Analysis of Consumer Decision-Making in Fashion Retail

Desklib offers solved assignments and past papers to help students succeed.

CONSUMER BEHAVIOUR AND INSIGHTS
1 | P a g e

Table of Contents
1. An introduction to the task at hand and overview of the product/service category
selected............................................................................................................................3
2. An overview of the decision making process for this particular product or service and
analyse the stages of the progression (P1)......................................................................4
An explanation of the importance for marketers to map a path to purchase in order to
understand consumer decision-making (P2)....................................................................5
3. An evaluation of how marketers respond to the decision making process, applying
relevant concepts and models (M1).................................................................................5
4. A comparison of the key differences that may occur depending on whether purchase
is B2C or B2B with examples (P3)...................................................................................7
Evaluation of the different approaches to market research and any other research
methods used that could be applied for both contexts (P4).............................................9
5. Offer a coherent and justified evaluation of how different factors influence decision
making and buying behaviour supported by specific examples (M2)...............................9
6. Evaluate how marketers can influence the different stages of the decision making
process of B2C and B2B giving specific examples (P5) and a critical evaluation on how
marketers influence each stage of the decision making process with reference to
relevant methods and models applied (M3)...................................................................10
7. Critically evaluate all of the theories, concepts and models discussed earlier and the
impact this has on the decision making process supported by specific examples (D1). 10
Conclusion..................................................................................................................... 12
References.....................................................................................................................13
2 | P a g e

1. An introduction to the task at hand and overview of the product/service
category selected
The term consumer behaviour is considered as a study based on the process of
individual customers, buy, select and dispose ideas, services and goods for satisfying
their wants and requirements. It is referred to as the actions based on the marketplace
along with the underlying motives regarding those actions. Hence, the present study
focuses upon the concept of consumer behaviour upon the selected category clothing
for the particular organization of Asos Plc.
The organization of Asos Plc is an online company of Britain that is cosmetic and
fashion retailer. It has been founded in the year of 2000 within London. It holds products
like clothes, shoe, beauty products and accessories as well (Asosplc. 2019). Regarding
the clothes category, the concerned organization focuses on fashion being as a force
for inspiring younger population for expressing and achieving amazing things. Mission
of the particular organization is to become the best destination regarding fashion.
3 | P a g e

2. An overview of the decision making process for this particular product or
service and analyse the stages of the progression (P1)
The process of decision making is referred to as making of choices through
identification of a decision, assessing resolutions and collecting information. Based on
the clothing category of the concerned organization, it makes use of certain steps for
decision making process in relation with a particular design or style of clothes. These
steps are mentioned below:
Identifying the decision
The main step for making an accurate decision is to recognise the problem or confusion
and decision for addressing the same. For instance, while deciding a specific design
and setting the price of a particular dress, the company may consider the reason for the
exact price along with determining the response of the customers for the particular
product.
Gathering information
This step also helps in making decision in relation with the data and facts. This
undertakes to make a value judgement and determining the information that are
relevant for making the decision (Anon, 2019). For instance, in case of a new design,
the organization might launch the design at a reasonable rate or rather at a low price in
the market for experimentation. If the demand increases for that design, the price may
increase.
Identifying alternatives
After having a clear understanding in context of the issue, various solutions needs to be
identified. There must be different options before making an accurate decision and
hence, alternative options needs to be developed. This helps in determining the best
action that needs to be taken for achieving the objective.
Choosing within the alternatives
In time of making an actual decision, it is important to analyse the risk factors within the
chosen route. A combination based on the alternatives should be chosen so that the the
potential risks and relevant information can be grasped.
Taking action
Regarding implementation, a plan needs to be developed. This includes identification of
resources that are required and to gain support from stakeholders and employees as
well (Irma-international.org. 2019). Taking any action requires getting the other people
onboard with the decision.
4 | P a g e

