Consumer Behaviour Report: Nike and Tesco's Marketing Strategies

This report delves into the realm of consumer behavior, examining the decision-making processes and marketing strategies employed by two prominent companies: Nike and Tesco. The report explores the internal and external influences on consumer choices, including psychological factors and cultural impacts. It maps the consumer journey, from initial need recognition to post-purchase behavior, using Nike's shoe sales as a primary example. The report further analyzes Tesco's approach to attracting and engaging consumers, focusing on their mobile phone products and the importance of trust, accessibility, and reputation. The report also discusses B2C marketing strategies, emphasizing emotional connections, brand awareness, and the use of social media and influential figures to drive consumer interest and sales. The analysis includes examples of advertising campaigns and the impact of successful marketing on consumer behavior.

Unit 37 Consumer Behaviour
Aurora Oleinik SGS407292
Aurora Oleinik
5-6-2021

Unit 37 Consumer Behaviour
Aurora Oleinik
Table of Contents
Introduction...........................................................................................................................................2
P1..........................................................................................................................................................2
P2..........................................................................................................................................................3
P3..........................................................................................................................................................4
P4..........................................................................................................................................................6
P5..........................................................................................................................................................7
Conclusion.............................................................................................................................................9
Bibliography.........................................................................................................................................10

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Aurora Oleinik
Introduction
This report will contain information of a B2C product or service which maps the path of
purchase or process.
P1
Consumers are people who purchase and use a product or service for personal use. The
influences of consumer behaviour can be internal and external. Internal can be personal
influences and psychological, within personal consumers can be from any ages, income,
occupation, lifestyle, and personality. Within the psychological, consumers can be
influenced through motivation, perception, learning and beliefs. On the external side there
is cultural and social influences where businesses investigate the culture of social class and
to be on family active groups for ideas.
Through the involvement of identifiable needs, information, evaluation, to reach the final
decision. Researching self-satisfaction on an adequate decision-making process through
personal choice.
First step is the need of recognition of the product or service where the consumer decision
making starts with the identification of the need or problem. For example, Nike Tn’s (Tuned
Air) are great shoes for jogging or running shoes. They have a reason for people who like
sprinting or power walking. Nike went through the decision making of recognising what
their consumers need for their everyday life, in this case the Tn’s. consumers buy these
shoes because of their aesthetic classed as a lifestyle shoe and their impact on fashion. (Nike
News, n.d)
Secondly, information research is the stage where a business such as Nike would search for
commencing the development of the product to seek what their consumer would use the
product for such as personal, professional, or commercial use. In this case the process
involves on finding any information relating to the product to provide product costs and
feedback on the shoes. Consumers appreciate as much information about the product to be
interested to purchase them throughout the decision-making process. Meaning when
consumers are looking for shoes, they would look at feedback from websites such as Nike’s
official website, where they allow verified customers to share their experience with their
purchase and the product. (Nike, n.d)
Thirdly, the next step is the evaluation of alternatives, which is based on the alternatives
sourced and evaluated against the requirements and costs. After gathering data based on
the product that may provide to the consumer process, their interested customers will
choose the best location to buy the shoes. This leads to consumers buying Nike’s shoes
instore or online through Nike or other stores which are in a partnership with the company.
Other factors why consumers buy the Tn’s is because of their quality, comfort, and
multifunction usage. These shoes can be used for running but also for an everyday lifestyle
look.

