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.