Analyzing Consumer Behaviour and Decision-Making Models in Marketing

Desklib provides solved assignments and past papers to help students succeed.

Page1
Consumer behaviour and insight
Student Name:
Student ID:

Page2
Table of Contents
Assignment 1................................................................................................................... 4
Introduction...................................................................................................................4
Explain the consumer decision-making........................................................................4
Models of consumer decision-making..........................................................................5
Mapping out the decision-making process for a particular product or service of your
choice........................................................................................................................... 7
Importance of mapping a path to purchase and understand consumer decision-
making.......................................................................................................................... 7
Levels of consumer decision-making............................................................................8
Factors that influence decision-making........................................................................9
Conclusion....................................................................................................................9
Assignment 2................................................................................................................. 10
Introduction.................................................................................................................10
Compare and contrast the key differences between B2C and B2B decision-making
processes................................................................................................................... 10
Evaluate how market research differs between B2B and B2C...................................11
Illustrate how personality, self and motivation, and customer perception influence on
the decision-making process......................................................................................11
Evaluate behavioural and cognitive approaches to consumer learning......................12
Identify how culture and other relevant factors affect consumer behaviour................12
Illustrate how organisations use an understanding of buyer behaviour to influence the
decision-making process within both a B2C and B2B context....................................13
Evaluate the use of digital audience research developments to understand and
influence consumer behaviour....................................................................................13
Conclusion..................................................................................................................14

Page3
Reference List................................................................................................................ 15

Page4
Assignment 1
Introduction
customer are considered to be the main elements for which any businesses develops
their products and services and it is relevant for the business to assess the customer
decision making with the help of which they can develop their products in the best
possible manner. The chosen business for this study is Marks and Spencer (M&S),
which is having its presence in the market of UK. The study will be focusing on the ways
in which the selected business response to their customer behaviours and the various
techniques, which further guide them in understanding those.In this part of the study,
various models of customer behaviour will be discussed, which will further help in
knowing the ways in which decisions are taken by the customers can affect the
business in the long run. Furthermore, the different levels of customer’s decision-
making will be understood.
Explain the consumer decision-making
As per the statement of Rezaei (2015), consumer decisions are considered to be the
external stimuli that influences a business to develop their products in better manner.
Consumer decisions can even be stated as the perceptions that are developed by the
customer of a business prior to purchase of products and services from an
organization.The decision making of the consumers are the image of the goods that the
consumers can figure out before availing the product from business. Consumer
decision-making process consists of several stages that are as follows:
Figure 1: Stages of consumer decision making
(Source: Researchleap.com, 2019)

Page5
 Need recognition: This stage involves the recognition of products, which
involves the product that the customer of a business is willing to purchase form
the firm (Researchleap, 2019).
 Search for information: It is the second stage that involves all the information
that are related to the products. It can be regarding the quality or it can even be
about the materials that are used for the product making.
 Evaluation of alternatives: Alternatives are the most common thing that a
customer analyses prior to the purchase of the product. It is essential for the
customers to evaluate whether the alternatives can meet their satisfaction level
or not. This stage of decision-making assists a customer in recognizing the
preeminent product for him or her.
 Purchase decision: In this stage, the customer comprehends the right product
that can serve their purpose and satisfy their needs, which they need to buy from
the businesses that are there in the market.
 Post-purchase evaluation: This is consideredthe evaluation of the experience,
which the customer received after buying a product from an organization
(Researchleap, 2019).This is the most essential stage that influences a customer
to buy a product from a business in repetitive manner in the future.
It is essential for a business like M&S to realize the expectations of the targeted clients
for developing the goods according to their needs, which can further compete with the
existing alternatives that are proposed by the competitors of the business. It is essential
for the firm to meet the satisfaction level of their targeted consumers in order to create a
strong customer base.
Models of consumer decision-making
Customer’s decision-making plays an eccentric role in the development of an
organization. In modern scenario, different models related to customer decision-making,
which further guides a firm in developing their products and even in understanding the
ways in which their targeted customers feel for their offerings. Some of the models are
discussed below:
 Economic model

