Consumer Behavior and Insights Report: Audi Car Purchase Analysis

This report provides a comprehensive analysis of consumer behavior and insights, focusing on the purchase of Audi cars. It evaluates the stages of consumer decision-making, emphasizing the importance for marketers to understand the consumer's buying path. The report compares and contrasts B2B and B2C decision-making processes using examples. It also examines market research approaches applicable to both B2C and B2B contexts. Furthermore, it identifies influential factors for marketers at each stage of the decision-making process. The report concludes by providing a detailed overview of how marketers can influence consumer behavior through various strategies, ultimately aiming to enhance customer loyalty and improve marketing effectiveness.

CONSUMER
BEHAVIOUR AND
INSIGHTS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1 Evaluate and explain stages of decision making of consumer for product or service......1
P2 Importance of mapping path of buying and understanding consumer decision making for
marketers................................................................................................................................2
TASK2 ............................................................................................................................................5
P3 In context of B2B and B2C compare and contradict important differences in decision
making process with the help of specific examples...............................................................5
P4 Examine various approaches and methods of market research applicable in understanding
B2C and B2B decision making process.................................................................................7
TASK3.............................................................................................................................................9
P5 Provide marketers influential points which will differ at every stage of decision making
procedures with understandable examples.............................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Consumer behavior is understanding their needs, wants, purchase decision and factors affecting
buying pattern. Consumer insights in estimation by business to gain knowledge about behavioral
pattern of customer to increase effectiveness in marketing strategies. This assignment will be
focusing on Car as product by Audi which is German brand dealing in luxury cars. In this report,
evaluation of stages which justifies consumer decision making for product is done. Importance
for marketer to examine path to understand decision making of customer. With help of examples,
comparison will be done to find out differences in respect of B2C and B2B decision making. In
same context analyse various approaches and methods of market research to gain knowledge
about process of decision making. Using relevant examples, find out that how marketer
influences different stages in process of B2B and B2C decision making.
TASK1
P1 Evaluate and explain stages of decision making of consumer for product or service
Consumer decision making is process by which customer makes purchase related
decisions after going through some steps (Calder, Isaac, and Malthouse, 2016).This occurs when
buyer have one or more choices in products for which sequential step are followed to reach on
best product to buy. Here consumer will follow steps to buy luxury car so that they are able to
make appropriate decisions, the stages are as follows:
Need Recognition: This is first and most important stage in consumer decision making in which
buyer recognise that there is need of respective product. Businesses research about this need and
then supply products in market to earn profits. This step is considered to be important when need
arises for expensive products like laptop, car, cellphones, home decor furniture. In case of luxury
car need can be safety, status, comfort, travelling, fuel efficiency, maintenance and most
important factor is price (Dominici and et. al., 2016). Consumers analyse all these factors which
effects their respective needs and wants of along with whole process of buying behavior.
Search information: After the need has risen and factors are analyse which will impact
purchase decision, information is search extensively to support buying. This information search
will support every stage of process and assist in risk management. Data can be sources out from
different platforms like commercial, personal, public and experiential sources which serves
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distinguish need of information. In case of luxury car commercial sources like advertising,
promotions, sales personnel and personal information from relatives, friends, family who own
car can give better recommendations. All this information is evaluated on basis of needs and then
decision and further stages are influence upto great extend (Durante and Griskevicius, 2016).
Comparing alternatives: Once need is recognise and all related information is collected then
next step is to evaluate available options in market. There are different factors which influence
this step like price, quality, brand image, value for money and other related aspects which affects
consumer buying behavior. In case of luxury car different competitors are evaluated on the basis
of price, mileage, after sales services, accessories, maintenance, discounts, models, etc. All these
factors are closely analyse of substitutes before coming to purchase decision by the buyer.
Purchase decision: After all stages are cleared, consumers are ready with decision to purchase
particular product. This steps in collective efforts by customer to yield best value of their
expenses to buy the car(Erevelles, Fukawa and Swayne, 2016). Purchase decision are greatly
influenced by marketing strategies of companies to promote its product by using extensive
methods for advertising. After evaluating all options available in market consumer decides to
buy luxury car model A4 of Audi. In this stage different options are available with buyer like
finance, complimentary services, discounts provided by dealer with purchase of luxury car of
Audi.
Post Buying Behavior: This stage is characterised in analysing benefits of product which means
that item was useful or not in satisfying needs or wants. There can be positive or negative
feedback about goods purchased. This is also done by organisation by collecting feedback of
buyer and tries to improve their services for future efficiency.This stages are important for
businesses to gain customer loyalty and positive publicity by satisfying needs. Audi can record
feedback related to services, products and recommendations for company to enhance customer
decision making process (5 steps to understanding your customer’s buying process, 2016).
