Consumer Behaviour and Insight

This document discusses the stages of consumer decision making journey, the importance for marketers in understanding consumer decision making, the key differences between B2C and B2B decision making, and the approaches of market research for both B2C and B2B.

Unit 37– Consumer
Behaviour and Insight
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INTRODUCTION...........................................................................................................................3
Stages related to consumer decision making journey..................................................................3
Importance for marketers for mapping path towards purchase together with understanding
consumer decision making..........................................................................................................5
Key differences of decision making for B2C and B2B...............................................................6
Approaches of market research with methods of research that are used for understanding
decision making procedures for both B2C and B2B...................................................................7
Ways through which marketers influences stages of decision making process for B2C and
B2B..............................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Consumer behaviour means a when a person is going to buy something then it goes through
various process which helps to make right business decisions. Different types of activities and
actions are taken by managers who evaluate needs and wants of people and provide kind of
products and services so goals and objectives can be attained in effective time period. There are
various stages which are used to make business decision such as identifying needs, evaluating
options or alternatives and get a optimum solution so business can be grow effectively (Berger,
2015). To understand about consumer behaviour Aston Martin has been taken that is British
manufacturer of sports cars and attracting customers to sale their products and services. Different
types of topics are covered in this report such as process of decision making, Comparison and
contrast in relation to B2B and B2C decision making, market research etc.
Stages related to consumer decision making journey.
Consumer behaviour is said to an process which uses by individuals at the time of buying. This is
important for customers to follow the process before purchasing something that helps to make
right business decision and increase their productiveness. Consumer map is consider as a journey
that depicts various stages at the moment of customer goes by interacting or communicating with
other companies. Variety of products and services are provided by companies where customers
get confuse from where it should purchase products and services and how they feel satisfied.
Therefore, various processes are followed by people to make the right business decision and live
their life. For instance, people wants a better features and quality of cars so they analysis the
market and will compare Aston martin with others companies in order to buy right products and
services effectively. The management of Aston Martin identify the consumer behaviour and
provide products and services accordingly that helps to increase the organisational productivity
and profitability (Bronner and de Hoog, 2014). This organisation is medium size company that is
decided to launch new product that is DB11. Manager identifies the needs of people that they are
demanding a luxury car with safety features so are planning to introduce this product. The
different stages which are involves in consumer decision making are as elaborated:
Need recognition – This is the first stages where needs and wants of people are
recognised by themselves and make decision accordingly. It is important stages which is used to
analyse what people wants and what need to introduce so people feel good. The decision in
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relation to purchase anything cannot be possible without recognising needs which are mainly
triggered by internal and external stimuli. For instance, customers feels that they needs a special
feature of car that should be safe and high engine power. Therefore, management of Aston
Martin has decided to introduce DB11 car.
Information search – This is next stage which is require to collect the various information
and know the availability of products and services. A customer goes through this process and get
information regarding such product. The buyers of Aston Martin are giving efforts to collect the
information regarding such product which are company is going to make. This stage helps to
evaluate the information regarding their needs and wants so buying decision can be made easily
(Confos and Davis, 2016).
Alternative evaluation – Herein, customers identify various alternatives which helps to
make the right decision in relation to purchasing. For instance, various alternatives are identified
by managers of Aston Martin which helps to select the best product. In other words, cusdtomers
compare the BD11 with other company’s cars that helps to choose best one. In this, they analysis
the prices, features, quality and power and capacity while selecting a new model of cars.
Pre purchase – This stage is used to identify the various alternatives as they have various
options but they continues their research and get a effective product. They compare the product
with other brand and take an action. In context to Aston Martin, customers who needs BD11 get
the information from social media, print media, channel, websites and magazines that help to
gather information regarding product quality, alternatives and brand helps to fill needs of
themselves (Liobikienė, Mandravickaitė and Bernatonienė, 2016).
Purchase stage – In this stage, when buyers set to select the needed product after
evaluating various options. Herein, final decision is taken by customers after researching and
comparing with others that helps to make purchase of products and services. For example,
customers of Aston Martin pay attention to acquire and prefer BD11 that helps to make right
buying decision and make payment.
Receive stage – After making payment by customers they receive products and items to
enjoy that can make feel satisfied to customers. Such as individuals who make payment for
BD11 and receive it which helps to increase the satisfaction level.
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Post purchase evaluation stage – This stage is required to examine the experience and
feedback regarding product that helps to make right decisions. Buyers who have purchase the
product give feedback and fulfil form that helps bring changes in products accordingly.
Importance for marketers for mapping path towards purchase together with understanding
consumer decision making.
