In-depth Analysis of B2C & B2B Consumer Decision-making Process

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This essay provides a detailed analysis of the consumer decision-making process in both B2C and B2B contexts, using Primark as a case study. It outlines the stages of consumer decision-making, from need recognition to post-purchase evaluation, and emphasizes the importance of mapping the customer journey. The essay compares the decision-making processes of B2C and B2B customers, highlighting differences in needs identification, flexibility, and the role of post-sale services. It evaluates various market research approaches, such as surveys, interviews, focus groups, and observation, and their applicability to B2C and B2B markets. Finally, it examines how marketing mix elements like product, price, place, and promotion can influence the decision-making process in both markets. Desklib offers this solution and many other resources for students.
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B2C & B2B Consumer
Decision-making Process
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TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Stages of consumer decision-making...........................................................................................3
Importance of mapping the path to purchase and consumer decision-making............................4
Comparison between the decision-making process for B2C and B2B........................................6
Evaluating the different approaches to market research for understanding the decsion making
process in B2C & B2B.................................................................................................................7
Evaluating how markets can influence decision-making process of B2b & B2C.......................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
The consumers decision-making process is that process in which the consumers develop
an awareness about their needs which collect information on the ways in which their needs can
be satisfied by evaluating different options which are available to them for making the purchase
decision. In this project the chosen company is Primark which is a UK based retailer of fashion
products. The stages of the consumers journey with the help of different evaluation and analysis
are show this business. This project will also compare the differences of decision-making process
for B2C and B2B with the help of examples. The different approaches for market research and
methods of research are also used for understanding the decision-making making process of
B2C. This also explain the influence of the different stages on the decision-making process of
B2C and B2B with example.
MAIN BODY
Stages of consumer decision-making
The consumers of the company Primark goes through a process which before the fashion
related products of the company. These stages which the customers go through are,
Recognition of need :
The first stage to this process is when the consumer recognizes the need of the product or
the services for which they have developed a need of from the market. This need recognition
happens either through the recognition of trends externally or an innovative idea that has been
generated from consumers themselves. Primark release new clothing products very frequently
and most of them are due to a following trend that may have been seen over social media (Farah,
Ramadan and Harb, 2019.).
Information search :
Prior to making the purchase decision the consumer refers a lot of informational
resources. Generally such type of information about the clothing products are available on the
internet. Consumers generally look for trust worthy sources for their information. This is one of
the reasons due to which the customers tend to take suggestions form people around them. This
is important information for the Primark as it provides the opportunity of free marketing. That
means that the company if is able to satisfy their customers those customers will attract more
consumers for the company (Hettiarachchi, Wickramasinghe and Ranathunga, 2017).
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Alternative evaluation:
At this stage, the intending purchaser develops various choices regarding qualities they
need in a product like low price, style, colour, etc. Further, accumulates several options and
evaluate them. Therefore, on the basis of a customers preferences they choose the best way
alternative in which their options fits in (Turunen and Halme, 2021). However, if Primark needs
to increase brand value they should entail buyers' behaviour of selecting products by coming
with digitalization and personal customization as their USP. This becomes important for
company to come up with new ideas so that they can influence buyers easily to purchase the
goods provided by them and not to shift on alternatives.
Purchase decision:
This is the fourth step of process after evaluating various goods and services. During this
time, buyer makes an intention to buy most preferred brand after putting logical mind while
choosing the alternatives (Mishra, Singh and Koles, 2021). So, marketer must entails the
customers interest at this stage. Hence, Primark must provide various ways to attract buyers like
giving them good discount facility, rebates, and conducting lucky draw winner game.
Post purchase evaluation:
Last but not the least stage of consumer decision-making process is after buying
assessment. This process includes involvement of both purchaser and seller to know their
requirements (Consumer Decision Making Process, 2021). Therefore, they ask several questions
to them like merchandise purchased by the customer satisfies needs?, Are they happy with
goods? Requirement of after sale services, etc. Subsequently, if Primark want to create its
customer base then it is necessary to take feedback from its buyers.
Importance of mapping the path to purchase and consumer decision-making
The customer's journey through which it goes in the path to their purchase decision of the
company. The plotting of that path of the customer to the purchase offering is called mapping of
the customer journey. Mapping of this journey to purchase is important for understanding the
purchase because for the following reasons.
It is known to create a much more tailored experience by mapping all the potential
customers interactions and activities which a company can focus on for effective
marketing and enhancing the customer experience.
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This allows the organization like Primark to empathize with their customers. This is
useful because the individuals in this generation have different buying capacity. By
placing these consumers into different groups with a detailed people according to their
different positions in mapping (Bertoni, 2019).
