Unit 37: Consumer Behaviour and Insight

CONSUMER BEHAVIOUR AND INSIGHT

Table of Contents
INTRODUCTION...........................................................................................................................1
Section 1...........................................................................................................................................1
1)Five different steps of buyer decision making procedure and factors that effect ....................1
Process.........................................................................................................................................1
2)Black box model of an buyer behavior and effect of its in marketing decisions.....................2
3) Map of buyer decision making procedure of services.............................................................4
Section 2...........................................................................................................................................5
4) Similarities and differences of decision making process of B2B and B2C. ...........................5
5) market research method which could be applied to B2B and B2C. .......................................6
6) Market research influence the stages of consumer decision making.......................................7
Section 3...........................................................................................................................................8
7) Factors influencing decision making process..........................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Consumer behaviour is study of an groups,individual or firm and all activities that associated
with buy, disposal and use of services, include the buyers emotional, behaviour responses and
mental that follow the activities. B2B is an situation where the one business do tranction with the
other business.. B2C (business to customer) is process of selling the products and its services
directly to an consumer.
This report is based on business activities of Aldi, It is an American based media
company that provide that provide its service and production and have headquarter in California.
This report highlights the five different steps of buyer decision making and analyse a
factor that effect the procedure. It shows the black box of model for an buyer behaviour and also
map buyer's decision making procedure for an service (Hofacker, Malthouse and Sultan, 2016).
Furthermore, Report also reveals the difference & similarity between B2B and B2C in
decision making procedure and various market research method that can apply in business.
Lastly it shows the Two factors which effect an decision making procedure.
Section 1
1)Five different steps of buyer decision making procedure and factors that effect
Process.
Problem recognition
It is the first step to identify the most essential stage to find the buyer decision process.
Without identifying the desire of the consumer it is not possible to buy the things and if customer
feel that something missing and wants than the consumer go back to buy for his desire. If Aldi
organisation find out the needs of the customer like consumer expectation better service from the
company that satisfy the consumer desire. For example, if the company provide the good media
services, that satisfy the consumer than the customer again uses the same services, as it satisfies
the desire and convenient (Sasmita and Mohd Suki, 2015). For instance, while purchasing the
product customers faces many problems such as they have dilemma to understand the attributes
of the brand which can suit their requirements, trust issues related to brand and pricing concept.
Many customers also find it difficult to choose a particular product among the wide range of

products offered by organisation. For solving this problem customer may also take feedback
from others and blindly believe on the perception and experience of other buyers without any
reality check. On many occasions it is also possible that customers may not understand the actual
purpose of the product and thus customers remain unsure that if making purchasing decision will
make them satisfied and happy.
Search process
After recognition the needs of the consumer, the customer seeks for a more information
and try to identify the services that satisfy the needs of the customer in better way. Like customer
try to identify more information regarding the Aldi and various services provided by the
company that satisfy buyer in better way.
Alternative evolution
It this stage after getting the information of Aldi company and its services. The customer
wants to identify the more alternative services provided by the company. So that by gathering
different form of information by using the various source to evaluate different alternative and its
attractiveness (Kim and Lee, 2015). Generally, consumer evaluate on the basis of important,
brand satisfaction etc.
Purchase decision
After finding out the different alternative of a goods and its services, customer go for the
purchase decision or use the best services provided by the company, but many a time consumer
decision is affected by the other's situational factors. Like negative feedback from other buyer.
Post purchase of evaluation
It is the final stage where the consumer make its decision on the basis of the after purchase and
its satisfaction and evaluate the services on the basis of this, whether go for the same services for
further or not (Strassheim, Jung and Korinek, 2015).
2)Black box model of a buyer behavior and effect of its in marketing decisions
Black box model is the marketing theory customer purchasing behaviour. This model helps in
identification of the behaviour stimulus which influences the purchasing decision of the
customers. The stimuli may include promotional advertisements or other aspect of the product.

