Consumer Behaviour & Insight: Walmart's Marketing Mix Strategies

This report provides an in-depth analysis of consumer behaviour and insights within the context of Walmart, a major retail outlet. It examines the stages of the consumer journey, including need recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation, using a visual roadmap and marketing funnel. The report identifies factors influencing these stages in both B2C and B2B contexts and evaluates how elements of the marketing mix impact the decision-making process. It further explores the role of market research and advertising in shaping consumer decisions. The analysis highlights the importance of understanding consumer behavior for marketers to enhance organizational profitability and effectiveness, emphasizing the application of relevant theories, concepts, and models.

Unit Number and Title Unit 37 – Consumer Behaviour and Insight
Project Title Consumer Behaviour and Insight
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Table of Content
1.0 Introduction Pg.
2.0 Explanation and analysis of the stages of the consumer journey
using a visual road map/story board for a chosen B2C
product/service clearly showing and illustrating the path to
purchase
Pg.
3.1 Identification (with a full justification) of the factors that
influence the different stages of the process and how this
compares and contrasts with B2C products/services
Pg.
3.2 Identification (with a full justification) of the factors that
influence the different stages of the process and how this
compares and contrasts with B2B products/services
Pg.
4.0 Evaluation of how elements of the marketing mix also influence
the decision-making process, supported by further examples and
case study illustrations Pg.
4.1 The influence of culture and sub-culture on consumer
behaviour and/or the role of opinion leaders Pg.
5.0 Conclusion Pg.
References Pg.
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INTRODUCTION
Consumer behaviour is the study of customer preferences, needs, behaviours and
wants which can be used to advance as well as enhance commodity development and
customer services. Consumer insights provides a deep comprehension of how a buyer thinks,
what influences their decisions and how they feel about particular product or services.
Evaluating human actions allows businesses to interpret what their target audiences needs as
well as wants are and what drives those (Bangsa and Schlegelmilch, 2020). Walmart is a
retail outlet, established in 1962 by Sam Walton that deals in departmental and grocery
products in 24 countries and has more than 10,000 stores globally. It is important for
Walmart to study consumer behaviour and insight to understand the expectations of consumer
from business. This report analysis the levels a consumer goes through in their decision-
making journey as well as the factors influencing their judgement and its importance for
marketers. It will also include different process and approaches of market research in both
businesses to customer and business to business context. The level of influence marketers has
on each stage of decision making is also studied.
2.0 Explanation and analysis of the stages of the consumer journey using a
visual road map/story board for a chosen B2C product/service clearly
showing and illustrating the path to purchase
Consumer journey mapping is the approach of developing a map through which the
decision-making process of consumers can be evaluated. The consumer decision mapping is
the process of identifying the demands and interests of consumers through which an
organization can deliver quality products and services that can be helpful in enhancing the
customer experience of consumers (Briguglio and Formosa, 2017). The consumer journey in
the context of Walmart is discussed beneath which will define different stages through which
a consumer pass:
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Source: Customer Journey Mapping, 2021
 Need recognition- This is the first stage of consumer journey mapping where needs
and type of services that are offered by the companies can be evaluated through which
consumers can evaluate the appropriate alternatives that can be chosen. In the context
of Walmart, the company will be making use of online and offline channels of
promotions through which they can advertise the products and services of the
company which will be helpful in increasing the awareness of the product portfolio of
the organization (Butcher, Tang and Phau, 2017). Such activities will be helpful in
gaining consumer attention through which companies can create a presence in the
market which will be helpful in attracting customers at a higher rate. Walmart will
promote through visual advertisements, promotions through social media content, and
interactive photos through which they can generate higher revenues.
 Information search- This is the second stage of consumer decision-making where
consumers can gain knowledge about the products and services of the company. in
this stage, the consumers look around for information through which they can
understand and evaluate the products and services which are offered by the
companies. In the context of Walmart, the consumers can on google and other search
engines through which they can gain an understanding of the products and services
which are offered by the company. This will be helpful in gaining insight into the type
of products and services which are offered by Walmart for their consumers.
 Evaluation of alternatives- This is the third stage of consumer decision-making
where consumers can identify the products and services offered by the company and
evaluate the possible alternatives that can be chosen by consumers. This stage will
help consumers to identify the products on the basis of price, quality, availability, and
quantity of the products (Camilleri, ed., 2019). In relation to Walmart, the company
will be focusing on nurturing the leads through which they can focus on creating a
seamless consumer conversion and influence the decision of consumers.
