This document discusses the stages of consumer decision making journey, the importance of mapping the path to purchase, and the differences between B2B and B2C decision-making procedures. It also includes examples from Ella's Kitchen, an organic baby and toddler food company.
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Unit 37 - Consumer Behaviour and Insight
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Table of Contents INTRODUCTION...........................................................................................................................3 TASK 1............................................................................................................................................3 P1.Analysis the stages of consumer decision making journey of a product/ service..................3 P2. Explanation of why it is significant for marketers to mapping path to purchase & understand decision making of consumer...................................................................................6 TASK 2............................................................................................................................................8 P3. Compare & contrast the major differences of the decision-making procedure in the relation of B2C & B2B, along with particular examples............................................................8 P4. Different approaches to conduct a market investigation along with methods which is used to understand the process of decision making in B2B and B2C.................................................9 TASK 3..........................................................................................................................................11 P5. Evaluation of how marketers can influence the stages of decision-making procedure of business to business and business to customer along with particular example.........................11 CONCLUSION..............................................................................................................................12 REFERENCES..............................................................................................................................13 REFERENCES..............................................................................................................................14
INTRODUCTION Consumer behaviour is defined as the study of an individual as well as organization associated with how they choose and services. In addition to this, it is basically a procedure of identifying action & attitude of people while selecting, choosing or purchasing a particular product and service. It is important for an organisation to determine the behaviour of customers as it help in making improvement that has positive impact on sales and profitability of an organisation(Jain, Khan and Mishra, 2017). Analysing the behaviour of consumers is undertaken as a beneficial factor for a company which help in identifying customers’ needs and attain competitive advantage at marketplace. For the present report, Ella’s kitchen is taken into consideration. The company offer organic baby and toddler food and is established in the year 2006. Its head of office is located at Oxfordshire, United Kingdom. The report will cover various stages of consumer decision making journey. In addition to this, there will be discussion about importance for marketers to map a path. Further, compare & contrast key differences of decision- making process in relation to B2B and B2C along with examples. Moreover, various approaches to market research and evaluation of how marketers influence different stages of consumer- decision making process will discuss effectively in report. TASK 1 P1.Analysis the stages of consumer decision making journey of a product/ service. Consumer behaviour is defined as an effective procedure that help an organisation to gain an understanding about behaviour and action taken by customers at the time of purchasing a product as well as service. In addition to this, it help in satisfying requirements of customers that leads to increase in brand image and performance of an organisation(Kaur and Singh, 2017). It is important for higher authorities of Ella’s kitchen to identify the behaviour of consumers so that they can offer new and innovative product in market that satisfy customers that leads to growth and success at marketplace. It is a medium size enterprise and is introducing new product range for babies in order to meet with the demand of people in an effective manner, with the help of this, the company is able to attract large number of people and attain its objectives and goals appropriately. In addition to this, it is analysed that identification of consumer decision making procedure plays vital role in maintaining sustainability at marketplace. The company is recently
introduced Organic carrot mini puffs by analysing the demand in market. In this regard, the different stages of consumer decision making process is described below: Identifying the need of consumers:It is the first and foremost stage of consumer decisionmakingprocess.Herein,thecompanyidentifytherequirementofindividualor customers at the time they purchasing goods as well as services(Tiwari, Wee and Daryanto, 2018). By analysing the needs, the company is able to offer products accordingly that has positive impact on customer satisfaction. In relation to Ella’s Kitchen, it is important for company to focus on requirements of mother, parents as what type of food they want for babies at the time of purchasing. If the entity is able to identify the requirements then it is easy to grab the attention of maximum number of people in an effective manner. Source: Consumer decision making process,(2019). Search for information- This step take place after the needs is recognised and herein customers start gaining information about product and services that satisfy their requirements or needs. In regard to this, the consumer will search & collect information about Ella’s kitchen, its Illustration: Consumer decision making process
