Consumer Behaviour: Insights, Stages, and Influencing Factors

This document provides insights into consumer behaviour, including the stages of the decision-making process, the black box model, and the factors influencing decision-making. It also discusses market research methods in B2C and B2B contexts and how market research influences consumer decisions.

CONSUMER BEHAVIOUR
INSIGHT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
Section 1...........................................................................................................................................3
1. Stages of the consumer's decision-making process.................................................................3
2. Black box model of consumer behaviour................................................................................4
3. Map of the consumer's decision-making process....................................................................4
Section 2...........................................................................................................................................5
4. Similarities and differences of the decision-making process...................................................5
5. Market research methods.........................................................................................................6
6. Market research influences......................................................................................................7
Section 3...........................................................................................................................................7
7. Factors that influencing the decision-making process.............................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Consumer behaviour is the deep study of customers' nature in the market. This study is
cover on the basis of individuals, groups, or organizations choose, purchase, use, and disposal of
products and services. There are different types of the customers in the market, with their
different mentality and mindset. They buy products and services on the basis of their daily life
needs. Consumer behaviour also included some major elements called; customers emotions,
experiences, income status etc. these all elements really impact the buying efficiency of the
customers. This report is discusses B2B and B2C context of the Netflix company including
consumer behaviour.
Section 1
1. Stages of the consumer's decision-making process
There are five major stages or steps of the consumer's decision-making process below, in
which the customers are deciding what, when, where purchase the products and services.
1. Need recognition: The decision-process of the customers is starts with some specific
problems, in which the customer rise or develop a need for the particular product and
service (Uddin and Khan, 2016). When customers realize that there are something in
missing their daily life, and then they prepare decision-making to fulfil these emptinesses
by buying any product and service from the market.
2. Searching process: In this stage of the decision-making process, customers are searching
different areas of the market to buy that specific product or service. In which they analyse
the best deal in the market for buying something.
3. Alternative evaluation: Customers can analyse the alternative options of the product and
service which they want to buy, and then customers go for that side where they get
product and service at reasonable cost.
4. Purchase: In this stage customers go for purchase the product or service according to
their need (Kumar and Dash, 2015). In this, customers also sure about what they are
buying and what's the value of this particular product or service in the market.
5. Post-Purchase behaviour: After purchasing, if customers are satisfied with purchase,
they will remember the experience, and then next time if they need for that same product
and service, in that case buy on the basis of previous experience.
Influencing factors of the decision-making process stages

There are various factors that influencing to the stages of decision-making process of the
customers, in which some major factors are mentioned below;
1. Perception: In this factor customers are using their previous experiences during buying
something in the market. Their mindset and image about any particular product or service
really impact their buying efficiency.
2. Motivation: Customers are many times motivate to buying something on the basis of
their own motivations which was they again from their around world. For example; The
Netflix providing some exclusive shows on their platform which TV streamers are not
provided. In that case customers get motivate to buy subscription of the Netflix.
Evaluation
Decision-making of customer is very essential as it helps to understand the behaviours and make
effective strategies to increase potential of businesses. With help of customer's decision-making
process business will understand the needs and wants to produce effective products and services
which helps to satisfy them and make them loyal. However, analysing decision-making process
of consumer increases cost of businesses and also consumes time to understand the process.
2. Black box model of consumer behaviour
The black box model is used for the purpose of study the buying behaviour of consumers
in the market (Khare, 2016). This model is generally uses by the businesses to analyse their
customer's cultural, social, personal and psychological aspect in the market.
Black box of Consumer behaviour helps to determine the engagement of consumers in a business
to satisfy themselves. This model helps to identify the touchpoints of customer engagement in
the business to evaluate their buying pattern. Business organization uses this model to evaluate
customer buying patterns to formulate effective marketing strategies.
All customers needs are not the same, because they all are comes from different
background. In this case it is impact the marketing decisions of the company, because marketing
management is need to analyse the basic needs of the customers, then try to offer them only that
products and services which they actually want. Company also responsible to run that marketing
activities in the market which completely fulfil the cultural, social, personal, and psychological
needs of the customers.

