Consumer Behaviour and Insight Project: Decision-Making Analysis

This project report delves into the realm of consumer behavior and provides insights into the decision-making processes of consumers. Focusing on Planet Organic, a provider of organic products, the report examines various models of consumer decision-making, including economic, passive, cognitive, and emotional models. It outlines the specific decision-making process for a product or service, emphasizing the importance of mapping the path to purchase. Furthermore, the report explores the different levels of consumer decision-making, such as extensive and limited problem-solving and routine response behavior, and discusses the factors influencing consumer choices, including personal, cultural, and purchasing power factors. The report concludes by highlighting the significance of understanding consumer behavior for organizations to adapt their offerings, increase sales, and achieve a strong market position.

Consumer Behaviour
and Insight
(Project-1)

Table of Contents
INTRODUCTION...........................................................................................................................1
Consumer decision making....................................................................................................1
Models of consumer decision making....................................................................................1
Decision-making process for a specific product or service....................................................2
Importance of mapping a path to purchase and understand consumer decision-making.......3
Levels of consumer decision-making.....................................................................................4
Factors that influences decision-making................................................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Consumer behaviour and Insight refers to an acknowledgement of trends that fluctuated
in interest and buying behaviour of consumers on timely basis. An organisation can achieve huge
sustainability and profitability in competitive market only if their effective management is able
to identify and interpret the trends in the market which makes easy for them to formulate an
effective plans and strategies in order to make suitable changes in its existing offerings. The
present assignment report is based on Planet organic which is engaged in providing wide range
of organic products to the people of London and across UK. The report includes discussion about
the decision-making process and various models involved in such process. The report also
describes the influences the factors that influences the decision-making along with an importance
of mapping a path to purchase and understand consumer decision-making.
Consumer decision making
The consumer decision making refer to a process that is adopted by the customer to make
a decision from different option that are available in the market. Consumer decision making
process depend on the need, demand and requirement of the customer. Process of buying a
product is very critical because large variety of products is available in the market. So customer
has to choose that alternative which fulfil demand and need of customer with a minimum price.
This process help a customer to buy a suitable product that is easy to consume and provide more
value to fill his need. Product or service is purchase by a consumer if the value of a product is
match with customer opinion (Bereznoy, 2019).
Models of consumer decision making
Different model of consumer decision making process that help a consumer to buy a
product are defined as follows:
 Economic Model: First model that describe consumer decision making process is a
economic model. This model refer to the process by which consumer is predicted that
decision process to purchase a product by a consumer is based on economic factors. In
these the customer analyse and evaluate the benefits and value of the product and service
before purchasing them. Most of the time economic model is considered unrealistic
because individual is not always rational to take decision because there are several factors

that impact on purchase of a product or service. Planet organic provide all items in their
store but it is not essential that all of them belong to a similar company.
2

 Passive Model: This model refer to the purchase process of a decision in a company. In
these the sale of a product depend on the promotion of a country. Like in these company
advertise their product with different marketing offers. So more and more consumer will
be attracted towards the product and service of a company. Consumer response depend
on the customer promotional activities. This model is also unrealistic for a company
because customer first find information about existing product and compare them with
market offers of company (Calder, Isaac and Malthouse, 2016).
 Cognitive Model: This model refer the consumer decision making process to buy a
product that satisfy the need, demand and requirement of a customer. Research proof the
Cognitive model as a suitable model for a buyer to purchase a product. This model show
that company is not biased and rational towards unethical promotion business activity.
 Emotional Model: As the word emotional refer that consumer will be prefer those
product or service by which customer feel emotionally attached. Company try to
communicate with potential customer. So customer will prefer more by the impulsive
buying product. As it help a customer to connect immediately with a product or service.
The impulsive decision help a customer to take a decision after buying and consumer.
This will create positive or negative toward a product.
Decision-making process for a specific product or service
Decision-making refers to an activity of making choices among various products and
services with an expectation of receiving maximum value in exchange of amount invested. It is
considered as complex in nature due to consistently changing according to the market trends.
Planet Organic is small scale organisation which hugely affects from the changing in needs and
preferences of the customers due to which it is important to identify the process of their decision-
making process which are given as under:
Need/Problem recognition: While making decision of buying particular products and
services, the consumers first identify their own needs and preferences which increases the
standard of living.
Information research: Under this process, the consumer conduct a research through
which they can obtain information about the products and services in order to ensure that their
invested amount will get maximum value.
3

