Consumer Behaviour: Stages, Importance for Marketers, B2C and B2B Differences, Market Research Approaches

This document provides a detailed analysis of consumer behaviour, including the stages of the decision-making process, the importance for marketers to understand consumer decision-making, key alterations in B2C and B2B decision-making, and approaches to market research. The document focuses on the case of H&M, a global leader in fashion products, and provides insights into how the company maps a path to purchase and influences consumer decision-making.

CONSUMER
BEHAVIOUR

Table of Contents
INTRODUCTION.................................................................................................................................3
TASK1..................................................................................................................................................3
P1 the stages of the consumer decision making journey....................................................................3
P2 Importance for marketers to map a path to purchase and understand consumer decision-making
...........................................................................................................................................................4
TASK2..................................................................................................................................................5
P3 the key alterations of the decision-making process in the context of B2C andB2B......................5
P4 Approaches to market research and methods of research for understanding the decision-making
process...............................................................................................................................................7
TASK3..................................................................................................................................................8
P5 marketers influence the different stages of the decision-making process.....................................8
CONCLUSION...................................................................................................................................10
REFERENCES....................................................................................................................................11
Books and journals..........................................................................................................................11

INTRODUCTION
Consumer behaviour is that part of management study where manager learn about behaviour
of customer, groups and organtional units which is related to their habits for consuming good and
services in satisfying their needs. This is a study of reaction which ultimate user drive after using their
desire product and services for self-benefit of further sale. In this report chosen company is H&M, It
is dealing in fashion product where there is both B2B and B2C type market. It is also a global leader
in faction products which originated from UK. In this report all factors related this consumer
behaviour will be study in respect of this organtional (Pantano, 2016). The path which help firm in
understanding the consumer behaviour and stages in consumer decision making will be elaborated in
this report. Thereafter, it will include comparison between both B2B and B2C. Market research
methods will also be identified. In last, impact of marketer will be evaluated in context of given firm.
TASK1
P1 the stages of the consumer decision making journey
Consumer decision making is the process where an individual decide the choice of product which
it have to consume for satisfying its needs and requirement. This is the process where the particular
product is selected for achieving the satisfactory level which rises because of human wants. This is
useful for business units both B2B and B2C as they can identify, consumer and will reach to peek of
their business by selling the required product and earn lots of profit in business operations (Martin,
Javalgi and Ciravegna, 2020). This decision making of customer has process which is classified in
five stages. Study of this process can help business in getting the desire results, all the stages in this
are mentioned below:
1. Problem recognition: this is first stage in this process. It starts which arise of needs of
product in mind of consumer. Every individual in life requires some goods and services for
survival and this will give arise to shortage, which have to be identified by business firm. For
example, in UK there is winter atmosphere where an individual needs winter clothes which
can help him/her in stay warm. This has to be recognizing by H&M for getting advantage of
this and attract customer towards firm (Johnstone and Lindh, 2018).
2. Searching and gathering information: This is that step where customer is identifying the
sources where it can get satisfy its needs, here customer get opinion from more experience
persons, social sits and from its past experience which customer earns by consuming of
particular product. This all help customer in deciding key product. This can be used by H&M
for selling their product by advertising there product by social media personal advertising and
television advertisement.

3. Evaluation the alternatives: Here the customer will evaluate the entire alternatives which
he/she identified in previous stage. Those entire alternatives are classified according to
satisfaction level which is decided with the help of taste, quality, quantity and price of
product. In context of H&M, firm have to make its products according to needs of customer
where there is super quality and in best prices for attracting customer towards firm product
(Reyes-Mercado, 2016).
4. Actual Purchase of product or services: In this stage customer have to choose one of the
product which he evaluated in previous stage. Here, customer chose one product for
satisfaction of its needs and requirement. This decision includes that product which is highly
related to needs of customer and fit perfectly to employee requirement. H&M can use
behaviour of customer as tool to help them in choosing best suitable product according to
customer needs.
5. Post-purchase evaluation: This is the last stage where customer of product will evaluate its
chosen product at the time of purchase. Here, they evaluate about the quality, date of
manufacturing, other benefits, side-effects and precautions before purchasing the product.
This all will help customer in satisfying there needs fully without getting cheated. Sometime
this evaluation also done after purchasing the product or service. In context of H&M, it can
use this function as they have to provide good quality product and detailed information about
their product to customer as they can get favourable to product.
P2 Importance for marketers to map a path to purchase and understand consumer decision-making
In business, decision making play vital role in implementing strategies and tactics. Entrepreneur
always hires the experts of particular field so that functions and operations run smoothly. It is
essential for firm to examine and identify the structure of decision of consumers or say customers so
that process of sales funnel is done in proper manner. In context to H&M, management and staff
members are well organised and has the ability to identify the customer behaviour and influence their
decision (Jayaraj, 2017). Information and data are to be collected and acquired by company so that
process is performed in appropriate manner. It is important to map a path while purchasing because it
help in examining the market situations at wider level. There various ways and techniques through
which marketers understand customers and consumers in the industry to sell product and services and
to increase the sale in entity. Leaders as well as mangers are responsible for choosing the suitable
methods.
Consumer decision making is necessary so that right product is distributed to right customers.
By understanding CDM, entity is able to acquire and more consumers and goodwill of the enterprise
increases as well. So, to maintain stability and to enhance performance level of business deep
knowledge is required and is to adopted by marketers. This process is time consuming and assist firm

