Consumer Behaviour Report: Decision Making in B2C and B2B Contexts

This report analyzes consumer behavior, focusing on the decision-making processes of customers in both Business-to-Consumer (B2C) and Business-to-Business (B2B) contexts, using Clayton Hotel City as a case study. It explores the five stages of consumer decision-making, the factors influencing...Read More

Consumer Behaviour

Table of Contents
INTRODUCTION...........................................................................................................................1
Section 1...........................................................................................................................................1
Evaluate the five different stages of consumer's decision making process and analyse the
factors that influence the process in the context of B2C business..............................................1
Evaluate the black box model of consumer decision making process, explain how it influence
the consumer marketing decision................................................................................................2
Map out the consumer decision making process for one product or service in the context of
B2C organisation.........................................................................................................................2
Section 2...........................................................................................................................................3
Compare the similarities and differences between decision making process of B2B and B2C. 3
Evaluate the different market research methods that could be applied to B2B and B2C
context, using relevant examples................................................................................................4
Explain how market research influence the decision making process of customers..................5
Section 3...........................................................................................................................................6
Evaluate two factors that influence the decision making process...............................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Consumer behaviour refers to the study individuals behaviour while purchasing product
and services. It usually concern with the decision making process and the factors that have an
impact on the decision-making process of the customers. It determined the actions of consumer
at market and reason behind those actions. In these report the Clayton Hotel City, which is
located in London is selected. (Alghizzawi, 2019.)The hotel offers stylish rooms, and luxury
services to the customers. They provide complimentary Wi-Fi facilities and 24 hours dining
facilities. The main motive of organisation is to provide high level of customer satisfaction and
best experience. This report includes five different stages of consumer's decision making process
and different factors that influence their buying decision making process, black box model of
consumer decision-making, Map of consumer decision-making process. Furthermore, different
factors that influence the decision making process.
Section 1
Evaluate the five different stages of consumer's decision making process and analyse the factors
that influence the process in the context of B2C business.
The consumer decision making process is an processor every customer follow while
making purchase decision. This steps helps customer and organisation to understand the needs
and wants of customers. Below is the five steps of consumer decision-making is explain in the
context of B2C business.
1. Problem recognition: In this stage of consumer decision making customers analyse
what are their demands from the organisation and how they can meet those demands and
needs. In this stage of consumer decision-making process business try to meet the needs
and wants of customers and influence them for purchasing product and services.
2. Information search: In this stage customer search for various information that help
them to reach out to the business where they can fulfil their needs and wants. Customers
can use different searching tools such as google, social media platforms etc.
3. Alternatives evaluation: In this stage customers came to know about the criteria of their
needs and wants of product and service. They also analyse that where they can fulfil
their demands.
1

4. Purchasing decision: In this stage customer make decision about purchasing product
and services from specific marketplace.
5. Post purchase evaluation: In this stage of decision-making customers gives feedback to
the business about their experience form the product and service they offer to them.
Different factors that have an impact on the decision-making process.
 Brand image: It is an most common factor that influence the decision-making of
consumers. In the context of Clayton Hotel City,(De Mooij, 2019) hotel have strong
brand image in the industry it could help the organisation to increase the customers base
and attract more customer towards the services they offer.
 Customer loyalty: An loyal customer towards the particular brand always choose the
same product and services of that brand. In the context of Clayton Hotel City,
organisation gives best customer experience to their guests that help the hotel to improve
more loyal customer base and increase sells of the organisation.
Evaluate the black box model of consumer decision making process, explain how it influence the
consumer marketing decision.
According to the black box model consumer is the person who but or purchase goods and
services for themselves or family,friends, or group use. The consumers behaviour helps the
marketers to understand the needs and wants of the customers and how they can fulfil those
needs and wants. There are various factors that can influence the buying decision making of
customer and influence them to buy something out of the box. These factors help the
organisations to make marketing strategies according to the decision making precess of the
company. This theory of consumer behaviour goes to the mind of customers how they think,what
is their perspiration about the particular product and services and how company can influence the
decision-making process of mind of the customers. In the context of Clayton Hotel City, these
model of customer decision making help the organisation to know about the customer's
perception about the services they offer to them. They can analyse that is their customers are
happy with the products and services they offer to them or not. Thus black box model helps the
company to understand they buying process of the customers.
2

