that is rendered
while consuming commodities. Herein, customers makes attempts for evaluating diverse brand
price and selects best that have ability to provide satisfaction level. Marketers of Jaguar Land
Rover sets prices of cars in such manner that are affordable to attain large market size.
Emotional View Model: In this, marketers gathers data and statistics about consumer
needs and their emotional affection. The marketers of selected entity develops such
advertisement that influences emotional together with behavioural reactions of consumers for the
cars.
Passive view model: It is generally related to promotional techniques or practices which
further leads in enhancement of proficiency ratio of company (Joy and Li, 2012). Jaguar land
Rover marketers generally adopts impressive marketing practices that helps in achieving
competing beneficiary.
Cognitive view model: Herein, data about consumer needs, taste and desires are
collected by marketers for developing strategies to design products as per the collected
information. The marketers of selected automotive firm implement suitable strategies to enlarge
sales volume in better style.
TASK 2
P3. Comparison and contrast of decision making process on context of B2B and B2C.
Business to business (B2B)
Before carry out any business both the parties and different business entity need to know
about the requirement and essence based on which both can approach one other significantly. It
simply depends upon the strategic planning as the logical generation of data that help to deliver
the vital output and carry out the dealings favourably. Along with that due to the globalisation
and emergence of wide competition there are various companies that carry out its business with
other companies in order to strengthen its position (Lazell, 2016). In context to the Jaguar Land
Rover carry out B2B business with various music company and production houses which is the
win win situation for both the companies. Like, the production house gets the luxury cars on the
rent and this automatically promote the latest model or different offerings of company.
Therefore, measures to be taken in order to make effective decision for sustainable functioning.
The stages within B2B decision making process are as follows:
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Defining characteristics and quantity: The second stage wherein managers defines
about characteristics addition to quantity of services offered in market. In case with jaguar land
rover, managers define attributes of the vehicle to other businesses.
Developing specifications: Herein, specifications are developed by the organisational
managers for the vehicles as per the recognised needs and defined characteristics. In case with
Jaguar cars, major developed specifications are its engine, fuel system, engine displacement,
model engine and so on.
Searching for as well as qualifications of suppliers: The stage includes finding suitable
supplier as per the qualifications required by entity to fulfil needs. Jaguar land Rover searches for
the suppliers that can provide quality materials on time and many other aspects. They also finds
qualified suppliers that have knowledge related to the required tools or materials to design
unique vehicles.
Proposal or quote Solicitation: In this stage, proposals or quote solicitation are
developed by the company for the other businesses. In association to the Jaguar land Rover,
managers solicits various suppliers and contractors for submitting price bids as well as quotes so
to attain chance for fulfilling certain projects.
Evaluating proposal and selection of supplier: As per the submission of price quotes
along with bids, various proposals are evaluated or screened so to select the supplier with whom
business will be done further. Managers of Jaguar Land Rover selects suitable supplier after
considering the quote Solicitation that will benefit the most.
Selecting order routine: Once suppliers are selected, then next stage is to select6 order
routine. In this stage, administrators of Jaguar Land Rover writes final order for the potential
supplier by listing out quantity requirements, return policies, specifications, expected delivery
time and other information.
Performance evaluation and feedback: Herein, performance is evaluated of the
suppliers and accordingly feedback is provided so that business buying procedures can be
improved. Production team of Jaguar Land Rover manages relationships with suppliers and they
only evaluates the performances in context to delivered materials, warranties and others.
According to results of evaluation, feedbacks are provided so that workings are improved and
also strengthen among both businesses.
B2C (Business to Consumer)
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Here the organisation or business entity directly target to the customer who are the
ultimate user of the product. The marketer are responsible to anticipate the changing trend and
dynamic taste or preference and manufacture the product accordingly. This gazes or appeal the
interest of customer in terms to carry out the purchases and make the adequate decision amongst
the different alternative available in the car. Herein, Jaguar Land Rover that only target to the
high income group people that can afford the luxury cars and remain loyal towards the particular
brand. For this the company constantly modify its different ranges in the Sedan and SUV's cars
so that potential customer gets best customer experience.
Comparison on B2B and B2C on the basis of decision making
Basis of difference B2B B2C
Buying behaviour decision Within B2B mode of
transaction the organisation
focuses on the specialisation
so that they can deliver the
expected product by avoiding
the chances of error other this
can affect the relationship
between different parties.