 Purchase- This is the stage that reflects the decision that has been formed by the
consumers. This stage is used to reflect the conversion rate of consumers for the
organization. This is the stage in which consumers make final decisions and purchase
the product or service from the evaluated alternatives.
 Post-purchase evaluation- This is the last stage of consumer journey mapping which
is the services that are provided by the organization to consumers after making the
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purchase through which they can meet consumer satisfaction level. This stage acts as
the reflection of consumer journey mapping which reflects the activities of consumers
and organization through the consumer decision making journey.
Visual road map
Source: Created by self
Path to purchase
Path to purchase can be defined as the reflection of the consumer journey which is
used to outline the touchpoints which can create an impact on consumer spending and
purchasing decisions (Chiu, Lo and Hsieh, 2017). The approach of mapping a path is helpful
in understanding the touchpoints through which a consumer moves and forms a decision. In
the context of Walmart, mapping a path to purchase for the company is discussed with the
help of the marketing funnel below:
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Source: A complete guide to the marketing funnel, 2022
Marketing funnel is a four-stage process that involves, attention, interest, desire, and action.
 Attention- This is the first stage of the marketing funnel which focuses on generating
leads through which the company can attract a higher number of audiences and
generate higher revenues. This is the upmost stage in which consumers are drawn
through which the awareness of the brand among audience can be developed and
increased (Chu and Chen, 2019). In case of Walmart, the company creates awareness
of the brand by celebrity endorsement, social media channels, website, word of mouth
and more through which the interest of consumers can be driven. Walmart will be
promoting their products and services through social media platforms, advertise
through audio and visual channels and will be promoting their range of products
through celebrity endorsement through which they can attract customers which will
enhance their brand presence in the target market and will also support the company
in meeting their objectives. In context of Walmart, the company will be taking an
advantage of digitalization in which they will be generating the awareness of brand by
promoting their product portfolio through social media channels, such as- Instagram,
YouTube and more.
 Interest- This is the second stage of consumer decision making where the consumers
can learn more about the brands and their offerings. This helps the company in
developing a relationship with people with the help of emails, newsletters and more.
In context of Walmart, the company will be generating interest of consumers by
sharing detailed information with the help of newsletter, sales representatives,
brochures and sample packages. The interest of consumers will be developed with the
help of newsletters, brochures, attractive offers and by offering sample package
through which greater number of consumers can be attracted. Walmart will train their
sale representatives through which they can establish effective communication with
customers that can be helpful in building their interest and in generating higher leads
that can be profitable for the venture. In relation to Walmart, the interest of customers
will be developed with the help of influencer marketing, audio-visual and written
content through which customers can be attracted at larger number.
 Desire- This is the third stage of the marketing funnel where the consumers reflect
their interest in purchasing the products as per the gathered knowledge. This stage
brings opportunity for marketers to influence customers through which they can
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converts the leads into sale for the organization. In this stage, the consumers desired is
generated by driving their interest in the products and services which are offered by
Walmart. As Walmart will be offering information through various mediums, such as-
sales representatives, brochures and newsletters, this will be helpful for increasing the
desire of customers through which the organization can generate and convert their
leads.
 Action- This is the last stage of the marketing funnel which reflects the decision or
action that have been taken by the customers. In this stage, the marketers must focus
on delivering quality products and services through which they can ensure in meeting
positive customer experience which will be helpful in creating a loyal and strong
customer base. In context of Walmart, in this stage, the consumers can make a
purchase through their website, book products online and by making an in-store
purchase. In this stage, Walmart will allow their customers to make a purchase
through their online website and in-store purchases through which they can meet
customer demands and expectations.
Importance for marketers for mapping a path to purchase and understand consumer decision
making
Mapping a path to purchase plays a crucial role as this can be helpful in understanding
the consumer decisions which can support companies in forming decisions that can enhance
organizational profitability and effectiveness (Diaz Ruiz, 2021). In context of Walmart, the
importance of mapping a path to purchase for the company is addressed below:
 It helps the marketers in plotting the path of audience by offering them valuable
information which is required by the organizations.
 This helps in understanding the story of customer experiences with the brand across
all touchpoints.
