Consumer Behaviour and Insights: Decision-Making Analysis Report

This report provides a comprehensive analysis of consumer behavior and the decision-making process, exploring the stages involved from need recognition to post-purchase behavior. It examines the application of various consumer behavior models and the importance of understanding these proce...Read More

Consumer Behaviour and Insigh

Contents
INTRODUCTION.............................................................................................................................3
Activity 1...........................................................................................................................................3
P1Analyzeofthestagesoftheconsumerdecision-makingforagivenproduct/service.........................3
P2 Importance of mapping a path to purchase and understand consumer decision making
formarketer....................................................................................................................................5
M1Evaluationofmarketersrespondtothedecision-
makingprocessbytheapplicationofrelevantconcepts andmodels...................................................6
Activity 2...........................................................................................................................................6
P3Comparisonofthekeydifferences ofthedecision-makingprocessinB2CandB2B........................6
Difference between the buyer decision-making process...............................................................6
P4 Evaluation of different approaches to market research and methods of research used
forunderstanding thedecision-makingprocess in both B2CandB2B.............................................8
M2 Evaluation of how various factors influence decision-making and buying behavior............9
Activity 3...........................................................................................................................................9
P5Evaluationofhowmarketersinfluencedifferentstagesofthedecision-
makingprocessofB2CandB2B.......................................................................................................9
M3 Critical evaluation of how marketers influence each stage of decision-making process
withreferenceto relevantmethodsand models..............................................................................10
CONCLUSION................................................................................................................................10

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INTRODUCTION
Consumer behavior may be a study that identifies the purchasing habits of people and groups of
individuals (Cawsey and Rowley, 2016). The study involves the acquisition, use, and disposal of
products, ideas, and services to fulfil their needs. Marketers are utilizing this study to raised understand
the demand for items on the market. They assess how consumers purchase items and judge which
products should be promoted, how they'll show their products, and which products are obsolete and
must be aloof from the market. The report that follows provides a wealth of knowledge still because the
methodologies employed in consumer decision-making. It also illustrates the importance of a marketer
understanding and recognizing the customer decision-making process. It also demonstrates how a
marketer responds to those customer decision-making processes by employing pertinent concepts and
models. This research also looks at the differences in B2C and B2B decision-making processes and
techniques.
Activity 1.
P1Analyze of the stages of the consumer decision-making for a given product/service
Consumer Decision-Making Processit is a process that involves the necessity for a product for
the patron. Before purchasing any goods or services a non-public goes through these stages of
consumer behaviour which contains identifying the requirement of the patron, gathering information
about the merchandise, evaluating various alternatives to satisfy the necessity of a consumer then
making the last word decision of buying that product, these steps are basically needed when a consumer
is buying some expensive product or services like a car, computer etc (Godey and et.al., 2016). There
are various models involved within the patron decision-making process a touch just like the stimulus-
response model of buyer behaviour, Nicosia model, Solomon model of comparison, the five values
influencing consumer choice behaviour, Engel Kollat black well model, Howard Seth model and Input,
Process and Output model. Airdri company adopted the input process and output model as explained
below:
Input, Process and Output Model:
During this type of model, the input which is given by the customer is that the company's marketing
efforts which include the price, place, product, promotion and social environment which include the

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references group, family, society, etc. these two factors collectively create the input in minds of
consumers.
Following are the five stages involved within the decision-making process of the consumer:
• Need Recognition: it basically occurs when a consumer identifies the necessity for a given product
and to replenish the gap of a specific product. it's important for companies to see the requirement of its
customers and supply the precise good so as to fulfil their need.
• Information Search: This stage involves the whole research about the merchandise. during this
stage consumer tries to collect information about the merchandise from various different sources. For
the aim of gathering information a consumer may involves its reference group, internet, company
brochures about the merchandise. during this step consumer tries to search out the consumers who are
already using that product, they heavily relay on the reviews about the merchandise employed by
various consumers.
• Evaluation of Alternatives: This step involves within the evaluation of assorted alternatives which
are available within the market so as to satisfy their need. After the determination of the necessity and
also the product which may satisfy its need they switch to the assorted alternatives available. during this
process the buyer may evaluate the reviews, price, quality, and various other factors and so select a
most preferred product which satisfies their parameter.
• Purchase Decision:finally, the above stages are passed than the patron makes a judgement whether
to buy a product or to research more to satisfy their needs. during this stage consumer has already
evaluated all the possible reasons and facts and had finally acquired a choice to buy the merchandise or
service. this may be based upon various reasons including the emotional connections of their members
of the family or various marketing campaigns or sometimes it should rely on both.
• Post Purchase Behavior: this is often a stage during which consumer analyze that whether the
merchandise is ready to satisfy their needs or not (Lantos, 2015). If the experience achieved from the
merchandise is positive than it's going to help the corporate to extend its customer base, they're going to
help in influencing other potential customers to shop for that product and can become brand
ambassador of the merchandisebrand.