Map out the consumer decision making process for one product or service in the context of B2C
organisation.
To map out the consumer decision-making process below is the explanation of map path in the
context of Clayton Hotel City.
 Understand level of interaction between customer and business: This is very
important for business to have regular interaction with the customers in order to know
about their needs and wants. In the context of Clayton Hotel City,(Huete-Alcocer, 2017)
hotel provide quality services to the customers. It is important for the organisation to
provide proper information about luxury services to the customers. If the hotel business
provide right information to the customers about their luxury and comfortable services it
could help them to influence the customer's purchasing decision making.
 Emphasises on customer needs: Clayton Hotel City analyse the needs and wants of the
customers about the services they are currently offering. After analysing the needs and
wants they modify the services according to the demand of the customers that could help
the to influence the buying decision-making of the customers. The main motive of
Clayton Hotel, is to provide high level of comfort to their customers and improve their
experience from the services they are offering to them.
 Differentiates gap between desired and real experience of customers: It is very
difficult for the organisation to know about the actual desire of customers and fulfil those
desire in order to give them better customer experience. The consumer path map help
Clayton Hotel City to understand the actual needs of the consumer and how they can
fulfil those demand in future. It helps them to improve the satisfaction level of customers
from the services they are offering to them.
 Recognises development priorities: the map helps the Clayton Hotel City to know about
the priorities of the customers so that they can improve the services and gain competitive
advantages in the business. They also make various strategies to gain the customer's
loyalty and satisfy them with real experience in hotel.
 Helpful in gaining business insight: It helps the business operation to know about the
brand image in the eyes of customers. It could also help them in improvement of their
brand image and gain customer loyalty.
3

Section 2
Compare the similarities and differences between decision making process of B2B and B2C.
Basis B2C B2B
Customer
relationship
The main motive of B2C business
is to make transactional relationship
with the customers. This business
make customer ouch (Khan,
2020 )to the clients business or the
web site of the company to increase
the sale of the company. Customer
expects the best experience from
the product and services.
The main focus of B2B business is
making personal long term relationship
with other business partners.
Relationship building marketing is
main tool of this business. It helps
business to build brand image in the
market.
Branding The brand image of B2C business
depends upon the level of customer
satisfaction provided by the
business to their customers. Better
customers experience helps the
business in brand building.
The brand image of B2B is based on
the relationship with the business. The
brand image in B2B begins with the
quality of goods and services of the
company.
Sales drivers In B2C business the sell increase
from the level of customer
satisfaction and needs of the
customers
In B2B sells drives from the better
relationship with the business partners
and that help the business to boost up
sells and increase the sales.
Marketing
strategy
The marketing strategy of B2C
business to make more customer
base by using new technology and
provide the best experience to the
customers. It help the business to
make brand image in the eye of the
The marketing strategy B2B use is to
increase the business in (Kimmel,
2018)target market and provide goods
and services to the business partners
and increase the revenue of the
company. they use brand image as an
4

customers and help the to improve
the product and services in order to
gain profit.
marketing tool for making more
customers in the market and provide
better services to them.
Example In hospitality B2C refers direct sell
of product and services to the end
customer. In the context of Clayton
Hotel City, (Rajani, and Nakhat,
2019) B2C include offering various
services to the guest of hotel.
B2B business of Clayton Hotel City, is
purchase of machinery, tools and
equipment form the other business to
maintain and fulfil the need of hotel
industry.
Evaluate the different market research methods that could be applied to B2B and B2C context,
using relevant examples.
Market research of B2B:
There are various methods by which the B2B organization done their market research in
the market and increase the customers base and sell. Below are some methods by which B2B
business can done their marketing research:
 Competition analysis: The competition analysis is very important factor for the B2B
business. When business now about its competition its gets easier for the business to
increase the customer base and boost up sales. There are various factors that can affect
the business so competition analysis is very important factor in market research. In the
context of Clayton Hotel, organization can use their market research and know about the
competition in the market.
 Quantitative interview: The B2B business can conduct interview from the past
customers that help them to know about the customer experience from the organization.
Also help them to increase the level of customer (Morales, Amir, and Lee,
2017)satisfaction. In the context of Clayton Hotel City, company also can conduct the
interview for the past customers and know about their experience from the hotel services.
 Environment analysis: Evaluation of macro environment of the company helps the
business operation to know about the opportunity and threats in the environment for the
business. In the context Clayton Hotel City, company can know about their business
more when they do environment analysis.
5

Market research of B2C:
In B2B market research the marketer research about the choice and preference of the
customers and analyse the market of the company. in the context of Clayton Hotel City,
company analyse customers needs and wants in order to give them more satisfaction level and
better customer experience. They can conduct interview of past customer to know about their
point of view, it also help them to gain customer loyalty and increase the business share. They
can also take help of online platforms and make digital forms for the customers.
Explain how market research influence the decision making process of customers.
There are various factors that help the marketers to influence the buying decision of the
customers. Below are some market research factors that can influence the buying behaviour of
the customers.
 Customer’s perception: Different customers have their different choice and onion about
the organization and the buying decision making also get influence by their choice and
preferences. Market research helps the business organization to know about the choice
and preferences of the customers (Rana, and Paul, 2017). In the context of Clayton Hotel,
organization can influence the buy decision making process of customer by providing
them services according to their needs and wants. It could also help the hotel to improve
the services according to the feedback of the customers.
 Brand identity: It is one of the most common factors that influence the decision making
of customers. Brand image influence the buying behaviour of the customers, many
customers stay loyal to particular brand and buy the product and services from specific
brands. in the context Clayton Hotel, organization have high level of brand loyalty in the
customers and with the best services they (Mothersbaugh, Hawkin, and Kleiser,
2019)also provide high level of satisfaction level to the customers. There are many
marketing strategy that hotel use to retain their customers, such as providing them
complimentary food and drinks, special discount offers for regular customer etc.
 Income groups: there are different income status of the customers that can influence
their decision making process. Every customer have different willing to buy product and
services that can help the to understand what they need from the organisation. In the
context of Clayton Hotel City, the company attract high income and moderate income
group of people. These people are more attracted toward the luxury services and high
6