An explanation of the importance for marketers to map a path to purchase in
order to understand consumer decision-making (P2)
Marketing refers to be an important aspect as it allows the businesses for maintaining
long lasting relationships within the audiences. In case the audiences want to form a
brand relationship, marketing may be used for the same as; it can help in selling the
services and products to the customers. Customers are the main part within marketing
environment. Hence, it is essential to recognise the particular influences that affect upon
the consumers and their nature of making decision. Importance for decision making of
customers denotes the purpose of marketing to satisfy their wants and demands.
There is a great challenge for marketing team, which is to identify the sources of
information that are mostly influential within the target market. Thus, there are certain
factors that effect on the behaviour of buyers such as Cultural factors consists of a
significant impact upon the behaviour of customers. However, marketing always tries to
spot the “cultural shifts” that may undertake new products that are required by the
customers or are termed in increasing the demands (Wordbank, UK. 2019). On the
other hand, Social factors are also responsible for influencing the decision making of
the customers as each and every individual has some people who influence their
decision of buying. Thus, the social factors can be termed as family, reference groups,
status and role. Other than these, there are Personal factors also that might affect the
decision making process of the customers such as the age of buyers and the state of
life cycle, economic situation, self concept, personality and lifestyle as well.
Nevertheless, a customer journey mapping is known to help the businesses to step
within the shoes of customers and helps in looking at their businesses through the
perspective of the customers. From the perspective of a customer, they need their
experience to be connected with a brand and expect the companies to remember them.
Therefore, a map of customer journey support the marketers to reveal the issues related
to purchase. The advantages based on the map of customer journey in relation with the
particular category of clothing for the concerned organization, are mentioned below:
 Helps to focus upon the interaction of customers in the business and identifying the
journey of the customers whether in a logical order or not. It also helps in providing
with outside perspective of sales process
 Shows the loop holes within the experience of desired customer and the one that
has been actually received
 Helps to focus upon the business within the specific needs of the customers in
various stages for the buying funnel
3. An evaluation of how marketers respond to the decision making process,
applying relevant concepts and models (M1)
Before selecting any tactics for marketing, a marketer needs to understand the process
that customers undergo in case of making any decision for purchasing a particular
product. There are five stages that the customers pass through. These stages are
mentioned below:
5 | P a g e

Problem awareness
This stage focuses upon the want or need of a customer and the customers may
respond to any advertisement. For example, the customers who visit in the concerned
company for looking at the designs of clothes might feel the need for buying the same.
The marketers are responsible for attracting the customers while showing new and
innovative styles and designs of clothes.
Information search
This stage denotes the knowledge of the customers for their need and they looks for
satisfying their requirements. At this stage, customers pay attention to gather
information from their family, friends and other customers about the product. In this
case, a company needs to have a good reputation such as Asos Plc that consists of a
good reputation in the market so that, it can attract the customers through word of
mouth.
Evaluation based on alternatives
The purchases in this case may be of two categories like low involvement and high
involvement. The high involvement purchases generally include products that are high
priced or rather the products that involves a great deal for personal risk. However, the
purchases of low involvement are the low priced products that involve little risks.
Purchase
In this respective stage, the customers’ takes information that have been gathered and
with the help of that, they purchase the particular product that can meet their initial
requirement. The purchase can be influenced through some factors such as customer
service, return policies and shipping, comfort of shopping experience and promotions
and similar other factors as well.
Post purchase evaluation
There are certain factors that can be performed for ensuring the satisfaction of the
customers while delivering a particular service or product to the customer (Anon, 2019).
These factors are mentioned below:
 Providing a clear as well as easy information regarding the product or the service to
the customers and make the processes of purchase as easy as possible
 Providing an outlet for consumers for leaving their feedback through reviews.
6 | P a g e

Figure 1: Decision making process of customers
Source: ()
Hence, there is a role of marketers to control the decisions of consumers regarding the
purchase of any product. For instance, the concerned organization of Asos Plc makes
use of Nicosia Model for buyer behaviour. This model comprises of four fields that
begins with the communication information for affecting the attitude of the customers
that is eventually followed through the process of evaluation (Anon, 2019). The process
of this model involves an iterative and importance of repurchase cycle in relation with
the development of conceptual framework. In case of clothing category of Asos,
customers may purchase different products repeatedly through a same provider. Thus,
the customers may find difficulty if the companies are changed or the products of the
company changes. However, there is a limitation of this model which is from the
perspective of marketers with the activities of customers. The limitation denotes that
there is low empirical work for supporting the model whereas; high empirical work is
there for depicting relationships within the model that are not valid.
4. A comparison of the key differences that may occur depending on whether
purchase is B2C or B2B with examples (P3)
B2B marketing refers to selling of products as well as services directly to the other
businesses (Google. 2019). On the other hand, B2C marketing refers to selling of
services and products to the customers for personal use. However, some of the
companies are known to do both types of marketing for instance, landscape companies
that provides commercial and residential services.
B2B Marketing
This type of marketing includes a broad spectrum of activities that denotes the ultimate
goal of sales. This means business to business marketing that is a commercial
transaction, the place where purchasing as well as selling for merchandise can be
performed within two houses of business like the supplying material towards another
7 | P a g e

regarding production or rather the entity services providing to any other
(Pdfs.semanticscholar.org. 2019). This type of businesses focuses upon making good
and strong personal relationship within another party towards the transaction. This is
due to the small target market that is small and they consist of their majority objective to
make the prospective customers.
Figure 2: B2B Marketing
Source: ()
B2C Marketing
This marketing is referred to as the transaction that exists within the final customer and
business (Anon, 2019). This can involve the process of sales where, the selling of
products as well as rendering the services through the company can be done directly
with the end user. Decision making in case of this type of marketing is easy as, there is
a single step transaction and do not include much people. It consists of a large target
market and many consumers are present. For instance, online purchase of clothes for
the concerned organization is also referred to as the business to customer transaction.
8 | P a g e

