Analysis of Consumer Decision Making in B2B and B2C Markets

This report delves into the intricacies of consumer decision-making in both B2B and B2C contexts, providing a comprehensive analysis of the processes involved. It begins with an introduction to consumer behavior and consumer insights, emphasizing their importance in understanding customer needs and market dynamics. The report then outlines the stages of the consumer decision-making process, including need recognition, information search, evaluation of alternatives, the selection stage, and evaluation. Furthermore, it highlights the significance of mapping the purchase path and its role in understanding customer journeys. A comparative analysis of decision-making processes between B2B and B2C markets is presented, followed by an exploration of various market research approaches and methods. The influence of the marketing mix elements and cultural factors on the consumer decision-making process is also examined. The report concludes with a synthesis of the key findings, underscoring the importance of understanding consumer behavior for effective marketing strategies. The report uses Boots Ltd. as a case study to illustrate the concepts discussed, providing practical examples of how these principles apply in a real-world business setting.

B2B & B2C consumer
decision making

Table of Contents
INTRODUCTION ..........................................................................................................................3
Stages of consumer decision making process ............................................................................3
Importance of mapping the purchase path and consumer decision making ...............................5
Differences in decision making process of B2B AND B2C.......................................................6
Approaches to market research and its methods.........................................................................7
Influence of elements of marketing mix and cultural on consumer decision process.................9
Conclusion.....................................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Consumer behaviour is defined as the evaluation of the consumer , organisation, groups
and all the related activities that relates to the purchasing of goods and services. Consumer
insight refers to the interpretation used by the ,marketers top develop a deeper understanding of
the thinking process of the consumer (Gbadamosi, and Oniku,2021). With the evaluation of the
consumer behaviour which generates the information of what they need , wants and why? The
research done on consumer in order to understand the market needs, business competitors and
customers. It helps organisation to map journey of customer and find out the faults. They tell
companies why consumer is buying certain products. The report is being made in the context of
Boots limited which is establish in 1849 and deals in health, beauty and pharmacy sector. The
aim of this report is to highlight the stages of consumer decision that helps in making for the
products and ,mapping the path of purchasing which is important for the business. It consist the
difference between decision making of B2C and B2B. And how marketers can make impact in
the decision process and approaches to market research is also being evaluated.
TASK
Stages of consumer decision making process
The decision making process of consumer is very complex, but customer pass through some
stages in order to purchase the products or services to generate what satisfy their needs(Braun
and Zenker, 2022). It includes the process of identifying the needs, collecting information,
generating alternatives and decision of buying which is influence by the economic and social
factors. There are 5 steps that affects consumer decision process.
Need Recognition
The initial step in buying process in the needs and wants of consumer which needs to be
fulfilled which is the main point on buying products. In the context of Boots ltd, which deals
with beauty and health products and their targets includes the consumer who are more focused
on good looks and wants to stay healthy. They are fulfilling the demands of the customers who
wants the products that are related to health and beauty. In order to promote sales company runs
advertisements I order to encourage consumer to buy the products.
Searching information

Consumer are not experts in process of buying products. So while making decision in
regarding purchasing they have to research for the products and collect information about the
product that they needed. The main source of gathering information is through internet as it is
convenient and instant way of searching . In the context of Boots ltd, they are running campaigns
to make influence on the consumer by various modes such as keyword marketing.
Evaluation of Alternatives
After the customer has research about the products they state to search for the best offers
and deals. The main factors are price and quality which impact the decision process(Brummer,
2018). The potential buyers read reviews, compare different products with the pricing and
choose to fulfil the needs of their own. In the context of Boots ltd they provide excellent quality
products to the buyers which makes them ahead of competitors.
Selection stage – On this stage, the customers make decisions regarding which product to be
purchased and where it is to be purchased from after matching all the criteria. They are free to
decide the selection of products i.e. either from the advertisements and reviews observed or on
the basis of prior use. The marketers of Boots strive in marketing so as to attract large number of
customers for its products as compared to the competitor's products.
Evaluation – Customers evaluate the their decision of purchase on the basis of level of
satisfaction of their needs and expectations. The business wants to develop a loyal customer base
for a long-term basis and dies not want a on-time buyer(Clark, 2019). Boots Ltd. has become a
customer-centric brand by delivering quality services to its customers and adding value to their
experience.
Double loop journey - The purchase decision has a cyclic customer journey that is reflected
through McKinsey model that includes post purchase experiences also , in the decision making
process of customers.
Post purchase experience - The company is able to develop a loyal customer base of its regular
customer by providing them with effective post purchase experience by being able to resolve
their feedbacks regarding the issues of products after purchase. Boots Ltd. Provide purchase
experience by engaging with the customers through surveys , email, appreciations etc. to obtain
their feedbacks and is able to develop an effective brand image in the market and is able to add
value to their experiences.

