Consumer Behaviour: Decision-Making Report for AirDri

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This report provides a comprehensive analysis of consumer behavior, focusing on the decision-making processes within the context of the AirDri hand dryer brand. It begins by defining consumer behavior and mapping out the decision-making process for a specific product, emphasizing the importance of understanding this process. The report then explores various consumer decision-making models, particularly the Nicosia Model, and details how businesses can use this model to monitor customer behavior. It further examines the levels of consumer decision-making and the factors influencing these decisions, including marketing mix, personal, and social factors. The report then delves into the comparison and contrast between B2B and B2C decision-making processes, evaluating the differences in market research approaches and the influence of personality, self-motivation, and perception. It also analyzes the impact of culture and other relevant factors on consumer behavior, as well as the use of digital media and audience research to understand and influence customer behavior. Finally, the report concludes by summarizing key findings and their implications for marketing strategies, providing valuable insights for businesses seeking to understand and effectively target their consumers.
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Consumer Behaviour
Insight
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Table of Contents
PART 1.......................................................................................1
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Consumer’s decision-making......................................................................................................1
Models of consumer decision-making........................................................................................1
Mapping out decision-making process for a particular product..................................................2
Importance of mapping path in order to purchase and understand consumer’s decision-making
.....................................................................................................................................................3
Levels of consumer’s decision-making.......................................................................................4
Factors influencing decision-making..........................................................................................4
Concluding Statement.................................................................................................................5
PART 2............................................................................................................................................5
INTRODUCTION.......................................................................................................................5
Comparison and contrasting key difference between B2B and B2C decision making process..5
Evaluate how market research differs from business to business and business to customer's....7
Illustration of personality, self motivation and customer's perception influences decision-
making process............................................................................................................................7
Evaluate behavioural and cognitive approaches of learning.......................................................8
Identifying how culture and other relevant factors influences or impact on consumer
behaviour.....................................................................................................................................8
Understanding buyer behaviour that influence decision making process of B2B and B2C
context.........................................................................................................................................8
Evaluating use of digital media audience research and development to understand and
influence customer's behaviour...................................................................................................9
Concluding Statement.................................................................................................................9
REFERENCES .............................................................................................................................10
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PART 1
INTRODUCTION
In today's context consumer behaviour is the study of consumer behaviour within the
marketplace where the process of buying sand selling take place. Generally, it is the study of
consumer behaviour such as how an individual behave ans what are the factors that influence
consumer decision making process(Albayrak, Aksoy and Caber, 2013). In this report an
organisation chosen is AirDri, a well know manufacture brand of hand dryers established at
United Kingdom. This report is going to define customer decision making process and mapping
out what are the decision making process for a particular product and services.
TASK 1
Consumer’s decision-making
In context to business consumer decision play's an effective role as it help an organisation
in order to identify needs, gaining knowledge and information regarding product and services. It
is a complex procedure as each and every individual have different taste and preference right
from the initial stage till post purchase decision making(Bamossy and Solomon, 2016). It is a
complex process as it includes evaluating, comparing and selecting among variety of goods
depending on consumer preference. For such purpose an organisation need to monitor such
decision process of its customer's so that they can offer their best product and services as per
their needs and wants.
Models of consumer decision-making
Consumer decision making model refers to orientation and perspective how a consumer
behave within marketplace for purchasing a particular product and services . For such purpose
there are various consumer decision-making model that are effective in evaluating the behaviour
of consumer within competitive marketplace(Dinnie, 2015). Such models are Solomon model of
comparison, Nicosia model, Howard Seth model and Engel Kollat black well model. Among
such models AirDri has been acquiring Nicosia Model in monitoring decision making process of
customer which is discussed below:
Nicosia Model: This model concentrates on buying decision-making for new product and
services. It indicates a organisation to communicate customer's and predisposition to act in
certain way as it focus on relationship between firm and its customer's. With the adopting of
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this model an organisation can influence its consumer’ on taking decision-making for their
product and services. This model is divided into different parts which are define below:
Consumer attitude based model on firms message: This process consist of marketing
environment and communication efforts by an organisation in order to attract large base of
customer's towards it in competitive marketplace. Herein, consumer’s attitude towards AirDri
product and services are based on interpretation of their message which usually describe their
product.
Search and evaluation: A consumer have various evaluation and alternatives brand for a
particular product and services. Moreover, they evaluate different brands before going for a
product they want to have it.
Act of purchase: The mangers of AirDri, use appropriate measure, tools and techniques
for their product and services. Apart from this, they are convening their customer's for their
product and services from specific retailer.
