Consumer Behaviour and Insight Report - Business Management Unit 37

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This report delves into the intricacies of consumer behavior and decision-making processes within the context of a chosen company, Tesco. It begins by explaining the stages of the customer journey, from need recognition to post-purchase evaluation, and discusses the importance of mapping this path for marketers to enhance their understanding of consumer choices. The report then compares and contrasts decision-making procedures in Business-to-Consumer (B2C) and Business-to-Business (B2B) environments, providing illustrative examples. It further examines various market research methods employed to gain insights into these decision-making processes. Finally, the report explores how marketers can directly influence the stages of the consumer decision-making process in both B2C and B2B contexts, offering valuable strategies for effective marketing. The report utilizes academic sources to support the findings and recommendations.
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CONSMUER BEHAVIOUR AND INSIGHT
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Table of Contents
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MAIN BODY...................................................................................................................................4
TASK1.............................................................................................................................................4
P1 Explain steps used in customer journey for taking decision regarding goods/service..........4
P2) Discuss importance for marketers to mapping path in reference of enhancing
understanding in respect of consumer decision making.............................................................5
TASK 2............................................................................................................................................7
P3 Compare differences of procedure decision-making in context of B2C and B2B, by
providing examples.....................................................................................................................7
P4 Examine various methods to market research adopted for increasing understanding
regarding process of decision making within both B2C as well as B2B....................................8
TASK 3..........................................................................................................................................10
P5 Discuss how marketers can impose direct effect on stages of decision making process of
B2C & B2B...............................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
Books & Journal:.......................................................................................................................13
The consumer behaviour signifies different characteristics of individual person at
marketplace & focuses on willingness to purchase product and services. The existing atmosphere
is determined as a dynamic that frequently assess preferences & taste of user in the market. Thus,
it is determined as a challenge for company to regularly modify goods and services according to
need of customer and market trend. In this report, the organisation is taken named as TESCO. It
is a determined as a large organisation that provides different kind of products & services to its
customer in order to satisfy them. In this assignment, there is also discussion regarding various
factors like cultural, social and psychological elements that impose direct effect on buying
behaviour & attitude of customer within an organisation. This assignment provides explanation
regarding digital technology which imposes direct effect on decision making of consumer and its
behaviour (Aksoy and Ozbuk, 2017).
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MAIN BODY
TASK1
P1 Explain steps used in customer journey for taking decision regarding goods/service.
The retail sector is determined as a customer centric who focuses on assessing need and
want of customer those results in growth and improvement. The journey of decision taken by
user is considered as a procedure of how user completes its buying journey at marketplace. There
are different kind of activities and function which is executed by management team that is
connected to functions and influence user. The decision taken by user is significant within an
organisation at it is determined as a useful to assess need and its requirement. There are different
types of approach that is adopted by company for satisfying its requirement. In assistance of this,
there are various levels which are used for process of decision making by customers that is given
below:
Need recognition is determined as a primary level by which organisation focuses on
analysing need of user. In reference of retail sector, the company emphasised on targeting
customer or assessing need in market and grab opportunity or chances during particular phase of
time period.
Information search is determined as other level through which organisation has
information related to requirement of customer. The user adopts various types of sources in order
to assess information that is connected to goods and services which is consumed by customer. In
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reference of chosen company, they emphasize on using different functions such as
advertisement, marketing campaign that is useful in attracting large number of user and offering
them goods according to its requirement.
Evaluation of alternative the customer emphasizes on adopting facility as per their need
and they have choice to choose among different alternative during particular phase of time
period. Thus, the chosen company emphasize on offering affordable facility in addition with
superior quality of product to its user that assists in taking appropriate decisions connected to
goods that is provided by organisation (Kalpana and Sowmiya, 2016).
Purchase decision is determined as level in which process of decision making is
performed by user. And, the company emphasized on taking effective decision for buying
products and services that help in satisfying and fulfilling need. In reference of selected
company, the company offers unique products and services to its user that is determined as
superior method to attract ample of user within retail sector.
Post-purchase evaluation is determined as level in which customer related to post
purchase is assessed in reference of retail sector. Therefore, the user focuses on assessing need
and provides various instructions that are needed in order to satisfy their need. And the
organisation focuses on providing guidance to user in context of facility that is provided by them.
