Understanding Consumer Decision Making and its Importance for Marketers

This document provides an in-depth analysis of consumer decision making and its importance for marketers. It discusses the stages involved in the decision making process, the reasons for mapping purchase path, and the differences between B2B and B2C decision making. It also evaluates the ways in which marketers respond to decision making using suitable models and concepts.

Unit- 37

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Explanation addition to analysis of stages involved in consumer decision making journey
for particular product or service.............................................................................................1
P2. Explanation of the reasons related to importance of marketers to map purchase path
together with understanding consumer decision making.......................................................3
M1. Evaluation of different ways in which marketers are responding towards decision making
process by using suitable models and concepts......................................................................4
TASK 2............................................................................................................................................5
P3. Comparison and contrast of differences in decision making within B2B and B2C.........5
The similarities between B2B and B2C decision making procedures are only few. One is that
the procedures of decision involved in both are to solve needs and gain popularity among
other businesses and customers. Moreover, in both contexts The Tile Depart administrators
work to establish emotional and favourable connections of its products to that of consumers
and businesses........................................................................................................................7
P4. Evaluation of distinct approaches concerned with market research as well as methods of
research that are used to understand decision making process in context of B2B and B2C..7
M2. Providing coherent addition to justified evaluation of various ways distinct factors
influences decision making together with behaviour of buy products or services.................9
TASK 3............................................................................................................................................9
P5. Evaluation of mechanisms in which marketers can influence stages involved in decision
making process of B2C and B2C...........................................................................................9
M3. Critical evaluation that shows the mechanisms adopted by marketers to influence stages
of decision making process..................................................................................................10
D1. Critical evaluation of application of theories and models which impacts addition to
influence on decision making process..................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In modern era, understanding consumer behaviour is essential for all enterprises for
recognising needs of targeted audiences and meeting them successfully. Consumer behaviour is
mentioned to the study which helps in recognising about individuals or organisations in the
manner they makes purchase and uses physical items or intangible services for satisfying wants.
Present report is concerned with The Tile deport which is medium sized enterprise which is well
popularise as ceramic tile retailer in Shoreham, UK. It is independent owned business set by
Mike Flynn at Shoreham in 1989 (The Tile Deport, 2019) . The company supplies wide number
of trade tile at affordable range without compromising with quality. The report highlights stages
of consumer decision making, reasons for importance to marketers to map purchase path along
with understand decision making of consumers. It further involves differences and similarities in
B2B and B2C decision making. It also evaluates approaches and methods of research in context
to B2B and B2C. At last, evaluation is don e regarding the ways marketers influences decisions
making of both B2B and B2C.
TASK 1
P1. Explanation addition to analysis of stages involved in consumer decision making journey for
particular product or service
Consumer behaviour is termed to a branch that deals with wide number of stages in which a
consumer goes through prior of buying products for end consumption or usage. There are various
reasons for which an individual purchases goods and goes through with all the stages (Ashman,
Solomon and Wolny, 2015). For example, The Tile Deport managers have empowered its human
resources to monitor current and emerging trends in order to set operations of tasks for coming
duration and gain success. For this context, marketing analysts of the company analysed the
ways in which customers of the business makes their decision to buy the tiles and also focused
on the specific tile which is more on demand among organisational customers. For this, the
company recognised the needs of its product that is floor and wall tile through the following
consumer decision making stages:
Problem Identification: The stage in which unmet needs are recognised is said problem
identification. Customers feel that they are missing something and it need some product to get
the life normal. In this stage, marketing analysts of The Tile Depot assist customers to identify
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the problem and solutions in context to the tiles they should use in there houses which mill make
it more attractive.
Information search: Consumers searches wide sources and collect information for the
commodity which can meet recognised need (Bharwani and Jauhari, 2017). Marketing analysts
of the entity makes attempts to get the brand into awareness set as well as choice set of
prospects. Herein, customers of The Tile Deport will read newspaper, watch television, use
social media platforms, contact salesman, visit organisation premises, discuss with friends and
close one for trying possible informational sources for gathering positive or negative reviews
about the product.