P2 Importance of mapping path of buying and understanding consumer decision making for
marketers
The whole journey which lead buyers to make decision of purchasing particular product
and stages which they pass is called path. All this is important for marketing department of
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organisation to understand so that quality is maintained and profitability increases by gaining
customer loyalty. Some of importance are as follows:
To Understand Buying Behaviour: The major importance of studying consumer behaviour is
to identify needs and wants which helps in forecasting demand (Gensler and et. al., 2015). All
related factors which influence purchasing decisions are identified so that organisations are fully
aware about the behaviour pre and post of buying. This helps marketers to completely
understand every phase of consumer decision making process. For example, Audi research team
is able to identify current wants and needs of consumer then marketing team will be able to
design, manufacture and supply cars accordingly to have competitive advantage in industry.
To Create Marketing Strategies: All models and concepts of consumer behaviour helps
marketing department to identify factors which influence decision making process and using this
as base marketers plan strategies about promotions, pricing policies, complimentary services,
sales or discounts, etc. this helps organisations to increase their revenue and gain customer
loyalty. This will Audi marketing team to frame strategies related to promotional and selling
strategies so that consumer is willing to buy cars and advertisements have positive impact.
To Reduce Customer Dissonance: Consumer is complex and unpredictable which requires
more attention to understand negative behaviour for particular behaviour. This will helps
marketers to make plans or strategies accordingly so that this unfavourable feedback can be
reduced. If product fails to meet required demand or needs of consumers, it can easily be dispose
which brings dissonance in buyer behaviour. Understanding behaviour will help marketers to
reduce this behaviour and increase brand image in market (Heutel and Muehlegger, 2015). This
allows company to manufacture and supply cars and accessories according to customer needs
and wants which enhance customer satisfaction and reduce dissonance.
To Retain Customers: the most important task for any organisation is to retain customers by
building loyalty towards brands and product. Making consumer satisfied is best possible way to
increase loyalty towards particular goods and this can be done by closely analysing behaviour
and factors that are affecting it. This will provide clear understanding about decision making
process and different components that influence it. If Audi is able to identify consumers needs
and supply cars to meet the expectation this will have direct impact on customer loyalty and
helps in retaining buyers.
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There are different models which marketers apply in understanding decision making
process of consumer. Such models provides concepts to clearly gain knowledge about customer
behaviour are explained below:
Economic Model: In this model, consumer behaviour mainly focuses on increasing value and
benefits from limited cost. This depends on purchasing power, price and alternatives available
which has direct impact on decision making process (Gao and et. al., 2016). This model will help
Audi to manufacture cars in budget of customers and provide value to buyers in exchange of cars
provided by company.
Emotional Perspective Model: This model states concept of emotional attachment for particular
brand or products. This may arise due to usage by different generations or for long period of
time. Such model suggest to understand consumer behaviour through emotional perspective
which influences their decision making (Hofacker, Malthouse and Sultan, 2016). There are
consumers who gets emotionally attached to brand and Audi can have advantage of this in
retaining buyers for long by supplying respective cars.
Passive Model: This model comes up with concept of impact by promotional strategies on
decision making behaviour. It brings out importance of promotional activities by organisation to
create an impact in mind of buyer to buy that particular product. Audi has powerful promotional
strategies which help brand to create strong impact on consumers by analysing this model to
understand decision making (Models of Consumer Choice, 2019).
Reasoning View Model: This is one of most rational model of all which determine concept of
understanding by consumer needs and demand for products in market. It states that without need
recognition step, consumer will not purchase any product irrationally. Audi research team need
to analyse recognition step of consumers buying behaviour closely so that it can be successful in
promotional and other strategies of marketing.
All these models help marketers to map path of journey which consumer takes in decision
making process of luxury car. These models provide factors that need to be targeted while
planning for promotional and other marketing activities (Kim and Lee, 2015). This will provide
Audi to gain understanding about behaviour and attitude of buyers which affects buying
behaviour in purchasing luxury car.
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TASK2
P3 In context of B2B and B2C compare and contradict important differences in decision making
process with the help of specific examples
B2B and B2C are two types of sales techniques used by Audi to sell its products or services
through different platforms. B2B (Business-to-Business)is method when organisation sells its
goods to other businesses are raw material or finished products (Lavasani, Jin and Du, 2016). On
the other hand, B2C (Business-to-Consumers) is technique where business is directly engage its
operations for customer. These are effective techniques which provides firm success and growth
and other alternatives ways to enhance overall performance. Some of critical differences in in
these two methods are as follows:
Basis B2B B2C
Driving factors There are more rational and
strategic factors which leads to
buying decisions. For example,
product efficiency, goods
value and benefit to company.