Feedback: This model consist of feedbacks from consumer after purchasing their
product. It is beneficial for an organisation to know hoe effective is the product for their
customer's and also know what are its sales figure of its particular product in competitive
marketplace. Furthermore, from such a organisation can know buying pattern of individual as
well as can overcome with the pitfalls of their product.
Thus, this model will help an organisation to response towards consumer needs and
preference according to the need and demand that subsequently affect the decision-making
process and hence it is a continuous process.
Mapping out decision-making process for a particular product
In marketplace consumer’s purchasing behaviour differ from individual to individual.
For such purpose it is essential for an organisation to develop their product and services in an
attractive manner so that customer's have knowledge about their product in competitive
marketplace(. Hsin Chang, Rizal and Amin, 2013). AirDri are coming up with new rage of hand
dryers in order to diversity their product line in competitive marketplace. For such instance it is
necessary to evaluate to have proper mapping of its ranges of product in mind of customer's.
Moreover, it consist of various steps which are determined below:
Awareness: It is necessary for the mangers of AirDri to create awareness about their
product and services in competitive marketplace. If customer's are aware about their product, its
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feature and specification them they will access over their product and services in competitive
marketplace.
Consideration: In this stage buyer usually become narrow minded as they have various
option of a particular product in marketplace. For such purpose a respective organisation need to
have strong base of their offerings so that they can attract large number of customer's towards
their product(Lantos, 2015 ). Moreover, they also need to make sure that their products are
fulling needs and wants of customer's in competitive marketplace as per their preference.
Action: If a product is useful for customer's then they will wait for product delivery. For
such purpose it is necessary to make sure that their product are deliver their on time so that
customer's can enjoy their product. Thus, in this manner a respective organisation can attain
high market share in competitive marketplace.
Loyalty: In this stage, a customer's usually become happy if they are satisfied from from
the product offered by a respective company. Moreover, mangers of respective company are
welcoming feedbacks of their product so that they can overcome with pitfalls of their product
and improve it so that they can have large base of customer's towards it.
Thus, it is necessary for a respective organisation to have proper mapping so that they can
create awayness of their product in an effective manner in competitive marketplace.
Importance of mapping path in order to purchase and understand consumer’s decision-making
Customer mapping is important as it help business to step up their customer's shoes in
order to see their business from customer's prospective. Its main aim is to provide vision how an
organisation can improve their customer's experience by determining needs of their potential
customer's(Möhlmann, 2015). Basically, it create importance in an attractive manner by focusing
their business on particular customer's needs and wants at different stage of buying process. It is
necessary for a respective company to identify gaps between customer's needs and what exactly
they are offering . This is important so that an organisation cab extract needs and requirement of
customer's which can be attained by their suitable offerings. Thus, mapping is very important for
an organisation as it is beneficial for them to identify gabs so that they can offer products and
services in competitive marketplace.
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Levels of consumer’s decision-making
In marketplace, it is necessary for an organisation to analysis consumer decision so that
they can offer their offerings as per the need and want of customer's. For such purpose there are
certain levels in customer's decision-making process which are discussed below:
Extensive problem solving: In case of extensive problem solving process customer's
generally search for a product for a particular brand that will satisfy their needs.
` Limited problem solving: In this level a customer's generally search for those product
which have high brand quality so that their problem can be solved from their choice of brand.
Routine response behaviour: In this process a consumer’s decision making process some
times a customer's show low involvement in product as they are usually focused on well know
brand.
Thus, the above mention are some of the levels of customer's decision-making process
that help an organisation to make product as per the needs and wants of customer's in an
effective manner.
Factors influencing decision-making
In toady's context there are various that are influencing decision making process on
purchasing a particular product an a services from competitive marketplace. Herein, there are
some of the factors that are influencing are determined below:
Marketing mix factors: Marketing mix factors such as product, price, place and
promotion have both positive and negative impact on customer's decision-making process in
marketplace(Moser, 2015). For such instance mangers of AirDri need to make sure that their
product is of better quality with affordable price with effective promotional techniques so that
customer's can grab their product as per their convenience.
Personal factor: In personal factor decision making power of individual are highly
influenced by factors such as life style, income and trend. For such purpose a respective
company need to implement all those factor before coming up with competitive marketplace so
that there is beneficial for both customer's as well as organisation.
Social factor: In this factor usually customer's are classified on basis of reference group,
family status as well as social status. More or less such factor are effecting decision-making
process of customer's behaviour. Eventually, for such purpose manger of a respective
organisation need to have such goods and services as per different segment or class of people.
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Thus, mangers of AirDri need to make sure that their product and services are offered as
per need and wants of customer so that their motive can be satisfied. Moreover, they should
manufacture their product and services in such a manger that all income group of people can
enjoy their product and services in an attractive manner.