Alternative evaluation: From collected information about the brands, consumers undergo
to evaluate all. In case with consumers of The Tile Deport, they considers various criteria to
evaluate alternatives that includes benefits offered by certain brands, price charged for the
product, popularity or image of the brands, dealer ratings, performance and quality offered and
so on. In this context, marketing analysts helps them in making evaluation through advertising
comparative tables that helps consumers in evaluation and moving towards further stages.
Purchase decision: In this phase, marketing analysts of company focuses on three factors
that are attitudes of others, unanticipated situations and consumer’s perceived risk that can
hamper the purchase decision of consumers (Bronner and de Hoog, 2014). In case with The Tile
Deport, consumers after recognising needs, collecting information, evaluating brands and many
more reaches to make purchase for Floor and Wall Tile that will make their houses huge
innovative and attractive.
Post purchase decision: It is seen that consumers makes purchase for product with
particular expectation. After performing various actions, there are some possibilities of variation
among expected and actual satisfaction level. in this, marketing analyst will take feedbacks and
recommendations from the customers who purchased its Floor and Wall tile so to analyse
whether the company succeed in meeting satisfaction level or not.
Different consumer decision making level:
A consumer makes decision under certain level. Some of the levels through which
consumers of The Tile Deport makes decision are underneath:
Routinised problem solving: In this level, there is little involvement of an individual in
selecting product, makes quick decision and makes frequent purchase of low cost commodities
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(Cockayne, 2016). The consumers that stick with individual brand uses the decision making
level.
Limited problem solving: Decision making level in which purchasing stages are shorter,
moderate involvement of consumers in selection procedures and few of alternative brands are
evaluated to make decision is termed as limited problem solving level. For example, potential
clients of The Tile deport uses the level at the time they have to buy floor and wall tiles on
certain occasion.
Extensive decision making: A consumer that has to make decision for high cost goods
generally uses extensive decision making level. For example, when targeted audience of The Tile
Deport has build a new house and wants good quality of tile then they will use this level of
making decision in which they will involve in huge manner, take long time in purchasing and
evaluate wide brands.
P2. Explanation of the reasons related to importance of marketers to map purchase path together
with understanding consumer decision making
Mapping path to purchase is a mechanism that marketers use in promoting particular
organisational products and influencing its sales demand (De Mooij, 2019). In modern
multichannel world, it is very important for marketing department to map effective purchase
path. Some of the reasons for stating importance to map path of purchase for marketers of The
Tile Deport are as follows:
 For determining perceptions of audiences: In order to identify what targeted audiences
perceive about the company and its products, marketers map purchase path. This assist
marketing analysts of Tile Deport to properly review behaviour of consumers for
particular tile and then devise plan to make promotions.
 Meeting demand as well as improving market share: Mapping purchase path help in
organisation in analysing desires of market and meeting them promptly so to acquire
market shares at large proportion. In case with The Tile Deport, it is significant for
marketing analyst to make contribution or efforts in meeting demand of targeted people
and analysing the satisfaction achieves from using tiles in houses. This will further help
in meeting satisfaction that will leads in increasing market shares of entity.
Marketers also works to understand purchaser choice making and the reason for its
importance are below:
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 Understanding decision making done by purchasers help marketers of The Tile deport
to devise tactic and plan to promote its products and grab attention of large customer
section.
 It is also important for marketing department of company so to place suitable
offerings to customers as per their way or manner to make choices (Dredge and
Gyimóthy, 2017). Along with this, by doing so they also analyses why customer
chose to purchase, how often they make purchase, from whom they collect
information, what are the main buying, from where they mostly prefers to purchase
and many more.
There are various factors that play essential function in influencing decision making of
purchasers and analysing all is key for marketers as this help in explaining the other reasons for
which it is significant for marketers to realize consumer decision making. Some of factors are as
explained:
Influence of marketing mix: Combination of factors which are controlled by
organisations for influencing individuals for making purchase of its offerings are marketing mix
(Eskerod and Jepsen, 2016). In case with The Tile Deport, entire marketing team focuses on
monitoring elements including product, physical distribution, place, people and others to analyse
trends and as per the analysis carries out further works to map path and understand decision
making among buyers. Moreover, this is important for marketers as to forecast emerging trends
and demand for specific product availability at particular price and place that will influence
customers in making decision to buy.