in generating higher profitability at rapid level. Also, two way communication is established and
healthy relationship is developed between both the party. In relation with selected entity; H& M,
manager of the company make ensures that all the needs and requirements are fulfilled and din
appropriate manner. Main benefit of understanding CDM is that salesman and marketers are able to
sale the product and services in right order if the end users mind is monitored properly. Mapping a
path to purchase leads to determining the income and expenditure so that resources within the
enterprise are used at optimum level. In marketing, everything is to be understood and adopted
properly because it will help in evaluating the accurate information about the customers. Skills,
knowledge and expertise are required at broader level & which is to applied in effective manner
(Shamal and Mohan, 2017).
After a brief analysis of above matter, it is stated that consumer decision making and
marketers both are dependent on each other. So, focus is required to understand the CDM in proper
manner. CDM is influenced by marketers so; it is responsibility of enterprise to deliver quality of
goods as well as services. Marketers map a path so that purchasing and selling process in market is
done with proper measures (Iankova, Davies, Archer-Brown, Marder and Yau, 2019).
TASK2
P3 the key alterations of the decision-making process in the context of B2C andB2B
There various difference between the decision making in reference of B2B as well as B2C
which is going to be mentioned below:
Meaning
B2B : Business 2 business refers to the marketing of good and services among two business firm in
order to increase sales as well as profitability level. In context of H &M, the manager focuses on
maintaining the good relationship with the other entity in order to increase the brand image and
reputation of the company. In B2B, only superiors have the authority to access the information about
the clients and data. Firm conduct this so that professional relationship is maintained in the market.
B2C: It signifies the process in which the business firm marketing their products and services to the
end user in order to satisfy their need and requirements. In reference of H & M, the manager
emphasised on providing high quality products and services to end consumer in order to satisfy them.
Customers are the main focus because products as well as services are sold to them and money is
made throughout the process. So, in this entity manages customers’ relationship management in
appropriately (Hong, 2020).

BASIS
FOCUS
RELATION
B2B
The main focus of this business
is to maintain the good
relationship with the other
business entity
In this, relation with client is
formal and only professional
relationship is maintained.
B2C
The aim purpose of this
business is to attract large
number of customer that helps
in increasing sales and revenue
of the company.
In B2C, both personal and
professional relationship is
maintained and managed by the
firm and this results to string
network and positive relation.
Motive
Time variant
In this, main motive of
entrepreneurs is to take over the
deal and generate profit through
contracts (Hartmann and
Siegrist, 2017).
Business to business occurs
either, weekly, monthly or
yearly depending upon the
needs and requirements of
clients. In this, mutual
consideration is being
considered for the happening of
Main motive of business is to
acquire the resources and
market share growth through
customer satisfaction. For
example- H& M, provide
quality of products to its
customers at affordable prices.
In this, firm faces customers on
daily basis via wide distribution
channels and which help them
in spreading of brand awareness
in proper manner.

Decision Making
event.
In B2B, decision making is done
by both the party on mutual
agreement. This helps in
avoiding conflicts and errors in
near future.
Customers are the sources
through which profit is
generated so, DM in this process
done by end users. Marketers
are dependent on customer’s
perception, attitude and
behaviour.
After a brief analysis of above comparison and understanding of matter, it is seen that all the both
B2B and B2C are crucial for business. In organisation, decision making is to be done effectively so
that process goes smoothly. It is necessary for both managers and leaders to handle all the activities
related to both the terms. Moreover, risk associated with B2B is high as compared to B2C (Grant and
Philipp, 2020). In order to achieve goals and objectives within a period of time, it is crucial to focus
on these structures. Leaders and managers are responsible to provide a clear vision of the firm so that
activities in the corporation are carried out without any conflicts & errors.
P4 Approaches to market research and methods of research for understanding the decision-making
process.
Market research is the systematic function of analysing and evaluating the market, collecting and
analysing information about the product and service in the market, market research is done to analyse
the potential and strength of the company in the market. A company can collect authentic and relevant
data with the help of market research to solve the marketing challenges. Market segmentation, Market
targeting, and Market positioning is not possible without a proper market research (DeConinck, Moss,
and Deconinck, 2018). A company can collect information of research through two ways first is
primary information company can hire a person to collect or gather the information and second is
secondary information in this company can analyse the information which is already exists in the
market these two are the best and easy way of market research. It is also analysing the need and want
of customers; this also inform company that what is trending in the market. H&M done market
research to analyse their process of B2C and B2B and how this help in decision making, they consider
two approaches to market research –
Market research approach in B2B – Business to business research is important for the companies to
collect or gather data to analyse the competitive industries. B2B is the more complex decision-making

