Land Rover: Consumer Behaviour and Decision-Making Report

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This report delves into the realm of consumer behavior, focusing on the decision-making processes that influence purchasing choices, particularly within the context of Land Rover's 'Scoop car'. It examines the critical role of consumer behavior in business success, highlighting the importance of understanding customer needs and preferences. The report outlines the stages of consumer decision-making, from pre-purchase needs recognition and information gathering to post-purchase evaluation. It further explores how marketers, including Land Rover, can respond to these processes using various models, such as economic, cognitive, passive, and emotional views. The report also differentiates between B2B and B2C marketing models, analyzing their distinct decision-making processes, market sizes, and marketing strategies. Finally, it emphasizes the significance of understanding these dynamics for optimizing marketing efforts and enhancing customer experiences. This report is a valuable resource for students seeking to understand the intricacies of consumer behavior and marketing strategies.
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Consumer Behaviour
and Insight
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INTRODUCTION
Consumer behaviour is the experimental learning which is executed to interpret the
actions of the consumers in the marketplace while they devising a decision to buy a product. The
main purpose behind conducting this study is to ascertain that which factors have great effect on
the judgement of customers related to choose products from available alternative brands. In order
to understand all these aspects in the deep manner the chosen products of Land Rover which is
Scoop car. This report will cover about that how the customers decision facilitate towards
choosing a product and the importance for the marketers to map the path of the customers
decision-making. Along with this, the usages of various approaches and methods of research for
knowing the decision making procedure in both B2B and B2C concept will be define.
TASK 1
P1
Consumers are the crucial asset of the business as the attainment of whole activities of the
organisation depends on them. In this aspect, it is requires for Land Rover to evaluate the
customers decision making process as it will help them in determining the of necessity and
demands of the customers so that they will be able to operate their operations accordingly and
can attain desired results(Xiang, Magnini and Fesenmaier, 2015). A customer is going through
various stages while making the determination regarding to acquire a product. All these stages are
define below:
Consumer decision making stages are as follows :
Pre-Purchase: Before purchasing a product a customers is underlying from various
stages which are follow:
Need recognition: It is the initial level of the customers decision-making process in
which they will determine that which product they want in order to fulfil their needs. The
both internal and external factors have great impact on this as in this first is related to the
needs of them and other pertains the effect of outside resources such as advertisement and
reviews. For purchasing a car a customer must focus on formulating effective decision so
that the best option can be selected by them which can provide huge benefit to them.
Searching and Gathering information: At this stage, consumers will give their focus on
collecting the information of several options so that they can find best option for them.
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During this phase of customers decision-making process they will evaluate all the positive
and negative aspects of their purchase through social media, newspaper and other
methods. This will help the customers to make a decision regarding to purchase a car that
they should buy it or not and it will provide them their expected results or not(Gangale,
Mengolini and Onyeji, 2013).
Analysing the alternative: The customer in this step will evaluate all the varied options
which are available in the market. So that they can select a most appropriate option for
them on the basis of product price, quality and other essential factors. It will help the
consumers to choose a top-grade car for them which will be able to render them the
excellent facilities at affordable price.
Purchase: After going through above mentioned stages customers will ascertain that
which car they want to buy and from where it is purchase in order to satisfy their desires.
The customers decision at this step might facilitate from the marketing campaigns,
personal contacts and recommendations from other persons which they already use the
services.
Post purchase evaluation: In this last stage customers examine the purchased product
that how much the product is giving satisfaction and value to them in terms to fulfil their
needs and requirements. In the case if the Scoop car will be able provide higher
satisfaction as per their expectations then it will direct lead the positive impact on the
company profitability(Chamlertwat and et. al., 2012).
Hence, it can interpreted that before making decision related to purchase a product
customer must undergo from all the preceding stages so that best decision can be taken.
P2
Customers are most essential component of the enterprise as they are the only reason that
business able to get success in the market. So in this facet, a business manager needs to map path
of the purchase and evaluate their decision-making process of customers as it will enables them
to ascertain that how they can enhance the customers experience and helps them in identifying
the impact of environment factors on their decision. The business manager of Land Rover can use
below describe four stages as it will assist them in assessing the customers behavior and their
decision-making process:
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Pre-purchase: In this stage, customer will remain concern for aggregating the data or
info attendant to purchase a product so that they can come up with the best possible decision for
themselves(Erevelles, Fukawa and Swayne, 2016).