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quality ,offerings and so on. Ella’s kitchen is one of the famous company in UK that offer quality baby and toddler food products. It is important for company to put all the information on its website so that users can easily find data about it. In addition to this, it is essential for company to focus on gaining positive comments towards brand as now customerstake decision after review the product comments in a proper manner. Evaluation of alternatives- In this stage, the consumers evaluate various substitutes in market that offer same product in terms of price, quality and services as well. The consumers will state searching about competitors of Ella’s kitchen and compare its offering, price and quality with it. So it is important for managers of Ella’s Kitchen to offer product at reasonable price without compromising the quality as it help in gaining attention of people and impose customer to buy its product only. It has direct impact on the sales and profitability of company in a positive manner. Purchase decision-After gaining knowledge about the alternatives prevailing in market, the customer take decision to buy a product which satisfy their needs and requirements(Xu and et. al., 2016). In relation to Ella’s Kitchen, the consumer will buy its product if they find it more effective and beneficial for them. It is important for respective company to focus on people who take interest in its products and provide attractive offers to those consumers so that they can purchase its products in an effective manner. It is important for Ella’s Kitchen to satisfy the requirements of customer in order to retain them for longer time period and increase customer base level in an effective manner. Post purchase evaluation- This is the last stage of consumer decision making journey and is take place after the actual purchase of products and services. It is determine that after purchasing most of the customers give response that plays vial role in making improvements and enhance brand image of company as well. In addition to this, it is significant for Ella’s kitchen to take reviews from its customers as it make them feel valued while purchasing product and also help in making improvements that has positive impact on market performance of an organisation. Along with this, it also assist respective organisation to develop brand image and attain competitive advantage at marketplace.
P2. Explanation of why it is significant for marketers to mapping path to purchase & understand decision making of consumer Intoday’sbusinessscenario,thereishighlevelofcompetitionprevailinginthe marketplace which impact on the decisions made by customers towards purchasing of product or brand in market. The behaviour of customer is impulsive and get change with the changes take place in market trends, preferences and taste as well(Porpino, 2016). It is determine that companies are focusing on developing effective strategies in order to overcome with the challenges they face due to high competition. In relation to Ella’s Kitchen, the higher authorities of company is focusing on implementing activities and operations in a proper and effective manner so that it can gain success in market and remain in competition for longer time period in this competitive environment. In addition to this, the organisation is also focusing on analysing market situations that assist in dealing with changes take place in market. Moreover, there are different situations that comes in a manner with challenges in this particular sector and is given below: Influence of new technology- In the present scenario, technology is changing rapidly and changingthebuyingbehaviourofcustomersinaneffectivemanner.Adoptionofsuch technologies assist company to provide appropriate service to customers and grab the attention towards brand. In addition to this, it also help in gaining competitive advantage at marketplace. With reference to Ella’s Kitchen, it make use of online platforms in order to take delivery of customers and emphasis on providing product on time-period. Along with this, the company has website that involve all the required information regarding its offering and is convenient for customers.Ella’skitchenalsomakeuseofsocialmediaapplicationsuchasFacebook, Instagram, YouTube in order to promote its product as well as services. It also help company to reach large number of people and increase its customer base level which has positive impact on sales and profitability of respective company. Influence of market mix- It is consider as intrinsic factor that assist an entity to attain a good position in this competitive market in an appropriate manner. It addition to this, it help company to put the product on right place at right time and in a right manner. In context to Ella’s kitchen, if its managers is enable to monitor marketing mix that involve product, place, promotion, price , physical evidence, people then it has negative influence on productivity of organisation. It is significant for the higher authorities of Ella’s Kitchen to focus on the market
