Consumer Decision-Making Journey: A Case Study of Nestle During Christmas 2018

This report delves into the consumer decision-making journey, a crucial aspect of modern marketing. It examines the five stages of this journey: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase satisfaction. The report uses Nestle, a leading food and beverage company, as a case study, focusing on its strategies for the Christmas 2018 season. It analyzes the key differences in decision-making processes for B2B and B2C, highlighting the importance of tailored marketing approaches. The report also explores various market research methods used to understand consumer behavior and buying decisions, including the influence of psychological, personal, cultural, and social factors. By understanding these factors, companies like Nestle can effectively target consumers and achieve success in the competitive market.

CONSUMER BEHAVIOUR AND INSIGHT
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Contents
Introduction......................................................................................................................................3
Activity 1 Business Report..........................................................................................................4
Executive Summary.....................................................................................................................4
Introduction..................................................................................................................................4
Consumer Decision-Making journey...........................................................................................5
Conclusion.................................................................................................................................10
Activity 2 PowerPoint Presentation...............................................................................................11
References......................................................................................................................................22
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Introduction
In this report below, the journey of the decision of the customer is mapped which is considered
as a common concept of marketing nowadays. Along with this concept, in this report, various
theories, concepts and models are discussed which are the elements that help the decision-
making process of the customers. Furthermore, in this report accurate forms of research are
discussed and detailed which help in understanding consumer decision-making. The organization
chosen for this report is Nestle.
About Nestle
The Nestle Food Company is the leading beverage and food company in the world, based on its
revenue and other metrics since couple of years. It believes in attracting quality and providing
healthy opportunities.
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Activity 1 Business Report
Executive Summary
This report focuses on the strategies that are applied for a decision-taking process by the
management of the Nestle for the event of the Christmas 2018 describing each stage of the
evaluation of B2C and B2B with appropriate methods.
Introduction
In this report, the importance of mapping a path for decision making to purchase and providing a
better understanding of this aspect is discussed in detail. Also in later part of the report, the
different methods and approaches to the market research that influence the decision making are
discussed and are detailed in the report.
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Consumer Decision-Making journey
The consumers of today's world have a number of options available and have to choose the best
among those options, therefore, it has become very important to analyse the consumer decision-
making journey for the companies to achieve the competitive advantage in the market.
Basically, the Nestle is one of the biggest foods and Beverages Company in this industry and it is
the strategic management decisions that have helped Nestle in achieving the position. For the
management team, it becomes very important to study the decision-making journey of the
consumers in order to achieve success. According to Wall and Minocha (2015), to study the
journey of decision making of consumers, it can be broken down into 5 simple steps.
 Recognizing problems.
 Searching for information.
 Evaluating the alternatives
 Purchasing
 Post-purchase satisfaction/dissatisfaction
The study of above 5 methods can help in achieving the awaited success in the Christmas time
for the company (Solomon, et. al., 2014). The journey starts with the problem recognition,
where the exact need of the consumer is studied and the product is launched or produced
according to the need of the customer. During the Christmas, that is the festive season, children
and families basically spend time with each other and like to present gifts while visiting their
relatives and friends. So the gift vouchers or some attractive gift wrapping of sweets and
chocolates can be easily attracting the customers and their needs can be fulfilled. Secondly, the
decision-making journey includes the searching information, where the customers are confused
as they do not have the exact shopping information for the products they want (Rugman and
Collinson, 2012).
Therefore, a shopping place is selected from different places with the help of the internet and
shoppers prefer managing risks of wasting time in shopping at wrong places. In the third step,
the consumers determine the products that will satisfy them or not. The clever customers
compare the prices as they have already read many reviews and opt for the best option. Then
comes the purchasing of the product which is very important for customers and for the company
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itself as it can be succumbed to reviews and advertising that customers can go for other
competitors products and therefore the sales department have to influence the consumers so that
they do not go for other options and the Nestle sale increases. Post-purchase satisfaction is very
important as sometimes after purchasing the majority of people are dissatisfied (Ingram, et. al.,
2015). This can lead to negative feedback, so this stage is the key stage for the customer
decision making journey. This stage helps in making goodwill and maintaining reputation of the
company. It also help in making new customers as the old and satisfied customers can refer their
relatives and friends the products they are satisfied which will increase the sale and revenue for
the Nestle.
As there is a lot of competition in the market, it has become very important for the marketers to
map a path for purchasing and understanding customer decision-making which will help in
increasing the revenue for the company. Nestle has been utilizing various strategies for last few
years to understand consumer decision-making and with all the efforts of the management and
marketing strategies today they are in the topmost position in the beverage industry.
