Consumer Behaviour and Insight: Decision-Making Report

This report provides a comprehensive analysis of consumer behavior and the consumer decision-making process. It begins by outlining the stages of the consumer buying process, from need recognition to post-purchase behavior, and emphasizes the importance of understanding these stages for marketers. The report then examines the significance of understanding consumer buying behavior, highlighting psychological and social factors that influence consumer choices, and introduces the Nicosia model as a framework for understanding the relationship between a company and its consumers. Furthermore, it compares and contrasts the decision-making processes in B2B and B2C contexts, providing examples to illustrate the key differences. The report also evaluates different approaches to market research and identifies the role of marketers in influencing the various stages of the decision-making process. Finally, the report concludes by summarizing the key findings and emphasizing the importance of consumer insights for effective marketing strategies.

UNIT 37 Consumer
Behaviour and Insight

Table of Contents
INTRODUCTION...........................................................................................................................2
P1 Describe and figure the stags of the consumers buying decision making process................2
P2 Examine the necessity of marketer to understand the buying behaviour of individual.........4
P3 Compare as well as contrast the key difference of the decision making process with
examples......................................................................................................................................5
P4 Evaluate the different approach to market research and the understand the decision making
process.........................................................................................................................................7
P5 Identify the role of marketer and how they effect the various stages of the decision making
process.........................................................................................................................................8
CONCLUSION..............................................................................................................................10
.......................................................................................................................................................10
REFRENCES ................................................................................................................................11
1

INTRODUCTION
It is the study of how different client, group or individual choice, use and buy in order to
fulfil there needs and wants. In other words it refers to the individual group and make decision
with regards of selection, purchase, use, and disposal of goods, services. It is essential to
understand what influence the buying decision of the consumers and their changing demand and
needs (Smith, and et., al., 2019). Virgin group UK has take as the consideration which was
founded in year 1970 and its headquartered is located in London. This report covers about the
stages of the consumer behaviour decision making process and it journey. Further this project
describe about importance of map to purchase product and understand consumer decision
making process. Along with this it compare the key difference of the decision making process in
B2B and B2C process. Beside this different approaches has been covered to understand the
buying behaviour of the customers. At last this report provide information about the different
stages of judgement making in B2B and B2C process.
P1 Describe and figure the stags of the consumers buying decision making process
This techniques involve various kind purchasing process and also to figure out the actual
demand for the consumers. Further this method help identifying the alternative and explain about
the buying pattern of the individual. The consumer process help in understanding the various
factor such as ecological as well as geographical difference in offering services to the customers.
The decision making process determined by economic and psychological factor and are
influenced various factor like social and cultural values. The consumer buying pattern is very
complex in nature which involve from need generation to post purchase activity. Here are some
buying decision process which are described below:
Need Recognition: Need recognition occur when the consumer need are developed at a
certain level. The individual feel like that they are missing something and need are generated as
to fill the gap. The entrepreneur are able to describe there target market and start developing
those needs or wants so that they can capture large market share. The need is create when the
person realize the product and service are triggered by the internal stimuli. For example if the
person wants to travel the world in this scenario the need is generated for the customers. Here
they decide and plan to trip at the initial stage.
Information search : It is consider as the second stage where buying decision process
tends to change regularly and consumer start searching for the product as per the requirement. In
2

information search person take help of various sources such as Internet, social media and website
to gather information regarding the product and services. In today modern world there consumer
have various option available so that employees can choose the product from different option.
The information can also be gather from the people who have previous experience with the
similar product. At this level, consumer prepare list of the feature of particular brand. The next
step where customer figure out the various modes of travelling which is known as information
search. Here person take help of various such internet, colleagues to gather the information.
Evaluating the alternative: This step involve evaluating different alternative that are
available in the market with the product and service which are offered by the company. Once the
consumer identify the product then individual starts to find the alteration of the similar product
(Walzberg 2019). Consumer compare about the price, feature, services to find out the best
possible product under the category. The person can compare the price or read the review and
select the product which can satisfied their parameter. The third step is evaluating the alternative
here consumers find out sources of booking tickets such as Virgin airlines, Thomas cook and
booking.com. The end user choose to the best suitable outcomes according to the budget decided
for the trip.
Purchase decision: when the consumer have gone through all the process from the above
decision making process, finally they decide to make purchase decision. At this level the
individual evaluate all the facts and has arrived at the logical conclusion which are related to the
consumer needs and wants or on the basis on emotional connection. The purchase decision can
also be made of the personal experience where all the pros and cons are evaluated and purchase
decision re made. For example after analysis all the alternative the consumer comes to the
conclusion where and identified that Virgin tours and travel provide the best services to the
customers.
Post Purchase Behaviour: The buying of the product is followed by the post purchase
decision which help in identifying the product is useful for the consumer or not. If the product or
the service is matched with the need and wants of the consumer the final purchase decision is
made. This serve as the brand ambassador who can influence the person to buy the particular
product which can satisfy the needs of the customer. If the consumers have any bad experience
than it create a negative impact on the minds of the customers. For example this is the last step
where consumers experience the services provided by the Virgin and also give feedback
3