level of comfort form the hotel. So it easy for the organisation to attract these target
market.
Section 3
Evaluate two factors that influence the decision making process.
Personality: Every individual have their own personality that can help them to make decision
making that can help them to understand the level of customers satisfaction from the goods and
services below is detail examination of Personality trait theory that can influence the decision
making process of the customers.
 Openness: It refers to the persons that have personality of experience new things, they
are always open to the new experiences and its become their personality trait(Weiss,
Fulford-Jones, and Volpe, SERVICE MANAGEMENT GROUP Inc, 2017). These
individuals have more creative and innovative mind by which they understand the what
they want in market and how they can meet to all the desires.
 Conscientiousness: It refers to people who want and like to be organized, they are also
have self discipline. This individuals make their buying decision according to the their
choice and usually they do not like to try innovative things.
 Extraversion: This individuals likes be in the centre of attraction, these people are more
excited about meeting new peoples and making new friends. They make their buying
decision according to the other people and willing to make them more important. The
choice and preferences of these individuals can change according to the time, situation
and people.
 Agreeableness: These people are cooperative in the nature and easily get agree about the
things and perception of others. (Rana, J. and Paul, 2017)They are more caring and make
others first priority. These individuals make their choice according to the others and
easily give up on their own test and preferences.
 Neuroticism: These individuals are more emotional and sensitive, they act according to
the environment or situation in their daily life. These people can easily get stressed and
influenced.
Motivation: It is the most important factor that help the organisation to influence the decision-
making of the customers and make the buy the product and services of their brand. These factors
7

help the person to know what can motivate them to buy an product and service and how they can
gain more satisfaction(Wertenbroch, 2019). There are many factors that can motivate the
customer to buy the product and services of the company such as, various discount offers, best
deals, needs and wants etc. thus the motivation is important factor to influence the product and
services of the individual.
CONCLUSION
From the above given information it can be conclude that understanding of consumers
behaviour is very important factor for hospitality business. It could help them to understand the
needs and wands of the customers from the organisation. Consumer decision-making path map
help the company to know about the various factors that can help the to influence the buying
behaviour of the customers towards particular product or service. B2B and B2C market research
helps the organisations to know about the external factors that can influence the buying decision
making of the customers.
8

9

REFERENCES
Books and Journals
Kimmel, A.J., 2018. Psychological foundations of marketing: the keys to consumer behavior.
Routledge.
Adiba, E.M., 2019. Consumer Purchasing Behavior of Halal Cosmetics: A Study on Generations
X and Y. Journal of Islamic Monetary Economics and Finance, 5(1), pp.169-192.
Alghizzawi, M., 2019. The role of digital marketing in consumer behavior: A survey. Int. J. Inf.
Technol. Lang. Stud, 3(1), pp.24-31.
De Mooij, M., 2019. Consumer behavior and culture: Consequences for global marketing and
advertising. SAGE Publications Limited.
Gelman, S.A. and Echelbarger, M., 2019. Children and consumer behavior: Insights, questions,
and new frontiers. Journal of Consumer Psychology, 29(2), pp.344-349.
Huete-Alcocer, N., 2017. A literature review of word of mouth and electronic word of mouth:
Implications for consumer behavior. Frontiers in psychology, 8, p.1256.
Khan, M.A., 2020. Theory of Consumer Behavior: An Islamic Perspective.
Morales, A.C., Amir, O. and Lee, L., 2017. Keeping it real in experimental research—
Understanding when, where, and how to enhance realism and measure consumer
behavior. Journal of Consumer Research, 44(2), pp.465-476.
Mothersbaugh, D.L., Hawkin, D.I. and Kleiser, S.B., 2019. Consumer behavior: Building
marketing strategy. McGraw-Hill Higher Education.
Rajani, V.T. and Nakhat, P., 2019. Consumer Behavior in Online Shopping: What they think
before they buy. Journal of Psychosocial Research, 14(2).
Rana, J. and Paul, J., 2017. Consumer behavior and purchase intention for organic food: A
review and research agenda. Journal of Retailing and Consumer Services, 38, pp.157-165.
Weiss, E.H., Fulford-Jones, T.R. and Volpe, A., SERVICE MANAGEMENT GROUP Inc,
2017. Electronically capturing consumer location data for analyzing consumer behavior.
U.S. Patent 9,589,270.S
Wertenbroch, K., 2019. From the editor: A manifesto for research on automation in marketing
and consumer behavior. appeared as Wertenbroch, Klaus (2019),“From the Editor: A
Manifesto for Research on Automation in Marketing and Consumer Behavior,” Journal of
Marketing Behavior, 4(1), pp.1-10.
10