P2) Discuss importance for marketers to mapping path in reference of enhancing understanding
in respect of consumer decision making
It is assess that customer determine various kind of factor while purchasing products and
services. There are diverse system included through which customer purchase or buy product. It
is start from analyzing requirement and completed in purchase product with fulfilling
requirement of customer. There are various types of factor that assists in taking decision
connected to process of customer that is given below:
Internal factors it involves feeling, personality, attitude & behaviour of person that
impose direct impact on decision which is taken by customer. It is analysed that there are
different individual person who have diverse lifestyle, role which imposes direct effect on buying
behaviour in proper way (Kalyanasundaram, 2017).
External factor there are various types of external environment which influence over
purchasing decision of customer. These factors include culture, technology as well as many
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more. It is analysed that culture is significant in taking decisions by user during particular phase
of time period.
Influence of heuristic on taking decision
Through heuristic, it is useful in providing life easier and help in taking quick decision. It
is assess that the behaviour of user is determined as a flexible that are important to be
understand. It is assess that heuristic is considered as a mental situation through which user
focuses on taking decisions as per their mental status. The behaviour enforces direct impact on
decision taken by customer. For instance, if they are happy then they emphasize on purchasing
products and services if they are not then they focus is on avoiding to purchase.
Effect of marketing mix in decision-making process
The marketing mix effect on taking decisions as there is different kind of factors like
product, promotion, place as well as price. It is important for company to emphasize on diverse
situation of market in order to take decision in right way. This element enforces direct impact on
decision taken by customer. For example, some customer focuses on buying cheap product in
addition to this place as well as promotion is affected is also get impacted by Buying decision
related to purchasing by user (Kaur and Singh, 2019).
Influence of new technology on decision making
Due to change in time period, it is important to increase awareness regarding innovative
technology like retailing in competitive market. The use of innovative technology imposes direct
effect on decision taken by user and now the user focuses on shopping through online web as
well as application. There are various types of innovative or new technology such as E-
commerce website online shopping that completely changed trend related to shopping. This kind
of innovative techniques is useful in providing superior experience connected to shopping to its
user.
Importance for marketer of mapping path to take decisions by user
The customer is determined as a significant stakeholder of company and there is a whole
journey that is used by customer to buy product and services. The process of taking decisions by
user, the management team is capable to decrease shortcoming which is related to procedure of
buying and offer superior kind of experience to customer for enhancing sales. In addition to this
it assist manager of company to satisfy need and requirement of customer in proper manner. By
adopting this method, they are able to get interact with user while process of buying and they are
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able to prepare pre and post purchase strategy in order to accomplish goal in pre-decided period
of time. The primary advantage of mapping journey of user is to get important information in
context of developing potential customer as it assists manager to implement appropriate strategy
for accomplishing good results in future time period (KAUR, 2018).
TASK 2
P3 Compare differences of procedure decision-making in context of B2C and B2B, by providing
examples.
In market, there are two models B2B as well as B2C is given. B2C model signifies the
product which is sold among organisation and its user. In addition to this, B2B signifies
transaction which is executed between organisation and no user is included. The difference
between B2B and b2c model is given below:
Basis B2B ( Business to business) B2C (Business to customers)
Meaning It is considered as moving of
products between organisation
for fulfilling its need and wants.
Herein, the goods are exchanged
between customer as well as
organisation that aid assistance in
increasing sales and profit
margin of company.
Quantity of merchandise The size of products of
organisation is moving at wider
as transaction is conducted
between business partners.
In addition to this, the size of
goods that is exchanged is
determined as very low as
process of exchange is between
organisation and user to meet
requirement of end customer.
Relationship The products must be goods
distributed from direct producer
to its supplier then provide to
whole sellers as well as the
goods are sold to its retailer. It is
determined as long cycle for
supply of goods (Thøgersen and
Alfinito, 2020).
The user is directed in respect of
buying goods from retailer. It
aids assistance in improving
appropriate relationship among
parties included in transaction
through reducing involvement of
third party in process of
transaction.
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Decision making The procedure of decision taken
in model. B2B is depending on
intended logical decisions that
are determined as rational. And,
the decision taken by consumer
aids assistance to organisation in
increasing profit margin.
The procedure of decision taking
is depending upon need, wants
and requirement of individual
person. The user focuses on
buying products for fulfilling
need in an appropriate manner.