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Selection and trial are the error of choices through the developing options. This occurs
throughout the decision-making process when a company such as Nike is executing their
ideas and analysing the results to pick which one has been more successful. For example,
when Nike is advertising their Tn’s to see if their consumers would be interested on
purchasing the product through the design, use and price. Once Nike gets feedback from
their audience, they would decide on what is best for their buyers. Consumers want value
for money and expect their expectations to be met. If the reality is that the shoes are not
what they expected then they will leave a negative review based on the shoes and never
buy from Nike again, this can affect Nike as a business by not meeting their customers
expectations.
Purchase decision is the step where a company such as Nike place their Tn’s to the market
for their consumers to purchase when the quality checks have been completed, this is based
through satisfaction of the feedback they received from their interested buyers. Once they
place their shoes on the market, the company would be able to see how popular the shoes
will become through the number of sales. Consumers go through the decision making of the
product by searching up online reviews and opinions about the shoes before buying them,
once they see the shows is in the market, they decide to buy it from the stores or online.
Their decision is based on what the consumers have read online about the shoes.
Once the product has been placed on the market, Nike would use the next stage of post-
purchase behaviour by seeing if they have met the expectations of the product that has
been purchased through their consumers. This will help Nike to evaluate the usefulness of
the product for their consumers and what can they improve on such as design, use and cost.
To meet their consumers expectations 24/7. It is important for Nike to meet their
consumers needs as they a multinational company that creates a wide range of sportwear
product within the sports industry. The consumer once they purchase the product and
receive it, they go through the journey of the post purchase behaviour by sharing their
experience, this is where the business will consider the consumers feelings. If consumers
aren’t happy with the product, they can always return it, buy from Nike again or the
opposite. (Nike About, 2021)
It is important for Nike to go through the decision-making process to offer the best product
and service to their consumers to evaluate their actions and what can they do to provide a
better service for their buyers.
P2
Furthermore, after the decision-making process has been completed for their interested
consumers, this following process is based on how the consumers will purchase the product
after showing potential interest on purchasing this. In relation to Tesco’s products such as
electronics, in this case their mobile phones that they sell on Tesco Mobile.
Firstly, Tesco’s consumers would seek for interest and awareness through research on
social media or other websites through Tesco’s advertising. For example, through their Club
Card loyalty programme promoting their new phone products with the option for their
consumers to collect points through their purchase and save money. (Tesco Mobile, 2021)

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Once the word-of-mouth travels across the country it will show the interest on their
consumers to purchase a phone contract with Tesco on how reliable they are. It is important
for the consumers to be able to trust the company to show interest on the product, as it
benefits their decision-making process as Tesco’s buyers will be investing and contributing
on Tesco Mobile’s promises and aims for their consumers to be able to enjoy the company’s
products and services. This benefits Tesco with their sales as they gain their trust from their
consumers when promoting their phones meeting peoples everyday needs.
Secondly, consumers would want to find reliable information that would attract their
interest more through search. Tesco would have to be able to provide reliable information
through other websites and platforms, so the company is easier to find for their consumers.
This can be in apps, GPS for customers to be able to find the store to purchase instore.
Consumers appreciate accessible information from companies to have a stress-free search.
This benefits Tesco’s consumers because it helps them identify information to shop from
Tesco based on their interest for their products and services, in this case Tesco Mobile tends
to be easily accessible for their consumers to provide their products easier. This benefits
Tesco Mobile from being easily accessible to receive positive brand recognition by being
available for their consumers to buy from their stores.
Next Tesco’s reputation is important for the company to be ethical and reliable for their
consumers as customers before purchasing would like to know about the company to know
if they can trust the company to invest on their products or services. In this case, Tesco
makes sure their phones are easily accessible for their customers to trust to purchase phone
contracts with no problems. This is through reviews, experience, social media, and blogs.
For example, Tesco provides a reviews section on their website for consumers to research
and have a look through the first-hand data that has bee offered to the public in case any
doubts are occurring. (Tesco Mobile Reviews, 2021). Making the company trustable, this
benefits their consumers by having the reassurance of other consumers purchasing
experience. Giving Tesco the advantage of being successful on gaining their consumers
interest by the phone products that are available to their customers.
After Tesco promotes their products and reviews. Their potential consumers would
purchase the product online or instore, app and/or website. This gives their buyers the
choice to purchase their phone on circumstances that suit them best giving them the power
of choice and purchase for their satisfaction. For example, Tesco are always available to
provide the best service to their consumers through the global pandemic of Covid-19, by
being open across England, Wales, Scotland, and Northern Ireland making it helpful for
those consumers who have not got access to Tesco’s website and app online. (Tesco Mobile
Safe Keeping, 2021). Making the purchasing process easy and simple just as usual, which
benefits the consumers purchase experience giving them the option to purchase other
products from Tesco Mobile if their experience was positive. Which also gives Tesco Mobile
the benefit of gaining the trust from their consumers and successfully providing the best
product and service to their consumers gaining their trust to sell more of their products and
services.