3. Map of the consumer's decision-making process
The Netflix offers many of exclusive content on their platform for entertainment
purposes. There are entertainment is one of the biggest parts of the humans' lifestyle. In this case
currently customers choose many ways for get entertained, like; films, comedy shows, sports,
music etc. They choose specific platforms to see these entertainment things, in which the Netflix
is also one of them (Saxena, 2015). Now customers get bored by viewing that same repeated
video content on the TV, cinemas, etc. So, customers are take decisions to buying subscription of
the Netflix, because this company is providing some new generation or modern video content to
the customers. Company provide many varieties of videos, like; films, web series, funny stuff
etc. in which customers are easily convened in buying company's services. The Amazon Prime
Video is one of the major competitors of the Netflix in the market, but customers mostly choose
Netflix than the amazon prime video, because company offers more impressive content to the
customers.
1. Netflix in this stage differentiate customers by segments to increase the sales of company
by evaluating their decision-making process.
2. In second stage Netflix has to understand all the data available in the market and also do
primary data research.
3. In the third stage Netflix understood that customers need to increase their mental stability
with help of entertainment.
4. In this stage Netflix analyses customer's feeling and behaviour towards the company.
5. Netflix then will identify the touchpoints at which customers got attracted in company to
use services.
6. In next stage company have to identify the challenges faced by customers to use the
services and solve them immediately.
7. Netflix in this stage will formulate effective plan to increase customer base.
Section 2
4. Similarities and differences of the decision-making process
B2B B2C
Similarities 1. B2B and B2C both have same buying journey and
ensures cost efficiency according to budget.

Differences B2B B2C
Purchase Decision In the business to business
context Netflix major
purchase decision take long
time due to long chain of
authority which impact the
business efficiency.
(Balasubramanian and Soman,
2019). It also includes business
values which company need to
gain while dealing with other
businesses.
In the business to consumer
context customers take less
time to purchase, and they are
influenced by friends and
family and at the end decisions
is taken by the buyer itself
which increases the intensity
of purchase.
Evaluation Netflix need to evaluate its
suppliers very effectively to
understand the authenticity and
make effective decisions to
purchase the goods and
services from the suppliers.
Customers in B2C rely on the
brand value of Netflix and
purchases the services with
trust.
5. Market research methods
Company uses different market research methods for the B2C and B2B context, which
discusses below;
Market research methods for B2C (Business to Consumer)
1. Survey: This is one of the popular methods which company uses for the purpose of
understand their customers needs in the market (Chandra, Mazumdar and Suman, 2018).
This method also help in the knowing Netflix services are comes under the basic
priorities of the customers or not. For covering this method need to use some tolls called;
rating scales, MCQs, Checkbox, matrix etc. In which customers are give response on

their particular choices. This method will helps to increase the information database of
customer behaviours to increase customer satisfaction.
2. Social media polls: Company many times presents poll option for the people on the
social media platforms in which customers give their suitable answer of the poll. For
Example; the Netflix company wants to know what customers are like to watch, in this
case company stand a question poll on their social media pages and put insight some
options like; stand up comedy, music videos, films and web series. In which customers
choose their favourite option in the poll. At the end on the basis of poll result company is
able to know what most of the customers like in those options. Social media will help
Netflix to promote the services effectively with lower cost and in larger market. This will
also help to gain better perspective with wide market and more feedbacks.
Market research methods for B2B (Business to Business)
1. Personal interview: Company is contacting to the other company's preventative for the
personal interview. In which company is able understand what own services play role on
front organization or company (Maesano, Carra and Peri, 2019). It is helping in the
knowing other businesses point of view on self owned company, and also indicate to
improve the productivity of the company. With the help of personal interview helps to
increase the screening of employees to increase potential of Netflix to reach its
objectives.
2. Business trade fairs: This is another important method of market research in the
business to business context. In these business fairs many businesses are meet to each
other, and shares their different ideologies and informations about the market. These
various market informations are helpful in develop Netflix's products and services which
company offers in the market. This method helps Netflix to understand the current trends
of skills and knowledge of employees to improve selection and recruitment process.
6. Market research influences
When company go for the market research on that time company's marketing team meet
to many customers and companies. This process of the company comes under the interaction
values because in which customers are able to communicate with the company. Suppose the
Netflix many times posted some researchable questions on their official twitter handle, and in the
response many people and businesses are reply of the question which company has asked

