Consumer Behaviour and Insights: A Report on TESCO's Strategies

This report examines consumer behavior within the context of TESCO, a UK supermarket chain. It details the stages of the consumer decision-making process, emphasizing the importance of understanding consumer behavior for effective marketing. The report analyzes TESCO's approach to identifying consumer needs, gathering information, evaluating alternatives, making purchase decisions, and understanding post-purchase behavior. It also highlights the differences between B2B and B2C decision processes, and discusses various research approaches used in market investigation and decision-making. Furthermore, the report explores how businesses can influence consumer buying patterns and provides examples to illustrate these concepts. The report emphasizes the importance of understanding consumer insights for successful marketing strategies and profitability.

Unit 37– Consumer
Behaviour and Insight

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 describe the figure out different level of consumers and process of buying behaviour of
customers.....................................................................................................................................1
P2 Mention why it is crucial for marketer to identify the behaviour and purchase pattern of
customers.....................................................................................................................................3
TASK2 ............................................................................................................................................4
P3 Identify important differences in decision process in organisation......................................4
P4 figure out the different approaches in research and techniques which are used in
developing plan in decision-making...........................................................................................6
TASK 3............................................................................................................................................9
P5 Explain how business can inspire different level in buying pattern with examples..............9
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................11
Book and Journal ......................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
Consumer behaviour is the theory which help in conducting the study of the behaviour of
different buyer in the marketplace. In other words , it is the study of consumer buying pattern
and their way of purchasing the product (Phan, and Wang 2019). It is concept in marketing
where companies study the individual persons group of people where individual interact with
product and services in the market. In this report in based on the TESCO which is an
supermarket chain in UK. It provide grocery and household products to consumers. The report
provide detail information regarding the stages of consumers decision process. Further is also
analysis the importance of marketer to realize the decision process of end buyer . After that this
report compare the fundamental difference of the conclusion devising and process in regards to
business to business and business to consumers. On other hand it evaluate the various
conceptualisation to marketplace investigation and also understand the decision making process.
At last it help in marketer to influence the different stages of conclusion ans buying pattern
TASK1
P1 describe the figure out different level of consumers and process of buying behaviour of
customers
The end user or buying process is a techniques which is used by marketers to identify
and track the decision which make the indulge in the process of a customer journey from start to
the final stage.. In the context of TESCO marketing department should understand the buying
pattern of consumers which help company to offer quality product which satisfy the end users
need. There are five stages of consumers buying behaviour which are explained down below:
Need recognition: This is known as basic level of this process is identifying what
actually the customers needs. Here the customer generate the requirement of the needs and it
feels like something is missing. For the company like TESCO manager should understand the
need generation of customer by doing proper market research. It is crucial for the company to
make determine the target market and also start developing the needs or wants in order to avail
the opportunities which are available in the market. For example TESCO should identify the
needs of consumers with the help of proper research so that organisation can understand the
needs and wants of the consumers.
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Information Search: In this stage buyer tends to gather more and efficient message
regarding the product and their services which can satisfy the needs of the consumers. The
information can be gather by the recommendations of people who have uses the product and are
familiar with it. As there are ample amount of product and services are available in the market so
customer choose product according the needs and wants (Küfeoğlu and Melchiorre 2019). At this
level TESCO must focus on their product as consumer looks for quality. This help organisation
to gain larger market share as well profitability. Consumer can avail information for product and
services from different sources such as commercial sources, personal and public sources. For
example, consumer will try to figure the product information regarding the grocery and and also
check the information with the help of internet and also by the past experience in the TESCO.
Evaluation of alternative: The next step is evaluating the different sources of
alternatives present in the market. Once it has been identified by the customers then consumers
start seeking the various option available . The evaluation which is done by consumers is based
upon the various factor such as quality, price and other factor which are important for the
consumers. As there different company present in the market consumers compare price and read
review before selecting the product. For example, if a consumer is regular buyer of the TESCO,
where end user will find out the other alternative such as Walmart and Seven Eleven for better
services.