regarding the experience and further assist people to avail these services. If there is a bad past
experience thus consumer will not avail the services.
P2 Examine the necessity of marketer to understand the buying behaviour of individual
For making a successful business it depends upon the organisation that how they
understand the buying behaviour of the consumers. As this factor determine the growth and
expansion of the organisation. In order to influence the purchase decision of the consumers it is
crucial for company to understand the buying pattern of the consumers. The behaviour of the
individual reflect the attitude and intention of the consumer with the product and service offered
by the company. Decision making process describe the method to understand the consumers so
that firm can generate high profit and capture large market share. The organisation must focus on
market research to know the current as well as future trends in market. Here are some method to
map consumer decision making process which are briefly explained down below:
Psychological: It is consider as the prime factor which effect the behaviour and buying
decision making process of the person (Phan, 2019). It include various factor such as personality,
attitude, motivation, values etc. So it is necessary for marketer to understand the psychological
behaviour of the end users to identify their moods and requirement according to which company
can make product to satisfy the needs. For example the offering jeans to consumer so they have
to understand the attitude, personality of the individual with the help of research and then offer
the product which ensure the profitability.
Social factor: This factor involves the religion, language and culture. Different people
belong to different background which effect the buying decision of the individual. For the
company it become essential to understand there background and gender to deeply understand
the changing moods of the customers. For example company like Starbucks must understand the
social factor such as gender, religion and background before entering in the market. As in some
places people do not like coffee they prefer tea. As they have to do proper research in order to
reduce uncertainty and theft.
To understand the consumer buying behaviour The Nicosia model is explained briefly as under:
The Nicosia model was given by the Professor Francesco M. Nicosia which is known for
his work in understanding the attitude and buying behaviour of the customers.. This model
focuses on the relationship between the company and its potential employees. It provide insight
4

about the message which is delivered by the firm in order to attract the buying behaviour of the
company. For the organisation manager have the responsibility to implement the model to have
keen information about the consumer behaviour. Further this model is divided into four major
parts:
Consumer attribute: In this method organisation try to evaluate the marketing
environment as well as consumer attributes. For the company like Virgin group the marketer
should identify the consumer attribute to gain competitive advantages. This also help in figure
out the personality, attitude and behaviour towards buying decision of a person.
Search and evaluation: In the consumer try to find out the out the other brand to make
sure about the quality and service of the product. In this situation organisation can motivate
employees to purchase the product by offering the discount and after sales service to the
consumers.
Act of purchase: This result of motivation arise when company convince the consumers
to purchase the particular product from the shop. After various evaluation buyer finally purchase
the product as per the requirement.
Feedback of sales result: This is the last scale which provide the feedback of both firm
and the consumer after purchasing the product. In this case firm take the feedback and gather the
data which is analysed to offer better service.
P3 Compare as well as contrast the key difference of the decision making process with examples
For the current business context, B2B as well as B2C are the important aspect which
deals with consumers (Masotti, and et., al., 2019). Every organisation have their own business
model on which the entire process and business activities are based on. In the B2B business
model company do not deal with direct customer but they conduct their operational activities
with other companies. Whereas B2c model organisation provide services directly to the
consumers. Virgin group is one of the largest hospitality company across UK . They have
diversified business such as airlines, telecommuting and much more. Here is the comparison
regarding the different business model which are explained briefly down below:
Basis of comparison B2B B2C
Meaning It is business model in which
company directly deals with
In this business model
organisation have
5

different firm and does not
have any link with the end
users.
interrelationship with
consumes. And there are
various intermediaries are
involved in distribution.
Customers In business to business model
the prime customers are big
companies and organisation
which deals in manufacturing
process. They mainly provide
their services to respective
firm. For example Speedboad
assembly services provide
defence equipments to the
organisation as they have no
connection with employees
The customers are the end
users as they offer their
services to the respective
consumers. In this process
there are various distribution
channel are involved to meet
the services of the consumers.
Focus on In this kind of business model
company try to focus on
making quality relational with
organisation for the purpose to
expand business in future.
In B2B method company try to
make quality product and
services for fulfilling the needs
and requirement of the end
users. By this they try attract
more and more customer to
make profit.
Buying and selling cycle For B2B the buying as well as
selling process is a lengthy and
time taking process. As it
require lot of paper work and
documentation is done to do
business effectively.
Whereas in this business the
buying and selling process are
fixed and it take limited time
to avail services to their
respective customers. There
are less legal and paper work
required to operate business
activities.
6