Mapping path is a process which is used by individuals at the moment of decision making
regarding buying commodities and services. This is important for marketers to evaluate a path by
using different channels that helps to introduce products and services accordingly. In context to
Aston Martin, marketers are playing an important role they understand different factors
carefully which can influence the customers to make decision regarding buying a products with
the reason that helps to provide products accordingly. For instance, the marketers of Aston
Martin are planning to introduce BD11 they firtst need to evaluate the various factors that can
influence customers and encourages them to make buying decisions. In this, management
decides particular areas for attracting target audience and increase their organisational sales. The
factors which can influence decision making are as defined:
Heuristic factor – This is considered as psychological factor which is related to mental
education of people through which they can make buying decision and increase the
organisational productivity. By recognizing the nature of consumer buying behaviour, advertisers
are marketing experts through directing consumers on their journey and incorporating more
qualities to their interactions. This factor helps marketers of Aston Martin convince customers by
using emotional expression which helps to attracts customers and encourage them to buy
products. This factor helps to scrutiny some channels and alternatives to make decision that helps
in retrieving work, storing data and attracting customers which helps to increase buying decision
of customers (Factors influencing purchase decision making. 2019).
Marketing mix – This is the combination of various elements which are uses by
customers or marketers while making buying decisions and selling their products. This is core
factor for marketers which uses to influence customers by decision reliable price, product, place
and promotion that helps to make right decisions. Before buying any commodity customer firstly
analysis product, price, place and promotional channel which helps to attracts and make buying
decisions. For instance marketers of Aston Martin gather the information regarding consumer
behaviour such as spending power, promotional channel, needs of products and place to launch
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that helps to influence customers effectively. While introducing BD11, market manager uses
social media, celebrity, online marketing and other activities to influence people. Herein, they
also states the price of their products which helps individuals to select the product out of various
brand. This is most affecting factor which impacted on customer’s buying behaviour that take
right actions.
Technological factor – While introducing something and running a business there is need to
have advance technology which is uses to introduce and increased the business profitability. It is
considered as application of knowledge which are developed by using tools, new technology and
disposing actions that helps to increase the buying decisions. Marketers of Aston Martin are
using technology such as tailing, social media, online marketing etc. in order to rising C2C
purchasing and increasing their trading. Such marketing manager is influencing their decisions of
customers by fulfilling their expectations. Managers are running their organisation by using new
technology to provide information regarding BD11 that attracts customers and influences
decisions for purchasing this (De Mooij, 2019).
Key differences of decision making for B2C and B2B.
The meaning of commercial organisation is to products and services are sale by business
concern direly to customers is considered as commercial company. There is direct relation
between organisation and customers in which needs are identified by management and products
are provided in order to run their business effectively. Variety of products and services are
provided by company by evaluating knowing needs and offers products accordingly. There are
two types of transaction such as B2B and B2C which are running their companies by offering
different types of products and services which helps to increase organisational profitability. B2B
means business to business transaction which is used to sale the commodities from one business
concern to other and run their activities to make profits. In B2C, selling activity arises between
business concern to customers where needs are identified by people and satisfied the customers
for long period of time (Gabriel and Lang, 2015).
Difference between B2B and B2C
In B2B, selling activities are taken action in between two enterprises for the purpose of
maintaining business operations. These are considered as mediator who bus products from one
organisation and sale to others. Whereas, In B2C, buying decision are taken by customers who is
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related to business that helps to increase organisational profitability. The difference between
B2B and B2C by considering some points is as defined:
Ecommerce – This means activities are used by business concern in order to introduce the
product and services effectively. In context to B2B, this procedure is require to deal with
business person direly. For instance, business concern of Aston Martin is using B2B process in
which they deal directly with distributor and other organisation to sale their cars. Whereas in
context to B2C, the managers of Aston Martin understand the requirement of their customers and
provide cars directly that helps to increase the organisational sale and profitability efficiently
(Bronner and de Hoog, 2014).
Brand value – This means a trust level which is require to make any decision and be loyal
regarding particular thing. In context to B2B, brand value depends on maintaining trust and
mutual relationship between two entities where they create good relation and sale the products
and services effectively. Whereas in context to B2C, brand value depend on promotional
activities like social media, banner and others which helps to create good relations and increase
the sale of company. For instance, marketers of Aston Martin are using different channels to
promote their BD11 in order to increase the selling activities and maintain good performance
(Venkatraman and et.al., 2015).
Market size – The decision in context to B2B are taken in small and medium size of
market by analysing market and increase their selling activities that helps to aware people.
Whereas in context to B2C decision are taken in larger size of market where different activities
are taken to run a business effectively. For instance, marketers of Aston Martin are selling their
BD11 in larger market by using various actions that helps to maintain good performance (Gabriel
and Lang, 2015).
Therefore, it has defined that B2B and B2C are different term which are used to by
organisation to influence the customers and make right decision. All points are covered by
management who gather information and formulate strategies which attracts potential customers
by offering better quality o0f products and services.
Approaches of market research with methods of research that are used for understanding
decision making procedures for both B2C and B2B.
Market research is considered as a process which is used to get the information and data
regarding needs and wants of people. Herein, a report is prepared by management by analysing
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all information that helps customers to make right decisions. In context to Aston Martin,
managers are focusing on market research for the purpose of knowing what people wants and
how they can be satisfied that helps to complete the goals and objectives effectively. The
research in relation to B2B refers as to get information from one business to other business. On
the other side, B2C research involves collecting information regarding needs of them and
provide kind of products and services in effective time period. The market research in context to
B2B and B2C are as explained:
B2B market research – This means information are collected from one business to other
for the purpose of operating business activities effectively. For instance, business concern of
Aston Martin are using qualitative approach to gather the information for running their
business and they have contact with other business which defined what need to produce in order
to attracts customers and selling their products effectively. They uses Pareto principle at the
time of conducting research that states only 20% people accounted to attaining 80% revenues.