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P2 Importance of mapping a path to purchase and understand consumer decision making
formarketer
A marketer under the buyer decision-making process must increase the sales of the corporate
and creating their brand value. A marketer has to understand the necessity of the patron and present its
product in an exceedingly way that the patron finally ends up preferring buying that individual product.
the patron decision-making process involves five steps and is crucial for a marketer to investigate every
step and place its goods during a market (Lim, Soutar and Lee, 2016.). The buying process starts with
the popularity of need, once the requirement is recognized the consumer's switches to the following
stage of collecting information that how this need may be satisfied. They collect information from five
general sources which involve the inner sources, the memory of the buyer associated with its
experience. Group sources including friends’ family and reference groups than marketing sources it
includes advertisements, retailers, salespeople and dealers.
The marketer has various considerations which are important during the evaluation stage. the
most aims of the marketer are to constantly remind the buyers about its company product that are
suitable as per the necessity of the consumer. Marketers should design various marketing programs and
develop various strategies to promote their product to alter the buyer’s opinion about the merchandise
image and also to alter the selection criteria of the consumer about the company’s product or services.
After considering all the possible options, the subsequent stage may happen which is making a buying
decision, but the marketer should be more careful during this stage in order that it doesn't lose its
potential customer. At this stage, the marketer should eliminate the danger of losing its potential
customer thanks to various problems by proving guarantees or warranties and also provide various
offers and make the purchases as early as possible. the most issues which marketer should eliminate are
the possession utility and products availability, as this is often the most problem if a consumer goes in a
very certain brand store and doesn't find the merchandise then it's going to attend another store who can
deliver the identical product to the customer (Maniatis, 2016).
These problems are often eliminated by the marketer by providing various offers like delivery
and installation of the merchandise. To make consumers feel good about the acquisition of a product,
marketers can reduce any doubts associated with the choice to shop for the merchandise from its
company brand. the foremost critical way of removing the doubts is by creating effective
communication between the marketer and also the seller, marketer can put in thanks letter within the
package of the merchandise which provides various other offers associated with the following purchase
from the identical company brand.

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M1 Evaluation of marketers respond to the decision-making process by the application of relevant
concepts and models
To respond to the decision-making, the method marketer uses two marketing theories which
include Consideration and Involvement. In consideration theory consumers create a subset of varied
brands from which it applies various decision-making strategies while buying a product or services
(Price, Wrigley and Straker, 2015). It involves a multistage decision-making model during which the
complexity of choices that are produced increases. Another theory that's employed by marketers is
Involvement, during this theory the quantity of cognitive effort which is applied by the buyers within
the deciding process have a right away relation with the importance level of the consumer which it
places on the acquisition of a particular product.
Activity 2
P3 Comparison of the key differences of the decision-making process in B2C and B2B
 B2B:
B2B is employed for Business to Business, it's a model within which commercial transactions are
involved. it's a sort of model followed by the businesses during which one business buys or sells
products or services to a different business.
 B2C:
B2C is employed for Business to Consumer, it's a model during which the corporate sells its product or
services to the ultimate consumer. this sort of model company makes a transaction within which
companies sell their goods or services to the patron.
Difference between the buyer decision-making process.
The consumer decision-making process within the case of B2B and B2C is comparable in nature
within the B2B also it's to travel through the five stages of the decision-making process.
Following are the difference within the context of B2B and B2C:
 Identifying Need: within the case of both B2C and B2B, the decision-making process starts
with the identification of need (Rezaei, 2015). within the case of B2B businesses proactively
identify the necessity as a part of their business strategy. Whereas within the case of the B2C
business model consumer identify the sensible need for a product. for instance, companies can

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say that if they need to boost their stock ordering process, they'll need some more computer
systems.
 Product specification: Businesses have various steps involved within the process of buying
within which company should meet a specific product specification the method in purchase
involved a committee who articulate that what a brand-new product must do, the benefit which
it'll provide to the corporate and also the cost of procurement of that specific product. Whereas
within the case of B2C consumers have a transparent idea of what the acquisition of that
specific product will do.
 Evaluating Supplier: within the case of B2B businesses evaluate various suppliers in some
cases they need a policy of considering a minimum of three different suppliers and take their
price for a product and evaluate all of them (Stiggelbout, Pieterse and De Haes, 2015). within
the case of B2C consumers depend upon the brand reputation of the corporate and compare
their product with the opposite.
 Purchase Decision: during this stage, both consumers and Businesses plan to buy a product.
within the case of B2B, this stage takes a protracted process and also the final judgment is
formed by the committee whereas within the case of B2C consumer is vital personal and
makes a choice of buying the merchandise or service. Consumers make more impulse buying
decisions than businesses. Post Purchase: Providing good after-sales services is a vital part for
both consumers and businesses. within the case of B2B business customers are mainly
considered as long-term buyers that the supplier must provide good after-sales services to
those business customers. Whereas within the case of B2C consumers only want after-sales
service if they have some technical support or want to complain about the merchandise.
The above difference shows that purchasing decision within the case of both B2B and B2C is
comparable in nature, in both cases these five stages of the patron decision-making process is involved.
The key difference which may be identified in B2B and B2C is that the period within which they buy or
sell the products, the buying decision and therefore the decision-maker in both B2C and B2B are
different.
P4 Evaluation of different approaches to market research and methods of research used
forunderstanding thedecision-makingprocess in both B2CandB2B