 Evaluation of alternatives: After researching, the customers further evaluate the
alternatives which can provide same level of satisfaction to them than original preferable
products. It directs Planet Organic to make changes in their current offerings on
continuous basis (Gensler and et. al., 2015).
 Selection and trial: Under this, the consumes makes decision of selecting particular
product for trial purposes in order to make judgement whether it brings beneficial
outcome to them in near future or not.
 Purchase decision: Here, the consumes make final decision of purchasing suitable
product among various alternatives that will satisfy their actual needs and requirements.
 Post-purchase evaluation: This is the last stage in which the customers gives their
feedbacks and suggestions to an organisation after consuming purchased products. This
will help Planet Organic to enhance their offerings according to the needs and
requirements of customers.
Importance of mapping a path to purchase and understand consumer decision-making
The mapping a path to buy exist with various channels through which the consumers
passes by during the time of constructing a buying process for a particular products and services.
Such process can be briefly explained as journey map of a user and journey which is started
using research process that is processed before constructing a decision making process
(Hofacker, Malthouse and Sultan, 2016).
For example:
The consumer is required to build a map for making buying decision by considering
several factors such as need of product, searching information about an organisation along with
its products and services, analysing alternatives and then make final decision of buying. Here are
the some steps included in mapping a path to purchase which are underneath as under:
 It assist the consumer in building a custom-made experience in the decision making
process.
 It also aid in deciding the fault-finding points of the specific products for the customers.
 The course of action to purchase help the consumers in leading towards the purchasing of
the product and services in appropriate manner.
Consumer decision-making process can be defined as an activity of purchasing products
and services after proper evaluating their effectiveness and pricing policies. Planet Organic need
4

to interpret the preferences and requirements so that it can be undertaken while making decisions
related with making any changes in existing offerings. Here are the some points that will help
Planet Organic after analysing consumer decision-making process:
 Identifying actual intention of consumers while buying products and services directs
Planet Organic to increase their sales and revenue in market (Shih and Ke, 2014).
 Addressing the needs and requirements of consumers makes easy for Planet Organic to
achieve huge customer base by making up an effective plans and policies.
Levels of consumer decision-making
There are various levels which are involved in consumer decision-making process which
are required to analyse so as to increase customer base and revenue of an organisation. Here are
the levels of consumer decision-making process:
Extensive Problem Solving: In this help, the consumer determines the reliability of the
products before making decision of buying with an assurance of getting maximum satisfaction
level. Along with this, secondary products are also taken into consideration according to their
needs and budget.
Limited Problem Solving: Under this level, the consumers research about the products
and services in order to identify the relevant information which ensures that it provides
maximum return for their value invested in buying such product (Zhang and Benyoucef, 2016).
Routine Response Behaviour: Under this level, the consumer shows less involvement in
the product and choose any product that satisfy their needs and requirements.
Factors that influences decision-making
Consumer buying decision hugely affect the sales and revenue of an organisation due to
which it is important for an organisation to identify the factors which can influence buying
behaviour of consumers. Here are some factors which must be consider by XYZ company in
order to increase existing customer base and revenue:
Personal factors: It includes those factors which makes direct impact on the decision-making of
consumer. These factors includes sexuality, age, demographics etc. of consumers which must be
analysed by an organisation in order to retain their loyalty for longer period of time.
Purchasing power: It is related with the income level of the customers which allows
them to make budget for purchasing products and services. Analysing the buying behaviour of
5

customers along with their willingness makes easy for Planet Organic to make suitable changes
in their existing offerings.
Cultural factors: It is related with the factors which influences the power of consumers
in their purchasing decisions. The cultural factors includes cultural and social environmental
factors which involves tradition, religion, values and ethics who makes huge impact on the
decision-making process.
CONCLUSION
From the above project report it has been concluded that consumer behaviour directs an
organisation to make changes in their existing offerings in order to increase sales and revenue.
Every organisation are required to analyse the consumer buying decision so as to achieve strong
position in competitive market.
REFERENCES
Books & Journals
Bereznoy, A., 2019. Catching-up with supermajors: the technology factor in building the
competitive power of national oil companies from developing economies. Industry and
Innovation. 26(2). pp.127-157.
6

Calder, B.J., Isaac, M.S. and Malthouse, E.C., 2016. How to capture consumer experiences: A
context-specific approach to measuring engagement: Predicting consumer behavior
across qualitatively different experiences. Journal of Advertising Research. 56(1).
pp.39-52.
Gensler and et. al., 2015. Listen to your customers: Insights into brand image using online
consumer-generated product reviews. International Journal of Electronic
Commerce.20(1). pp.112-141
Hofacker, C.F., Malthouse, E.C. and Sultan, F., 2016. Big data and consumer behavior:
Imminent opportunities. Journal of Consumer Marketing.33(2). pp.89-97.
Shih, T.Y. and Ke, S.C., 2014. Determinates of financial behavior: insights into consumer money
attitudes and financial literacy. Service Business.8(2). pp.217-238.
Zhang, K.Z. and Benyoucef, M., 2016. Consumer behavior in social commerce: A literature
review. Decision Support Systems.86. pp.95-108.
7

1