Unlike, B2C business at this
state Jaguar Land Rover has
the possibility to chance their
partners if they does not find it
profitable enough. Further, it
help to gain the signifiant
information required to carry
out functioning suitably.
Customer before taking any
product or services especially
premium items makes the
buying decision through
referrals, past experience and
internet. So the respected
company have intensively
worked on their customer
support services that
effective resolve the query
and promote the positive
publicity and repeat
purchases (Nagengast and et.
al., 2014).
Market size decision Jaguar Land Rover being
global and renowned company
carry out the B2B business in
different regions that have
The company take the market
decision on the basis of
demographic and psycho-
graphic segment under which
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extensively enhance the image
of company and coordinate the
relation with different partners
desirably (Schütte and
Ciarlante, 2016).
it divide the mass market on
the basis of income group,
lifestyle and purchasing
power of the customer. Due
to this the company uses the
print media and prepare
customised advertisement
that target to business men,
entrepreneur and wealth
section of society to gain the
significant revenue.
Other than differences, some of similarities among the two are that both works for
providing information to their customers for solving their needs. In B2B and B2C, decisions are
based by other businesses or customers as per rational along with strategic considerations by
establishing connecting some emotions aspects with the product.
P4. Distinct market research approaches and methods.
Market research is one of procedure to determine viability of new product by conducting
research activities with potential clients. It allows business enterprises in discovering target
market along with collecting opinions or feedbacks about interest and perception of consumers
for the product and brand. Some of the market research approaches and methods are discussed
underneath:
B2B
Methods of research
In this research approach, relevant information is generally collected by using secondary
data wherein data is already collected by others and it is easily available to the companies
(Strong, 2015). Some of the methods that are used by management team of Jaguar land Rover to
collect data with such market research approach are as follows:
 Jaguar Land Rover managers can use web pages of other business so to gain basic
information for the nature and key operations that are performed by the competitors. Web
pages are effective method that provide huge type of information to the company.
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 The managers can also collect information from various government agencies in context
to other corporation due to changing economic conditions which assist automotive sector
to minimise trading impacts.
 Jaguar land Rover managers can also review posts addition to messages that are
available online in context to distinct business enterprise for understanding together with
gaining idea about the wants of consumers. With this, the entity can have direct impact
on various orders which are to be received from wholesalers.
Approaches of market research:
In B2B, various approaches are used in market research and some are as evaluated:
Qualitative approaches: In research, various quantitative approaches helps in gathering
non-numerical data that are related to other businesses and helps in making organisational
decisions. Few of qualitative approaches that are used by marketing team of Jaguar Land Rover
are as evaluated:
 Ethnography research approach is used for understanding goals, cultures, themes and
motivations of other businesses by observing the real life environments. Its advantage is
that it helps the firm to understand the capability of other business and issues faced by it.
However, it is time consuming approach that requires huge time in understanding other
businesses.
 The other research approach is narrative approach in which in depth interviews are
conducted and documents are read for collecting information about other entities. While
using the research approach, marketers of Jaguar Land Rover collects in-dept information
through interviews and looking themes for other companies.
Quantitative approaches states about reliable and standardised facts which guides to
make business decisions. Few of the quantitative research approaches through which numerical
data are collected by Jaguar Land Rover related to other forms are evaluated underneath:
 With descriptive research approach, managers of Jaguar Land Rover analyses existing
status of identified businesses. It benefits in systematically collecting information and
activities are not repeated in this research. However, various results are based on bianess.
 Through correlation approach, information about other companies are collected by
looking at two or more variables at same time. It benefits Jaguar land Rover to uncover
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relationships and drawing conclusions. But it fails in telling about effectual variables of
other entities.
B2C
Methods of research
Herein, sources of primary data are favoured for collecting information directly with the
consumers. In this, middle men are eliminated and information that is required by the business
about customers is gathered directly (Taheri and et. al., 2017). Few methods that Jaguar Land
Rover can use for understanding decision making process about customers are as follows:
 Surveys are one of suitable market research method which includes huge cost to design
and implement activities to perform survey about needs of particular area or particular
customer segment. Marketers of Jaguar Land Rover, with this method can ask set of
questions as well as talks with general audiences for their perception of brand and the
ways they make decisions to purchase products.
 Through personal interviews also marketing department of respective entity can gain
insights about how customers frame decisions to purchase any product. In this, face to
face questioning and answering is done between two people.