Purchase decision: When all the above decision are passes by the consumers they finally
make the purchasing decision. At this stage consumer have identified all the facts to reach on the
logical conclusion. For the TESCO manages to understand the needs so that consumers can
purchase the product of the company. For example if consumers have identified the various the
alternative and come to the final conclusion that TESCO offer the best services in terms of price,
quality and aftersales services.
Post purchase behaviour: It is consider as the last stage where customers purchase the
product and make decision which include weather the product is useful for the consumer or not.
If the final product is matched by the expectation of the consumers. This help company to make
increase the customer base of the particular company. At last the the post purchase decision take
place and if the product has matched the expectations of the customer, they will serve as a brand
ambassador who can influence other potential consumers which will increase the customer base
of that particular brand. For example the consumer have finally made the decision and help
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which for buying the product from the TESCO because it provide better services like discounts,
offers and membership cards to next purchase.
P2 Mention why it is crucial for marketer to identify the behaviour and purchase pattern of
customers
It is crucial for marketer to understand that how people understand the product and
services which is followed by marketing and selling. It is important for the marketer to focus on
the consumers as it is the key contribution for the marketing business contribution. There are
different kind of marketing function such as research and development and surveys.
Merchandising decision maker who genuinely realize their clients can come up with the quality
product and services to gain larger market share as well as profitability.
Understanding consumer behaviour is important for all the TESCO before availing the
product and services to the customers. If the marketing team of the company fails to understand
the customers needs it may end up loosing the company profit. The behaviour of the consumer is
normally very tangled because each of have various cognition towards the buying behaviour,
consumption as well as disposal of the product. If company understand the concept of consumer
behaviour it may help marketing department to provide services successfully. Nowadays there is
a continual change in lifestyle, application, style and tendency, and client cognition towards the
product and services which are offered by the company.
Consumer decision making the method through which consumers selects the most
appropriate product out of several alternative (Hesselink and Chappin 2019). They are consider
as centre of the marketplace where customer can provide profit to the company. To gain success
in future marketer should evaluate the identify the basic requirement of individual and factor
which effect the consumer before buying any product. . For the company like TESCO marketing
should read the view of the consumers so that they can offer best product to their consumers. In
the retail business manager should spend more time in store and analyse the buying pattern of the
consumers and offer them product as per requirement which help organisation to create goodwill
in the minds of customers
Consumer buy product on the basis of rational and emotional services. To analyse the end
user buying behaviour company mainly hire experts in marketing for understanding the buying
decision process deeply. Company marketing team spend lot of time and effort to discover the
requirement of customer so that company can understand the actual preferences about their
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customers. With the help of research company can obtain most valuable data from the customers
buying behaviour and make product regarding the taste and choice. This provide competitive
advantages in the business which help organisation to capture larger market share as well
profitability. Further company can determine the chance of product to be successful in coming
future and reduce the risk of failure.
In regard to the marketer’s view point, they assume that the basic purpose of marketing is
to sell goods and services to more people so that more profit could be made. This principle of
making profits is heavily applied by almost all marketers. The marketer have role to design the
best possible product an services so that they can satisfy their services to the respective
customers. The further decide the services and product will be available as per the need and the
requirement. Along with this it help in understand why, when, how, what and other factors that
influence buying decision of the consumers.
TASK2
P3 Identify important differences in decision process in organisation
Selling covers a wide spectrum of business activities whose aim is to generate profit and
sale. B2B and B2C are the two business model which help in providing effective sales for the
company. B2B means Business to Business is known as a commercial transaction which deals in
buying and marketing of product and services between to business houses.
Where as B2C is known as Business to consumers where individual trade their product
and services to the final consumers. Those company who product are offered directly to the end
users are known as Business to customers. Here are some important elements which differentiate
from B2B and B2C are briefly explained below:
Basis of comparison B2B B2C
Meaning This is known as selling of
goods and services between
different commercial
enterprise is considered as
Business to Business entity.