Purchase: This level comes after the first stage in which customers will finally made
decision related to purchase a product which is able to give them the higher satisfaction. In this
step, the marketers of Land Rover must adopt appropriate marketing channels so that they can
draw the attention of consumers towards their products.
Receive: This is the phase in which customers receive the product and take advantage of
it in order to satisfy their needs. In the case of Land Rover if their Scoop car will be able to meet
up the needs of the customers then they will automatically become faithful to the firm which will
direct put the impact on the profitability of the company in a significant manner.
Post purchase: It is refers to that situation which is arising after utilizing services of a
product. For example if the Scoop car will not able to meet the requirements of the customers
then overall productivity and profitability of the firm get affected in a negative manner.
These all the preceding described stages will help the marketers in getting elaborate information
or data about the customer expectations and perceptions which enables them to manufacture
various products accordingly. Also, the benefits of above described path is given below:
The consideration of above explained phases assist the markets in assessing the demands
and needs of the customers which will enables them to produce accordingly and get
higher profitability.
It helps them in utilising the different tools and techniques in terms of analysing the
customers behaviour towards the products and services of the organisation.
Along with this, it also assist them in making a group of people who have similar
requirements and perceptions which help the marketers in reducing their overall cost and
increase their organisational profitability(Ellis, McCracken and Skuza, 2012).
Evaluate how marketers are responding to the decision-making process with the help of models
In order to evaluate the customers behavior related to purchase a product and identify
about those elements which can consequence on their decision-making marketers of Land Rover
can use various models which are as follow:
Economic view or model: This approach represents that customers remain in changing
position while taking the decision related to purchase a product as at this time various alternatives
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are available in the marketplace. At this stage, customer will gives their major focus on selecting
a most appropriate option for them which is able to render superior services at lower price. So by
using this model the marketers of Land Rover can ascertain that customers will remain loyal and
fascinating towards the brand when they will receive best product at low-cost(Sasmita and Mohd
Suki, 2015).
Cognitive view: This is another significant model as this give their emphasis on assessing
the behavior, mind, perception, consciousness and reaction of the customers towards the products
and services of the company. This model pertains that a customer will purchase a product only
after gathering data about other available alternate options in order to choose most appropriate
option for them. In this aspect , marketers needs to stay aware for their brand value which can be
increase by providing excellent services and impressive pricing to the consumers as compare to
their competitors.
Passive view: This model stated that a marketers must consider effective techniques and
tools in their operations. For example, marketer of Land Rover must stay concern for adopting
effective promotional channels in their organization so that they can attract a range of customers
towards their products and services.
Emotional view: It is refers to that condition when a customers take decisions being
emotional rather the particle. As because of this they give emphasis on buying that product from
which they are emotionally connected by neglecting this aspect that they have requirement of that
product or not.
TASK 2
P3.
In the marketing concept, a huge array of activities are available which is major concern
for enhancing sales(Sasmita and Mohd Suki, 2015). In this aspect, the B2B and B2C are two
most appropriate marketing models which are different from each other in every aspect but their
main motive is to sale. B2B is an effective framework which stand for business to business
proceedings and other B2C place for business to consumers dealings. The decision-making
process in these models is contrary which can be understood by below points:
Variation between B2B and B2C model of the marketing is mentioned below:
Basis B2B B2C
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Buying decision The determination related to
purchase a product from the
other organisation is taken by
the business after considering
the brand value, pricing strategy
and quality of their products.
In this model the decision are
forming in a prevailing
manner as in this stage the
products and services are
directly deliver to the
customers.
Decision related to the
Marketing strategy
In order to aware the other
firms regarding to the product
Land Rover will use their
personal contacts and event
marketing(Paul and Rana,
2012).
For attracting a range of
customer in the company's
products and services
organisation will use the
varied marketing channels
such as social media, digital
TV, advertising and many
more.
Decision related to market
size
In this business formation, the
organisation will take into
account small markets as with
the help of this they will try to
interpret the expectations and
wants of whole economy so that
they can easily meet with their
customers requirements and can
minimise their cost.
The main focus of this type of
business forms covering a
huge market by providing a
range of products and services
to their customers.