Page6
As per the statement of Gatta et al(2017), economic model of consumer decision
making opines that the consumers are rational in their nature as well as they are
proficient of captivating rational decision while purchasing a product from an
organization. It is the nature of the customers to identify the advantages and the
disadvantages that the product holds and to buy it after keen evaluation. On the other
hand, it is even seen that in any situations customers are not that much rational as they
are expected to be. Thus, it is unrealistic in nature.
 Passive model
In this passive model of customers decision-making, it is understood that the customers
enjoys the effort that is made by a business regarding the promotion of their products
and services (Tsiros and Mittal, 2000). Most of the customers buy products after they
feel from what the marketers have shown through their promotion strategies.
Advertisement plays vital role in the convincing a buyer to buy products from them.
 Cognitive model
Cognitive model is considered the finest model that helps in assessing the customer’s
decision-making. This model opines that the customers buy products relied upon their
needs and demands (Yacout and Vitell, 2018). It is their tastes and preferences that
influences their decision making and not the advertisement strategies.
 Emotional model
Emotion plays a essential role in influencing the customer’s decision making process.
Customers are emotional in nature and if they feel for a product, they tend to buy the
product in e repetitive manner (So et al., 2015). However, quality of the product is also a
factor that needs to be considered by the business while offering the product to the
customers. The more they feel for the product consumers tends to buy it and vice-versa.
Mapping out the decision-making process for a particular product or service of
your choice
M&S deals with various kinds of products and it focuses on the manners in which the
consumers and their decision-making can affect their food products. In this part of the

Page7
study, the mapping of food products will be demonstrated, which can further help the
chosen firm in developing their products to make them more attractable to the targeted
customers (Petersen et al., 2015). The stages of decision-making process are
demonstrated below:
 Decision identification: With the support of this step, the business can identify
the market opportunities, which M&S can avail while executing their activities
within their chosen location. This area of assessment will further allow the
developers in designing their products in the most attractive manner, which will
further help the business in better engagement of customers.
 Information gathering: Within this stage of decision-making process, the
information that is related to the food market are received by the firm, which
additionally gives ideas regarding the development of their food products.This
stage of assessment allows the business in knowing the quality that is proposed
by the existing rivals of the firm, which can help them in creating better value of
their products and even in designing their products in the most attractive way. On
the other hand, it also allows the business in selecting the needed food products,
which can help the business in receiving better sales at the end.
 Identification of the alternatives:Food products have no such alternatives but
again it can have various alternatives. It is essential for the business to identify
the products that are having no such replacement or alternatives so that the
customers are more attracted towards them. In other words, it is relevant for the
firm to identify the offers that are made by their rivals to its targeted customers.
Importance of mapping a path to purchase and understand consumer decision-
making
Mapping allows the business in analysing the wants and needs of the customers and
the offers that are made by the rivals at the same time. This mapping process of
assessing the path of consumer purchase even aids the business in identifying the most
needed product by the targeted customers, which on the other hand helps the business
in selecting and developing their food product line accordingly. It is necessary for the
business to go through this mapping process in order to assess or evaluate the

Page8
purchasing behaviour of their targeted customers. With the help of proper
understanding of the customer behaviour of purchase, the business can even make
proper management of their supply chain. Additionally, creating better meeting of
customer satisfaction level and creating a loyal customer base for the organization.
Levels of consumer decision-making
Consumer decision-making can be affect the functioning of a business and even its
growth to some extent. It is essential for a business to understand the level of decision
making for creating better execution of their actions. A business can function in two
different manners, B2B and B2C. This can be understood by analysing the level of
decision-making and they are as follows:
Extensive problem solving: This is where a customer is too much involved in the
product and he or she significantly assess the item in order to meet their satisfaction
and need levels (BBA mantra, 2016).
Limited problem solving: This is the level where the customers are not that much
involves with the product but are certainly conscious about their brand from where they
purchase in products to meet their satisfaction level and their needs level.
Routine response behaviour:within this level of decision-making, the customers are
connected with the products very slowly. The customers tends to purchase any
products from any brand just to satisfy their needs level.
The extensive problem solving has taking into account because the products here are
food products and it is extremely vital for the business to analyse the involvement of the
consumers in order to serve them quality products. This on the other hand can help the
business to grow and sustain their business much effectively in the future.
Factors that influence decision-making
Decision-making are dependent on various factors are it is essential for the developers
of the business to identify and analyse them accurately (Mirabi et al., 2015). The
decision making of consumers are one of the most essential factor based on which a
business can further grow in the future.There are cultural and social factors that the

Page9
business need to understand in order to understand the customer’s preferences. It is
essential for the business to identify the nature of foods that are consumed by its
targeted customers and even the paying capability is another factor that the business
needs to keep in mind. Pricing of products plays an essential role in the decision-
makingprocedure of the customers. Growth and brand image of the business is again a
factor, which actually negatively impacts the decision making of the consumers.
Conclusion
After the completion of this assignment, it can be concluded that it is crucial for the
chosen organization to produce better analysis of their customer behaviour and their
decision making for serving them with quality product of their choice. Additionally this
will allow the business in creating a better customer base for them, which can support
the development of the business.