process because it includes suppliers from larger territories as compare to B2C. H&M done B2B
research by using method –
 Competition research – In B2B it is important to analyse the competition in the market,
companies formed some strategies to evaluate the competitive market. This research is done
by H&M to achieve the benchmark.
 Qualitative interview – In this method company use expert advice for research, experts are
those who have appropriate knowledge of the market this help company to analyse their
competition in the market. H&M appoint experts to collect qualitative data or information for
the company.
Market research approach in B2C – Business to customer research is done to analyse the needs and
wants of the customers, customers are the important aspect of every product and service industries.
 Face-to-face interview – This method allows the companies to get the bottom of things
through face-to-face interview. It is important for the companies to analyse future demand
and need of customers. This method is very useful for the companies with this company can
innovate new products and service in the market. H&M use this method to gather information
about their products from the customer and change according to the customers demand
(Bishop, Martin and Boies, 2016).
 Online survey – Now a day’s online survey is mostly used method by the companies to gather
information about the market through customers. This method avoids bias and help in getting
convenience samples. With this company fully understand customers’ needs and wants. The
aim of conducting online survey is customer satisfaction and getting relevant and accurate
information. In online survey companies need to focus on statement and content of the survey
and avoid confusing words. H&M Company prepare a proper online survey to collect the
information from the customers to satisfy them by analysing their needs and wants through
online survey.
TASK3
P5 marketers influence the different stages of the decision-making process
Marketer’s decision making includes the identification of customer needs, collect information,
evaluate alternatives and make customers buying decisions. Marketers influence the different stages
by using few steps of decision-making process (Achar, Agrawal and Duhachek, 2016).
 Problem Recognition – The first step of decision making process is Recognition of the
problems, marketers analyse the problems of the customers to satisfying them. If company is

able to determine the needs and wants of the customer then they have various opportunities to
increase company’s profit. This process is important to recognize the needs and wants of the
customer. For example, if a customer wants to buy a bottle of cold drink and water company
can identify their need as a thirst. H&M recognize their supplier and customers’ needs to
expand their business and satisfying their customer’s needs, and also to introduce innovative
fashion trends to the customers in the market.
 Search Process – In this process companies conduct research of the market, product and
service to satisfy customer needs and wants. By using two easy ways a company can collect
or gather information about market and customers first is primary data collection technique in
this method company get first-hand information. Second is secondary data collection in this
technique research is conducting on already available data. This process helps in collecting
information about the needs and wants of the customer properly by using some techniques of
data collections. Customers’ requirements and needs change according to the changes taking
place in the market but by conducting research company can easily maintain and satisfy their
customers and supplier. An H&M manager also conduct research to analyse and evaluate
their customers’ needs and wants to satisfy them. H&M also conduct business to business
research to analyse their supplies.
 Evaluating Alternatives – In this process marketers evaluate alternatives from various
available alternatives in the market. Various alternatives are available in the market are price,
quality and many other factors which creates various options in the market for the customers.
Customers compare various products and services on the basis of price and quality and buy
those products which satisfy their needs and wants. H&M always take care of their
customers’ needs and wants and they provide various alternatives and good quality products
to their customers.
 Selection Stage – Marketers select the stage on which the customers purchase their products
and services. At this stage marketers evaluate the entire factor and then select the best and
possible ways to satisfy their customers. H&M also select best option to satisfy their
customer’s needs.
 Evaluation of decision – Marketers goal is to satisfy their customer not for one time but for
lifetime. Once a customer had a bad experience then their perception will change for the
product and service. So to maintain and manage good brand image marketers need to make
good decisions and evaluate them time to time to satisfy customers for lifetime. H&M time to
time their decisions and make changes according to the customers and suppliers to satisfy
their needs and also to generate revenue from the market.

CONCLUSION
From the above stated report it can be identified that consumer behaviour play an important
role in firm success and identifying the needs of customer. It help firm in getting in touch with
customer and identify that decision making process for satisfaction of needs and requirements.
Marketer also paly an important role in identification of path which help customer in decision making
about the product they can chose for satisfaction of their needs. It can also concluded that there are
number of approaches which a related to business research and decision making process which also
help firm in getting tough with more customer. And in last it can also concluded that problem
recognition and search process also helps B2B and B2C firm in getting access to firm’s products and
global reach and satisfaction of customer needs.

REFERENCES
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