trends and target market as it help in offering product in such a manner that satisfy customers and fulfils its demand. By the assistance of thus, the company is also able to increase its productivity and profitability ratio in an effective manner. Influences of heuristic in decision making- Heuristic is defined as a mental stare that allow an individual to take decision rapidly as well as effectively. It is determine that it is highly affect by feelings and emotions of a person. In relation to Ella’s Kitchen, its advertising and marketing strategy has impact on the decision ability of a person(Van Nes, 2016). It is important for company to advertise the brand in such manner that it attach with the emotions of people which in turn leads to buying decision. Ella’s kitchen make use of effective promotional channels and it also has a YouTube channel in which there are various episodes is telecast on the baby foods and itsimportance that attract people towards brand. It will help company to create awareness in customers about brand and its quality which help in attaining organisational objectives and goals in an effective manner. There are different models & concept that help in providing right direction to marketers in order to achieve their desired objectives in a best and effective manner. The model is given below: Economical view model This model is associated with the cost that is occurred while consuming the particular product and service as well. In this, the customers find alternatives and compare it with cost, price and brand then select the best by which they can gain satisfaction easily and effectively. Therefore, it is essential for marketers to ensure that product is at reasonable price with good quality as it help in attracting large number of people and enhance market share of company. Passive view-It consist of various promotional activities that help an entity to increase the competency ratio. In context to Ella’s Kitchen, it make use of all the effective promotional tools that attract customers and is beneficial for them in attaining competitive advantage at marketplace. Emotional view-Herein, the marketers of Ella’s Kitchen take initiative to evaluate and monitor emotional state and feelings of customers as it assist in developing positive mind set of people towards brand and raise the sales level in an appropriate manner. Cognitive view- At this stage, marketers gather information about requirement and needs of customers in order to develop effective strategies and design product accordingly which in
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turn assist in fulfilling needs of customer in an effective manner. In addition to this, it also assist in attaining organisational objectives within stipulated time period. TASK 2 P3. Compare & contrast the major differences of the decision-making procedure in the relation of B2C & B2B, along with particular examples. In relation of marketing functions, it has been analysed that business to business and business to customers are mainly two forms of commercialized transaction that primarily shows market size. With reference to B2B, It is a form of business that broadly make commercial transaction with other companies for achieving objectives and goals in an appropriate manner. On the other side, B2C is consider as an entity where products are directly deliver to the customers in an effective manner(Aschemann-Witzel and et. al., 2017). In this regard, both the strategies are used by Ella's kitchen for attaining objectives within stipulated time period. The difference between Business to Business and Business to customers is given below: DimensionsB2BB2C Buying decisionIn business to business, the entities firstanalysethecompetitorsof product, their pricing strategies and promotional strategies. It will assist suchcompanytotakebetter decisionsandoffersomething uniqueaswellasdifferentin market. Herein, customers plays vital role as they take decision for purchasing the product of a particular company. It is determine thatin B2C the decision-makingtimeislessas compare to B2B. Analysing the needsHerein,theorganisationanalyse themarketdemandandthen develop strategies in order to target therightmarket.Thisassist companytoattainprofitsand sustain in market for longer time period. Herein, it is important to analyse the requirementsofcustomerbefore offering product to them as it help companytoincreaseitslevelof sales and earn higher profits in an effective manner. In addition to this, iftheneedsofcustomerisnot fulfilledthenitmightleadsto
product failure. Decision related to marketing strategy In B2B, marketers did not adopt any promotional tools in order to advertise its product in the market. With reference to Ella's Kitchen, it uses various strategies that assist in doingtradinginaneffective manner with the other businesses. This assist company to develop an effectivemarketpositionand providequalityproductstothe other companies. In B2C, Ella's kitchen make use of effective promotional tools in order toadvertiseproductandcreate awarenessinmarket.Thishelp company to increase its customer base level and enhance sales and profitability level in an appropriate manner.Itisdeterminethat respectivecompanymakeuseof socialmedia applicationssuch as Facebook, Instagram, YouTube and so on. Similarities in B2B and B2C process In both the business, the company categorise the whole market into small groups and segments and then target them accordingly. This is beneficial for the businesses in reaching customers in an effective manner(Müller-Stewens and et. al., 2017). In context to Ella's kitchen, it help company to target right market and retain customers for longer- time period. In both Business to Business and Business to Customer, the process of sales is consistent & customer centric as well. In account to this, it is important for both businesses to provide high customer experience and service that is beneficial in order to gain positive outcome. From the above discussion of difference and similarities in B2C and B2B process, it is analysed that for Ella's kitchen it is significant to develop positive image and sustain in market for longer-time period.