Approaches of market research:
Qualitative approaches: In context to B2C, marketers of Jaguar Land Rover uses
following research approaches to get insights about the potential and new customers:
 By using phenomenological research approach, marketing team of jaguar land Rover
emphasis on commonality related to lived experiences of particular customer group. The
approach benefits in arriving at final description about group of individuals associated to
particular phenomena. However, it involves various difficulties to analyse and interpret
reliability of researched data.
 Through grounded research approach, information about customers are collected in
scientific manner. It benefits Jaguar Land Rover to get insights about customers in
context to the motivation they gains after using organisational vehicles.
Quantitative approaches: The underneath described are some qualitative approaches
that are opted by Jaguar Land Rover to undertake reach practices for customers:
 One of effective quantitative reach approach is experimentation approach that assist
organisational managers keeps some of customer variables constant so to measure other
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customer variables as part of experiments. The advantage of it is that it assist researchers
to have control on variables related to customers. However, it produces artificial results.
 By using Cross sectional approach, Jaguar Land Rover collects data about customers
satisfaction by collecting data from sample of customers at particular point. It benefits in
analysing wide customers satisfaction. However, it fails in establishing cross effect
relationships with customers as variables are analysed in particular time only.
TASK 3
P5. Evaluation of ways marketers influences distinct stages of decision making procedure.
B2B and B2C are main elements that are centred on consumer purchasing behaviour
addition to procedures involved in decision making so to accomplish productivity with
proficiency level (Szmigin and Piacentini, 2018). Within business enterprises, one of the
essential department is marketing as it assist and provide direction to business with huge
benefits. Marketers provide valuable guidances to administration authorities so that they works
in amended ways for generating huge revenues. Few of the ways with the help of which
marketers can influence decisions of Jaguar Land Rover in context to B2B and B2C are
underneath:
Promotional techniques: Consumers generally make purchase decision after analysing
and monitoring promotional techniques that were used by the entity. For example, Promotional
techniques can be in form of word of mouth publicity, web advertisements, social media and
others (Weiler and Black, 2015). At the stage of defining characteristics, marketers influences
decision making through presenting the attributes in attractive manner that motivates other
companies or consumers to make decisions for buying its vehicles. Later, in developing
specification stage, marketers build unique vehicle specification that attracts customers for the
organisational car and persuading towards purchasing it. Further, in stage of searching suppliers,
marketers designs innovative advertisements that influences suppliers or other businesses to
make decisions to build relations with the company and also purchasing its vehicles. Marketers
builds attractive proposals in which they bids about material requirements, delivery time and
other information that motivates suppliers in making determinations about proving all aspects as
required by company. In context to stage of selecting supplier, manager choose that supplier
which have unique ways to deliver requirements on time and fulfilling all the essentials.
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Moreover, order routines are selected by marketers as per potentials of other businesses to fulfil.
This influences other companies or customers to make purchase decision for the orders that will
be provided as soon as possible. In context to jaguar Land Rover, marketers emphasis usage of
social media promotions, newspapers, web advertisement and direct selling so to provide
relevant information which customers wants through which their decision making is influenced
by providing them additional informations too. In addition, marketers should ensure that product
promotions within competitive market must be done through various promotional techniques that
helps customers to gain all the necessary information and make purchase decisions for
organisational commodities.
Perceptions: The perceptions of other business towards organisational product also plays
effective role in influencing decision making stages. In this, marketers of Jaguar Land Rover
emphasis more on understanding viewpoints of other entities and then builds perfect scenario to
make aware the potential firm about the products such that they purchases commodities to fulfil
their wants. For instance, An institution always seeks to purchase such products that are of better
quality as well as of reasonable price. The more focus must be done by the marketers of such
factors that influences decision-making of other businesses and keeps them retained with the
brand (Yoo and Park, 2016).
CONCLUSION
From the above report it has been concluded that the internal manager of an organisation
are required to consider all the essential insights about the customer behaviour so that they can
carry out the business activity by making favourable strategies. There are various stages that are
undergone by the customer in order to make the significant decision on the basis of different
alternative available in the market. Along with that there are different modes of transaction such
as B2B and B2C that influences the decision making and carry out the functioning with different
perspective but to attain the suitable profit. Therefore, there are various approaches that assist the
organisation to attain the objective successfully for potential growth and development.
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<https://www.marketingtutor.net/consumer-decision-making-process-stages/>
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