Examples TESCO online shopping
platform is determine as
appropriate platform related to
B2B organisation in which the
organisation can easily meet need
of seller
TESCO focuses on performing
work in respect of B2C platform
in which products are exchanges
between sellers as well as its end
users without any kind of
involvement of another business
party.
On the basis of above given table, it is assess that there are huge difference between B2C
and B2B model. This model is adopted for taking decisions that is differentiated in largest
aspects.
P4 Examine various methods to market research adopted for increasing understanding regarding
process of decision making within both B2C as well as B2B
Primary research method in this process, the researcher emphasised on gathering data by
adopting own efforts & contribution. The researcher collected information by adopting primary
source is determined as authentic. It is gathered by researcher on continuous basis for so it is
considered as a superior method connected to market research. There are different sources such
survey, observation and many more which is considered as the primal & basic path connected to
primary research it help in getting insight in context of behaviour of customer that assists in
meeting need and requirement of customer in proper manner (Ricci, Banterle and Stranieri,
2018).
Qualitative method is significant method of getting information by which manager obtain
detailed information by adopting B2B user. It helps in gathering detailed data& information that
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assists in taking decisions. There are different kinds of approaches adopted in qualitative method
that is given below:
Market research approach for B2B model
Focus Group it is determined as a broad approach for researcher that helps in gathering
explained insight and information for particular purpose by adopting this method. In reference of
Tesco, they use method for collecting information and data from market in order to maintain
strategy for success or growth of organisation.
Advantage it helps in collecting explained information that assists marketer to maintain
proper strategy that assists in enhancing sale.
Disadvantage this approach is considered as a time-consuming as investigator needed time
for gathering appropriate data.
Observation in this process, the manager emphasis on observe attitude of customer in an
appropriate manner. By adopting this, the manager of Tesco is able to observe behaviour of
customer in proper way & to maintain significant strategy.
Advantage it is considered as a simple approach by which significant information or data is
gathered in timely manner and it is determined as cost appropriate.
Disadvantage due to lack, the marketing team do not possess any type of fixed criteria for
observing response of customer.
Market research method in context of B2C business model
Interview includes open end questions which assist in communicating or interacting with
respondent in an appropriate manner. The manager focuses on taking response from its
respondent. Therefore, the Tesco focuses on using this method for aim of gathering detailed data
& information from its respondents.
Advantage by this method, the marketing team focuses on collecting in-depth information
that help in maintaining appropriate strategy for success of company (Shao, Grace and Ross,
2019).
Disadvantages it is considered as a process which is time consuming for organising or
conducting interview and also collect responses from person.
Survey it is conducted by marketer in order to collect significant information for conducting
survey online as well as offline by adopting questionnaire method. In reference of Tesco, they
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focus on gathering detailed information from its respondent by adopting survey in an appropriate
manner.
Advantage in this process, the researcher focuses on collecting information that helps in
taking decisions in effective manner.
Disadvantage it is determined is a time consuming as well as costly for conducting survey
in an appropriate manner.
Other method of market research
Secondary market research the information is collected from given sources such as book,
website and many more. By adopting this method, the researcher focuses on collecting
information or data in reference that is cost effective. In present assignment, the secondary data
is adopted for collect information from B2B and b2c that is useful in taking appropriate
decisions.
TASK 3
P5 Discuss how marketers can impose direct effect on stages of decision making process of B2C
& B2B
It is analysed that the user of organisation imposes direct effect on approaches of marketing
during the particular phase of time period. They focuses on assessing problem, look for particular
product and services for resolving issues and problems along with proper approach related to
marketing. The marketing team emphasised on assessing requirement of user in order to ensure
that how product is helpful in resolving problem of customer in proper way. The marketing
approaches used in choosing assessment process of proper practice are connected to branding
help in achieving attention of customer which is helpful in preparing product and services. At
last, the marketer enforces direct impact on decision which is taken by customers by providing
significant post-purchase services. As, it is also helpful in manage favourable brand image &
goodwill of organisation (Tang and Zaichkowsky, 2019).
For instance the advertisement help in assessing needs and wants of user in order to take
decisions related to purchase necessary product for achieving higher level of satisfaction.