Figure 1: Black box model
(Source: Consumer behaviour, 2015)
The black box model of customers consists of two factors namely buyers characteristic and
decision process. The theory also states that when input and output of a process are well defined
then mind completely understand the process which is also blinded with the radical scepticism.
The marketing mix elements such as price, promotion, product or needs of customers can act as
stimulus. However as per the first component of black box model internal influences such as
purpose, lifestyle, value and attitude of learners can also affect the purchasing decision. At the
same time another component, ‘decision making process’ also plays key role. For instance,
evaluation of the brand, alternative brands, information search, post purchase impact and
problem solving are also important in making final purchase decision.
Factors influence decision making process-
Cultural factors
It plays an vital role in effecting the consumer behaviour as the culture is highly believe
by the human that include society, behaviour and role play by society that value the buyer &

tradition. So Aldi company need to identify the culture of the customers, as it effects the
customer behaviour. Thus, cultural factors classified into categories as are-
 Culture- It is a behaviour an value that member learns from society and family and drom
the institution. As it is deeply fixed in the mind of the person and therefore culture is
basic cause of a people behaviour and wants. On the basis of this marketing adjust its
variations to prevent from culture blunders (Mylan, 2015)
 (Hoban and Bucklin, 2015).
 Subculture- is a group of member that share an value system. It based on common
situations. It can be religions, nationalities and geographical region. It affects the market
decision process as each individual has different choice as per cultural dispersion.
Social factors
Social factor also one of the factor that highly influence the consumer behaviour.
References groups- It influence the customer regarding the various products & brands of the
company. Like if group wear branded shoes than the person also wants the same brand shoes.
Thus the reference group cam expose person towards new lifestyle and behaviour. Hence it
effects the marketing decision, as the consumer taste and preference change reference group and
the consumer want the new lifestyle (Hofacker, Malthouse and Sultan, 2016).
Family – It also influence the behaviour of the customer regarding the decision of the customer.
Like a husband and wife relation that affect the individual purchasing behaviour and one of them
buy on the basis of other choice. It affects the market decision making as the ase is changes on
the basis of its family member, it create problem to make decision on the basis of the tast &
preference of the family member, as family have different choices.
Personal factors
Personal factors can be classified into.
Age & life cycle- It plays an important role in purchasing behaviour of the consumer, as with a
an age of the consumer purchase of the consumer also change. As with age the choice of the
consumer interest & choice may decline and it not take that much interest to buy any stylish
product. Thus it is difficult to identify the taste of the person as it growth of age.

Occupation- Consumer black box highly effected by a person business. As if the person has high
business and getting good source of income from its business than it can prefer highly quality
products and the person with small occupation and low earning than it prefers the low price
products on the basis of its source (Sasmita and Mohd Suki, 2015). Hence it affects the
marketing decision process, as is difficult it find-out the business of the person.
Financial situations- If economic condition of the customer is good than it affect the purchasing
behaviour of the consumer, as the consumer can't able to afford for high quality products and it
change the decision of the buyer. It is also impact in marketing decision process on the basis of
financial.
3) Map of buyer decision making procedure of services
The chosen the consumer decision making is
Need recognition
It is the stage where it requires to find out the desire or wants of the customer and try out to
resolve the solution by providing the proper or valuable services to the customer that satisfy the
customer needs (Kim and Lee, 2015). As the people are very busy in today's life because of
which it has lack of time to go for buying the thinks in the market and such people remain as it
is, as they can't able to go for purchasing. If the organisation online service to the customer, it
can help the person to buy the product online. Those are not getting time from its busy schedule
of life. They can fulfil their desire of buying the products by using and online services. That
satisfy the consumer needs.
Search information
After recognition the need of the customer, buyer search out the information of the various
online services that which services is convenient and provide quality service to their customer.
Like many online services such as flip kart, amazon and many more apps. Are their which
provide better services.
Alternative evaluation
After getting the information of the various information the customer selects the various
alternative, which provide the better online service to the other services by comparing the