(Segev, 2015). Company also react on the peoples and businesses reply or comments. These
conversations are become memorable for the customers or other businesses. In that case they
always choose the Netflix for the entertainment purposes because they are impressed by the
company's communication skills. In other side company covers their market research too by
interacting with the people or other businesses. Market researches of the Netflix mostly influence
stages of consumer's decision-making process positively, because at the final result according to
the market research the company is able to offer that services which customers are highly need.
At first stage with help of questionnaires help marketers to understand the need of research. In
second stage it helps marketer to develop plan for future to understand all the factor in market
with interviews of customers. Data collection is the third stage which helps to gain information
about the plan. With help of models data will be analysed to gain an effective theory. In last
stage of research helps marketer to implement the action with help of understanding the
behaviour of customers of Netflix.
Section 3
7. Factors that influencing the decision-making process
1. Learning: In the learning factor customers are take knowledge about the Netflix services
and their market reputation. They understand what company offers at which cost in the
market. They generally learn from the advertisements of the company. The Netflix run
many promotional campaigns in the many countries in which is customers are impressed
by the company's services, in this case they take decisions to buy company's subscription.
Learning helps to make effective decisions and also save times. This decreases cost and
improve the stability of company. For example, a person who was illiterate did not know
what mobile phone is best for him in the budget, due to lack of learning it influenced its
decision making power.
2. Cultures: Cultural factor is also major influencing factors on the decision-making
process (Nawal, 2019). In which suppose company publish such videos streaming on
their platforms which are too much relatable to the customer's culture and emotions. In
that case they make decisions to choose Netflix as an entertainment platform. Company
need to fulfil cultural needs too during their promotional activities to gain much attention
of the customers. For example, Two person one American and one Japanese fought on

the road, American started pointing out mistakes and Japanese just let the incident go by
accepting the mistake. This shows that different culture help to make different decisions.
CONCLUSION
It can be concluded that there are five stages of the consumer's decision-making process
where the customer in the starting stage feel the need of any product, and the final stage
customer buy the product for self-satisfaction. In which various factors are also influencing this
process of the customer. The black box model the consumer behaviour is uses by the Netflix for
the purpose of understanding their customer's background and their prime needs. In the B2C and
B2B context, there are many similarities and differences in the decision-making process. It also
includes different market research methods which company has using for knowing market
conditions and consumer behaviour. The market research of the company is positively
influencing the customer's decision-making process, because with the help of market research the
Netflix is able to provide that services to the customers which they actually need. Company need
to fulfil some social responsibilities towards costumers during their businesses operations in the
any place or country.

REFERENCES
Books and Journals
Uddin, S. F. and Khan, M. N., 2016. Green purchasing behaviour of young Indian consumers:
An exploratory study. Global Business Review. 17(6). pp.1469-1479.
Kumar, A. and Dash, M. K., 2015. Effectiveness of electronic service dimensions on consumers’
electronic buying behaviour and exploration of different groups. International Journal
of Business Innovation and Research. 9(1). pp.81-99.
Khare, A., 2016. Money attitudes, credit card and compulsive buying behaviour: a study on
Indian consumers. International Journal of Business Competition and Growth. 5(1-3).
pp.49-71.
Saxena, V., 2015. A study of consumer behaviour towadrs consumerism of house hold
consumers of uttar pradesh.
Balasubramanian, P. and Soman, S., 2019. Awareness regarding fair trade concept and the
factors influencing the fair trade apparel buying behaviour of consumers in Cochin City.
Journal of Strategic Marketing. 27(7). pp.612-629.
Chandra, S., Mazumdar, S. and Suman, U., 2018. Impact of sales promotional tools on the
consumers buying behaviour: Study related with apparel retailing business. IJAR. 4(10)
pp.23-29.
Maesano, G., Carra, G. and Peri, I., 2019. HOW DO CONSUMERS PERCEIVE
SUSTAINABLE WINE? A REVIEW. Calitatea. 20(S2). pp.351-357.
Segev, S., 2015. Modelling household conservation behaviour among ethnic consumers: The
path from values to behaviours. International Journal of Consumer Studies. 39(3).
pp.193-202.
Online
Nawal, A. 2019. What is consumer Behaviour?. [Online]. Available Through:
<https://www.feedough.com/what-is-consumer-behaviour-ultimate-guide/>