 This will help the marketers of Walmart to determine the touchpoint of customers
through which they can make future improvements in their products and services and
understand the demands and consumer patterns through which they can deliver a
quality customer experience.
Evaluation of how marketers are responding to the decision-making process with concepts
and models
The marketers are responsible to evaluate the decision-making process of the customers
which helps the companies in creating a positive impact on the purchase decision of
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consumers in the company. In case of Walmart, the evaluation of marketer’s response to
consumer decision making is discussed beneath:
 Market research- The marketers of an organization will identify the market trends
and consumer patterns with the help of market research. Such practices help the
companies in gaining a competitive advantage by understanding the customer demand
that needs to be met by the company (do Paço, Shiel and Alves, 2019). In relation to
Walmart, the company will be performing market research which will assist them in
gaining insight into the changing consumer trends and patterns which can help the
company in meeting customer targets ad demands through which they can generate
higher revenues and maximize business profitability.
 Advertising- Many companies are investing in advertising through which they can
create a significant impact on the consumer decision making and such factors helps
the companies in creating a strong consumer base that can be helpful in generating
higher revenues and in maximizing the profitability of the organization (Funk, 2017).
In the context of Walmart, the company promotes their diverse range of products and
services by advertising their products with the help of offline and online channels
through which they can influence consumers and generate higher leads that can
support them in meeting the organizational objectives and in maximizing the
profitability of business.
Critically evaluate the application of appropriate theories, concepts, and models which
influence and impact the decision-making process
Utility Theory: The utility theory is helpful in evaluating the number of goods that
are consumed to the amount of happiness or satisfaction that a consumer gain. In simple
terms, this theory is helpful in evaluating the level of satisfaction that a consumer can get
after the consumption of products and services offered by the organization. In context of
Walmart, the company will be following utility theory which will help the retail company in
evaluating the level of satisfaction of consumers from the products and services that are
offered by the organization (Gibson and O’Rawe, 2018). This theory will assist Walmart in
focusing on the law of diminishing marginal utility and law of demand of consumers.
Walmart will be following utility theory through which the brand can understand the level of
customer satisfaction that has be met by them by offering the range of products and services
of the company. With the help of this theory, Walmart will evaluate the number of leads that
have been converted which will be helpful in understanding the influence of their actions and
tactics on the decision making of the customers.
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3.1 Identification (with a full justification) of the factors that influence the
different stages of the process and how this compares and contrasts with B2C
products/services
 Need evaluation- In B2C enterprises, consumers analyze their needs, and Walmart
manipulates customers by marketing, promoting, and advertising its services through
a variety of channels, including social media platforms, television, and attractive
prices.
 Alternative evaluation- Customers assess alternatives and manage preferences based
on their needs by comparing the services given by the retail company to those
provided by other retail businesses.
3.2 Identification (with a full justification) of the factors that influence the
different stages of the process and how this compares and contrasts with B2B
products/services
 Need evaluation- In a B2B transaction, a company partners with another company to
supply services that may help meet a client's demand or deliver a better experience
(Hartmann, Apaolaza and D’Souza, 2018). Walmart, for example, will concentrate on
infrastructure development to aid in the delivery of a high-quality consumer experience.
 Alternative evaluation- In this scenario, buyers evaluate options based on providers and
select the most enticing one that would help meet demand.
Evaluation of different approaches of market research and methods of research used for the
understanding decision-making process in both B2C and B2B
Market research is the approach of gathering information through which information
about the target market, consumer interest, and patterns of the products and services can be
evaluated. This is the approach of studying the consumer behavior and changing market
trends through which the company can understand competition within the industry. There are
various methodologies of market research that can be followed in B2C and B2B businesses:
For B2C businesses
Qualitative technique
 Interview method- It is essential to understand the demands of consumers for an
organization and this can be done with the help of interview method through which an
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organization can evaluate consumer needs. This is a part of qualitative market
research which assist the companies in understanding the purchase decisions of
consumers (Japutra and Song, 2020). In context of Walmart, the company will be
following interview method in which the company will be following face-to-face
interviews with the consumers through which they can evaluate the demands and
interests of consumers. This method of research will help the company in
understanding demands and in meeting consumer satisfaction level.
 Online survey- This is another medium of market research that is the approach of
evaluating consumer satisfaction level. The online survey is the method of evaluating
the response of consumers through which the companies can evaluate the response of
consumers which will be helpful in forming future decisions that can support in
enhancing the performance of the company. In context of Walmart, the company will
be organizing online surveys through which they can understand consumer opinions
and interest towards the brand through which they can further plan innovative
strategies for meeting the targets.