In this transaction of business
where merchandising of
commodity and services to the
consumers is called Business
to Consumers.
Customers In B2B there client are
companies which directly
There customers are the end
users and the company make
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deals within organisation.
There are no interaction with
the customers.
product for using final
consumers. There are several
middleman involve in this
process for offering the
product ans services to
respective customers.
Focus on In this case company focus on
developing healthy
relationship with company in
order to expand their business
and profitability.
In the B2C company emphasis
on the product and quality to
satisfy the needs and wants of
the customer's in a well
defined manner.
Buying and selling cycle In this process the buying and
selling process in lengthy as
there is too much of
documentation and paper work
required for dealing with other
companies. And it is also
considered as time consuming
and costly process .
For business to consumers it is
also considered as short term
process where company make
product and sell to the final
consumers in effectively way.
As it does not require any
documentation for offering
services which reduce the time
as well as money for the
organisation.
Buying decision In this process company is top
level management plays and
vital role in developing the
buying decision (Ghouse,
2019). They are planned to
make profit and there are
logical reasons behind the
B2B business.
In this kind of business
consumers make decision
regarding the purchase of
product with emotional touch.
Mainly consumers buy product
on the basis of needs and
wants.
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Creation of a value In this method the value of
brand is creates on the basis of
trust and mutual relationship.
Hence this help in developing
brand value as well as
goodwill in the market.
Where as in this process
company try to create brand
value buy advertising their
product and services on the
social media as well as on
electronic media such as TV
and radio.
Relationship For business to business there
is relationship with supplier
and manufacture, manufacture
– wholesaler and wholesaler –
retailer. Hence there is no
direct link with the customers.
In this process company is not
using the middleman and they
have direct relationship with
the consumers. This techniques
save time of company and
hence they can able to generate
more profitability and expand
their market share.
P4 figure out the different approaches in research and techniques which are used in developing
plan in decision-making
While there are different approaches to market research and company can use various
method for understanding their consumers. The type of data which company is required depends
upon the money as well as on their techniques of choosing their mode of business. Hence there
are different market approaches for the company like TESCO are explained down below in detail
manner.
Surveys: It is a kind of approach which is used by the company to analyse and gather the
information from customers. The person are taken from the sample group which represent the
market (Feitsma 2019). Company like TESCO can take one to one interview regarding the
product and services which are offered to the customers. This techniques allow people to have
ideas regarding new product with the help of advertisement and customers feedback. Nowadays
company are using in online surveys which help in generating unpredictable response data. By
the help of this techniques company can capture large market share and make higher revenue.
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Focus group: In focus group, company ask scripted series of question or topics which
help in discussion among various group of people. For example company can take this kins kind
of session in offices using the facilitate with videotaping equipment and an observation room
with one-way mirrors. This help facilitate TESCO to understand the current and actual
information about B2B and B2C business.
Personal interview: The another approaches of research is personal interview which
help in understanding the better side of customers . Ads like focus group, personal interview
include unstructured, open-ended questions which last long for an hour. For TESCO this help in
providing more subjective data and facilitate with keen information regarding the decision
making process of business. Further it provide valuable insight for the customers attitude which
help in discovering the new product and services to the customers.
Observation: Sometimes consumers have different behaviour regarding interview and
surveys. It is a prime duty for the company to have track on buying pattern of customers which
help company to understand and act upon it. There are various option for observation are
videotaping at stores and at work. This provide more close image of customers activity, habits
and shopping behaviour.
Field trials : Giving the new goods in stores and providing the new launched product for
testing purpose to he customers help in understanding the responds for the customers. Company
can analyse the make alteration, adjust prices, or better promotion. Many company do field trips
and market research to gain competitive advantaged from the market.
Market research method:
Industry investigation help to understand the where the company should use their
resources effectively and in time. For doing business it is necessary to interpret the market and
help in delivering quality product and services to the consumers. It help in developing product,
marketing and overall business strategies so that useful result are build. There are basically two
type of research are their in B2B and B2C business.