Influence of technologies: In present era, technological factors influences decision making
of people at large extent. Technologies including online transactions, rising of consumer to
consumer purchasing, tailing and digital platforms are majorly opted by companies for building
relations with other brands and targeted consumers for understand their behaviour and mapping
purchase path. For example, marketing analyst of The Tile Deport publishes all information
associated with products and offerings in innovative advertisements on different platforms.
Along with this, various modes are also used to clarify queries that lead in influencing decisions
to buy specific type of tiles.
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M1. Evaluation of different ways in which marketers are responding towards decision making
process by using suitable models and concepts
As per Hofacker, Malthouse and Sultan (2016), it is evaluated that marketers of company
use various concepts and models to respond for decision making procedures that are used by
customers. In context to The Tile deport, marketers responds through concepts of different levels
of decision making. Along with this, marketers analyses all stages through which an individual
frames purchase decision. The stages assist in identification of goods which buyers can purchase
and devise strategies to market or promote them in attractive manner. However, models of
consumer decision making fails to deliver advantages to marketers to recognise choices and
demands which buyers have. It also limits involvement of wide customers that have limited or
routinised participation in buying decision.
TASK 2
P3. Comparison and contrast of differences in decision making within B2B and B2C
B2B decision making is all about decision taken by other business for acquiring or
purchasing commodities from particular business concern (Lantos, 2015). The Tile Deport also
supplies its variants of tiles to other business through following stages of B2B decision making
process:
Describing features and quantities: Herein, organisational managers states about the
features of particular product along with the quantities to meet market demands. Administrators
of The Tile Deport explain about the features, qualities and other aspects to other business
concerns.
Developing specifications: In this stage, specifications for variants of tiles are developed
in brochures and pamphlets according to illustrated characteristics and quantities of tiles to
business clients.
Searching addition to qualifications of suppliers: At this phase, managers of The Tile
Deport searches for effective supplier according to qualifications needed by the company to met
choices. The supplier that can deliver products to client business on timely manner, involves
least supply chain and other aspects are analysed by the company within the suppliers.
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Solicitation quotes and proposals: Herein, company solicitate proposals for other
business. Managers of The Tile Deport asks suppliers along with contractors to submit
quotations together with price bids for acquiring possibilities of completing particular projects.
Evaluating proposals together with selecting supplier: From the submitted price bids,
proposals and quotations, screening or evaluation of all are done by senior managers about the
supplier with whom further business dealings will be done. After considering quote solicitation,
suppliers for tile projects are selected that will give maximum benefits.
Selection of order routine: After selection of suppliers, order routine is discussed and
selection is done for the effective one (Mohammed, Guillet and Law, 2015). Herein,
management team of The Tile Deport prepares final order with potential supplier through listing
return policies, expected delivery time, requirements of quantity and many more information.
Evaluation of performance together with feedbacks: In this, workings performed by
suppliers are evaluated and feedback is generated so that buying procedures with businesses can
be improved accordingly. Suppliers are the businesses that purchases tiles from The Tile Deport
and further evaluate performances to strengthen relations.
Differences among B2B and B2C decision making procedures
Differentiation basis Business to Business Business to customer
Purpose of decision
making procedure
In B2B, the main purpose of
procedures involved in decision
making is to make rational sales
and generate online assistance by
various businesses (Correa, 2014).
For example, managers of The
Tile Deport influence its other
business partners to make rational
analysis and make bulk purchases
of all its tiles.
In B2C, decision making
procedures are followed with
purpose of motivating consumers
to make huge purchases. For
example, The Tile Deport
marketers influence decision
making by consumers so that they
makes more number of purchase
of its variants of tiles.
Size of market In B2B decision making
procedures, targeted market size is
generally small and selected. For
example, administrators of The
Within B2C decision making
procedures, size of targeted
audiences is large addition to
geographically disperse. For
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Tile Deport select other business
within small market.
example, marketers of The Tile
Deport attracts mass market from
large distant geographical area.