Quantitate technique
 Focus groups- In this approach of market research, a group of people sit together and
discuss for a specific topic. In context of Walmart, a group of people will be discoing
with the company about the products and services which are offered through which
the company can understand the level of satisfaction that have been met by the
company. This will be helpful in meeting the consumer demands and level of
satisfaction by bringing the required change in the company.
For B2B businesses
Quantitate technique
 Observation methodology- Observation is the market research approach where a
trained researcher will be monitoring the reactions and consumption of consumers
through that the company can understand the market demand (Kaye, Malone and
Wall, 2017). In context of Walmart, the markets will research and observe the
consumer spending potential and understand the demands through which the company
can meet consumer demands and level of satisfaction. This helps the companies in
understanding consumer decisions by observing their purchases and expenses through
which the companies can plan strategies that can be followed by them for meeting the
demands of consumers and in creating a loyal customer base.
Qualitative technique
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 Phone screening- In this method, Walmart will be conducting phone interviews
through which they can get in touch with customers which will be helpful in taking
their feedbacks for future improvements that can support the brand in meeting
customer demands.
Critical evaluation of how marketers influence each stage the decision-making process with
reference to relevant methods and models applied
The consumer decision-making process is a systematic process that involves various
stages and the function of each stage is performed accordingly. The stages of consumer
decision making involves, awareness, searching information, evaluation of alternatives,
purchase and post-purchase (Marino and Presti, 2019). There are various factors which can
create an impact on the consumer decision making and these can be influenced by interactive
promotions by the brand. In relation to Walmart, marketers influence the stages of consumer
decision making journey which is discussed beneath:
Awareness- This is the first stage on consumer decision making and in relation to
Walmart, the company follows various marketing strategies through which they can promote
the products and services which helps in influencing consumers. The company follows social
media channels, campaigns and strategies through which they can attract greater number of
customers. In order to increases the brand awareness among consumes, marketers of Walmart
will be focusing on promoting their products through social media platforms from Instagram
which can be directed to their official website that can support customers in gathering more
detailed information related to the products and services of the company.
Research- In case of Walmart, the marketers of the company follow advertise their
products through social media platforms and their website, through which they can offer
customers the information that is required through which they influence the consumers and
their purchase decisions of consumers. In this stage, the marketers will offer brochures and
promote their website and will strategically plan in forming effective communication with the
help of sales representative through which they can gather more information related to the
products and services that are offered by the company. This will be helpful in influencing
customers when they are seeking more information about their offering and their company.
Consideration- In this stage, Walmart offers will offer brief information of the
products and services through which the consumers can be influenced and inspired by the
company which will be helpful in generating leads. In this stage, the consumers will be
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considering to avail the products and services and at this stage, marketers will promote the
benefits which can be driven by the products and services that are offered by Walmart.
Conversion- In this stage, Walmart focus on offering products and services of high
quality through which they can convert higher leads and generate higher revenues (Marriott,
Williams and Dwivedi, 2017). This helps the company in creating a loyal customer base and
in generating higher revenues. This is the stage in which consumers will make an action and
the marketers of Walmart will regularly engage with their customers through which they can
influence their decisions and convert the leads that can support in maximizing the profit
margins of the company.
Repurchase- This is the last stage of consumer journey mapping where Walmart will
focus on delivering quality customer service through which they can create a customer base.
In this stage, Walmart will be offering post sale services through which they can meet
consumer demands. At such phase, marketers of Walmart will focus on offering quality post
services to their customers through which they can create a loyal customer base and retain
higher number of customers which will also bring various benefits to the organization.
Simon model: This model classifies the decision-making process into three stages,
which are- Intelligence activity, design activity and selective activity. According to this
model, it states that decision making is the cognitive process which involves fundamental
components. In context of Walmart, in the intelligence stage, the company can evaluate the
possible alternatives and rank them as per importance and other important factors (Mick,
2017). In the design stage of the model, Walmart will identify the criteria and standards that
are of much more importance through which they can form decisions. In the stage of making
a choice, Walmart the company band consumers will follow and select the desirable
alternative for making the decisions. In this stage, the company will choose the most
interactive approach of attracting customers through which they can generate higher leads
and at act greater number of customers.
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