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After the consumer purchases the product their experience matters, in this case post-
purchase. Consumers can share their experience through social media reviews, their
expectations vs reality. This is the final step of the consumers decision making process after
they receive the product and use it, in this case Tesco’s mobile phones. If consumers are
satisfied with their purchase, they may be interested on Tesco’s similar products, if their
consumers are not satisfied with their purchase, they have the choice to return the phone
and decide to not buy from Tesco Mobile ever again. This benefits their consumers as they
have the power to decide if they want the product or not after purchase through the
flexibleness of Tesco Mobile with their returns policy just as any other business with a
product. This benefits Tesco by being flexible with their consumers showing how the
company has not got any issues with making their consumers as happy as possible with the
product or service. Being committed on their consumers satisfaction is a number one
priority. Usually after a customer purchases a product, two types of opinion leaders Tesco
provide samples or pre-releases to their customers so they have the chance to have the
ultimate customer service Tesco can provide.
P3
Advertising a products or service involves on different business techniques where provides
the advantage of an increase of sales within a business. Both B2B and B2C are marketing
strategies which help to connect brands to their consumers. The approach is used to market
the content can also be entirely different. (Fresh Ink Marketing, 2015).
B2C focuses on the consumer and their interests they might have. B2C businesses are
emotionally driven, brand awareness and the large-scale market. In this case, Nike produced
a commercial called ‘Risk Everything’ featuring the 2014 World Cup games and well-known
football players. (YouTube, Sports Check, n.d). The video became popular and was a success
for Nike as their audience was largely influenced by the sport. A major sporting event such
as the World Cup would be of interest to Nike’s audience. Successful videos such as these
can boost sales immensely. B2C is to be able to connect to their audience on an emotional
level to bring attention to the quality of their product such as their shoes and clothing
products, hence why B2C allows for emotional driven purchase intent. With the use of social
media as an effective market tool, Nike uses the influential figures to push their target
market to purchase their products through endorsements. For example, using the most
popular football players on their adverts to get more people to be interested on the shoes
they were wearing, in order Nike receives an increase of sales and brand awareness due to
these endorsements.
On the other hand, B2B businesses are rationally driven for their consumers and/or other
businesses which want to know that there is a reason and logic behind purchasing the
product. When marketing for B2B, businesses such as Nike need to focus on the features of
the product which often must be creative. It usually involves bulk purchases where Nike
sells their products to other businesses where the cost per item is reduced due to the
amount being bought, the process consists of the supplier sending items to the retailer that
will later sell them to the interested consumers. For example, Nike sells their products to
businesses such as Foot Locker, Foot Asylum, JD Sports where these licensed businesses will

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sell Nike’s products as retailers. The relation to the businesses who purchase Nike products
based on the relationship building in by selling Nike products such as Foot Locker, Foot
Asylum, etc. B2B businesses often the thought of leadership and provide informational data
which lures their consumers to be interested on buying the product, for example, Nike’s
shoes. B2B is all about knowledge which is usually collected by smaller companies which
want to know how a product can save their company and build a strong relationship with
their consumers, which is key to B2B transactions because this marketing strategy is also
personal.
There are similarities and differences between B2C and B2B strategies which can be seen
from the use of the same marketing approaches. These methods and techniques vary due to
their different intended needs.
Both B2C and B2B are aiming to maximise sales through their marketing efforts, within Nike
they need to establish their aims and expectations to agree on the standardised lead
generation process. These marketing aims are to increase brand awareness and engage on
commercial leads to encourage their consumers to contribute on the organisations
productivity. A successful technique depends on the data collected throughout their buyers
experience, from the start of interaction to the consumers behaviour after purchase and
service. B2B and B2C need to create a relevant strategy to advertise and expand their
publicity when launching their product. Businesses such as Nike need to use marketing
tactics and activities to deliver and prioritise the product or message through the correct
platforms and channels to aim on their target market, such as their potential consumers.
B2B and B2C marketing differ in some of these areas such as decision-making process is
where B2C marketers have one decision maker to consider where their consumers are
purchasing the product. Whereas B2B consumer experience involves a wide range of
decision makers and stakeholders which are involved within the buying process to manage
product users, executives and many more. For example, the journey of B2B consists of
seven steps such as needing recognition, determine the spec, search, evaluate, select and
post-purchase. Influencers can be from financial influencers, the users, the researchers, or
the gatekeeper. Additional influencers can be external, internal, conditional factors an
interpersonal factor. The outcome of the decision-making process when the consumer
makes the purchase, can be made in three ways. Straight re-purchase is a routine purchase
when the consumer buys from a trustworthy supplier. Modified re-purchase is the few
changes to product selection/process or a new supplier with minor changes. New buy re-
purchase where it provides a new supplier, new product, service, new decision, process.
P4
Businesses such as Nike conduct primary and secondary research to carry out their strategic
marketing methods in relation to B2B and B2C which help to connect brands to their
consumers.
Primary research involves the collection of first-hand data with a specific research project
using questionnaires or interviews. For example, Nike use their primary research by
providing questionnaires to their consumers to share their opinion about Nike’s products.