various alternative and try to find the best alternative online services out of it (Strassheim, Jung
and Korinek, 2015). Make the decision on the basis of finding the best online services by the
organisation, which satisfy the customer needs and wants.
Purchasing decision
In this stage the consumer makes the purchasing decision of the product by using the best online
services that the customer find out before going for decision making. But many a time the
customer may get affected by the online services because of some issues like threats, delay in
services or not proper response etc.
Post purchase of evaluation
In this stage the consumer makes it decision on the basis of the post purchase. As the consumer
take decision after using the services they decide, that whether the services are good or it satisfy
the needs at appropriate way or not. On the basis of this the consumer make decision for the
further (Mylan, 2015).
Identification
of needs
Finding
information
Alternative
solution
Purchase
decision
After
purchase
decision
Aldi must
find out the
needs of
customers.
For instance,
most of the
customers
wants one
stop shopping
and online
services so
that they can
The
customers
seek for
finding
information
such as brand
reputation,
product and
service
quality,
pricing and
unique selling
Customers
evaluate the
discount
offers,
product range
and service
quality of
other
competitors
of Aldi.
The
purchasing
can be made
at online
stores as well
as from
physical
stores. It can
also occur at
some specific
time such as
on any
After sales
also Aldi
must evaluate
if product has
been
satisfactory in
terms of
meeting
customer
needs or not.

get more
personalised
experience.
point of the
company as
well as
suitability of
their products
to personal
needs of
customers.
festival or
special
occasions.
While making
purchase
customers
may have
rational
thinking
about
selection of
brand because
along with
Aldi there are
some other
brands as well
such as
Tesco, Asda
and
Sainsbury.
Presence of
vast number
of online
retailers can
be one of the
reason for
buyers to be
confused
about the
service
provider.
Negative
reviews from
the other
familiar
people or
from social
media can
influence the
decision of
buyers.
The
purchasing
decision can
also be
altered on the
basis of mood
swing of
customers,
specific
duration or
time of the
day.
The social
media
reviews or
verbal
feedbacks
suggested by
customers can
help
organisation
to evaluate
their
purchasing
experience
and
improvement
needs for
organisation.
For making
purchase the
price,
Customers
can evaluate
and compare
Every aspect
of the service
is compared
The service
process such
as online or
The
satisfactory
experience of

awareness
and word
publicity from
other people
can also be
one of the
reason to
generate the
needs for
customers to
visit the
organisation.
the service
aspects of
different
brands so that
they can
choose the
best one.
by the
customers so
that they can
decide the
product and
service choice
as per their
preference.
offline and
delivery
mechanism.
For instance,
longer
delivery
duration of
availability of
services 24*7
can also
affect the
purchase
decision.
customers
will help
them to stay
connected
with
organisation
for long term.
Section 2
4) Similarities and differences of decision making process of B2B and B2C.
The differences between B2B and B2C is as follows-
B2B B2C
The sale of goods and services between two
business organisations is known as business to
business.
The sale of goods and services is known as
business to consumers.
In this process the ALDI company focus to
create relationships with other businesses. as
what are the goods and services required by
In this process the main focus is on creating
and maintaing good relations with customers.
the decision is taken on the basis of customer

other business according to that decisions is
taken.
requirements, as customer satisfaction is the
main aim.
The supply chain is in ALDI is as follows,
first the supplier supplies the goods to
manufacturer and after that manufacturer
further supplies the goods to wholesalers and
then last step is that products are supplied from
wholesalers to retailers. In B2B decision
making is not very easy as consideration of
wholesalers and retailers is required (Rödiger
and Hamm, 2015).
In B2C the no other person is involved the
goods are transferred directly from retailers to
customers. In B2C the decision making is
simple as goods are supplied directly from
retailers to consumers (Hofacker, Malthouse
and Sultan, 2016).
The decision to buy a product or services has
commercial purpose so that's why sales
requires a rational analysis. a longer interval of
time and ongoing seller.
in B2C the sale is usually rational and it is
more based on impulse. the process in shorter
in time as compare to B2B and individual in
decision making.
Similarities between B2B and B2C- As maintaining relationship is important for both B2B and
B2C but the B2B buyers are more concerned with maintaining relationships with than B2C.
another similarity between these is that both has to considered price factor as price plays an
major role in business. the prices offered by other business in B2B must be satisfying for another
company and in B2C prices offered by business must be satisfactory for consumers then only
purchases will are made.
5) market research method which could be applied to B2B and B2C.
There are various market research method which could be used by B2B and B2C. the methods
are as follows-
B2C