When tasting the product, advertisers must be conscious of the percentage of clients which can
help make huge incomes and they must be handled differently according to the main survey
body. To conduct this research different methods are used such as online survey, ethnography,
interviews to tele depth, brand development, central location etc. that are uses to gather the
information. In B2B research there is lack of direct relation between customers and business
concern. It has suggested to manager of Aston martin to choose sampling method such as
simple random sample that helps to create samples and maintain the organisational
productiveness. For this research there is need different skill audit which helps to gather
information. Skills audit is the procedure to know the how to influence customers and increase
their organisational capabilities. In context to Aston Martin, marketing manager are required to
have marketing skills, sample survey, interviewing skills and management skills which helps to
gather information and maintain the operations effectively. For instance, Aston Martin is getting
benefits in identifying needs and perception of other companies in order to sale its BD11 that
helps to understand how many business are interested to obtain this product and can increase
business effectiveness. Moreover, it can help to reduce the threats which arise in selling products
and foster the organisational success (Gunter and Furnham, 2014).
B2C Market research
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This is illustrated as research in relation to business to customers which is used to gather
the information needs and wants of people and maintain good performance. This is important for
organisation to conduct market research and know what people wants then offer variety and
features of products and services. To conduct this research quantitative research is used along
with advance tool that benefits to gather information and maintain good performance. It is
require in larger size of sample where managers get feedback from many customers and bring
changes in their products accordingly. For instance, to know the interest of customers marketers
of Aston Martin are using different methods such as survey research, online polls, mail survey
and feedbacks which helps to introduce products and services accordingly that helps to maintain
the good performance. Herein, close ended questions are asked by managers to gain the
information and attracts customers by giving samples and feed forms which helps to bring
changes accordingly. In context to Aston Martin, managers are using tele-dept interview, face to
face round and survey methods to gather information and providing products. Research
methodologies are used that involves sampling and non - sampling methods that helps to
maintain the good performance. Research methodology uses by such organisation to run their
business and maintain brand value and create high profitability. Skills audit which is required to
conduct the market research that are communication, coordination, learning, technical and
management skills which helps to gather the information and maintain selling activities properly.
It has suggested to manager of Aston Martin should quantitative research approach which can be
used to collect the information through tele –depth interview and face to face communication
which helps to influence customers and make buying decision. The managers are of chosen
organisation researching the market in order to increase sale of BD11 by using research
methodologies and technical skills which helps to improve the business effectiveness (Gunter
and Furnham, 2014).
Ways through which marketers influences stages of decision making process for B2C and B2B.
Consumer learning is considered as a process which is illustrated by individuals in order to
buying products by consumption of knowledge and experience. Motivation, reaction and
feedback are important elements that contribute to understanding customer learning. Knowing
the society, subculture and attitudes of customers is very critical for advertisers in understanding
customer preferences together with other companies.This is important for management of
organisation to understand the culture, sub culture and behaviour of people that helps to make
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right business decision. To influence the customers behaviour in context to B2B and B2Cm
different theories and methods are used that are as determined:
Cognitive learning theory – This is all about understanding that how human mind works at
the time of people learning. In this theory, management focuses in how information is processed
by brain and how learning occurs through internal process of information. It guides people how
to map a journey and increase their awareness regarding a particular product and services. This
helps to overcome the problems while selecting a product. In context to Aston Martin, B2B
marketers are using this to know the mental perception of other business such as how they
influence customers and how they are increasing their activities and bring changes in their
process which helps to sale BD11 through different distributors. On the other hand , manager are
contacting with customers under B2C decision making process in which they get information
regarding BD11 and how it can they increase their sale by influencing them. This theory support
B2B and B2C decision to take right action and run their business effectively.
Behavioural learning theory – This theory is related to behaviour and observable
behaviour of others that helps to make decisions accordingly. This means if learning is nothing
above than acquisition of new behaviour which is based on environmental condition. By using
this theory marketers of Aston Martin are attracting consumers that helps to increase the
organisational productivity and profitability. Related to this concept, marketing mix aspects can
be used to influence consumer decision-making, even though at the time when consumers collect
product details with its cost, consistency and characteristics, marketers evaluate their
environment and perspective and provide them with the same product in line with their
behaviour (Berger, 2015).
CONCLUSION
From this report it can be concluded that Consumer conduct relates to the actions of people who
purchase goods for personal use, along with the decision taking. Stages in consumer business
decisions are pre-purchase phase, purchase phase, receive stage and post-purchase assessment
phase. Quantitative and qualitative methods are part of B2C and B2B research methods that aid
in the collection of data about the views and perceptions of consumers. Cognitive learning theory
as well as behavioural learning theory are some ways in which marketers can influence
procedures for decision-making.
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REFERENCES
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