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By Nike trying to communicate with their consumers would make this a strategic marketing
method such as B2C. Everyone has a different background, sexuality, beliefs, and ethnicities.
It is important to ask the same questions to different people because it will help Nike
understand every single perspective. The more they ask to people the more valid the data
will end up being reliable and useful.
This will help with reliability and validity for Nike’s research due to the mixture of questions
asked to both genders by providing questionnaires through social media. Using this type of
technology will help Nike collect information quickly and efficiently due to everyone having
access to such platforms to validate. Due to the number of people Nike is asking the type of
questions are not based on numbers but of equality and diversity, which requires
information from people to collect all that data and reconstruct it to use it for my next step
of the decision-making process. To make thing whole experience authentic and credible
Nike creating a set of questions to hand them out to the following targeted people to
demonstrate the ethical behaviour within the business showing interest on their consumers
opinion. This includes questionnaires on their website and FAQs which are designed for
customers to ask questions. (Nike Help, n.d)
Primary research can also bring its limitations due to the time and money needs to be spent
to receive first-hand data from sending questionnaires, through social media for their
interested customers. Collecting primary data can often be time consuming and difficult. If
the research respondents through the questionnaire are not supportive to Nike, it may
become complicated for the decision-making process within the B2C strategic method.
Secondary research does not involve the collection of primary data meaning that businesses
such as Nike use marketing research methods such as reports, company websites, articles,
and other sources of secondary research. When Nike is going through the decision-making
process of following B2B strategic marketing methods such as selling their products to other
businesses. Nike then can collect the data from these businesses to see what their
consumers think about their products. Secondary research is affordable as the research is
carried out mostly within the business and does not cost money to research information on
the internet. The availability of the research is positive due to the advancement of
technology, information is available online. Therefore, the research can be conducted
instantly. Nike uses secondary research that has been gathered already in the past or by
rival companies such as Adidas which had great success with classical trainers which
consumers wanted and had them. According to Study Moose, in the late 90’s through the
millennium more people were buying the classic Adidas shoes, so Nike decided to re-release
their classics too and it was a success where Nike made a profit, and their consumers have
the product. (Study Moose, 2020)
The limitations of secondary research may not be specific to the exact product Nike is
researching about. In this case, the data may not be presented the way it would exactly
address the researchers needs. In this case if Nike was carrying a secondary research from
other websites and shoes providers the information may not be complete causing Nike’s
team find information which is no longer valid. Carrying out secondary research can be

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timely due to some data not addressing the researchers needs and may not be sometimes
specific.
P5
Marketers can influence the different stages of the decision-making process of B2C and B2B
through using a marketing mix. How businesses such as Tesco use traditional marketing
methods through the internet to attract their consumers regarding business products,
services, process, and product quality.
Tesco provides a wide range of different products which include food, clothing, electronics,
and financial services. By expanding their product line to meet every possible need of its
customers and this has expanded into the online marketing sector. This means that they
offer grocery delivery service. Tesco also provides a wide range of different choices if
regional products such as international cuisine in food and many different choices.
(Tesco.com, 2018). Tesco has access to their customers records in their database as they
have a frequent and individualized relationships through emails, this increases the
communication between the provider and the buyer, that makes it a loyal customer if they
buy more products services from the business to the consumer.
Tesco attempts to maintain their prices as low as possible without reducing the quality of
their products. Tesco (2018b). If they can keep their customers happy this helps the
business to measure the economy of scales their customers enjoy. Tesco’s strategy of low
prices it has been recommended to customers to make it possible for Tesco to surpass all
expectations and become the leading supermarket, to leave Sainsbury’s behind. The kind of
excellent price promotion is a great strategy that helps reduce prices and further to increase
their sales revenue without affecting profits much. Using the data collected, businesses such
as Tesco, they can use marketing to help and identify their different customers’ needs and
wants which helps them to easily track customer purchases history and segment their
market. To improve their prices and their relationship with their customers by checking their
competitors’ products within different stores and to match their best prices for their
customers so they can attract newer stakeholders. This relates to the B2B strategic method
where businesses collecting data from other businesses to gain the best loyal relationship
with their consumers.
Tesco’s stores are spread far and wide in the world, it involves the business to employ two
main channels of distribution for its products and services trough promotion. Online and
instore. Its online forum Tesco Direct consist of its official website, (Tesco, 2021). And its
offline forum involves six different stores to show that all customers do not have to feel
uncomfortable in their big stores. Additionally, Tesco uses the Club Card which is an easy
and accessible service to provide many of their customers with additional discounts. (Tesco,
2019). This service helps Tesco to study the demand patterns of its customers to know if the
market flow is going well. Tesco can use online advertising with paid promotion on affiliate
websites. The business can use cookies to keep in contact with their customers where
customers access the most on a frequent schedule like social media platforms.