Audi deals in parts and other
accessories with other auto-
mobile companies(McCollum
and et. al., 2017).
These are factors which
directly impact behaviour of
consumers for buying process.
Such as need, wants, comfort,
status, safety, price, promotion
activities, etc. All these are
driving forces which assist
buyer to purchase Audi cars.
Market size It is comparatively small and
focused market. This is
because organisation tends to
promote their product and
want to be independent firm in
operation and processes.
This is large market where
consumers are targeted on the
basis of driving forces. Audi
market is high level income
population which likes design
and status in cars.
Duration of decision making
process
This technique have longer
time period in making
decisions as there are cost
effectiveness and functionality
There is less duration once
need is recognised by
consumers. Need arise to buy
luxury car, buyer will not
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are key elements in decision
making.
hesitate if preferences fits
buying decision.
Length of relationship Such relationships are long-
term as two businesses are
dependent on each other in this
case. Audi is dependent for
spares part and accessories to
its parent group which is long-
term relationship between the
both. Here communications
skills are needed with all
decision makers so that
purchasing decision is
effective.
Customer loyalty is typically
for short term because
switching cost in terms of
luxury car is very less. Audi
has close competitor BMW
which provides almost similar
cars which creates threat of
customers to get switch
(Piccinini, Gregory and
Kolbe, 2015).
Promotional activities Here activities concerning
specific requirements are used
in promotions. Such as cost
efficiency, functions specified,
requirements of business, etc.
which impacts buying
behaviour of other businesses.
It generally represents
advertising campaigns which
contains products details,
celebrity endorsements to
target customers. Audi
broadcast commercials which
carries complete broadcast of
cars and related aspects.
Required Product Knowledge While selling products to other
business knowledge required
about product and its
specifications is high. Demos
are given to make decision
makers understand about
quality and functionality. Use
of technical terms or jargon are
Commercial advertisements
are use to promote products
which contains low to
moderate information about
product specifications.
Technical terms are rarely use
and mostly simple words are
use to pitch customer about
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more often while explaining
products (Seegebarth and et.
al., 2016).
respective products.
The similarities between these two are both are supported by excellent customer services
and experiences in nature which emphasis on maintaining relationships. Both of these requires
sales process that is customer oriented and authenticity is key requirements which leads to
customer loyalty as common goal for both. There is need that trust in build in relationships both
types of sales and customer specifications are clear to meet clients needs in both of the cases.
There is need that in both methods after sales services are provided so that customer loyalty can
be achieved. The both techniques identifying buyers needs and wants is main objectives so that
organisational objectives can be achieved effectively and efficiently.
P4 Examine various approaches and methods of market research applicable in understanding
B2C and B2B decision making process
Market research is finding out all internal and external factors which affects consumer
attitude and behaviour in buying process. This is management tool to identify customer needs,
estimates demands and prepare business strategies according to that. In case of B2B and B2C
dealing, organisation need to identify all factors which affects business and consumer needs for
luxury cars. Different methods applied in context of B2B and B2C decision making are as
follows:
Focus Group: In this method of market research, discuss is held with group about new
preferences and trends of markets and involving key findings in decision making. This will help
Audi to forecast demand of particular car which will increase profits margins of organisation.
This is applicable in both B2B and B2C techniques to understand factors affecting buying
behavior and process.
Personal Interview: This is one on one question answer round with direct customers which will
helps organisation to identify positive and negative aspects of behavior which impacts buying
process(Shin and. et. al., 2015). This is more convenient for B2C technique of selling where
sample can be interviewed to get generalisation.
Survey: In this method of market research, detailed surveys are used to identify customer taste
and preferences so that factors can be easily identified that affects consumers behavior and
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decisions related to purchasing. This can be applied to both B2B and B2C selling techniques of
businesses.
Approaches of research defines types of data organisation wants to collect about
customers and other businesses through market research. There are different approaches by
which information can be collected by single or combining these approaches. Audi will combine
both the approaches to collect data about other businesses and consumers.
Qualitative Approach: This is useful in gathering attitudes and behavior about customer and
other businesses. It focuses on method of market research and collect information regarding
attitude and behavior for product or service (Szmigin and Piacentini, 2018). This provides better
understanding about needs. Wants, interest, beliefs, habits and behavior so that opportunities can
be find out to increase sales. This requires different methods to collect and interpret data as it is
more complex in nature as compared to quantitative.