Mapping these process is very influential in guiding them to the purchase. This happens
because the main of the marketing strategy is to attract the customers towards their
awareness and considerations towards the different routes to purchase, which can
improve the conversion rate of the process. However, it also explains that different types
of customers need to be treated with different approaches at every stage of the decision-
making process.
Mapping this process is considered to be very effective in the identification of the
different touch points of the which the customer shows in different levels. This is utilized
by companies like Primark to develop the business plan accordingly. Good customer
journey mapping allows the business to identify the which touch points are needed and
are essential for the customers centric goals of the business. For example companies
utilize different customer facing platforms such as smart phone, social media and internet
for utilizing them as the digital strategies of the YouTube channel (Chen and et.al.,
2018).
It also helps in the identification of the buying stages which require more attention for the
organization. The marketing strategy generally focuses on all the stages of the customers
decision-making but for having more effectiveness the customers journey mapping
allows the company to focus on the essential place which require to be concerned more
by the organization.
It has the potential of guiding the business and its objectives in the right direction. The
gaps which develops in between the mapped journey influences the company to make
changes in its marketing framework from one end of the sales funnel to the other.
Comparison between the decision-making process for B2C and B2B
For the comparison between the decision-making process of B2B and B2C customers the
made then to be referred is the needs of the customers. The customers in the B2B scenario are
said to be very proactive on the identification of their need and also look for the solution for
fulfilling the part of their business strategy. These needs of such customers are preplanned and
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the customers are looking for the solutions when they find the product of the company. Whereas
the B2C customers are able to identify their needs in almost a very similar way, but they are
persuaded by the advertisings and marketing of the company. Thus, it can be said that their
decisions are most of the times influenced (Hall, 2020).
Another difference between the B2B and B2C customers is the flexibility in their
purchase decision. Most business which are buying new products and services. They have certain
specifications which the business always keeps in their mind before making the purchase. The
B2B customers consider the cost, features and functionalities and want all the overall benefits
with the investment they will make. However, the B2C customers are known to be emotionally
driven before making the purchase decision-making. These customers have the idea of what they
want, but they rarely stick to the specific decisions. Their flexibility changes due to the different
specification which creates flexibility in the susceptible to impulse purchases. Their decision
changes if they find a better version or similar product (Bishop, 2018).
The process of buying for the B2B is very longer as they consider a lot of factors which
are essential for the strategic buying decision-making. This is the reason why the decision of the
business is a lot of complex why the customers of B2C also evaluates the cost of the product and
services which are important for their budget to meet. These customers also think about the
reputation of the brand of which they are purchasing. For these customers the value of the money
is also very important factor to be considered. Another one difference between the desire about
the post sale services of the customers (KAMNOTNAE and Mongkol, 2020). The B2B
customers are the one which are most particular for the services before, during and after the
purchase. For example these customers are concerned with the receiving even additional material
as it effects their accounting books.
Evaluating the different approaches to market research for understanding the decsion making
process in B2C & B2B
There are various types of methods utilized by organization in order to have information
for the purpose of decision-making. Primark can use the the methods like survey, interview,
focused group, observation, etc.
Survey is one of the most widely sued method for conducting market research in turn
better formulation of decision can be exerted. Primark pay attention on conducting qualitative
research in which it focuses on asking certain questions to targeted segment by including open &
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close ended questions by providing questionnaire. In the current time online survey is trending
that is highly supported by customers as well in order to provide feedback. B2C type of company
can use this method for executing market analysis. Asking relevant questions can enable the
company to be prompt in collecting data for having significant formulation of policies.
Interview is another action that can be executed by Primark as operates as B2B form as
well. It allows the have one to on conversation for accomplishing objecting of getting relevant,
reliable data that can be useful in achieving success in industry (Erickson, 2017). This approach
can provide assistance in having deeper insights about the organizations with which it operates in
industry for completing operational practices so that knowledge regarding prevailing trends can
be derived. The greater empathy regarding experienced had with dealing with firm can be
understood for identifying lacking areas possess by Primark in fashion industry which are
required to focus.
Focused group contributes in making market research for deriving insights about the
targeted audience. It comprises the crucial consideration while focusing on particular group as it
inappropriate selection can lead to dangerous results that can hinder performance of Primark. It
is one of the most expensive technique of market researches s it requires comparatively more
resources for consulting with customers (Akinfiev, 2020). This can be taken into practice for
conducting evaluation of market for knowing trends as B2B. It is basically can be tough for B2C
type of companies so Primark should avoid making utilization in the mentioned form.
Observation play important role as market research tool which is completely associated
with concentrating one each aspect of customer while making decision for company processing
(Willcox, 2020). It is suitable for B2C organization that can be used as alternative method in
place of focused group. On the basis of this it can be identified that organization can utilize the
mentioned methods for implementation of market research in effectual manner.