Loyalty loop – This loop makes the customers to divert their decision process and make prompt
buying decisions after recognising the needs. Loyal customers can be active or passive. Active
customers make open and prompt decisions while passive customers don't divert their purchase
decisions to other customers. Boots Ltd. puts emphasis on active loyal customers who serve as a
source of publicity to the company's products by open and prompt decisions of buying.
Understanding of the customer decision making process is very essential for the companies by
analysing the consumer behaviour to prepare effective marketing plans.
Importance of mapping the purchase path and consumer decision making
Customer mapping journey refers to the method of visualisation of customers'
experience. It facilitates in getting the touchpoints of customers through customers' experience. It
is imperative to analyse the consumer behaviour so as to so as to enable mapping that will
facilitate visualisation of company's products from multiple points(Cohen, and Flood, 2022).
Boots Ltd. also map the journey of customers' experience to communicate its aspects that will
facilitate further expansion of business in new markets. Mapping helps in increasing the
revenues due to the development o positive customer experience and also enhances customers'
mouth publicity.
Mapping Journey
 Identifying all touch points – The journey starts with enumerating all the touchpoints on
the basis of which customers interact with the brand. The marketer has located the boost
product to various location like website so that the are easily reachable to customers.
 Selecting the target customers – The target customers of boot are the women soi it makes
various strategies to encourage women to buy their products.
 Understanding the customer goals - It is required for the boot marketers to understand
the goals of the customers so that they can provide products to their targeted customers
such as websites which are updated overtime(Gursoy,2019).
 Mapping out the customer's flow of interaction - As regard with the boot company, it
targets its customers and marketplace in order to provide them products which they
desire so that they are able to purchase it.
 Prioritising touchpoints – The marketer search for the market place where the customers
are more active according to which strategies are developed for growth which impact the
decision of customers.

 Review and update – The Marketers strive to improves their services and regular review
the map for further improvement.
Differences in decision making process of B2B AND B2C
B2B stands for business to business that assist in providing services to the other
companies whereas B2C stand for business to customers where services are provided to the
customers by selling them product or services.(Hinterhuber, and Liozu, 2018). The differences
are as under:
B2B B2C
Pricing model Boots ltd. Offers its customers
single tier pricing which can
be affected discount is allowed
on the sales.
Multiple level of discounts are
offered that are based o
quantity where payment are
varies due to 30 days credit.
Customers services Customers services are offered
by the company to resolve
their issues.
Wholesale customers are
brought and contact them for
orders.
Buying process The products are bought
frequently by the customers
but are informed less.
The products are ordered in
huge quantity so they are
informed about the
purchases(Lingard, 2021).
Checkout structure This structure is designed to
avoid customers who do not
take any interest in buying.
There are various option
available like multiple
shipping and so on.
In relation to boots ltd., the products and services are provided to both retailers and
wholesalers where decision making of the customers are different such as B2B customers take
long time to buy the products in bulk whereas B2C customers takes shorter time to buy the
products as they are les in quantity. B2B customers are considers as business they buy products
for solution to fulfil the need of business(López-López, and Giusti, 2020.). The sales and
marketing for both categories are different because the advertising are used for B2B and B2C

purpose in order to attract the customers. The process of buying the products are longer in B2B
as they consider the cost reputation of the supplier and functionalities of the products. On the
other hand, the B2C customers purchase products that are value for money and provide reviews
as well. B2B customers want excellent services after buying the products ,on contrary to this,
B2C customers do not care for the post sales services which affect the buying decision of
customers.
Approaches to market research and its methods
The process of market research helps a company to compare the products or the services
rendered by that company with the other competitors exist in the market. The business entity
came to know about the components that affects the company's growth. It also helps in
understanding the preferences of the consumers(Niero and Kalbar, 2019). After getting an idea
of the demands and needs of the customers, market research helps in the construction of new
strategies in order to maintain the position in the market. The marketers of the company that is
the Boots Ltd. has undertaken different techniques which affects the decision making process of
the B2B and B2C customers. There are two kinds of researches which is done by the companies-
Primary research- It is the first hand research done by the companies in order to gather the
details from the consumers directly. It generally involves asking the questions to the customers.
Some of the methods are-
Survey- In case of B2C consumers, the companies use to send the questions so as to collect the
feedback regarding the product or services through mails. On the other hand in terms of B2B
consumers, the company contact them through call or can organize a meeting with
them(Pousttchi and Dehnert, 2018). This process helps in understanding the position of the
company in the market and whether the products or the service provided by the company is
meeting the requirements of the consumers or not.
Field trials- In the case of B2C customers, the companies showcase the goods in the respective
stores in order to note the feedback of the consumers, whereas in terms of B2C consumers
the companies give them the sample products which is used by them and after using, they
provide a response to the company.
Concentrated groups- The company collects the information regarding the consumers who
represents the larger number of customers of B2C clientele and enquire about the necessary

