Consumer Behaviour and Insight Analysis for Natural Grocery

This report examines consumer behavior and insight, focusing on the decision-making processes of consumers. It begins with an introduction to consumer behavior and its importance for businesses, using Natural Grocery, a UK-based organic food provider, as a case study. The report explores various models of consumer decision-making, including the economic, passive, cognitive, and emotional models. It then outlines the customer decision-making process, detailing the steps from need recognition to post-purchase evaluation, specifically in the context of Natural Grocery's new product, organic choco frappers. The report also emphasizes the importance of mapping the consumer's decision path for organizations and discusses the different levels of problem-solving in consumer decision-making. Finally, it highlights the various factors influencing consumer buying decisions, such as personal, purchasing power, and cultural factors, concluding that understanding these aspects is crucial for businesses to attract and satisfy customers.

Consumer Behaviour
and Insight
(Part-1)
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INTRODUCTION
Consumer Behaviour and insight are two most important aspects for business in order to
improve the quality of their offerings provided to the customers. By determining the behaviour
of the consumers, an organisation can offer their products and services as per the perception
which will increase the sales of firm and satisfaction of customers. The Natural grocery is the
taken firm in this assessment report which is a UK based organic food and grocery provider
store. This report will discuss the models of consumer decision making process along with the
aspects that influences the buying decisions of the customers. This report will also map out the
process of decision making for the products and services of the selected firm and its importance
will also be discussed.
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Consumer decision making is the process which is used by the customers in order to select
the suitable products or services in the market place. The needs and demands of customers varies
with person to person due to which their decision making also varies (Calder, Isaac and
Malthouse, 2016). This process is also known as the process in which a person gets involved
while purchasing products and services. Models of the decision making process for customers is
discussed below: Economic Model: This model is based on the assumption that the customers are the
humans who usually takes rational decisions. This model implies that the customers like
to analyse the products and services before buying them. This model is not suitable to use
as skills among people varies which also impacts their decisions. Passive Model: This model states that the consumers take the decision based on the
promotional activities practised by the firms in order to attract them. However, customers
also do analyse the products before taking any decisions not only based on promotional
activities Cognitive Model: This model states that the customers took the decision for purchasing
the products based on their needs and demand not on the basis of promotional activities
or rational decisions.
 Emotional Model: This model states that the decisions taken by the individuals are based
on their emotional behaviour or emotions. This model also states that the humans are
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impulsive in nature due to which they ignore the benefits of goods and services towards
their users which makes negative impact on their buying behaviour..
2:
The process of decision making of customers refers to the selecting a particular product
or service from the market in order to satisfy their need and demand. This decision making
process is determined by using the economic and psychological factors (Fulgoni, 2014). Such
process of decision making is complex in nature and initiated from determining the needs before
purchasing the products. The natural Grocery is launching their new product which is Organic
choco frappers. The steps in the customer decision making process for this new products are as
follows: Need/ Problem recognition: This process of taking decision starts when a need or
requirements occur in satisfying our demands. The insight of the market along with the
trends drives the decision making process as they feel that something is missing. This
influence the behaviour of customers to purchase the new product of Natural grocery in
order to fulfil the needs. Information search: In this stage, customers search for the data and information of the
products which can fulfil their needs and satisfies them. This data or information is
collected by using the personal as well as professional sources in order to take a proper
decision (Nagengast and et. al., 2014). In this stage, customers will search the cost,
quality and the specifications of the new choco frappers by Natural Grocery by using the
help from their relatives or friends, research for purchasing the product. Evaluation of alternatives: In this stage, customer evaluates the options or brand of
which the products can be purchased and compares them for taking an effective and
proper decision. In this stage, customers of the Natural grocery compare the prices,
products and quality of the new choco frappers product for ensuring that they are
purchasing the suitable and appropriate product. Selection and trial: In this stage, customer choose a product which can fulfil their needs
on a trial basis. The customers purchase the new choco frappers from Natural grocery in
small quantities for testing purpose so that is better results are obtained then the product
is purchased or discarded when failed.
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 Purchase decision: In this step, customer determines the products which can be
purchased by analysing the factors such as brand, dealer and quantity of the purchase etc.
In this stage, customer purchase the new choco frappers of Natural grocery based on their
price, quality and reliability.
 Post-purchase evaluation: It is the last stage in which evaluation of the product is done
based on their needs and benefit of the product. This impact the decision as if product
does not meet their demand then what is the use of it. The Natural grocery needs to
determine that the needs of customers are satisfied with the new choco frappers to make
increment changes in sales and revenue.
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Mapping a path is important for the organisations such as The natural grocery in order to
provides the products to customer properly. This path is also beneficial for the customers as they
can determine the process through which they have to go while purchasing the product. The
customer usually maps the path by writing the needs of the products, information about the
organisation, evaluating the alternate products etc. in order to take the final decision for a
particular product (Gensler and et. al., 2015). The importance of this path is discussed
underneath:
 It is helpful for the consumers in developing a fresh and perfect experience for taking the
decisions.
 It is also helpful for consumers for determining the benefits and drawback of the product.
 It is also helpful for the customers in purchasing the suitable products which can meet
their needs.
For understanding the benefits of mapping a path which identifies the process of decision
taken by customers at the time of purchasing, following points are discussed below:
 Having good knowledge about the buying decisions of customer will assist the Natural
grocery in providing the products effectively which will increase the sales too.
 The determination of expectations of customers will assist the Natural grocery in
promoting their products in the market place using the word of mouth from customers.
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4:
The consumer decision making process assists the customers in making decision at the
time of buying certain products and services (Gillingham and Palmer, 2014). There are several
levels of this process which are discussed below:
Extensive Problem Solving: In this level, customer determine the criteria for searching
the reliability of the products and services to meet the needs and requirements of customers. The
taken decisions are based on the evaluation of alternate products.
Limited Problem Solving: In this level, customers search for the products which can
meet the criteria and fulfil their demand. This is done based on the above analysis of alternate
products.
Routine Response Behaviour: In this level, customer purchase the products due to
having low involvement in determining the qualities of the product.
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There are various factors which makes huge impact on the decisions of users at the time of
buying. These factors are also based on the trends and changes among the customers and market.
Some of these factors are discussed below:
Personal factors: These are associated with the gender, age, demographics, etc. of the
customers which can influence their decision. This influence is because of the changing trends of
the market along with the changing needs of consumers. Due to change in requirements, personal
behaviour also changes which influences the decisions made by the managers of an organisation.
Purchasing power: This factors also heavily influences the decision making as
customers prefers to assess their purchasing power by bargaining before purchasing the product
or taking the decision.
Cultural factors: These factors also are associated with the culture and social
environmental of the people such as tradition, religion, values and ethics (Hofacker, Malthouse
and Sultan, 2016). These also impact the decision making as needs for goods and services varies
in different cultures.
CONCLUSION
From the above report, it is clearly summarised that the consumers analyse the
importance of goods and services before buy them. The purchasing decision of the customers is
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based on their needs and requirements. The organisations need to influence the consumer
decision making in order to attract them towards their products and services. The
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REFERENCES
Books & Journals
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