Thus, it can be stated that these both models are different from each other but they both
want to enhance their sale and seeks to attain higher profit and recognition in the
marketplace(Piscicelli, Cooper and Fisher, 2015).
Decision making process in B2B and B2C:
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As these both models are create differentiate from each other due to which their decision-
making process is also different as in the B2B exemplary the decision-making procedure is more
complex as in this all the employees are included which create hindrance in taking quick
decision. Whereas, the B2C consider limited persons in the decision-making like two or more
individuals due to which they are able to operate all the activities effectively. This can be better
understand by following points:
As it has been said that B2B decision-making process is more hard-bitten rather than the
B2C. One of the reason of this that in the B2B the questionnaire method have been
considered by the organization whereas in the B2C the secondary approach is chosen
which is harder than the questionnaire method as this method help the business manager
to acquire most appropriate and accurate information on time.
At the time of decision-making B2B contains limited communicators like 20 whereas the
B2C involves approx 50 respondents which create several conflicts and also delay in
taking effective decision.
The organization either it is B2B or B2C will take their decisions after conducting an interview in
which they will ask several questions such as:
1. Are consumers cognizant with Scoop Car?
2. Which components are criticize them to buy car?
3. On which price car should be introduce so customers can easily pay for it?
These all will assist the organization in fetching best decision for them in order to attract
various customers in their product and services(Shankar and et. al., 2016).
Example:
The B2B industry which is selected here is Land Rover which is an automotive industry.
The decision making of this organisation is more complex as because in this the business
organisation have to stay concern for those firms with whom they are trading. The problems
which are facing by the business are occurring due to different perceptions of varied firms like
some enterprise give their intensity on quality, some on pricing strategy and another concern for
providing effective services to the other organisations. Whereas, the organisation which comes
under B2C is Apple who is always known for its best services or facilities as they only need to
focus on customers needs, demand, perceptions and choices. Thus, it can be stated that the
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decision-making process in B2C is more easy and beneficial for the both company as well as
customers(Stancu, Haugaard and Lähteenmäki, 2016).
P4
These both models B2B and B2C have great significance in the present corporate world
due to this it becomes more necessary for the manager to assess the deliverance process of both
these concept. In this aspect, the various models and approaches can be used by the business
which are give beneath:
Market Research formulation in B2B:
All organizations which are categorized under the B2B is believes on adoption of
secondary approach in which the information is collected by the investigator is second handed
data which has been already utilized. For collecting the information organization can use various
resources which are as follow:
Public records: In order to gather information about the other organizations marketers
can take help of public records such as reviews, brand image, feedback of their products and
services. This will help them in formulating the decision that they should trade with another
organization or not.
Government and non-government authority: For gathering the appropriate and
accurate information an organization can also use this resource. This will give more befit and
useful information of the company which will enables the marketers to determine the brand value
of the firm in the marketplace so that they can make decision that dealing with other company
will be profitable for them or not(Dolan and et. al., 2012).
Benefits to the B2B market of using secondary method:
The main advantage of this approach is that the researcher does not have to give their
more time in gathering the content as the data is already in existence.
In some cases it provide free access which provide benefit the company in effectively
perform research activities.
The marketer of the organization will adopt the public record for collecting the appropriate
information related to consumers needs and petition(Gillingham and Palmer, 2014).
Market research approach in B2C:
In order to evaluate the behavior of the customers and identify the market situation
marketer of the B2C organization will utilize the primary research method. This method will
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allow them to gather all the first hand and current data without any kind of alteration. Here are
define some resources which can use by the marketers to collect the primary data:
Questionnaire: In this method, researcher will conduct face to face interaction in which
they will ask various questions from customers about quality, price, features and design of the
products so that they can manufacture accordingly.
Observation method: This method focus on appointing a observer who can easily
observe about the customers and market segments so that organization can formulate their
decisions effectively.
Advantage of primary research for B2C:
The data which has collected from this is fresh and more relevant.
This method provide proprietary rights to the organization due to which they does not
have to share their information with other companies(Chamlertwat and et. al., 2012).
Hence, company will consider the questionnaire method as this will help them in
gathering more appropriate data which enables them to operate all the operations effectively.
TASK 3
P5.