Strategy Within procedures of B2B
decision making, an organisation
do not use mass media rather
focus on making personal contacts
with other businesses (Saw, Goh
and Isa, 2015).
In stages of B2C decision
making, companies uses mass
media together with social media
communication for influencing
decisions of consumers for its
offerings.
The similarities between B2B and B2C decision making procedures are only few. One is
that the procedures of decision involved in both are to solve needs and gain popularity among
other businesses and customers. Moreover, in both contexts The Tile Depart administrators work
to establish emotional and favourable connections of its products to that of consumers and
businesses.
P4. Evaluation of distinct approaches concerned with market research as well as methods of
research that are used to understand decision making process in context of B2B and B2C
Market research is characterised as action through which companies collected data for
needs, wants desires and choices of consumers. Following are certain approaches and methods of
market research used by human resource of The Tile deport in context to B2B and B2C:
B2B
Market research methods: the methods that marketing analytic of The Tile Deport used
to recognise needs of other business concerns for its tiles are as follows:
 Managers of The Tile Deport uses web pages developed by other businesses for
collecting basic information related to key operations of the other organisation. It is
evaluated that web pages benefits the main company to collect wide information types
about which they have to do business (Stangl, Inversini and Schegg, 2016). However, the
drawback of using it is that web pages do not provide accurate information.
 Administrators of The Tile deport also uses review posts method to understand level of
satisfaction among different businesses for variants of tiles that are delivered to them.
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This benefits the company in understanding the satisfactions level and impacts of their
relationships. In contrary, some business may upload wrong information that can impact
negatively on the dealings.
Market research approaches: The market research approaches used at The Tile Deport
are evaluated below:
 Managers of The Tile Deport use quantitative approaches for collecting standardised
facts so that further business decisions are framed for future. some of kinds of
quantitative research approaches used includes descriptive research approach and
correlation approach which benefits in uncovering relationships addition to drawing
effective conclusion. In contrary, the approaches fails in describing about effectual
variables and results are derived from biasness.
 The next is qualitative approach through which marketers of the organisation collects
non numerical data concerned with other companies to make determinations (Strong,
2015). Ethnography approach and narrative approaches are types of quantitative approach
that benefits The Tile Deport to collect in dept information for businesses. However, its
limitation is that it consumes more time and is less reliable.
B2C
Market research methods: Market research methods used by marketing division of The
Tiles Deport for B2C are as evaluated:
 Field trials is one of market research method used in The Tile Deport for testing
response of customers in different selling conditions by placing new form of tile in
particular stores. This benefits the company in establishing rapport with large customers
and making further modifications in product. However, placing new tile only in selected
stores is risky as it fails in grabbing attention of people that do not live in that
surrounding.
 Observation is next market research method used by marketers and administrators of
The Tile Deport in which behaviour of consumers in decision making is analysed fro
particular product. This method benefits in collecting accurate picture about usage habits
addition to shopping patterns of customers. In contrary, it results in neglecting certain
factors as staff members may not have ability to observe all the things.
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Market research approaches: Approaches that are part of market research used by The
Tile Deport in context to B2C are evaluated below:
 Managers of the entity use quantitative approach for revealing trends in thought as well
as opinions of targeted audiences. Experimentation approach and Cross sectional
approach benefits in having control of various variances concerned with customers, in
contrary, they both produces artificial outcomes that restricts company in making suitable
decisions.
 At The Tile Deport, qualitative research approaches used includes Grounded method
and phenomenological approaches for collecting wide information about its customers.
The benefits gained by the organisation from the approaches are getting accurate insights
related to customers for the satisfaction they received from using its offerings. In
contrary, it creates difficulties in path of marketers to collect and interpret data
effectively.
M2. Providing coherent addition to justified evaluation of various ways distinct factors
influences decision making together with behaviour of buy products or services
According to Varkaris and Neuhofer (2017), it is evaluated that there are end number of
factors that influences decision making and behaviours of people to make product purchase
offered by The Tiles Deport. The factors are marketing mix elements and technological factors.