P4. Different approaches to conduct a market investigation along with methods which is used to understand the process of decision making in B2B and B2C Data collection is define as a way to collect information about the particular topic in an effective manner. These two methodologies used to carry out research about B2C and B2B marketand these are collected through primary and secondary methods. The types of data collection methods is given below: Primary method:Herein, the data is collected for the very first time and is original in nature. The primary data is collected through various sources such as questionnaire, observation, focus groups and so on. Secondary method:Herein, the data is collected from the sources that is already published and is collected through various sources such as newspaper, Journal articles, books, online websites and many more. FOR B2B In business to business, the data is mainly collected by the assistance of secondary sources. There is no need to collect primary data as they are focus on information that is already available in the market. In relation to Ella's Kitchen, it is determine that it uses official pages of organisation for collecting information about nature, function and activities of competitors company (Wolinetz and Axsen, 2017). In addition to this, the company is focuses on comments, posts, reviews of different companies that is easily available online. It help company to gain an understanding about demands and requirements of customer. Moreover, Ella's kitchen has its own suggestion box that s reviewed on the continuous basis as it help in making improvements and attracting people towards offering. It also help in identifying requirement of people which help in offering new and unique product that satisfy customers and raise sales and profitability in an appropriate manner. For conducting business to business research, secondary methods such as internet, online websites, journal articles is used and herein the information is easily available to companies that aid in gaining insight about customer requirement and wants in an effective manner. FOR Business 2 Customers
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It is a form of business where the products and services is directly provided to the customers. Herein, most of the information are collected through primary sources. In order to collect primary data, survey method is adopt by the higher authorities of Ella's Kitchen. The particular team was developed that asks questions to public regarding brand, their expectations, requirements and so on. In addition to this, questionnaire is developed by the management team of Ella's Kitchen that consist of series of question and is answered by selected people as per their experiences. This help company to know the perception of customers and then providing products accordingly in the marketplace. Moreover, another method adopt by Ella's Kitchen is interview and herein some question is asked by local agents and suppliers in order to gain knowledge about customer requirements and market trends as well(Klingler, 2017). From the above discussion, it has been analysed that collecting both primary and secondary data assist company to gain understanding about market trends, customer requirements, competitors strategy and so on. This will help company to offer something unique in market that fulfils the customer needs and gain success in market. Moreover, it also assist respective organisation to improve its performance level and capture large market share in an effective manner. In addition to this, it is evaluated that with the help of secondary method of data collection that is journal papers, internet, articles and so on. This information help business to business to gain understanding about other businesses that impact positively on their-decision making process. It is analysed that gaining of information about other businesses or suppliers help in making best deals in market and influence positively on its performance and profitability level. On the other hand, primary method is used by business to customer context so that knowledge about market trends and customer requirements is gained. It help in developing more effective strategy and take decision in favour of customer satisfaction which in turn in retaining customer for longer time period and enhance brand image of company. Therefore, it is evaluated that both primary and secondary methods help in understanding the decision making procedure for both B2B and B2C.