Page10
Assignment 2
Introduction
This part of the study focuses on different aspects of consumer decision-making and
this study will further be helping M&S in understanding the ways in which they should
connect to their targeted customers. Furthermore, it will focus on the ways in which it
should contact the B2B and B2C customers in order to create better selling of their
products.
Compare and contrast the key differences between B2C and B2B decision-
making processes
B2B and B2C are the forms of commercial transition and there are multiple differences
can be observed between B2B and B2C decision-making processes.
B2B B2C`
B2B is relied upon the demands of
corporate organizations as well as the
services that owners buy.
B2C is completely different business
context, where all the business decisions
are made keeping the customer base in
mind. Customer base is the focus of this
commercial transaction form.
This B2B decision-making process is
time consuming and need approval
from several higher departmental
authorities.
B2C decision-making process starts with
identifying customers’ expectations and
ends with ways to meet their demands.
The entire decision-making process is
customer centric.
In B2B form of commercial transaction,
interaction between organization
owners and decision-making must be
conducted in formal manner.
B2C business scenario is different. The
interaction between customers and
organization can be informal as well to
facilitate the decision-making process.

Page11
Evaluate how market research differs between B2B and B2C
The market research process for B2B and B2C are considered as two forms of
commercial transactions that are different. As the B2C form only focuses upon attracting
their customers, B2C form always conduct market research to evaluate the needs,
demands and expectations of the customers. The aim of their market research is
analyse the data and information on buyer behaviour. It always seeks for the trending
products and services. On the other hand, B2B context is different and mostly corporate
organizations are the main target in this form of business (Gottlieb et al., 2014). It needs
an understanding of statistical data. Additionally, B2B market researchers are more
professional than the B2C researchers are and they gather all the statistical data to
make their pitch to corporate organizations more effective. A verity of software and tools
are used for understanding the needs of corporate giants and meeting their
expectations in appropriate manner.
Illustrate how personality, self and motivation, and customer perception influence
on the decision-making process
In order to make important decisions in organizations such as M&S, this is such vital for
ventures to make proper utilisation of their personality, consumer perception and self-
motivation. As per the market researchers,it is possible for the business organizations to
boostthe growth of business through using the personality and consumer motivation.
Additionally, by understanding the customer perception and purchasing behaviour,
organizations can make better business decisions in business to attract them.
Personality and self-motivation is another important consideration. In order to
understand customer behaviour, personality, self and motivation of the company plays a
major role. Appropriate personality of business individual influences customers and their
purchasing behaviour, which results in greater sales of the company.Alternatively, due
to high sales, company can generate higher revenue in business that allows making
better business decisions. Another key consideration is motivation that infleunes the
mindset of business individuals to function more effectively. It increases the business
growth and assists to make correct choices in business. Therefore, personality, self and
motivation and customer perception have great role in influencing decision-making
process.

Page12
Evaluate behavioural and cognitive approaches to consumer learning
The use of behavioural and cognitive approach influences the consumer behaviour. It is
considered as an important part to understand and comprehend the elements for
organizations. The growth of the inputs, which are vital for the business, is indicated
through the behavioural theory (Davidaviciene et al., 2017). However, it comes under
the instrumental as well as classical form of business. However, it is associated with
multiple advantages that lie in acquisition of approaches, which are related to business
growth. Another important approach is cognitive approach, which tends to the key facts
relate to consumer thinking and growth. By using these consumer-learning theories,
organizations such as M&S can make use of vital business elements associated with
organizational growth.Both of the cognitive and behavioural approaches to customer
learning are effective and useful in business for higher growth and progress.
Identify how culture and other relevant factors affect consumer behaviour
Culture is important consideration, it plays an essential role in influencing the consumer
decision making, and it is relevant for the business to identify those in order to propose
them the right product (Pansari and Kumar, 2017). With the support of this information,
a business developer can make proper strategies for the growth of their business. M&S
and its food products need to be such that the customers of the business are attracted
towards it. It is essential for the business to identify the food pattern that is followed by
the targeted customers, which can help them in offering the needed products, meeting
the satisfaction level of them.
Seasonal demand is another factor, which the business needs to keep in mind while
operating their actions within the market, which can aid them in attracting better number
of customers. The need of understanding the external factor of the economy is another
essential thing,. Availability of the resources and management of supply chain also
plays a vital role in the sustainment of the business process and even in meeting the
customer needs.