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There are two different approaches to promote research to grasp the decision-making process
within the case of B2C and B2B. Following are the 2 approaches:
 Behavioral Approaches:
Behavioral approach is learning which is directly associated with the method of input and output. This
approach is expounded to 2 different theories like classical conditioning is demonstrated thanks to a
neutral stimulus. during this theory, an unconditional stimulus is paired with the neutral stimulus to
search out the training of a private during these behaviors of a personal is controlled by the association.
The second theory is conditioning within which the behavior is demonstrated with a reinforcement
consequence.
 Cognitive Approaches:
During this theory, the educational only takes place with the result of the buyer thinking (Szmigin and
Piacentini, 2018). This approach is said to the role of mental control of a consumer. When a consumer
decides supported earlier use of the company's brand or product, this customer uses its last experience
from the usage of the merchandise of the identical brand. To understand the decision-making process in
business to business and business to consumer marketer uses different research. because the B2B and
B2C are two different sectors which have similar stages but differ in various aspects.
The difference between the research in both sectors are as follows:
 Mixed Methodology:
Mixed methodology studies are mainly common within the B2B sector. because the market within the
business to business is far more complex than the market of business to consumer market. To conduct
marketing research, researchers use various methods. The findings from this various research are
classified into two categories like qualitative and quantitative. The telephonic interview forms the great
qualitative data and thru focus, group companies gather the quantitative data.
 Sample Size:
Sample size within the case of business to business is smaller in number whereas the sample size within
the case of business to consumer is larger in number. because the sample size is smaller within the case
of B2B research it's less common to weigh the info because the representative of the full population.
The complexity of the Decision-Making Process:
One amongst the most important differences in B2B research and B2C marketing research is

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that the complexity of the method involved within the decision-making process (Vrontis, Thrassou and
Amirkhanpour, 2017). As in B2B, various parties are involved within the process.
M2 Evaluation of how various factors influence decision-making and buying behavior
Various factors can influence the choice making process and buying behavior of a
consumer.Following are the explanations which affect consumer’s buying behavior:
 Cultural Factor:
Cultural factor affects the decision-making process of a consumer because the culture includes the
values, myths, customs, laws, language and rituals which a consumer sees while making any decision
of buying a selected product. as an example, if a consumer wants to shop for a product but the
utilization of that exact product isn't allowed within the culture the patron won't purchase that product.
 Social Factor:
Social factors include reference group, family, people, opinion leaders, subculture and culture which
have an on-the-spot impact on the buying behavior of the patron.
Activity 3
P5 Evaluation of how marketers influence different stages of the decision-making process of B2C and
B2B
Marketers influence the decision-making process of the purchasers in both the business-to-
business sector and business to customer sector within the following ways:
 Buying Decision:
Marketers influence the buying behaviour by influencing the decision-makers within the context of
B2B because the decision-makers are held accountable and accountable for any decision they take with
their judgement. during this stage, the marketer tries to create a healthy relationship with the corporate
to receive future orders as within the B2B sector companies maintain a relation with one buyer for a
long-term process (Xiang, Magnini and Fesenmaier, 2015). Whereas within the case of the business to
consumer sector company palaces their product within the brain of the customer by making it easily
available to the purchasers. Marketers also provide various promotional offers at the time of purchase to
supply additional benefits on their next purchase of the identical brand which helps them to draw in
new customers and making them loyal to the corporate brand.
 Post-purchase Evaluation:

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Post-purchase evaluation within the context of Business to business involves the evaluation of the
performance of the merchandise. Marketers take feedback from the business and take a look at to
innovate their product to keep up a long-term relationship with the corporate (Karimi, Papamichail and
Holland, 2015). Whereas within the case of the business consumer sector marketer tries to supply its
customer with few extra benefits which make the customer their brand ambassador and influences
another customer to become the potential customers of the corporate.
M3 Critical evaluation of how marketers influence each stage of decision-making process
withreferenceto relevantmethodsand models.
Marketers use the digital audience development method to influence the decision-making
process of consumers marketer uses various digital marketing techniques to engages their customers.
thanks to the change in trend, the corporate uses various methods of digital marketing techniques
including social media marketing. they aim their customers by showing their ads at the time at which
the utmost number of consumers are available online.
CONCLUSION
From the above file, it is often concluded that understanding the buying behavior of the customer
is incredibly important for the corporate to put its product within the minds of the customer. The above
report establishes various stages which are involved within the process of higher cognitive process and
also the importance of understanding the stages by a marketer to influence the buyer decision-making
process. The above report also states the explanations that a lot of factors can influence buying
behavior. From the above file, it is concluded that the decision-making processes of both the B2B and
B2C markets are similar in nature but slightly different.

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