modifications they want in the product or services. In the case of B2B customers they
personally communicate with each and every customers in order to know about the
response regarding any alterations in terms of the product or services.
Personal interactions- In terms of B2C customers, the companies ask various questions
regarding the products they avail in order to know their perception(Pousttchi, and Dehnert,
2018). On the other hand, in case of B2B customers, the representatives of the companies
contact them personally to get a deep insight of the product in terms of their response.
Observations- In case of B2C customers, the market representatives observe the shopping habits
and in case of B2B customers, they notice the purchasing patterns and needs of the
consumers.
Secondary Research- The companies perform its research on the basis of the evaluation done by
the already existing companies. The information can be collected from different sources such as,
articles, journals, writings, etc. The companies which possess less resources to conduct the
market research can choose this option in order to understand the minds of the consumers.
Influence of marketers on consumer decision process in B2B and B2C
The decision making of B2B and B2C is affected through marketers as an impact of
whole process for making various strategy as campaign of marketing, commercial and many
more(Roy, 2021). Both consumer's want is different from each other, because of this the
marketers decides to campaign establish the brand for customers.
Need Recognition
The marketers will influence B2C consumers form providing necessary information for
products through giving advertisements, so when they feel need for a particular product, they can
choose the product of company. The image of brand is made for customers so they can buy
products of forms where B2B consumers have impact through marketers brand value as an
wholesaler who will buy product for company and brand image.
Searching information
The consumers in B2B widely research for product before buying, the marketers use other tactics
for converting them in main customers from engaging with them personally and this is available
all time and solve queries(Taylor,2018). Customers of B2C's decision will affect through
marketers for use of internet marketing, SEO etc.

Evaluation of Alternatives
The customers of B2C are more price centric for influence marketers through giving discounts
and offers for attracting the customers towards product of company. B2B customers have more
quality centric and they will deal with and also do not affect budget and marketers give best
deals to purchase as the order is huge.
Selection stage
The retail customers getting best price and offers to boost marketers are likely to choose this
product, but marketers choose other approach for B2B consumer as they buy due to offer.
Evaluation
Marketers gives after sale service for B2B customers in efficient way and ask for some issue or
not by manager personally and the customers have customer support as they don't have early
issues.
Influence of elements of marketing mix and cultural on consumer decision process
Needs of consumer and behaviour is determined through culture. Boots product is youth
oriented. The behaviour of buying is influenced form social class, culture, sub culture. For
instance, Islamic and Catholic people buys more products of this type. The person who lives in
joint family spends less money on product of beauty(Theodoridis, and Zacharatos, 2022). This
how culture affect the decision of purchase. The company is affected through culture and
subculture of customers.
4Ps- The mix marketing elements have huge impact on consumer's decision.
Product- Wide range product helps to fulfil needs of customer as required. They need high
quality as it shapes image of brand and influence to buy.
Price- This is flexible which changes whole buying decision of customer, so the product's price
is reasonable and not less.
Promotion- Consumer's mind-set can be changed through effective market technique.
Place- The customers buy products which can be seen on the shelf. The boots Ltd. Have
managed supply chain to make sure customers will easily find the products as this influence
them in great extent.

Conclusion
The report encompasses the concept related to the decision making process of the customers and
also includes the five levels which shows that how the consumers buy products in the market and
what kind of research they use to do for the same. It also explains the differentiation between the
B2B and B2C consumers along with their purchasing habits and patterns. This report also studies
the various techniques or methods through which the process of market research can be
accomplished. The representative of the company that is the marketers plays a very crucial role
in affecting the customers and in understanding their preferences regarding any product or
service.

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