Evaluating how markets can influence decision-making process of B2b & B2C
Marketing mix can be taken into consideration by marketer to influence decision-making
process. It is associated with evaluating products, price, place & promotion of Primark which si
operating as both B2B and B2C. With help of this particular technique company's marketer can
influence each stage of decision-making process.
Products step of marketing mix is related with Primark's offers as business to business &
company to consumer by including what are commodities offered in fashion industry. This
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affects the stage of recognition of need (Lim, 2021). It provides information that what is need of
customer so that kind of offerings can be delivered into markets for attracting larger clients. It
influences the decision-making process of company in significance manner. For instance-
customer requires the new trend based fashion products so Primark decision-making process
regarding research & development of required commodity will be exerted to cover larger market
share.
Price is crucial element of marketing mix that need highly affects the decision-making
process of company. Fixation of price is exerted by the taking supply, marketing, etc. cost so
that profitability can be obtained by having strategic pricing strategy. It affects the decision-
making process by affecting the stage of alternative evaluation. In addition to this, it leads in
influencing purchase decision so that firm should pay attention on making relevant pricing
strategy for having competitive advantages in industry for gaining success.
Place refers to the location where firm is largely giving focus to connect with customers
so that market forces can be effectively meet. Alternative selections of decision making process
get affected by this particular plan of enterprise so that major consideration in adopting most
demanded area should be there while formulating policies. Promotion is another measure that
can used by marketer to influence step of information collecting step of customer. In addition to
this, by adopting proper technique of marketing B2B & B2C company can get succeed in
industry. On the basis of this, it can be identified that marketer can influence business decsion
making process in such manner.
CONCLUSION
With the help of this project it can be concluded that the stages of decision-making
process influences the decision of consumers for the fashion products of Primark. In this project
the ability of mapping the path of purchase in the given decision-making of the consumer is
explained. The different available forms of research on stages of B2C decision-making process
it helps the with understanding the influences on the decision-making process. It also explained
the influences the different stages have on the decision-making process.
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REFERENCES
Books and Journals
Akinfiev, V. K., 2020. Modeling of the global oil market: research and results. Upravlenie
Bol'shimi Sistemami. 85. pp.173-205.
Bertoni, M., 2019. Multi-criteria decision making for sustainability and value assessment in
early PSS design. Sustainability. 11(7). p.1952.
Bishop, S., 2018, August. A Practical Guide for Managers in Using the Customer Experience to
Assist in Data-Driven Decision Making for Co-Creative Innovations. In 2018 Engaged
Management Scholarship Conference: Philadelphia, PA.
Chen, C.C., and et.al., 2018. Exploring the consumer behavior of intention to purchase green
products in belt and road countries: An empirical analysis. Sustainability. 10(3). p.854.
Erickson, G. S., 2017. New methods of market research and analysis. Edward Elgar Publishing.
Farah, M.F., Ramadan, Z.B. and Harb, D.H., 2019. The examination of virtual reality at the
intersection of consumer experience, shopping journey and physical retailing. Journal of
Retailing and Consumer Services. 48. pp.136-143.
Hettiarachchi, H.A.H., Wickramasinghe, C.N. and Ranathunga, S., 2017. The role of social
commerce on consumer Decisions: A theoretical foundation.
KAMNOTNAE, T. and Mongkol, K., 2020. MARKETING MIX FACTORS RELATED TO
CUSTOMER DECISION-MAKING ON SELECTING ORGANIZATIONS TO
CONDUCT TRAINING IN THE BANGKOK METROPOLITAN AREA.
Lim, W.M., 2021. A marketing mix typology for integrated care: the 10 Ps. Journal of Strategic
Marketing. 29(5). pp.453-469.
Mishra, R., Singh, R. K. and Koles, B., 2021. Consumer decision‐making in Omnichannel
retailing: Literature review and future research agenda. International Journal of Consumer
Studies. 45(2). pp. 147-174.
Turunen, L. L. M. and Halme, M., 2021. Communicating actionable sustainability information
to consumers: The Shades of Green instrument for fashion. Journal of Cleaner
Production. 297. p. 126605.
Willcox, M., 2020. Think Differently about Market Research. In The Business of Choice: How
Human Instinct Influences Everyone’s Decisions. Emerald Publishing Limited.
Online
Hall, J., 2020. B2B vs B2C buying process[Online]. Available through:
<https://www.columbusglobal.com/en-gb/blog/b2b-vs-b2c-buying-process-what-are-the-
differences>
Consumer Decision Making Process. 2021 [Online]. Available through: <
https://www.marketingtutor.net/consumer-decision-making-process-stages/ >
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