Response to Decision-Making Process of Consumers:-The Nestle management and marketing
team emphasises on managing change by managing decision over time. The marketers go
through a difficult task, but logically correct one and the response of marketers on decision
making process of consumers help them finding success (Blais, et. al., 2015). The decision-
making model includes 5 basic fundamental steps, which are:
 Capturing knowledge for further reuse.
 Focusing on needs
 Put creativity for finding potential solutions.
 Manage change with managing decision eventually.
 To manage decision, not the problems.
The judgment network model helps to capture knowledge which can be further reprocessed.
Therefore, the decision-making solutions should be collaborated and framed and should be
worked upon. It is important that the problems are not discussed and only the decisions are
discussed and these theories and concepts will help the marketers in influencing the decision-
making process. For example, the Nestle provides different milk products which are nutritious
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like Baby Food, Bottled Water, Coffee, Chocolates, Cereals, Dairy, Frozen Foods, Drinks, etc.,
and it becomes important for the marketers to search the important items for festive season like
chocolates. The chocolates, dairy products, along with baby foods for the young ones are most
sold products during the Christmas time, therefore, to be sure to be at the peak of the clients it is
important that the strategies are planned accordingly (Dorner and Edelman, 2015).
Key Differences in decision-making processes for B2B and B2C:-The on-target sales strategy is
very important for the management of the Nestle and is considered as the decisive aspect of the
B2B and B2C strategies. The Key Differences for B2B and B2C decision-making process areas
discussed in the table below:-
Key Differences B2B B2C
The difference in the targets Targets on company’s
particular requirements.
Targeting number of
customers
Knowledge of Product Extensive Product knowledge
required while targeting
company
All the features, importance,
advantages, disadvantages,
design knowledge is required
for targeting direct customers.
Difference in Decision-
Makers
Dealing is mainly with 1 or 2
people.
Dealing is with millions of
customers and number of
factors has to be explained for
a single product to different
people of the same family.
Different Responses Response varies on the scale
of the price.
Make every effort to get an
emotional response from
customers and customer
loyalty is important.
Decision Making Process Very lengthy as there are
several peopling who take the
decisions and each and
everyone needs to be
convinced.
Decision-making process is
very fast.
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Relationship Considered as an investment
basis for both sides.
Considered as one-off
transactions and focus is only
on purchase.
The B2B and B2C generally aim for capturing a different audience for their products. Where
B2B the audience is few but the steps are so lengthy and the time taken for convincing them is
very long. Predictably, the audience is large in B2C but it takes less time in convincing them and
selling the products. Though the types of marketing are very similar for both the B2B and B2C
and it includes the general marketing which requires various approaches specifically on the
social media marketing. It is important for the Nestle marketing professionals to make efforts
and understand the design and what is more successful to them and what to consider during the
Christmas event in 2018. The marketing is basically from a person to a person, therefore the only
matter is that B2C has one product sale or maybe 2 or 3, not more than that but if the B2B is
targeted thousands of products can be sold by convincing just few people (Horner and
Swarbrooke, 2016). Therefore, the decision is very strategic and involves many differences in
decision-making processes.
Methods of market research for the decision-making process in B2C and B2B:- There are
important distinctions, the market research for the decision-making process in B2C and B2B
involves mixed methodologies. The market research itself has a very large and big world and
involves many theories and concepts. Among those theories and concepts, the B2B and B2C
market research are very important in the context of the decision making processes. Basically,
the research process involves 5 major areas where the approaches for B2B and B2C differ and
they are explained below:-
Mixed methodologies: - The B2B requires a lot of advanced methodologies and many
methodologies and vast market research is required which is not the case in the B2C. TheB2C
just need to test and verify the results for achieving confidence.
Communication methodologies:-B2C require general communication methodologies as the
individuals get attracted to the healthy and environmental things. But is very different in the
B2B scenario as the communication methods are very important and they rely on the written
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communications like emails, messages, invoices, agreements, etc. and whole dealing is done
with the help of these written communications as they are the business professionals who rely on
written communication than verbal communication (Baesens, et. al., 2016).
Small samples sizes:-The sample size to the B2B is much smaller than compared to the B2C.
Most researchers done have concluded that the ration of the sample is 80:20 for B2C and B2B.
The market research results are the satisfying results as most of the researchers are done by the
qualified and reliable members.