Qualitative research:
This research has the process in which company gather the information at lager scale.
This can be further divide on the basis of qualitative ans quantitative data (Chan and et.,
al.,2019). Along with this data can not be collected effectively as the information is collected
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from lager audience . For understanding the B2B as well as B2C business it has been explained
down below:
Correlation research: It is conducted to understand the relationship between B2B and
B2C and the impact of each other on them. In this kind of research company use mathematical
analysis method which enable the researcher to understand the correlation with market. This
help in understanding the patterns, relationships and current and future trends of customers. For
example, the company conduct the research to understand the relationship between the product
and gender base of the audience. Further it help to identify the target audience and company can
make product accordingly.
Experimental research: These kind of research help in understand the behaviour traits
of its respective customers which leas towards higher profit. In this method research is carried
out on limited audience and analyse the behaviour later on. For B2B and B2C company can use
this kind of techniques when they are launching new product for the customers. This provide
insight regarding new product and their usage for customers.
Online research: This kind of research are based totally on internet form where
company can get in time feedback from the customers from any distance. Online research have
become more popular nowadays which provide all the information regarding the buying
behaviour of the customers. Advancement of technology made these research more feasible.
Qualitative research method :
This is the kind of research quality information to the business entity. There are several
activities which are involves collection of data to gain customers feedback and to understand the
trends. Following are the process which is used by the company for doing business:
Website research: These are the research which have become common in recent years in
business sector. It help in collecting the direct feedback from the customers online. It is
important to collect feedback from the customers to become successful. For example if a
customers is looking for a product he can avail that service through the company website.
Case study research: It is consider as the effective as well as crucial research in
business. It also used for marketing research to gather more customers. This kind of research are
most often used in teaching, scientific institution and similar. These kind of case study are
provided to the client which help in showcasing their capabilities .
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TASK 3
P5 Explain how business can inspire different level in buying pattern with examples
Consumer judgement in process can effect the marketer at every level of doing business.
The study of consumer behaviour does not help in understanding the past but also help in
predicting the future. Most of the decision making is based on the emotions and preferences of
the customers. Here are decision making process where marketer can persuade the purchasing
conclusion of end users.
Marketing campaigns: Advertising plays an vital role for marketer to influence the
purchasing decision made by the consumers (Camacho-Otero 2019). The marketing campaign
should be done on the regular basis so that company identify the necessity and desire of the
customers. For example in case of B2B company can make healthy relationship with other
company which help in gaining trust within organisation. Whereas in B2C company can make
use of print as well as electronic media to promote product in the market.
Economical condition: The marketer should also look after the economic situation of the
individual because it also help buying capacity of the individual. For example if company is
dealing directly with the other business entity so in this case company must figure out the
revenue earned by the company. Whereas if company is doing business with customer company
must make affordable product to capture larger market share.
Specific targeting: Effective marketing is targeted to a specific, not a general, audience.
By way of illustration, consider the different approaches that might be taken with a product as
basic price which is taken in order to sell to the respective consumers. confusing marketing
strategies and eventually failure of business so there must be specific target for the consumers so
that employees can achieve their target easily.
Marketing partnership: The marketing partnership have various benefits which help in
developing marketing partnership to build alliance. Additionally, marketing partnerships are
cheaper to create, see success more quickly, and expose the brand to a new customers and help in
expanding the business in well defined manner.
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CONCLUSION
From the above discussed report it has been figure out that, consumer behaviour plays an
vital role in choosing the product. As there are various option available for the customers which
help consumer to choose accordingly. Further it has been identify B2B and B2C are two different
aspect where marketer have to put emphasis on understanding the buying behaviour of the
customers. Along with this company have to indulge in active market research so that
organisation can figure out the current trend and future trends. At last marketer should consider
different factor such as economical factor to understand the buying pattern of customers.
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