Buying decision In this process the upper
management take all the
decision and form the polices
for making successful growth
(Feitsma, 2019). The
employees and manager have
less role in making decision
for the company.
For B2C decision are made
upon the desire and also on
emotional making process. For
taking the decision buyers
choice are kept in mind
because at last they are the
person who avail the service.
Creation of brand value The creation of brand value is
done is purely based upon the
trust and mutual interest and
relationship with the company.
In the case of B2C the
organisation create the brand
value by making effective
promotional activities and
advertisement. This method
help organisation develop
goodwill in the minds of the
customers.
P4 Evaluate the different approach to market research and the understand the decision making
process
The method is defined as the techniques to evaluate the importance of the new product
ans its services which help in understanding the target audience in the market. This techniques
allow the company to make identify the target market and also collect the document and opinions
of the respective customers. The market researcher can be done by the firm which can be
outsources by the third party. The research can be done through by deploying surveys interacting
with the different group of people. The prime source of conducting market research can be used
in tailor marketing and advertising the product and understand the needs of the customers. Here
are the some important step of different market approaches for the company which are explained
down below:
Focus group: It is one of the most commonly used qualitative research method where
small group of people who usually respond to the online surveys which are send by the company.
7

It is useful in collecting the information even from the remote place without interacting with the
employees. This techniques is considered as the expensive method as it require lot of time and
money. In the context of Virgin group marketer can indulge in market surveys with the help of
focus group because they can take feedback from the various customers. It will help to
understand the needs and wants of the customers.
Surveys: It is a kind of approach which is used by different organisation to figure out the
crucial information of the customers. In this method researcher take the sample from the market
and take feedback regarding the product and services. For the Virgin group market team can
conduct the survey with help of telephone because they are less expensive and the easy way to
gain knowledge. Company can also use mail surveys which are relative cheap and can reach to
the broader audience. They consume less time and remain the first choice of the business for
conducting research.
Personal interview: It is similar to the focus group where candidates are unstructured
question by the recruiter. Most of the companies use these method which help in providing
subjective data as well as surveys. In the context of Virgin group the marketer can interacted
with respondent face to face so that he can avail information regarding the product. Sometime
this result are not critical and organisation may not relay on this information. More or less the
personal interview provide valuable insight of customers attitudes which are related to the
product and services.
Observation: In this case different consumers have different behaviour regarding the
interview and surveys. It is the main responsibility to track down the buying behaviour pattern of
the individual. Company can observe there behaviour by videotaping them at work or while
shopping the product or any commodity. This method provide more accurate picture of the
customers usages rabbit as well as the shopping pattern. The growth and success is totally
depend upon the
P5 Identify the role of marketer and how they effect the various stages of the decision making
process.
By mapping the customers decision making process organisation can offer more relevant
product to the consumers. As B2B and B2C are typically involve various level such as budget as
well as plan. The customer psychology effect the buying behaviour of the end users where B2B
sector organisation make product on the basis on the emotional aspect. Where as in B2C the
8

company focus on developing product on the behalf of logical aspect of making profit. The
purchase process is initiated by buyer when aware about the need and the awareness comes from
internal sources such as marketing communication. Individual have the experience when they
purchase the product.
The are several important consideration for marketer during the evaluation stage. The
marketer must have effective marketing strategies and ensure that consumers are aware about the
new product offering. Marketer often design marketing programme that can change the decision
making process of end users. When a consumer make a purchase marketer must be careful do not
loose the potential of the customers (Ciriolo and Almeida, 2019). Because consumers can change
often change the decision during the next purchase. To reduce this risk of uncertainty the
company can offer the guarantees as well as warranties while making of purchase. To meet the
requirement of the consumers marketer have to make eye catching advertisement and public
relation message to their brand in the mind. There are several factor which influence the
consumer buying behaviour which include layout, location and price. So in this scenario,
marketer must emphasis on this factor in order to gain more revenue and profit. To understand
the influence the different stages of decision making process here is the theory which is
explained below:
Behavioural theory: This theory describe how human behaviour when they purchase a
product. It also explain the changes occur while person purchase the product as consumer
decision process changes accordingly to the time and the mood (Boonlertvanich, K., 2019).
Theory explain about the personal as well as behavioural characteristics of the person. So
marketer have to put emphasis on buying behaviour of the individual in order to understand the
buying pattern so that organisation can offer better quality product and services and to satisfy the
needs of the customers.
The factor which effect the decision making process are explained down below:
Perception issues: perception can be influenced by the various techniques which include
background as well as past experience. Sometime the person purchase any product on the basis
of past experience. If individual have negative impact they will not buy product and vice versa.
So company must provide effective sales services to avoid the perception.
Personal factors : Personal factor include various elements such as age gender education
and economic condition. Thus this effect the buying behaviour of customers for example if
9

person do not have high income they cannot spend more on luxury items whereas customers with
high income have more money to spend.
CONCLUSION
From the above report it has been analysed that organisation work for profit and
expansion. So consumer behaviour plays and vital role in understanding the buying pattern of the
consumers. Where as different research are taken into account so that organisation can provide
the quality product to there respective customers. Research also help in identifying various trends
which are present in the market. Along with this it has been figure pout that B2B and B2C are
two different aspect where marketer have to put emphasis on understanding the buying
behaviour of the customers. The behaviour theory has been used to deeply understand the buying
pattern of the customers effectively.
10

REFRENCES
11

12