Concluding Statement
From the above discussion it has been concluded that that customer's decision making
process play's an effective role as it help an organisation to know the exact taste and preference
of customer's. Eventually, mangers are adopting Nicosia model as this model state that thte
relationship between a firm and a organisation. Thus, in this manner an organisation will able to
attain its gaols and objectives in an effective manner.
PART 2
INTRODUCTION
Consumer decision making process is plays an essential role that defines how a consumer
select a product among different product in competitive marketplace. Variety of product usually
influences decision-making process(Schütte and Ciarlante, 2016). In this report organisation
chosen is AirDri, which is dealing in hand dryers in competitive marketplace. This report is
going to evaluate those factors that are influencing decision making process. Eventually,
conducting research in order to understand and influence on decision making process of
marketers at different stage of decision that are beneficial for both organisation as well as
customer's.
Comparison and contrasting key difference between B2B and B2C decision making process
In toady's context rational decision making process play's an effective role that is
essential in decision-making process. For such purpose there are two case such as Business to
Business and Business to customer's which are dealing with equivalently in contact to make sales
and purchase process. Initially, both have different option in order to take decision in context of
business. The comparison and contrast key difference between Business to Business and
Business to consumer in decision-making process are determined below:
Basis Business to Business Business to Customer
Definition Business to business focus on Where as business to
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such business sales that
focuses on goods and services
which are sold by a single
person.
customer's are making sales
and product by selling product
to customer's.
Focus on Mainly focus on customer's in
order to build strong
relationship in order to attain
their gaols and objectives in an
effective manner.
Apart from this, business to
customer's focus on a company
that produce product and
services for their customer's
purpose only.
Buying and selling period The purchase and selling
process between business to
business are lengthy process
as they make agreement
between business to business.
Under this model customer's
makes sell on very quick
basis. Apart from this they can
move to second option that are
available to them into
competitive marketplace.
Buying decision In business to business the
buying decision which is
totally planned in a logical
manner. In this process single
company take place as they
have further demand of
product and services.
Under this method, buying
decision of customer's are
emotional and this are totally
based on need and preference
of customer's in an appropriate
manner.
Decision-maker This process take place as it is
involved in huge decision
making process of a company
person required skilled and
professional buyer.
In this case the decision maker
are buyers who are mainly
purchasing goods and services
for their personal use.
Hence the above mention, are the key difference between business to business and
business to customer's. If the adopt business to business process than they can deal directly and
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sell their product. Where as business to customer's are selling their product directly to their
customer's which are mainly of emotional contact.
Evaluate how market research differs from business to business and business to customer's
Herein, business to business to business market is different from business to customers.
Business to customer's occurs through out an intermediary such as retailer and agent where as
business to business transaction take place between one business to another business. Moreover,
the difference between them are determined below:
Sales cycle: In business context sales cycle is one of the extended process which often
last for shorter duration of time( Szmigin and Piacentini, 2018). In case of business to consumer
are attracting large number of customer's towards their product and services. Where as business
to business is a critical to understand as it is decision usually depends on vendor and products
which help them to take decision.
Complexity of decision making process: In business process weather business to
business or business to customer's have complexity in decision-making process within business
environment. B2B are are not straight forwards in decision making process where as business
to customer's are decision-making process are straight forward in decision-making as it are
connected with direct sales to customer's. Moreover, involvement of different parties are
involved with decision-making process that usually influences both in external and internal
forces.
Thus, the above are the key difference between B2C and B2B which usually influences
decision making process on an area context of area but more or less they are different from each
other.
Illustration of personality, self motivation and customer's perception influences decision-making
process
Personality: Personality play's an important role in buying pattern of an individual in
decision making process(Stancu, Haugaard and Lähteenmäki, 2016). Herein, many organisation
fails to understand personality of an individual for such purpose they are adopting various
theories in order to know and develop human behaviour.
Self motivation: Self motivation refers to another crucial factor that usually impact on
over all aspects of decision making process within an organisation. If an individual is self
motivated that it will have confident in the product and services they are purchasing.
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Customer's perception: Consumer perception is necessary in decision making process as
each and every individual perception differs from each other regarding goods and services.
Moreover, in toady's context individual are too much choose in product and services.
Evaluate behavioural and cognitive approaches of learning
In marketplace customer's take decision by properly evaluating market before purchasing
a particular product and services. For such purpose a respective organisation is adopting different
learning styles in order to develop customer's learnings. There are basically two learning theories
which are discussed below:
Behavioural approaches: Behavioural approaches of theories are related to input and out
put process that have further theory of learning regarding perception of customer's(.Baudet and
Van der Meulen, 2014). It usually defines in studying an individual behaviour that are connected
with each other in knowing perception of an individual regarding purchase of product.
