Consumer Behaviour and Insight

Consumer Behaviour and Insight
(PART-1)

Contents
INTRODUCTION.................................................................................................................................3
Consumer decision making................................................................................................................3
Models of consumer decision making...............................................................................................3
Decision-making process for a particular product or service.............................................................4
Importance of mapping a path to purchase and understand consumer decision-making.................5
Levels of consumer decision-making.................................................................................................6
Factors influencing decision-making..................................................................................................6
CONCLUSION.....................................................................................................................................7
REFERENCES......................................................................................................................................8

INTRODUCTION
Consumer behaviour may defined as an activity of studying the buying behaviour of
customers which makes huge impacts on the sustainability and profitability of business
organisation. Due to this, an organisation must required to identify actual needs and
requirements of customers through conducting different type of market research. The present
assignment report is based on FASTFOOD company which is a British Frozen food
supermarket. It was established in the year 1965 and from then to now, it has operated more
than 300 stores throughout the UK. The project discusses the concept of consumer decision
making along with its different models, Importance of mapping a path to purchase and
understand consumer decision-making, Levels of consumer decision-making along with
factors influencing them.
Consumer decision making
It is the process of selecting suitable products according the needs and requirements of
customers at the time of purchasing in the market. Consumer decision making process may
influenced due to several factors such as price of product, wide varieties exist in the market
etc. Thus, the consumers make decision while buying products according to their suitability
and needs (Fulgoni, 2014).
Models of consumer decision making
There are various models of consumer decision making some of which are mentioned
as under:
Economic model: This model states that the consumers are rational at the time of
purchasing as they have a habit of analysing the product first and purchase according to their
requirements without spending unnecessary money. Such model is determined as unrealistic
as the people have limited skills, values and conceptualisation and are not always rational at
the time of making purchasing decision.
Passive model: This model states that consumer took buying decision on the basis of
advertising made by Farmfoods Ltd. as it influences their interest and willingness to buy. For
this, Farmfoods Ltd. must have an appealing advertisements and offers which brings
customers into confidence that their acquired products will brings beneficial outcome to
them. Such model is also determined as unrealistic model as the consumers first collect
information about products through advertisements and make buying decisions accordingly.