Survey- In B2C surveys are done so that the needs and requirements of the buyers can be known
to ALDI and according to that goods and services are supplied. survey is an most effective
market research method which helps ALDI in expanding their business (Rödiger and Hamm,
2015). survey shows that the customers are satisfied by their goods or not. The surveys are done
through email and other social media platforms like Facebook etc.
Social media- Social media is an effective tool for market research as there are various social
media platforms so company can do market research through that such as Facebook and online
website. by using that they get the ideas about what are the requirements of customers, according
to the reply of customers if any change is required company can implement that. latest trend in
market or change in fashion, all these information can be gathered through social media.
B2B
Digital marketing- By using digital marketing ALDI can do market research as by the use of
social media and online website market research is conducted. There are online website and
social media accounts of all the companies so data can be easily collected from that. The details
of other competitor can be easily gathered by the use of digital marketing as what types of
products and services they are providing to buyers, prices of their products.
Focused group- Focused group marketing research is an type of qualitative research designed to
gain detail information for a particular product or services (Erevelles, Fukawa and Swayne,
2016). Group of individuals are made and they focus on doing market research ie, what is the
situation in the market, what other strategies other competitors are following. This method is
beneficial as marketer of ALDI can easily measure reactions of recipients.
6) Market research influence the stages of consumer decision making.
There are several stages in consumer decision making process, the stages are as follows-
Need- The first and beginning step of consumer decision making is recognition of needs. in this
step customers finds out the requirement of particular product. Sometimes customers are
attracted by the effective marketing of products and made decision to purchase that products. so

in this step buyers identifies that they actually need that product or not. Many products are sold
by ALDI but not all of them is required by customer, so identifying need is important.
Information gathering- This is the second stage in this stage the buyer gathers information from
various sources. By market research information about the products can be gathered by the
customers. The details of products ie, price, quality. the products which customers is planning to
buy (Erevelles, Fukawa and Swayne, 2016).
Evaluation of alternatives- in this customer evaluates the alternative products. By market
research compare the product which he is going to buy with other similar products and made
conclusion that which product is going to satisfy them. Price of products, it durability etc are
compared and decision is taken.
Purchase of product/services- After all the above stage customer finally makes a decision to
purchase a particular product. By good market research the desired product is purchased by the
customer. Market research helps the customers in finding out best suitable products for them.
Post purchase evaluation- After customers finally purchased the product this stage comes. at
this stage feedback is taken from the customers that they are satisfied with the purchase they
made (Hofacker, Malthouse and Sultan, 2016). Analysis is done that whether the product was
useful to them or not, their needs are satisfied or not. If any improvement required can be made
through the feedback.
Section 3
7) Factors influencing decision making process.
There are several factors which impacts the decision making process of ALDI-
Personality- Personality traits plays an important role in decision making. Some people are very
sensitive by their nature. Taking right decision for them is very tough. taking decision for them is
very difficult they thing a lot before making any decision. As personality traits impact the
decision making in this manner. ALDI focuses more on maintaining healthy relations with
customers (Xiang, Magnini and Fesenmaier, 2015). Having great personality assist in influencing
the customers and help in taking desired decision. it is very tough to make an decision in tough

situation so strong minded person takes better decisions rather than those who are not strong
minded. The leaders at Aldi are very strong in opinion. Their personality is characterized by risk
taking attitude, good communication skill and creativity. The innovative marketing strategies,
effective interaction with the customers is key reason to persuade customers for making
purchase.
Motivation- Decision making and motivation are interdependent and influences mutually. as
when the person is motivated they will take desired decision which is beneficial to both for
employee and organisation. as when the employees are motivated they will better do promotional
activities. Which is beneficial to them also and also for organisation. motivation is an important
factor in taking an good decision as if decisions taken are wrong the motivated employee has the
capability to deal with situations in an desired way. For motivating employees Aldi use various
incentive programs for the staff members. In addition to this customer motivation is also key
ingredient in the success strategy of organization. To accomplish this Aldi uses several customer
loyalty programs which are beneficial for customers who make repetitive purchasing and are
loyal to company for long term. The price concessions and loyalty benefits provided by company
act as motivational factor to make purchasing decision. For this purpose, organization can use
motivation theories such as goal setting theory. Aldi set short and long term goal for its staff
members so that to receive the rewards and to accomplish organizational goals staff members
works with complete dedication.
ESSAY on Netflix
Netflix company culture focuses on people over process. the culture of the company is so
good as all employees are satisfied with that. Healthy relations among the employees is there.
The company offers its employees generous benefits like lot of holidays and other benefits
(Xiang, Magnini and Fesenmaier, 2015).
Netflix is able to produce good quality entertainment as it offers premium quality content to
consumers and different types of web series like orange is the new black, it is an most viewed
comedy series created by Jenji Kohan for Netflix. Company collects the data from cookies of