Marketers within the B2B and B2C business forms plays a huge role as the activities
related to analyzing the consumer activity and market depends on them which is most essential
function of the organization in order to operate all the operations in a significant manner. Due to
their vital role they have also huge effect on the decision-making of these models that can be
ascertained by below highlights:
Perception: Marketers within the organization needs to give their focus on creating
positive mindset of the consumers to their products as it will assist them to attain higher
profitability in their business. As before purchasing a product customers stay concern for
assembling the information in order to select a best product from them which will give them the
best satisfaction and significance.
Marketing campaigns: In order to attainment of higher customers higher attention and
interest marketers needs to take decision related to adopt effective marketing channels in order to
enhance their sales and profitability(Gangale, Mengolini and Onyeji, 2013).
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Economic conditions: It refers to the buying power of the customers which pertains that
a marketers needs to set a best price for their products so that consumers can easily purchase it
and take the advantage of the services.
Hence, it can be stated that all these elements help the marketers to facilitate the decision
of the customers in an effective way.
Here are define some models which will describe about that how the marketers can consequence
on the decision-making process of B2B and B2C:
Behavioral theory: This approach is helpful for the organization as it will help them in
examining the behavior and attitude of the customers while purchasing a product. Marketers of
Land Rover can consider this theory in their business which will help them in identifying the
customers reaction towards their Scoop car so that they can determine the chances of their
succession and also can implement required changes.
Cognitive learning: This theory will assist the marketer of Land Rover in evaluating the
mindset and mentality of consumers that which products wants their customers on which prices
and from where they want purchase it. This will enables the industry to operate all their business
operation accordingly which results success and growth of the company(Xiang, Magnini and
Fesenmaier, 2015).
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CONCLUSION
From the above report, it can be concluded that in order to operate all the business
operations smoothly it is necessary for the business organization to evaluate their customers
behavior and attitude. Before purchasing a product a customers is undergo from various stages so
that they can choose best product for them. The consideration of different models and theories of
consumer behavior is essential for the business in order to denote about the inevitably and
expectations of the customers. Moreover, the explanation of different concepts models like B2B
and B2C also has been described in this file.
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REFERENCES
Books & Journal
Chamlertwat, W. and et. al., 2012. Discovering Consumer Insight from Twitter via Sentiment
Analysis. J. UCS. 18(8). pp.973-992.
Dolan, P. and et. al., 2012. Influencing behaviour: The mindspace way. Journal of Economic
Psychology. 33(1). pp.264-277.
Ellis, J. L., McCracken, V. A. and Skuza, N., 2012. Insights into willingness to pay for organic
cotton apparel. Journal of Fashion Marketing and Management: An International
Journal. 16(3). pp.290-305.
Erevelles, S., Fukawa, N. and Swayne, L., 2016. Big Data consumer analytics and the
transformation of marketing. Journal of Business Research. 69(2). pp.897-904.
Gangale, F., Mengolini, A. and Onyeji, I., 2013. Consumer engagement: An insight from smart
grid projects in Europe. Energy Policy. 60. pp.621-628.
Gillingham, K. and Palmer, K., 2014. Bridging the energy efficiency gap: Policy insights from
economic theory and empirical evidence. Review of Environmental Economics and
Policy. 8(1). pp.18-38.
Paul, J. and Rana, J., 2012. Consumer behavior and purchase intention for organic food. Journal
of consumer Marketing. 29(6). pp.412-422.
Piscicelli, L., Cooper, T. and Fisher, T., 2015. The role of values in collaborative consumption:
insights from a product-service system for lending and borrowing in the UK. Journal of
Cleaner Production. 97. pp.21-29.
Sasmita, J. and Mohd Suki, N., 2015. Young consumers’ insights on brand equity: Effects of
brand association, brand loyalty, brand awareness, and brand image. International
Journal of Retail & Distribution Management. 43(3). pp.276-292.
Shankar, V. and et. al., 2016. Mobile shopper marketing: Key issues, current insights, and future
research avenues. Journal of Interactive Marketing. 34. pp.37-48.
Stancu, V., Haugaard, P. and Lähteenmäki, L., 2016. Determinants of consumer food waste
behaviour: Two routes to food waste. Appetite. 96. pp.7-17.
Xiang, Z., Magnini, V. P. and Fesenmaier, D. R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal
of Retailing and Consumer Services. 22. pp.244-249.
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