The buyer’s decision making process includes various stages which can be affected by
marketing efforts for both B2C and B2B marketing. Marketing can affect various stages of buyer
decision making in case organisational change of introduction of a new product variant. The
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marketing affect in consumer decision making in case of introduction of product variant at
TESCO is described below:
Need recognition: Strengthening the value proposition of the new product variant is the
main marketing practice which can affect this stage of consumer decision making. TESCO needs
to build value proposition of their product as it increases the chance that the prospective
consumers see the utility of the service and are persuaded to search for the product. Enhancing
value proposition of the product is a way in which marketing can affect this stage.
Information search: In this stage the promoting products through digital mediums such as
search engine optimisation and positive reviews from employees is a way through which
marketers can affect consumer decision making. The consumers will be persuaded to search for
the specific product variant offered by TESCO.
Alternative evaluation: In this stage marketers need to target consumers with special offers
which influence their decision in favour of the firm instead of their competitors. TESCO will be
able to influence consumers from choosing their rival through this marketing practice.
Purchase decision: The marketing practice of giving information relating to the need
developed in this first stage and explaining the brand as the best option for fulfilment of the need
needs to be employed in this stage. By using this stage TESCO can affect consumer decision
making and ensure that the consumer purchases the product.
Post purchase evaluation: In this stage offering loyalty cards and personalised offers to
consumer is the main marketing activity which can be implemented by marketers to gain the
loyalty of the consumer.
Lewin’s change management model
The three stages of the change management model are provided below:
Unfreeze: The main focus of this stage is to ensure acceptance of change by the business
firm so that readiness to change can be increased. In case of TESCO, the firm needs to
communicate the need of introduction of new products to the employees so that change is easily
accepted.
Transition: This stage mainly focuses on development of implementation of the required
change which increases uncertainty in the company. TESCO needs to motivate employee to take
action for implementation of this change and leadership of the firm needs to support their
employees to reduce uncertainty.
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Refreeze: In this stage the focus is on reinforcing and institutionalizing the desired changes,
ensuring they are widely accepted, utilized all the time, and incorporated into the business and the
organizational culture. This can be achieved offering short term and long term training, support
and communication so that the change is sustained for a long time period.
CONCLUSION
The basis of above given assignment, it is analysed that consumer is significant for company
to use proper process in order to take decision connected to purchase goods. It is considered as a
process that include analysing problem, collect data and information, purchasing and also post
purchase assessment that is used in user journey to purchase product. The discussion is also done
in order to influence marketer that help in taking decision by using both B2B and B2C model.
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REFERENCES
Books & Journal:
Aksoy, S. and Ozbuk, M.Y., 2017. Multiple criteria decision making in hotel location: Does it
relate to postpurchase consumer evaluations?. Tourism Management Perspectives, 22, pp.73-81.
Kalpana, S. and Sowmiya, R., 2016. A study on consumer behaviour towards sakthi milk and
milk products (with special reference to Pollachi town in Coimbatore District). International
Journal in Management & Social Science, 4(3), pp.556-562.
Kalyanasundaram, P., 2017. A Study on Effect of Internet Advertising on Consumer
Behaviourwith special reference to Coimbatore. International Journal of Marketing and
Technology, 7(6), pp.62-69.
Kaur, H. and Singh, C.D., 2019. Adolescents, Family and Consumer Behaviour: A Behavioural
Study of Adolescents in Indian Urban Families. Routledge.
KAUR, P., 2018. Understanding Consumer Behaviour. European Journal of Business and Social
Sciences, 6(10), pp.24-34.
Ricci, E.C., Banterle, A. and Stranieri, S., 2018. Trust to go green: an exploration of consumer
intentions for eco-friendly convenience food. Ecological economics, 148, pp.54-65.
Shao, W., Grace, D. and Ross, M., 2019. Consumer motivation and luxury consumption: Testing
moderating effects. Journal of Retailing and Consumer Services, 46, pp.33-44.
Tang, F. and Zaichkowsky, J., 2019. Special issue introduction: consumer ethics in the Asia
Pacific Region. Asia Pacific Journal of Marketing and Logistics.
Thøgersen, J. and Alfinito, S., 2020. Goal activation for sustainable consumer choices: A
comparative study of Denmark and Brazil. Journal of Consumer Behaviour, 19(6), pp.556-569.
VELAYUTHAM, P. and JENITA, S.A.S., 2020. IMPACT OF SOCIAL MEDIA ON
CONSUMER BEHAVIOUR WITH REFERENCE TO TENKASI TALUK. COMMERCE, 2(1),
pp.26-35.
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