Quantitative Approach: This is to identify size of market, its value to firm and areas where
growth can be made by increasing sales or profits. This provides elements which constituents
customer like gender, age, income distribution, etc. These approach is useful in gathering data
related to sales figures, industry product sales, trends in financial term. Audi will generate
statistical data about quantitative aspects of factors which will affect behavior and buying
decision process.
All above methods and approaches are use to identify buyers behavior and factors which
affects consumer decision making process for luxury cars. Approaches define types of
information company wants to collect for other businesses and purchaser to increase sales.
Methods on other hand defines different ways by which market research can be done so that
appropriate data can be collected. All these are used to increase sales by enhancing B2B or B2C
sales strategies so that company gain higher market share. Factors affecting consumers to
purchase cars are identified so that Audi can meet specific demands of customer and gain
competitive advantage in industry. Facts and figures are collected about business so that sales for
providing parts and different accessories can be increased.
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TASK3
P5 Provide marketers influential points which will differ at every stage of decision making
procedures with understandable examples.
At the time of evaluating target audience in B2B one has to create several stages which will
differ at all levels and shall provide the data of perspective of an consumers interest and
consideration levels. Also the number of people involved while accumulating such decision are
also very important (Thieme and et. al., 2015). In case of audience of B2C are considered to be
very direct in their choices and no not have much bifurcations or much considerations.
The basic need for such content: When any product or service is thought to be promoted the
only focus should not be only over the need of audience in the following. B2B In this the
audience generalises and looks upon all categorised elements of products. In most time audiences
look upon proper candidate who can explain and provide them correct advice, generally
companies or organisations lack in this zone as they do not have knowledge about field. B2C
also there is one part of audience who always seek entertainment while promotions (Tiwari, Wee
and Daryanto, 2018). This type only becomes interested in the product or service if they get
attracted to the way or presentation or the methods used to give information about it. For
example, there is need that different promotional tools and methods are also used in B2B sales so
that Audi can extract benefits before competitors in industry and enhance its relationships and
sales.
Content marketing: As one can accumulate number of people involved in the section
procedure, in B2B one should accumulate the first base on how the product shall be launched.
Generally either people pick upon some issue or talk about wrong presentation of it. One should
be making a great impact over the audience brain so it keeps them engaged with the product and
intents the need to purchase it. In case of audience which belongs to B2C its very easy to keep
them engaged in product and seeking attention. For example, advertisements and other
promotional tools helps Audi to engage its customers fully but in case of B2B personal
connections and relationships have more importance.
Communication and language: This is very important aspect to be kept in mind while
approaching any type of audience as they communication can either create an loyalty towards the
brand and if bad communication is given the audience can loose interest in the product. For
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example, using bad or improper language in promotional activities will harm brand image of
Audi globally which will impact its sales and revenues badly. While using improper language
while making connections in B2B sales it is considered unethical and hinders brand image in
market within industry.
Emotional loyalty: This is the last aspect one has to look over but is also very crucial. The
audience should be left with an impact in their brain which is mostly done through connecting to
their basic emotions and providing them the relativity for connecting to the product or
services(Zhang, 2015). The B2B audience is very practical and logical in thinking aspects, they
might involve a little emotional quotient in the buying procedure but mostly it will be based over
the preference and need at the moment. The product here is analysed and calculated on all
grounds and then only the final decision is made by the consumer. The audience belonging from
B2C should get engaged in the information provided to them. It should hit emotions of an
individuals and connect to their heart this way it will be very irrational and emotional decision of
audience to take the services or product. In case of B2C it can be easily managed by increasing
emotional aspects and customer loyalty but on the other hand B2B needs connections, trust and
relationships when it comes to sales for Audi.
CONCLUSION
From the above discussion it is clear that consumer behavior is factors which influences
their attitudes and decision making process of buying. Customer insights is organisation efforts
to understand these factors to identify needs and wants to understand behavior and increase sales.
In this assignment different stages involve in decision making of consumer are examine and
analyse. There is explanation about importance of mapping path to understand consumer
decision making for marketers. This report include comparison and contradictions about
important differences between process of decision making in respect to B2B and B2C with
examples. This explains different approaches and methods of market research use to understand
decision making process for both B2B and B2C. At last, it includes points which explains how
different stages of decision making process of B2B and B2C are influenced by marketers.
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Online
5 steps to understanding your customer’s buying process. 2016. [Online]. Available through:
<https://www.b2bmarketing.net/en/resources/blog/5-steps-understanding-your-
customers-buying-process>
Models of Consumer Choice. 2019. [Online]. Available through:
<https://smallbusiness.chron.com/models-consumer-choice-73712.html>
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