Emphasizes on units than the people:-In B2B, where personnel are busy and committed, single
buying involves only a few members like 5 or 6 employees, therefore it emphasizes on being
straightforward in decisions and the cash and incentives are emphasized on largely. This is not
the case in the B2C market research as each and every customer is emphasized and people spend
time in gathering information about things that they do not buy.
Identification of the incentives is very difficult:-B2C incentives are clear but in the B2B the
incentives are difficult and have to be more business-friendly. The B2B market research
participants are the participants who are very busy and skills are identified for giving the
incentives (Schutte and Ciarlante, 2016). It is very important that the researchers should be
carried out by the professionals, experienced and qualified members which can provide better
insight into the data collected by the researchers.
Evaluating different factors influencing decision-making and buying behaviour:-There are
various factors that influence the decision-making process as well as the buying behaviour of
consumers (Peng, 2014). It is impossible to understand complete consumer behaviour. The
Nestle has for years maintained the consumer behaviour and insight, which has made it among
the leaders in the beverage and food industry.
Various researches are carried out for identifying the purchasing decisions through the
psychological, personal, cultural and social factors. Basically, these four factors directly affect
the consumer behaviour and buying decisions. The consumer behaviour emphasizes on the
study of the individuals and the groups. The consumers can be categorized as organizational
consumers and individual consumers. These organizational consumers come from a different
business which can be of the same field or different. They try to satisfy different group’s needs.
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Whereas the individual consumers are the consumers who try hard on satisfying individual
needs. The social factors, personal factors, cultural factors, as well as the psychological factors
are considered as the factors that influence buying behaviours as well as the decision making of
the consumers.
Conclusion
The consumer behaviour researchers go far beyond the facts. So, Nestle needs to focus on the
different stages that involve decision-making process for the B2C and B2B and should
emphasize on the Christmas events of 2018. The behavioural learning theories, consumer
decision-making theory and concepts are outlined in this chapter. To conclude, for the company
like Nestle the customer satisfaction, their needs and wants which is the ultimate goal, therefore,
they compare satisfaction to various attributes.
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Activity 2 PowerPoint Presentation
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Slide Notes – The slide contains the overall description of content and issues that has been
addressed in this presentation. The analysis of consumer buying process has been stated in this
presentation and relative marketing strategies is suggested to the product and service of
company.
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Slide Note – It is generally observed that the consumer buying process has certain phases from
which the consumer passes through. It starts with problem recognition, information search,
evaluation of alternatives, purchase decision, purchase and post purchase decision. In case of our
product Chocolate & confectionery the Christmas 2018 is very unique time to market and
promote.
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Slide note – In this slide the first stage of consumer buying process has been explained. For
introducing or marketing any product in the market it is important to conduct the market
research. For conducting the marketing survey the above model is very helpful in which the
current state of consumer with the desired state is assessed.
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Slide note – The information search is made by the consumer for seeking its relative product and
service in the market. The model represented above helps in clearly identifying the necessary
data and information through initiation, exploration, presentation and other mediums. The
consumer trust on various marketing tools in gathering information. Such as word of mouth
publicity, public relations and others
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Slide notes – In the era of dynamic business environment the competitor companies are coming
with the close substitute to the product and service. Chocolate & confectionery are most common
in the market and have various alternatives. At the time of festival and especially Christmas the
demand for Chocolate & confectionery tremendously increases and people search for
alternatives.
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Slide note – After, the search for alternative products the consumer make final purchase decision
on the basis of various factors such as pricing, friend’s recommendation, quality, situational
factors, attitudes of others and much more. The purchase can be instant or can be delayed by the
customers. It is important to grasp the attention of customers at first attempt only.
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Slide notes – In this slide after ensuring of purchase decision the consumer make final purchase
of product. It is very crucial to convert the purchase decision of customers in actual practice. The
consumer at this phase decides on various aspects such as payment mode, after sale service and
others. The exchanging of products takes place at this stage. For our product providing of
relative discounts and offers will be very suitable to increase the sales of product.
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Slide notes – When the purchase of product has taken place the next step is to review the
feedback and preference of customers regarding usage of product. This helps in making
customers satisfied and loyal towards company. Moreover, there is need to hire respective
customer handling personnel so that he or she can appropriately track record of customer.
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Slide notes – The presentation conclude that the mode of consumer purchase decision is very
important for company in order to assess various mind-set and thoughts of customers towards the
product. When, the needs and wants of customers are clearly examined then only they can be
satisfied and become loyal for company.
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