It has been evaluated that when demanded product and not available at particular store place and
at affordable price then it influences decision making in negative manner. However, technologies
like social media communication, online transactions and many more makes things easy for
customers to make purchasing and this leads in influencing behaviours positively.
TASK 3
P5. Evaluation of mechanisms in which marketers can influence stages involved in decision
making process of B2C and B2C
Marketers are the people that have role and responsibility of promoting the brand and
enhancing sales demand. They undertakes various activities for the purpose of influencing stages
that are part of decision making procedures both in B2B and B2C. In case with The Tile Deport,
some of the ways in which marketers makes attempts for influencing decision making process of
its consumers and other businesses are as evaluated:
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B2B: In context to B2B, marketers use cognitive approaches to influence stages or phases
on decision making by other businesses (Weiler and Black, 2015). For example, using the
approach marketers of the entity moulds various things such as features, characteristics and key
attributes of its products that leads to positively influencing decision taken by businesses.
Additionally, marketers develop specification of the tiles and present the information in the
manner that manipulates businesses in making purchase decision. Marketing team sets out
proposals as well as quotations as per behaviour of business concerns that helps in making
routine orders with wide suppliers resulting on influences of decision making between The Tiles
Deport and other businesses. By using the approach, company is benefited in focusing on various
elements that are ignored by other ones and making best dealing with other businesses. However,
its disadvantage is that it is more complex in nature that makes critical for marketers to perform
their workings for influences stages.
B2C: Marketers of the company uses behavioural approaches to learn about consumers and
then apply the results to influence their decision making procedures. For example, marketers of
The Tile Deport recognises the ways in which problems and identified by consumers and the
mechanisms used by them to search information. In these stages, marketers plays essential role in
doing surveys and implementing methods of timely delivering information that convince
customers to move towards purchase decision. Moreover, marketers also helps customers to
evaluate information through providing advertisements and brochures of various companies and
The Tile Deport through giving wide number of additional offers that influences stage to
purchase of consumer decision making in favour of company. The advantage of the approach is
that is shows quick results and ease in understanding. In contrary, the approach fails in
considering thoughts or viewpoints of customers and also takes huge time in changing mind of
people.
M3. Critical evaluation that shows the mechanisms adopted by marketers to influence stages of
decision making process
From the viewpoints of Zaltman, Olson and Forr (2015), it is critically evaluated that
marketers of The Tile Deport have adopted mechanisms of cognitive approach and behavioural
approaches to influence decision making procedures in B2C and B2B. The implementation of
cognitive approach benefitted in making attempts in the manner which influences stages of
framing decisions among consumers for its tiles. In contrary, it is analysed that the approach
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failed in recognising viewpoints together with opinions that hampered practices of marketers in
influencing stages through which customers makes decision. The other mechanisms adopted is
behavioural model that helped marketers in influencing ways in which other business managers
makes decision in buying its offerings effectively. However, implementing the amendments of
the model are more complex in real life that creates difficulties in influencing decisions.
D1. Critical evaluation of application of theories and models which impacts addition to influence
on decision making process
From the opinions of Ashman, Solomon and Wolny (2015) , it has been critically evaluated
that wide number of theories and models are applied by marketers of company for impacting and
influencing process of decision making within B2B and B2C. In context to the Tile Deport,
model of consumer decision making level is applied to analyse the manner in which consumers
takes time and involves in stages to make effective purchase decision. The model benefits in
recognising needs and time taken by buyers to make decision so that major modifications are
done by marketers in promoting products that influences decision making procedure positively.
The theory of consumer learning is also used in which two approaches that are cognitive and
behavioural are applied. Both the models are time consuming and also fails in giving reliable
results that fails marketers in impacting procedures to make decision negatively.
CONCLUSION
As per mentioned report, it is concluded that a business offers products in market after
analysing the behaviour of consumers so that all the efforts reach towards set heights. Consumer
behaviour is decision procedure of an individual to buy goods for personal consumption. B2C
decision making includes stages that are different from B2B decision making. Factors that makes
significant for marketers to map purchase path addition to understand behaviours of buyers are
marketing mix elements and technologies. The market research methods used in both contexts
are observation, web pages, field trials and review posts.
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Online:
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