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(Place) Many Tesco stores are not excessively decorative compared to Sainsbury’s and other
supermarkets, but Tesco has more than 3,4000 stores across the UK. (Tesco 2018e). This is
because Tesco does not need to be spending unnecessary money on furbishing its stores,
meanwhile all its stores are clean and attractive as this is easy to navigate with all the
products being well categorized and stress-free to find. Many offers are also placed in such
way to lure their customers to purchase more than they need. Tesco’s website is also simple
and easy to operate. While Tesco is using marketing, they have the availability to trade
beyond the structural working days as customers can always conduct their transactions
without needing to go to the bank and take money out. This means marketing can offer
services virtually online 24/7. Helping Tesco use the B2C method effectively, being able to
communicate directly to their customers.
Tesco also provides staff with excellent experience and it has been known by such great
responsibility looking after their people such as their customers. Tesco can have an efficient
HR management which they can improve their business by reducing their staff using
electronic communications, such as the HR admin can use a computer to do their job and
communicate with their colleagues through online. Tesco can also find the best talent from
anywhere in the world to fill the skills gap within their organisation, this can lead to Tesco to
improve their customer service so the customers visiting the stores online and instore are
receiving the best service. Once Tesco improves their customer service, their consumers will
want to come back once they have received a positive experience from the product or
service through B2C.
(Physical evidence) Marketing strategies give the access for easier communication with
distribution channels and with their consumers between businesses such as other
competitors, when newer products are launched, Tesco can target their audience by
promoting their best products through marketing as everyone has access to the internet
from different locations at any times, to provide the best online experience to their
customers. (Tesco.com, 2019). When newer products are launched Tesco has direct access
to their customers through their distribution mediation, some businesses gain direct access
to customers when incorporating marketing. This allows them to offer more affordable
products to their customers and that can lead to the business to have an increase on their
brand image, the company’s demand might drastically increase as well. Making sure their
logo is visible on their website and on their products.
(Process) Tesco stores provide services where customers can pick up their products and go
to customer assistants to pay. They can also use the self-service machines to make
payments. (Pyman, 2020). The whole process consists of Tesco providing the best service to
their customers in order, so they are happy. Tesco achieves this by employing reliable staff
which pay attention to their customer grievances and addressing the issues that create
them. By Tesco providing new machinery which allows customers to serve themselves when
purchasing Tesco’s products, Tesco needs to make sure the design features are friendly and
suitable for an everyday use. Their focus is on the customers, making sure they meet their
needs trough research and development. Their machines are IT supported meaning that

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Tesco is providing their best service for customers to use to have a more efficient everyday
life shopping experience. It’s not time consuming and it is easy to use.
The place element of the marketing mix can be exploited differently when businesses
incorporate marketing into their usual operations such as offline stores, this means that
marketing allows businesses the opportunity to grow their market in new geographic
locations without setting up physical stores, as having access to the internet is much easier
to buy products and services online than physically going to the store which takes more
time.
Conclusion
The decision making of a product or service within a business is an important process
because it is the progress of a product or service being made to meet the consumers
demands. B2B and B2C both have similarities and differences as mentioned above. Both
strategies are useful for the process of creating a product and service for their potential and
interested consumers.

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