TASK 3 P5. Evaluation of how marketers can influence the stages of decision-making procedure of business to business and business to customer along with particular example B2B and B2C are two components that are fully centring over consumer purchasing procedure and assist an entity to achieve higher level of profitability and productivity as well. In every businesses, marketing activity consist of product, place, price and promotion that aid in attaining competitive advantage at marketplace. In businesses, marketers is consider as a significant element as they assist in fulfilling requirements of customer which is beneficial for company to generate higher profits and revenue as well. The different methods by which decisions of businesses can be influenced through marketers is given below: Perceptions- It is defined as a way product and service is perceive in market of an organisation. The perception of target market plays vital role in determining their purchasing behaviour in an effective manner. The marketers focuses on creating positive image of customers towards brand as it directly contributes towards the enhancement of sales and profit margins of company(Islam, Rahman and Hollebeek, 2017). It is determine that a customer in market is ready to purchase product if it is of reasonable price and of good quality which state that this factor influence on decision-making process. Marketing campaign-It is defined as an effective promotional tool that is conducted in order to aware large number of people towards brand in a proper manner. In context to Ella's kitchen, its managers conduct adverting campaign in order to aware large number of people and improve sales and profit margins of company. It is determine that managers influence on this process that is used by both B2C and B2B. Example- There are various examples associated with B2C and B2B. In context to B2B, it the management team of organisation is planning to establish something new in market, then they analyse market trends and monitor the requirements of customer as well. Such needs are satisfied by developing effective strategies that help in attaining organisational objectives in a timely and effective manner(Van Weelden, Mugge and Bakker, 2016). In relation to Business to customer, if such organisation is come up with innovative ideas then they adopt various promotional tools social media application, advertisement and so on that help in creating awareness and improve sales and profit margin of the organisation. Consumer decision making process and how marketers influence consumer in each stage
Identifying the need of consumers:Herein, an organisation identifies the requirement of customer with an aim to fulfil their requirements in an effective manner. In relation to the marketers, they analyse the need of customer and then communicate it to the production department so that the development take place according to the needs of customers that has positive impact on the brand image of company. Search for information- In this step, the consumer search information as per their requirements which satisfy them in an effective manner. It is important for marketers to focus on what customers are search for at marketplace. The marketers then provide products and service as per their need and also provide them offers on such product in order to make customer purchase their product in an effective manner. Evaluationofalternatives-Atthisstage,consumersanalyseandsearchforthe alternatives by considering the price and quality. In this, the marketers influence consumers by providing them full knowledge about their product and services in an appropriate manner. In addition to this, they five information in such manner so that the consumer is conveyance towards the product. This will help consumer to make better decision in an effective manner. Purchase decision-This step is take place after a consumer gain better knowledge and understanding of the product and its available substitutes. Herein, the consumer take decision to purchase the products and services which fulfil their requirement in an appropriate way. The marketers influence consumers by develop an emotional relationship with them that help company to retain customer for longer time period that has direct impact on their performance and profitability in a positive manner. Post purchase evaluation- The las stage of consumer decision making process which take place after buying of goods as well as services. It is analysed that most of customers provide feedback to the company that help in making improvements and development of positive mind se towards brand. Herein, marketers influence consumers by asking them for reviews which make them feel valued and important for the company. This assist an organisation to enhance the customer base level and increase their market performance in an effective way. From the above study, it is analyzed that marketers plays an important role as they directly influence customers prevailing at marketplace. In addition to this, they develop an emotional connection of customer towards the brand that assist an organisation to retain them for longer time. In addition to this, they conveyance consumers by providing them full knowledge
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about products as well as services. Moreover, marketers focus on analysing and fulfilling the requirements of customer that help in enhancing customer base level and brand image of an organisation at marketplace. In addition to this, it is evaluated that marketers plays an important role at every stage of the decision making procedure of business to business and business to customer as well. The marketers conduct research in order to gain an in-depth knowledge about customer requirements and also focus on people who are searching for their product so that they can approach them with an effective strategy. After getting such knowledge, marketers emphasis on developing good relationship with people who are searching for their product and service in order to convert it into in a purchase decision. After this, they take feedback from customers so that they can make improvements and fulfil their requirements. All this will help company to take effective decision to make customer satisfied and retain them for longer time. Moreover, it also help in raising performance and profitability of the respective organisation. CONCLUSION From the above discussion, it is concluded that behaviour and attitude of customer towards brand plays vital role in increasing performance and profitability of an organisation. By the assistance of consumer decision process, an organisation is able to identify the needs of customer and satisfying them in an effective manner. There are various research methods that is used by B2B and B2C in order too gather information about needs of customers in an appropriate manner. Moreover, it is determine that marketers influence directly on the stages of consumer decision making procedure of both B2B and B2C.
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