customers ie, what they usually search and watch. And according to that the shows are shown to
them. They stores all the information and analyze that and according to that shows are shown in
their apps.
New technology impacts the consumer behaviour as earlier the cassettes and VCR were
used for entertainment. People makes use of cassettes but it very expensive and offers less
movies and after that time of DVD's come. which is advance as compare to cassettes and offers
more quantity and quality of the video is also good. Netflix was a small DVD rental company
and now it becomes huge global streaming. Netflix becomes so big company as use of
smartphones has expanded so they realize that people will no longer going to buy DVD's and
spend so much money on that. So recognizing the needs company expanded by playing an active
role as a producer and distributor for both film and television series (Szmigin and Piacentini,
2018). Netflix releases 126 original series and movies in 2016, it is more than any other network
or cable channel. Netflix is different from other competitors like amazon prime and hot stars, as
it provides premium quality films to its consumers. Netflix has a great collection of web series
and movies as compare to its other competitors. The streaming on Netflix is very fast and
smooth. it gives exciting offers to its consumers for the subscription which makes it cost
friendly. When compare to other competitors the prices charged by Netflix are less.
CONCLUSION
From the above study is concluded that consumer behaviour plays an important role in
businesses as by analyzing the behaviour of consumer. Business decisions are made. The study
concludes that maintaining good customer relation is important as the company can only succeed
and expand its business when their customers are satisfied. Market research importance as it
helps the buyers in finding out what are their needs and requirement and according to that
products are purchased. study concluded that post purchase is important as in this process
feedback are taken from the customers which help in improving the quality of products.

REFERENCES
Books and Journals:
Carlucci, D. and et.al., 2015. Consumer purchasing behaviour towards fish and seafood products.
Patterns and insights from a sample of international studies. Appetite. 84. pp.212-227.
Erevelles, S., Fukawa, N. and Swayne, L., 2016. Big Data consumer analytics and the
transformation of marketing. Journal of Business Research. 69(2). pp.897-904.
Hoban, P.R. and Bucklin, R.E., 2015. Effects of internet display advertising in the purchase
funnel: Model-based insights from a randomized field experiment. Journal of Marketing
Research
Hofacker, C.F., Malthouse, E.C. and Sultan, F., 2016. Big data and consumer behavior:
Imminent opportunities. Journal of Consumer Marketing. 33(2). pp.89-97.
Kim, K.Y. and Lee, B.G., 2015. Marketing insights for mobile advertising and consumer
segmentation in the cloud era: AQ–R hybrid methodology and practices. Technological
Forecasting and Social Change. 91. pp.78-92.
Mylan, J., 2015. Understanding the diffusion of Sustainable Product-Service Systems: Insights
from the sociology of consumption and practice theory. Journal of Cleaner Production.
97. pp.13-20.
Rödiger, M. and Hamm, U., 2015. How are organic food prices affecting consumer behaviour? A
review. Food Quality and Preference. 43. pp.10-20.
Sasmita, J. and Mohd Suki, N., 2015. Young consumers’ insights on brand equity: Effects of
brand association, brand loyalty, brand awareness, and brand image. International
Journal of Retail & Distribution Management. 43(3). pp.276-292.
Strassheim, H., Jung, A. and Korinek, R.L., 2015. Reframing expertise: The rise of behavioural
insights and interventions in public policy. Moments of valuation. Exploring sites of
dissonance, pp.249-268.
Szmigin, I. and Piacentini, M., 2018. Consumer behaviour. Oxford University Press.
Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal
of Retailing and Consumer Services. 22. pp.244-249.
Online
Consumer behavior, 2015. [Online]. Accessed through
<http://cbim21.blogspot.com/2015/08/black-box-model_10.html>.