Cognitive approaches: Cognitive approach suggest that learning process usually take
place on outcome of consumer thinking. It is basically enrolled with consumer thinking
regarding product on the basis of usage or product and services.
Identifying how culture and other relevant factors influences or impact on consumer behaviour
In today's context a culture play's an effective role in decision making process of an
individual as if influences in decision making process.(Parsons, Maclaran, and Chatzidakis,
2017). As some people are more attracted towards modern ear where as some of them are
attracted towards tradition product and services. Apart from this taste and preference of
customer's differs from individual to individual which usually impact in decision making
process in competitive marketplace.
Understanding buyer behaviour that influence decision making process of B2B and B2C context
Buying decision in context of B2B: Business to business decision makers are usually
responsible for taking accountable judgement. They make different strategies for growing
business in an effective manner as well as attaining goals and services in an effective manner.
Buying decision in context to B2C: Business to customer decision, decision are taken
on emotional basis during purchase time. It is a process selling goods and services directly to
customer's. Thus, it help to make relation among customer's and organisation by directly selling
their product and services.
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Thus, the above mention are some of buying and decision making process and both have
them different strategies in buying decision of an individual in purchasing product and services.
Evaluating use of digital media audience research and development to understand and influence
customer's behaviour
In toady's context use of digital media are increasing day by day it also influencing
consumer behaviour while purchasing goods and services. For such purpose now a days people
are more engaged in social such ;
Engaged customer's: Now a days people are engaged in more social media that is one of
the biggest factor that is influencing customer's decision making process. It has been seen that
mostly youth are attracted towards social media. Apart from this, a respective company can have
leverage of having both online and offline customer's engagement in order to understand their
quality of product and brand loyalty as well emotion rely upon it.
Millennials: In today's context millennials are more connected through out social media.
For such purpose companies need to understand what are the demographics consumer
information through social media as well as they are attracted towards digital audience.
Concluding Statement
From the above discussion it has been concluded that consumer decision making process
play's an effective role as it usually defines how an individual behave reading purchase of goods
and services in competitive marketplace. Moreover, an individual behaviour have high influence
in decision making process such as cultural, personal and social factor. Apart from this business
to business and business to customer differ from each other in effective manner as well as it have
different strategies to maintain their business.
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REFERENCES
Books and Journals:
Albayrak, T., Aksoy, Ş. and Caber, M., 2013. The effect of environmental concern and
scepticism on green purchase behaviour. Marketing Intelligence & Planning. 31(1).
pp.27-39.
Bamossy, G. J. and Solomon, M. R., 2016. Consumer behaviour: A European perspective.
Pearson Education.
Dinnie, K., 2015. Nation branding: Concepts, issues, practice. Routledge.
Hsin Chang, H., Rizal, H. and Amin, H., 2013. The determinants of consumer behavior towards
email advertisement. Internet Research. 23(3). pp.316-337.
Lantos, G. P., 2015. Consumer behavior in action: Real-life applications for marketing
managers. Routledge.
Möhlmann, M., 2015. Collaborative consumption: determinants of satisfaction and the
likelihood of using a sharing economy option again. Journal of Consumer
Behaviour. 14(3). pp.193-207.
Moser, A.K., 2015. Thinking green, buying green? Drivers of pro-environmental purchasing
behavior. Journal of Consumer Marketing. 32(3). pp.167-175.
Schütte, H. and Ciarlante, D., 2016. Consumer behaviour in Asia. Springer.
Szmigin, I. and Piacentini, M., 2018. Consumer behaviour. Oxford University Press.
Stancu, V., Haugaard, P. and Lähteenmäki, L., 2016. Determinants of consumer food waste
behaviour: Two routes to food waste. Appetite, 96, pp.7-17.
Baudet, H. and Van der Meulen, H., 2014. Consumer Behaviour and Economic Growth in the
Modern Economy (RLE Consumer Behaviour). Routledge.
Parsons, E., Maclaran, P. and Chatzidakis, A., 2017. Contemporary issues in marketing and
consumer behaviour. Routledge.
Javornik, A., 2016. Augmented reality: Research agenda for studying the impact of its media
characteristics on consumer behaviour. Journal of Retailing and Consumer Services, 30,
pp.252-261.
Khare, A., 2015. Antecedents to green buying behaviour: a study on consumers in an emerging
economy. Marketing Intelligence & Planning. 33(3). pp.309-329.
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