Figure 3: B2C Marketing
Source: ()
Hence, in case of clothing category for the concerned organization, it is known to make
use of B2C marketing that can provide the company with a large target market and a
strong base of customers for online marketing as well.
Evaluation of the different approaches to market research and any other research
methods used that could be applied for both contexts (P4)
Based on the above two methods of marketing, there are certain approaches that can
be applied for both of the marketing. These approaches are mentioned below:
Product approach
The particular approach is referred to as the detailed knowledge about product.
Knowledge and information of product can be examined through the supply conditions
such as, organizations of producer marketing, various middlemen like retailers,
wholesalers and similar others involved in the process of distribution and policies as
well.
Functional approach
This approach consists of the study for different activities that are involved in marketing
process of services and products. It is known to analyse all the functions in context of
the performance importance. This helps in understanding the concept of marketing in a
proper manner.
Decision making approach
This is referred to be a vital approach for marketing engagement. Different decisions are
considered at this management level. In this stage, a marketing manager consists of the
responsibility for taking proper decisions related to marketing.
Thus, these are the basic approaches that can be involved within both the marketing
that is B2B and B2C.
5. Offer a coherent and justified evaluation of how different factors influence
decision making and buying behaviour supported by specific examples (M2)
Economic factor: This is referred to as the financial factor that is, customers who can
afford a high price product can buy that as well. For instance, the customers who
consist of low socio economic status may purchase any low price product.
Personal factors: This involves occupation, economic and social status, lifestyle along
with the gender of the customer as well. For instance,, the people who flaunt their status
may purchase high price products and branded products.
9 | P a g e

Psychological factors: This involves motivation, perception, attitudes, beliefs and
learning as well. For example, the people who prefer different colours for different days
may look for varieties of collection.
Cultural factors: This involves religion, race, caste, tradition and the moral values that
the customers persist. For example, the people who live in a conservative locality may
purchase products according to the same.
6. Evaluate how marketers can influence the different stages of the decision
making process of B2C and B2B giving specific examples (P5) and a critical
evaluation on how marketers influence each stage of the decision making
process with reference to relevant methods and models applied (M3)
Recognition need: In this case, knowing the needs and requirements of customers can
help the marketers to make a strategic decision regarding the particular products and
services for the demands of the customers.
Information search: In this case, the marketers are known to gather information based
on the preferences of the customers and make the products accordingly.
Option evaluation: The marketers in this case can keep varieties of products that can
satisfy the needs of the customers so that, the customers do not go to any other store
for searching of substitution.
Purchase decision: The marketers can manipulate the customers to buy a specific
product that might be worth for the consumers (Asendia. 2019). This can be done
through representing the quality of product with the physical evidence as well.
However, this can also be done through the use of Economic model. This consists of
some factors that are mentioned below:
Income effect: This denotes a person who comprises of high income so that, the
individual can purchase high priced products.
Price effect: In case of fewer prices, customers are more interested to buy more
quantity of the particular product.
Substitution effect: This can be considered as the product that are available in a less
price, in that case, it have both chances to be preferred less as well as more.
7. Critically evaluate all of the theories, concepts and models discussed earlier
and the impact this has on the decision making process supported by specific
examples (D1)
Based on the above two models, it can be critically evaluated as the Nicosia model has
a limitation that is the low empirical work is known to support the model. On the other
hand, the high empirical work is known to depict relationship within the respective
model. However, the economic model of consumer behaviour also suffers through a
loophole that is the substitution, price and income effect assumes a close similarity
10 | P a g e

within the consumer behaviour as well as buying pattern that is homogeneous which are
exhibited within the market (Figaro Digital. 2019).
11 | P a g e

Conclusion
It can be concluded from the above study that, through the use of this respective
process of decision making, it can help in making thoughtful and deliberate decisions by
organizing information as well as defining alternatives. It has also been evidenced that
identification of decision also undertakes determination of why the particular decision
can make a difference within the employees and customers. It is vital for the marketers
for studying consumer behaviour as customers should be analysed as an individual for
purchasing any product. The study also puts forth culture is known to be the basic
cause for the behaviour and wants of a person.
12 | P a g e